Spanish Social Security “flat rate” does not apply to subrogated firms' permanent employees
Ruling: Supreme Court warns that Social Security “flat rate” does not apply to subrogated firms' permanent employees
Royal Decree-Law 3/2014 establishes the following as a requirement to access Social Security subsidies: "the signing of permanent contracts that lead to both an increase in the number of permanent jobs and in the total number of jobs in a company".
The Supreme Court can therefore only conclude that "in cases where the permanent contracts refer to employees already working for the outgoing company, in which the interested, or incoming, company assumes the contracts in accordance with the collective bargaining agreement for the sector, it is clear that there has been no increase in the number of jobs and thus it cannot be considered that the 'flat-rate' subsidy applies".
Country-by-country reporting in Spain
Royal Decree 1074/2017 of 29 December, amending direct tax regulations in Spain
This Royal Decree amends the regulations governing information and documentation on entities and related transactions, including the requirement for country-by-country reporting (form 231), following the work scheme provided for in drafts prepared by the OECD and in particular the action referred to as “Action 13”.
The European Union accepted the OECD's work and subsequently drew up and approved Directive (EU) 2016/881 of 25 May 2016 amending Directive 2011/16/EU on the mandatory automatic exchange of information in the field of taxation, including in it the regulations applicable to country-by-country reporting by multinational enterprise groups.
If there are various dependent entities resident in Spain and one has been designated or appointed by the group to file the information, only that entity will be obliged to do so.
Spain - Immediate Supply of Information System (SII).
Royal Decree 1075/2017 of 29 December amending indirect and special tax regulations in Spain
Another Royal Decree has been implemented with the same effect as the previous one but for indirect taxes, meaning the year has ended with a tax reform for direct, indirect and special taxes.
The regulation implements measures to facilitate compliance with the new Immediate Supply of Information System (SII).
One such measure is the possibility of the Spanish Tax Agency (AEAT) determining, on justified grounds and only in certain cases, that the information sent need not include all the mentions or all the information set out in the tax register books, and that summary invoice entries may be made in conditions other than those established in general. It remains to be seen whether a subsequent regulation will define the cases in which the above authorisation can be given.
Taxpayers who voluntarily decide to apply the SII are also permitted to maintain their quarterly settlement period.