Informative Declarations of November: The Model 232 for Linked Operations

Taxation
WRITTEN BY Gerard Blanch i Llorens
23 Nov, 2023 — 4 min
Informative Declarations of November: The Model 232 for Linked Operations

We refer to Order HFP 816/2017 of August 28, published in the B.O.E. on 08/30/2017. This provision creates the Model 232 to collect information on linked operations previously collected in the Corporation Tax declaration. This declaration must be presented in November of each year and will contain information relating to the tax period that began on or after January 1 of the previous year.

In this same form, operations and situations related to countries or territories considered as tax havens must also be declared.

What is defined as a linked person or entity:

What is defined as a linked person or entity:

  • Entity and its partners or shareholders
  • Entity and its directors or administrators
  • Entity and the spouses and other degrees of kinship, in a direct or collateral line up to the 3rd degree of partners and directors or administrators
  • Various entities that form a single group
  • The directors or administrators of other companies in the same group
  • Entities participated by another company in a minimum percentage of 25% of the equity.
  • Entities that share partners or spouses or other people up to the 3rd degree of direct or collateral kinship of the partners where they participate directly or indirectly at least 25% of the share capital or equity of the company.
  • Spanish companies and their permanent establishments abroad.

Which operations must be declared in Model 232 for linked operations:

  • Those carried out by a single company in the same group that exceed €250,000

  • Specific ones with a joint amount of each type exceeding €100,000

    • Operations of business transmissions

    • Transactions of shares of non-listed entities

    • Operations on real estate

    • Operations on intangible assets

  • Operations of the same type and valuation method, without a minimum amount in business figures, provided that the set of these operations exceeds 50% of the total business figure of the company.

  • Operations carried out by taxpayers of the Personal Income Tax included in modules, provided that jointly with the spouse, ascendants, or descendants they have a percentage equal to or greater than 25% of the capital or equity of the company.
  • It should be noted that this concept includes the amounts corresponding to real estate rentals.

Who is obliged to present:

  • Taxpayers who meet at least one of the above sections
  • Taxpayers who apply Art 23.LIS (Patent Box: a special regime that allows the reduction of 60% of the quotas of the linked operations in terms of the transfer of use of certain intangible assets)
  • Taxpayers who carry out operations or have values in countries or territories classified as tax havens.

When is it presented: 

During the month following the 10th month from the date of the annual closing, that is, if a company closes the fiscal year on December 31, it must present the M232 during the month of November of the following year.

We must also take into account that are excluded from its presentation:

  • Operations carried out between companies that integrate a single fiscal consolidation group.
  • AIES/UTES that take advantage of "The exemption of income obtained abroad through a permanent establishment" (Art.22 LIS).
  • Operations carried out in public offers of sale or acquisition of values.

Given its complexity, in case of doubts, contact your advisors.