Entities under the income apportionment system incorporated abroad with presence on Spanish territory

Law 46/2002, of December 18, on the partial reform of the Personal Income Tax and which modifies the Laws on Corporate Tax and Non-Resident Income Tax, included among the taxpayers of the latter tax entities under the income attribution regime established abroad, distinguishing between those that have a presence in Spanish territory and those that do not, depending on whether or not they carry out economic activities in Spain. For there to be a presence in Spanish territory it is necessary that all or part of the economic activities are carried out, continuously or regularly, through facilities or workplaces of any kind, or act therein through an agent authorized to contract, in the name and on behalf of the entity.

Article 38 of TRLIRNR contains the taxation rules for these entities with a presence in Spanish territory (see Chapter 15 of this Practical Manual). In particular, its tax base will consist of the part of the income that is attributable to non-resident members of the entity, regardless of where it is obtained, and must be determined in accordance with the provisions of article 89 of Law 35/2006, of November 28, on Personal Income Tax.

Filling in form 200

Consequently, these entities will use boxes [00409] and [00410] "Entities under the income attribution regime established abroad with a presence in Spanish territory (article 38 TRLIRNR)" on page 13 of form 200 to make the adjustments required by the application of their specific taxation rules.