For the internationalization process of business, it is necessary to adapt to factors in tax matters such as BEPS, which is an initiative of the OECD to warn of tax strategies that take advantage of inconsistencies in the legal systems a country has. It has already been incorporated into Spain’s tax legislation.
For example, the incorporation of capital gains by changes of residence, known as exit tax, the limitations to the deduction of interests in the Corporate Tax, or the information obligations for international groups, the Country-by-Country Report, in the matter of transfer pricing.
These internationalization processes require that companies make an analysis and advice on tax matters to provide legal certainty to the decisions they make before the consequences that could be generated.
Even in the minor processes, companies seek implementation in another country by the least possible means, such as hiring a commercial agent to put the company in contact with potential customers in the country of destination.
Another situation occurs when we transfer to our subsidiary intangible assets that have a value and that, in a transfer to a third party, would imply a charge. Given this, the administration understands that there is a transaction linked to a tax audit, which, although not recorded or documented, must entail taxable tax considering its market value.
Therefore, it is necessary to carry out a transfer pricing analysis under the BEPS prism to mitigate potential risks. Thus, a business internationalization process must include a comprehensive tax plan.
Source: Diario El País 24/03/22