Form 232
November is the month when companies whose tax period coincides with the calendar year must submit Form 232.
Form 232 is a mandatory annual information return for certain entities that must report related-party transactions and transactions or situations involving countries or territories considered tax havens. It must be filed electronically in order to enhance tax transparency and control over related-party transactions, ensuring that they are carried out in accordance with the principle of free competition or ‘market value’.
Corporate income tax payers, non-resident income tax payers with a permanent establishment in Spain and entities under the income allocation regime are required to file Form 232. The obligation arises when, during the tax period:
- Transactions are carried out with the same person or related entity whose combined amount exceeds €250,000 at market value.
- Specific transactions (such as property transfers, transfers of intangible assets or shareholdings) exceeding €100,000.
- When transactions of the same type and valuation method represent more than 50% of the entity’s turnover.
- In addition, it must be submitted whenever there are transactions or holdings of securities in countries or territories classified as non-cooperative jurisdictions, regardless of the amount.
The form collects identifying information about the declarant (company name, tax identification number, fiscal year) and related persons or entities, including the nature of the transaction, the valuation method applied, and the amount.
The deadline for submission is the month following the ten months after the end of the tax period. In financial years that coincide with the calendar year, the deadline for submission is between the 1st and the 30th of November of the following year. However, when the tax year does not coincide with the calendar year, the deadline is adjusted to the corresponding dates according to the end of the financial year.
Transactions between entities that are part of the same tax group are not required to be reported on Form 232.
Failure to comply with the obligation to file Form 232, filing it after the deadline, or filing it with incomplete or incorrect information may result in penalties.
