Spain: Modelo 232 – Fiscal Year 2023

published on 22 October 2024 | reading time approx. 5 minutes

Related party transactions, reduction of income that comes from intangible assets and operations and situations related to tax havens must be declared in the Modelo 232.

Aspects to be highlighted »
When there is an Obligation to file the form? »
How is it filed? »
When is it filed? »
What may happen if the form is not filed or is filed incorrectly? »
Supporting documentation »

Aspects to be highlighted

1. When the total amount of the operations between two related party exceeds the market value of 250,000 euros all controlled transactions with that related party must be declared, regardless of their individual amounts. The declaration must be filed for each related party according to each type of transaction and valuation method, without netting the amounts.

For example:

If a company has 3 types of transactions with a related party:

Purchase of Products – 60,000 euros
Sale of Products – 5,000 euros
Interests Payment – 95,000 euros
Provision of Services – 150,000 euros

All 4 operations should be declared separately.

2. Specific transactions: All transactions must be declared in Form 232, even if there is no obligation to document them, and as long as they exceed 100,000 euros in total for the same type of transactions.

3. Taxpayers’ turnover: All transactions of the same type and valuation method that exceed 50 percent of the entity’s sales must be declared in Form 232, even if there is no obligation to document them.

For Example:

Entity X has a turnover of 350,000 euros and has made sales worth 100,000 euros to related entity A, worth 30,000 euros to related entity B, and worth 57,000 euros to related entity C. Additionally, it has provided services to entity A worth 10,000 euros and to entity C worth 3,500 euros.

Since the total amount of the sales transactions with all related parties (185,000 euros) exceeds 50 percent of the turnover (175,000 percent), all 3 sales transactions must be declared in the form.

With regard to the provision of services, since the total (13,500 euros) does not exceed 50 percent of the turnover, it would be unnecessary to include these service transactions in Form 232.

When there is an Obligation to file the form?

1. Taxpayers of the Corporate Income Tax and the Non-Resident Income Tax who operate through a permanent establishment as well as entities under the income attribution regime constituted abroad with a presence in Spanish territory, which carry out transactions with related persons or entities that exceed the threshold indicated in the following table:

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2. Taxpayers who apply the reduction of income from certain intangible assets or the patent-box regime (art. 23 CITL and TP 20ª CITL).

3. Taxpayers who carry out transactions or hold assets in countries or territories classified as tax havens, regardless of the amount.

It will not be mandatory to complete Form 232 for the following transactions (regardless of the volume of transactions):

Operations excluded from the obligation to submit Form 232

– Operations carried out between entities that are part of the same tax consolidation group

– Economic Interest Groupings (AIE), Temporary Business Associations (UTES), except for UTES or other similar forms of collaboration that benefit from the exemption of income obtained abroad through a permanent establishment (Article 22 of the Corporate Income Tax Law)

– Operations carried out in the context of public offerings for sale or for the acquisition of securities (regardless of the volume of operations)

How is it filed?

Form 232 must be filed electronically through the “Agencia Estatal de Administración Tributaria” (hereinafter,“AEAT’s”) electronic headquarters.

It is necessary that:

The taxpayer has a Tax Identification Number
The electronic filing is made using an electronic certificate recognized by the AEAT

When is it filed

The deadline for filing Form 232 is during the month following the ten months after the end of the tax period to which the information to be provided refers. Thus, for taxpayers whose tax period coincides with the calendar year (i.e., ends on 31 December 2023), the deadline for filing the declaration is set between 1st November and 30 November 2024.

What may happen if the form is not filed or is filed incorrectly?

Since it is an informative declaration, the late filing or incorrect filing is not subject to the specific penalty regime for intercompany transactions. In these cases, the penalty regime provided for in Articles 198 and 199 of the General Tax Law (hereinafter, “GTL”) applies.

If the form is not filed: a fixed monetary fine of 20 euros for each data or set of data related to the same person or entity that should have been included in the declaration, with a minimum of 300 euros and a maximum of 20,000 euros (Article 198.1 GTL)
In case of late filing (or corrected filing) without prior requirement from the Tax Administration: a fixed monetary fine of 10 euros for each piece of data or set of data related to the same person or entity that should have been included in the declaration, with a minimum of 150 euros and a maximum of 10,000 euros (Article 198.2 GTL)
If the form is incorrectly filed: a proportional monetary fine of up to 2 percent of the amount of the undeclared or incorrectly filed transactions, with a minimum of 500 euros. If the amount of the undeclared or incorrectly declared transactions represent a percentage higher than 10, 25, 50, or 75 percent of the amount of the transactions that should have been declared, the penalty will consist of a proportional monetary fine of 0.5, 1, 1.5, or 2 percent of the amount of the undeclared or incorrectly declared transactions (Article 199.5 GTL)