Reporting duty for cross-border tax arrangements

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1. This law brings into Spanish law a European directive requiring the reporting of certain potentially aggressive cross-border tax arrangements. Reporting an arrangement does not mean it is fraudulent, only that it shows signs of aggressive tax planning.
2. Intermediaries and interested taxpayers must give the Tax Agency information on cross-border arrangements they take part in, update information on marketable ones, and report their use in Spain. Those who only advise on whether the arrangement complies with the rules, and are bound by professional secrecy, are exempt.
3. Filing late, or filing incomplete, inaccurate or false returns, is a serious offense: a 2,000 euro fine per data item, with a 4,000 euro minimum and a cap tied to fees or the tax effect of the arrangement. Filing outside the mandatory electronic channels carries fines of 750 to 1,500 euros.
4. Anyone exempt from filing due to professional secrecy must notify the other participants, and whoever has already filed must notify the rest to release them from the duty. Failing to make these notifications is a minor offense with a 600 euro fine, which becomes serious if no one files the return.
5. Arrangements whose first implementation step took place between June 25, 2018 and June 30, 2020 must be reported within the deadlines set by regulation. The law also applies to obligations arising from July 1, 2020 onward.
6. The Inheritance and Gift Tax is amended to make self-assessment mandatory in thirteen Autonomous Communities, including Andalusia, Catalonia, Galicia and Madrid. The law enters into force the day after its publication in the official state gazette (BOE).

Words worth knowing

Mecanismo transfronterizo (cross-border arrangement)

A tax setup or transaction involving more than one country that shows signs of aggressive tax planning.

Intermediario (intermediary)

A person or company that designs, markets, organizes or manages these tax arrangements, such as advisors or banks.

Obligado tributario interesado (interested taxpayer)

The person who uses or benefits from the tax arrangement and must report it if the intermediary does not.

Autoliquidación (self-assessment)

Figuring out and paying the tax yourself, filing the return with the Tax Agency without waiting for a bill from it.

Secreto profesional (professional secrecy)

A legal duty of certain professionals not to reveal what they learn through their work, which can exempt them from reporting.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries