Form 232 is the informative declaration of the related transactions that must be submitted from November 1 to 30 to the Spanish Tax Agency for tax calendar year periods.
¿Which ones are considered as related transactions?
Related operations are those between:
- An entity and partner
- An entity and its managers or directors
- An entity and the spouses or people united by kinship relations until the third degree.
- Same group entities
- An entity and the managers of another group entity
- One entity and another indirectly invested in at least 25% of capital
- Two entities with same partners or family members with more than 25% of capital
- An entity resident in Spain and its permanent establishments abroad.
Who must submit model 232?
Resident legal entities, non-residents legal and natural persons acting through permanent stablishment and the entities that allocate income consitituted abroad with presence in Spanichs territory will be obliged to submit the informative declaration, model 232. Therefore, resident natural persons does not have to submit model 232.
From what amount is the submission of model 232 mandatory?
The informative declaration will be obligatory in cases where the market value of all the operations:
1. Made with the same person or entity, exceeds 250,000 euros.
2. Specific and same type of transactions exceeds 100,000 euros.
3. Specific and same type of transactions greater than 50% of the turnover.
Specific transactions are:
• Transactions with related persons made by natural persons in the development of an economic activity who apply the objective estimation method
• Business transmission operation
• Transfer of securities or company shares not admitted to trading or admitted to trading in regulated markets located in countries or territories classified as tax havens
• Real estate transfer operations
• Intangible assets transactions
What operations are excluded from the obligation to submit model 232?
The operations performed by the Fiscal Group, IEAs or joint ventures (except those that are exempt from income obtained abroad through Permanent Establishments), and operations carried out in the field of public offers of sale or acquisition of securities are excluded from the obligation to present this model, all of them regardless of their volume.
What is the content of model 232?
In this informative declaration, the Tax Agency will be informed about:
– NIF
– Business or personal name
– Type of linkage
– Type of operation
– Valuation method
– Amount of the operation
Are you always obliged to document related transactions?
At first, all transactions between related parties must be documented with the exception of those that do not exceed the amount of 250,000 euros, those carried out by tax consolidation groups, IEAs or joint ventures, as well as those carried out in the field of public offers of sale or acqusition of securities.
The required documentation may be more or less complicated and extensive.
1. Very simplified documentation: Annex V. Applicable for Entities of Reduced Dimension.
2. Simplified documentation. Net revenues < 45 million euros.
3. Normalized documentation. Net revenues > 45 million euros.
For more information, you can contact the Tax Department.