- The tax authority in Spain is the Spanish National Tax Agency (Agencia Estatal de Administracion Tributaria – AEAT) and General Directorate of Taxation (Direccion General de Tributos – DGT).
- Spain is an OECD member,
- Spain, and the Spanish Transfer Pricing Guidelines are generally consistent with the OECD guidelines, meaning that taxpayers above a certain threshold are required to prepare master and local files.
- Form 232 is a special informative return for transfer pricing, disclosing details about related-party transactions. It must be filed within 11 months after the fiscal year end.
- Transfer pricing reports are not required to be filed, but they are due to tax authorities within 10 days of request.
- BEPS OECD-compliant reports are sufficient for penalty protection. Lack of a local file may result in a formal penalty of EUR 1000 per omitted, wrong, or false data item, or EUR 10,000 per group of data items.
- Local tax auditors tend to adjust transactions that are higher than the interquartile range to the median of the range.
- Transactions centering around restructuring, intangibles, or cash pooling are of major interest to the authorities.
- Permanent establishments and branches are subject to the transfer pricing documentation requirements.
- The corporate return is due six months and 25 days after the end of the fiscal year.
- Documentation is required annually.
- Spain has no materiality limits.
- While a report may be accepted in English, tax authorities are not required to accept reports in any language besides Spanish.
- There is no legal requirement for local comparables, but they are preferred if available, but regional are acceptable.
- Multi-year spreadsheet interquartile range preferred.
- Transfer pricing audit risk is medium.
