MODEL 200 (INCOME TAX)

New highlight of the Order EHA/1246/2011 of May 9, published in the Official Gazette, on May 17, in connection with the model 200.

Reason:

reform of transactions, beginning with the Law 36/2006 of November 29, measures to prevent tax evasion, had as one of the main objectives regular documentation requirements that must accompany those with the aim of adapting to the OECD guidelines on transfer pricing. The enabling legislation was made by Royal Decree 1793/2008, of November 3, by amending the Income Tax Regulations, approved by Royal Decree 1777/2004 of 30 July.

However, in 2010 have carried out a series of measures to simplify documentation requirements. So, first, the Royal Decree Law 6/2010 of 9 April on measures to boost economic recovery and employment, amended Article 16 of the text of the Corporate Income Tax Law approved by Royal Decree 4/2004 of March 5, in relation to obligations documentation in order to exempt them to those companies whose turnover for the tax period is less than 8 billion euros, provided that the set of such operations performed by the taxpayer in that period did not exceed 100,000 euros market value. This rule extends to all transactions of whatever nature provided that this amount is exceeded, with the only exception being carried out with persons or entities resident in a country or territory classified as a tax haven.

Moreover, single additional provision of Royal Decree-Law establishes a period of three months from its entry into force to change the tax rules governing the documentation requirements.

Royal Decree 897/2010 of 9 July, by amending the Income Tax Regulations, approved by Royal Decree 1777/2004 of July 30, regarding the documentation requirements of transactions, fulfills this mandate by establishing the second simplification that reaches to all taxpayers, including companies whose turnover for the tax period not exceeding 8 million.

NEWS REGARDING THE DECLARATION OF INCOME TAX - FISCAL YEAR 2010 (MODEL 200)

So, are excluded from documentation obligations set of operations not exceeding 250,000 euros, whose computation does not take into consideration the specific operations for which the obligation to documentation except which are exempted by the provisions of Royal Decree-Law 6/2010, made in the tax period to the same person or related entity, whatever the size of the company and the domestic or international operations. However, establishing certain exceptions to this exemption for specific operations: The first one is due to transactions with persons or entities resident in tax havens; the second exception is directed to certain transactions such as those made by individuals to whom these apply objective assessment method, if carried out in the field of economic activity subject to this method, or in the transmission business, wallets, property or operations intangible assets that have that qualification under accounting standards.

We must remember, as a result of these modifications, the model 200 of the Income Tax return and tax for non-resident income to permanent establishments and entities subject to income attribution established abroad with presence in Spanish territory, it will never be an obligation to report transactions when those transactions for which there is no documentation required. For its part, the final disposition of the fifteenth Law 26/2009 of December 23 of the General State Budget for 2010, by amending Law 11/2009 of October 26, which regulates Listed Companies Investment in Real Estate, states that the special tax rate of these companies is 19 percent and the percentage to be applied in case of breach of condition of stay, as provided in paragraph 7 of Article 9 latter law and when it is not partially exempt income, will be 11 percent.

Other developments that affect the tax return form for tax periods beginning on or after January 1, 2010 were established by Law 4/2008 of 23 December, abolishing the tax levy Heritage, is generalized system of monthly return in the Value Added Tax, and introducing other changes in tax regulations and under which an additional provision was added eleventh in the text of the Income Tax Act for tax periods beginning in 2009 and 2010 in regulating the accelerated depreciation of new items of fixed assets and real estate investments, provided that the requirements are given regarding the maintenance of employment set out in the rule. Also noteworthy is the Law 26/2009 of December 23 of the General State Budget for 2010 which added a twelfth additional provision to the text of the Income Tax Act by amending the tax rate for certain societies. The declaration form has no significant developments to maintain the format of previous years and must, prior to the filing of the statement, account for some additional information by filling in specific forms for this purpose. New EHA/1338/2010 introduced by the Order, which approved the 200 model for 2010.

- Major developments to note the contents of the eight items that make up the order:

Format for models (Art. 2)

3. Except when electronically filing mandatory, are valid models of paper return of income tax and Tax Non-Resident Income (permanent establishments and entities subject to income attribution incorporated abroad with presence in Spanish territory) adjusted the contents of the model 200 are generated solely by using the print service developed for this purpose by the State Tax Administration Agency, having the following characteristics a) does not necessary to incorporate identification labels and the printing itself generates the bar code label with the identifying data of the holder.

b) After filing the statement in the collaborating institution should not be put in an envelope and sent to the State Tax Administration Agency, in contrast to statements in the official pre-printed. Thus, both formats supporting statement incorporating different numbers.

c) The data reported on these statements and their corresponding income or return documents prevail over changes or corrections that may contain manuals, so they do not have effect before the tax.

New: However, for security reasons, the documents of income and return the print service left blank the entry for the NIF, which must be manually filling. Similarly, at the time of presentation in the collaborating institution, the customer account code can be modified in respect of which is printed on the entry document and return.

procedure for electronic filing of declarations (Art 7)

3. If the result of the declarations for the models 200 (mandatory electronic filing of cases) and 220 is to enter and are presented with a request for compensation, rescheduling or, or acknowledgment of indebtedness, shall apply the provisions of Articles 71 and following of the Law 58/2003 of December 17, General Tax and 55 et seq General Revenue, approved by Royal Decree 939/2005 of 29 July, and Articles 65 of the Tax and 44 et seq General Collection, respectively.

data transmission procedure of the statements with a request for rescheduling or, recognition of debt with simple application for compensation or acknowledgment of debt will be provided in the preceding paragraphs, with the peculiarity that the presentation is complete the statement, the presenter will In addition to insurance verification code a winding key with which, if desired, may seek compensation, rescheduling or at the same time obtaining this key liaison appointed for that purpose, or at a later time in the electronic office of the State Agency of Tax Administration on the Internet, e-mail address https://www.agenciatributaria.gob.es through the option Procedures, Services and Procedures (Information and Registration) / Collection. (The wording in bold is new )

4. When the declaration is filed electronically and taxpayers should accompany the same whether the additional information is required prior to in paragraphs 6 and 7 of Article 2 of this order or communication indicated in the letter f ) of paragraph 5 of Article 2 of this order, will use the specific forms that have been defined for it, and that the taxpayer must file electronically prior to the filing of the statement. You'll need to connect to the online site of the State Agency for Tax Administration's website (https://www.agenciatributaria.gob.es) and within the tax option, through procedures, Services and Procedures (Information and Registration), select the concept timely fiscal and procedures for the procedure assigned to the 200 and 206. When the declaration is filed electronically and taxpayers should accompany the same all documents, applications or demonstrations of options not expressly included in the model itself declaration, in particular those listed in b) c) d) e ) of paragraph 5 of Article 2 of this order, and in those cases in which such statements are returned, those who request a refund by crossed check the Bank of Spain, such documents, applications and demonstrations will be presented in electronic record of the State Tax Administration Agency, for which the declarant must be connected to the electronic office of the State Agency of Tax Administration on the Internet, email https://www.agenciatributaria.gob.es and within the option Revenue by Procedures Services and Procedures (Information and Registration), select appropriate fiscal the concept and process of providing additional documentation that is appropriate for the procedure assigned to the models. (The wording in bold is new) The content of the pages that make up the 200 model highlight:

Transactions with related persons or entities.

See instructions for completing

(page 20 of the model)

- Entry into force This order shall come into force on July 1, 2011.

- Deadline for submission: July 25 2011 if your exercise coincides with the calendar year. Now, the entities that fill in the presentation via telematics and proceed to make the income tax debt by direct debit within end next July 20 2011. Barcelona, June 2011