Form 232 is an information return in which the Tax Agency is informed of related-party transactions and transactions and situations related to countries or territories classified as tax havens.
Related-party transactions are regulated in Article 18 of the Corporate Income Tax Act.
The deadline for filing this form is within the month following the ten months after the end of the tax period. Therefore, if a company ends its tax year on 31 December, the deadline for filing is November.
There is an obligation to file this return when transactions are carried out with related persons or entities, according to the following assumptions:
- – Transactions carried out with the same person or related entity for an amount greater than 250,000 euros.
- – Specific transactions carried out, provided that the total amount of each of these types of transaction in the tax period exceeds 100,000 euros. Specific transactions are regulated in article 18.3 of the Corporate Income Tax Act.
- – Transactions of the same type which in turn use the same valuation method carried out with a related person or entity accounting for more than 50% of the net turnover of a company.
- – Transactions with countries considered tax havens.
- – When the reduction in the tax base provided for in Article 23 of the Corporate Income Tax Act is applied for the assignment of certain intangible assets to related persons or entities.
In short, this is yet another tax obligation that companies must comply with if they are obliged to do so, so please do not hesitate to contact our team to resolve any queries you may have.
Sara Gámez Córdoba