Waiver of the tax consolidation regime (boxes 626 and 646)

The tax consolidation regime is a special tax regime regulated in Chapter VI of Title VII of Law 27/2014, of November 28, on Corporate Income Tax.

The groups will be able to opt for this tax regime. In such case, the entities comprising them will not pay taxes under an individual regime.

The individual tax regime shall be understood as the one that would apply to each entity if the fiscal consolidation regime were not applicable.

According to article 61 of the LIS :

1. The tax consolidation regime will be applied when agreed upon by each and every one of the entities that must make up the tax group.
2. The agreements referred to in the previous section must be adopted by the Board of Directors or equivalent body, on any date of the tax period immediately preceding the one to which the tax consolidation regime is applicable.
3. Entities that are subsequently integrated into the tax group must comply with the obligations referred to in the previous sections within a period that will end on the day on which the first tax period in which they must pay taxes under the tax consolidation regime ends.
4. The lack of agreements referred to in paragraphs 1 and 2 of this article will result in the impossibility of applying the fiscal consolidation regime.

   The lack of the corresponding agreements for the entities that must henceforth be integrated into the tax group will constitute a serious tax infringement by the representative entity. The penalty will consist of a fixed monetary fine of 20,000 euros for the first tax period in which the regime has been applied without complying with this requirement and 50,000 euros for the second and subsequent periods, and will not prevent the effective integration of the affected entities into the group.

   The penalty imposed in accordance with the provisions of this section shall be reduced in accordance with the provisions of section 3 of article 188 of Law 58/2003, of December 17, General Tax Law.

5. Once the option has been exercised, the tax group will be linked to this regime indefinitely during the following tax periods, as long as the requirements of article 58 are met and as long as its application is not renounced through the corresponding census declaration (box 626), which must be exercised, where applicable, within 2 months from the end of the last tax period of its application.
6. The entity representing the tax group shall communicate the agreements mentioned in section 1 of this article to the tax authorities prior to the start of the tax period in which this regime is applicable.

   In the case of a tax group formed under the terms established in the second paragraph of section 1 of article 58 of this Law, the representative entity shall communicate, under the same terms as those provided in the previous paragraph, the agreement adopted by the dominant entity not resident in Spanish territory, by which the representative entity of the tax group is designated. Failure to communicate this agreement will have the effects established in section 4 of this article.

   Likewise, when changes occur in the composition of the tax group, the representative entity will notify the tax authorities, identifying the entities that have been integrated into it and those that have been excluded. This communication will be made in the declaration of the first fractional payment affected by the new composition.