Treatment of the Entity Debts' Write-Offs in the Personal Income Tax (IRPF) of the Partners

A limited liability company owes certain amounts to its partners, individuals who, in the face of the continuing losses of the entity, decide to forgive it, as a contribution to the company's equity.

TAXATION OF SHARE ISSUE PREMIUMS AND PARTNER CONTRIBUTIONS RETURNS

We are going to review how to tax share issue premiums and contributions from partners’ returns after the tax reform of the IRPF Law 26/2014.

“Beckham Law” Spanish Non-Resident Income Taxation for Residents in Spanish Territory

Popularly called “Beckham Law” was approved to allow non-residents who acquired tax residence in Spain to continue paying taxes under the non-resident income tax (IRNR) system, that is, by applying a lower fixed general rate at the marginal rate provided for in the regulations on Personal Income Tax (IRPF), in the tax period in which the change of residence takes place and the following five tax years. Thus, this tax incentive mainly benefits those taxpayers with high labour incomes.

Related-Party Operations and Tax Havens: Information Obligation

OM HFP / 816/2017, BOE 30-8-17
Effective for tax periods beginning after 1-1-2016, the obligation to fill in the reporting tables with related persons or entities and with operations and situations related to countries or territories classified as tax havens, traditionally contained in model 200 of corporate tax returns, is transferred to this new information statement (model 232), regulating in more detail the content of the information to be provided.

Related Transactions:Country-by-Country Documentation

OM HFP / 1978/2016, BOE 30-12-16
For tax periods beginning on or after 1-1-2016, entities resident in Spanish territory that are dominants of a group, as defined for the purposes of related operations, and that are not, at the same time, dependent on another non-resident entity, must provide country-by-country information.