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THE TAXATION THAT COMES TO US

Tax Law

THE TAXATION THAT COMES TO US

Currently, the General State Budget Law of the year 2019 (LPGE) is being processed in Congress, which proposes several modifications that will have a great impact on societies.
 
The first major modification refers to the limitation of the exemption on dividends and positive income (capital gains) derived from the transfer of securities representing the own funds of resident and non-resident entities in Spanish territory.
 
The proposed reform is covered by Article 4 (3) of Council Directive 2011/96 / EU of November 30, 2011, concerning the common tax regime applicable to parent companies and subsidiaries of different Member States (Parent Directive). Subsidiary), which allows the Member States that the management expenses related to the participation in the subsidiary entity are not deductible from the taxable profit of the parent company, being able to be fixed flat without, in this case, its amount may exceed 5% of the profits distributed by the subsidiary company.
 
For these purposes, it is modified with effect for the tax periods that start from January 1, 2019 (although we understand that it will take effect from January 1, 2020, to the extent that the LPGE will enter into force during the year 2020) the precept that regulates the exemption on dividends and income derived from the transfer of securities representing the own funds of resident and non-resident entities in Spanish territory, so that the amount that will be exempted will be 95% of the dividend or positive income obtained.
 
Likewise, this limitation of the exemption on dividends and positive income will be applicable to entities that are part of a tax consolidation group in the Corporation Tax. Internal dividends and income derived from the transfer of the participation over an entity of the tax group will not be subject to elimination.
 
In relation to the Merger by Absorption and Excision operations when the acquiring entity participates in at least 5% in the own funds of the transmitting entity, the LPGE project also limits the integration in the taxable base of the positive income to 95% and the negative income derived from the cancellation of the participation.
 
The same limitation of the 95% exemption applies to companies that pay taxes under the international tax transparency regime, and to the deduction for dividends and capital gains generated prior to January 1, 2015.
 
If you want more information, you can contact D. Jesús de Grado in the E-Mail: degrado@s491712346.mialojamiento.es.

http://www.congreso.es/public_oficial/L12/CONG/BOCG/A/BOCG-12-A-38-1.PDF
 
https://elpais.com/economia/2018/10/02/actualidad/1538506248_499596.html
 
https://www.lavanguardia.com/economia/20190906/47196780516/sanchez-incremento-ingresos-fiscales-gobierno-gasto.html
 
https://www.expansion.com/accesible/2015/01/16/juridico/1421426363.html

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