Spain Confirms New CbC Reporting Obligation

The Government of Spain has announced that new country-by-country (CbC) reporting obligations will be effective in Spain for tax periods beginning on or after January 1, 2016.

The CbC reporting obligation, which was announced on January 20, 2015, will technically apply from 2017, when tax returns for the previous year are due.

With the announcement, Spain has become the second country in Europe to formally commit to the implementation of the Organisation for Economic Co-operation and Development’s proposals on CbC, after the UK committed in September to introduce the proposed reporting templates.

The OECD’s proposals, under Action 13 of its work on base erosion and profit shifting (BEPS), will require multinationals to provide a variety of information on their operations and tax arrangements, including on the allocation of revenues, risks, and profits among group members and details of their economic activities and tax payments.

The Government also recently introduced comprehensive changes to the country’s transfer pricing and controlled foreign corporation rules.