If your company carries out operations with related companies or individuals, applies the tax incentive of the Patent Box or has carried out operations with tax havens, we remind you that the tax regulations of the Corporation Tax require you to declare and report the operations carried out through Form 232, which is the informative declaration of related operations and operations and situations related to countries or territories classified as tax havens.

If your company closes the year on December 31, 2022, the declaration period expires this current November. Otherwise, it must be prepared in the following month after the 9-month period has elapsed since the close of the fiscal year.

There is an obligation in the following 5 cases:

  • When the amount of the consideration with each related entity exceeds the quantitative limit of €250,000 for the set of operations,
  • If you carry out specific operations as long as the combined amount of each of these types of operations exceeds €100,000,
  • If the set of operations of the same type and valuation method with related persons or entities represent a value greater than 50% of the entity’s turnover, regardless of their amount,
  • If they carry out operations or have securities in countries or territories classified as tax havens, regardless of their amount.
  • When an entity benefits from the reduction of the “Patent Box” regime for operations with related persons or entities.

There is no obligation to report on form 232 operations between entities that are members of the same tax consolidation group and those carried out with its members by economic interest groups or temporary business unions.

There is an obligation for those related operations with entities that are not part of the group (for example, abroad).

The incorrect or falsified presentation of form 232 may entail a proportional fine for the taxpayer of up to 2% of the amount of the undeclared or incorrectly declared operations, with a minimum of €500.

Addwill has a team of experts with the necessary experience to inform you, advise you and carry out the exact and efficient presentation of Form 232.

For more information, we invite you to visit the related publication (https://addwill.eu/obligacion-tributaria-en-noviembre-el-modelo-232/) on the addwill website.