As from the 2016 tax year, Ministry Order HFP/816/2017, of August 28, approved Form 232 (Modelo 232) for related-party transactions and transactions and scenarios related to countries or territories classified as tax havens. Through this form, information regarding these transactions—which had traditionally been included in Form 200 for the Corporate Income Tax return—was transferred to a new, separate informative tax return.
This form comprises three distinct disclosures:
Related-party transactions.
Related-party transactions in cases involving the reduction of income from certain intangible assets (patent box).
Transactions and scenarios related to countries or territories classified as tax havens.
As a general rule, this information must be submitted during the month following the ten months after the end of the tax period (or four months after the filing deadline for Corporate Income Tax returns). For instance, if the Company’s tax year aligns with the calendar year, the form must be filed during the month of November.
In the area of related-party transactions, the Corporate Income Tax Law and Regulations establish the obligation for affected entities to prepare transfer pricing documentation. However, it is important to note that the documentation requirement is separate and distinct from the reporting obligation, which is the subject developed under this ministerial order.
A penalty regime applies in the event of non-compliance with the obligation to submit Form 232, including late filing, as well as submitting incorrect or incomplete returns.
At UHY Fay & Co, we have a team of specialists in Transfer Pricing who can assist you both in the preparation and filing of Form 232 and in the subsequent preparation of transfer pricing documentation.
If you have any questions or require additional assistance, please do not hesitate to contact us. We are here to help you.
- Inmaculada Domecq, Tax & Legal Partner: idp@uhy-fay.com
- Ángela Rodríguez de Tembleque, Transfer Pricing Partner: art@uhy-fay.com
