Related Party Transactions

Persons or entities with related party transactions must make available to the tax authorities the documentation established by regulation.

Recently there have been a change regarding the requirement of documentation, this modification applies on the limit imposed on the obligations of the documentation.

Royal Decree 897/2010, of July 9, introduces a simplification through a new threshold that applies to all tax payers.

This new Royal Decree excluded from the above documentation requirements transactions in the tax period with the same person or related entity, when the amount of all such transactions does not exceed € 250,000.

So in case the total amount of transaction do not exceed the maximum allowed the elimination of the need to meet documentation requirements of the group as the taxpayer.

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