Spain | Tax Law Newsletter April 2021

CORPORATE INCOME TAX (“CIT”)

> Effects of Constitutional Court ruling declaring RDL 2/2016, regulating installment payments, to be unconstitutional and void

> Supreme Court judgment on the deductibility of late payment interest charged by the tax authorities as tax deductible expenses for the purposes of CIT

> Supreme Court judgment establishing doctrine on the concept “donations and gifts” and on the principle of matching revenues and expenses

PERSONAL INCOME TAX ("PIT”)

> The Supreme Court clarifies the interpretation of the calculation of travel time for the purposes of the exemption provided under article 7.p) of the PIT Act

> Supreme Court judgment on the scope of the exemption provided under article 7.p) of the PIT Act

INHERITANCE AND GIFT TAX (“1GT”)

> Supreme Court judgment on the taxation of free contributions made to a community of marital property

VALUE ADDED TAX ("VAT")

> Note issued by the tax authorities’ inspection department on full VAT adjustment

OTHER DEVELOPMENTS

> The Supreme Court reinforces its doctrine on mandatory inspections by public administration experts for the purposes of real estate valuation

> The CJEU confirms compliance with ELI law of the tax on the value of electricity production

> Transposition of European regulations on hybrid mismatches

> Spain concludes the transposition into national law of Council Directive (EU) 2018/822 of May 25 (“DAC 6”)

> Main practical aspects of the accounting reform > Agreement between Spain and the United Kingdom on Gibraltar