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Practical Manual for Companies 2022.

Other obligations of permanent establishments

Regulation: Articles 10, 22 and 23 TRLIRNR

Permanent establishments have the following obligations:

  • Keep your separate accounting , and comply with the rest of the accounting, registration or formal obligations required of resident entities under the Corporate Tax regulations.

  • They are subject to the same regime of withholdings and fractional payments as entities resident in Spain, the development of which is carried out in chapters 6 and 14 of this Practical Manual.

    In accordance with the above, split payments will be made using the same forms as those used by other corporate tax payers. These models are also applicable to entities under the income attribution regime established abroad with a presence in Spanish territory. These entities must make split payments under the same terms as non-resident income tax payers with a permanent establishment in Spain, for the amount corresponding to the portion of income attributable to non-resident members.

    Permanent establishments are also required to make withholdings and make payments on account under the same terms as an entity resident in Spanish territory.

  • Taxpayers of Non-Resident Income Tax who operate through a permanent establishment are required to appoint a representative, a natural person or legal entity resident in Spain, to represent them before the tax authorities. The communication to the Tax Administration will be carried out within two months from its appointment , and will be made to the Delegation of the State Agency of the Tax Administration where the declaration for this Tax must be submitted, accompanying said communication with the express acceptance of the representative. However, taxpayers of Non-Resident Income Tax who operate through a permanent establishment resident in another Member State of the European Union or the European Economic Area will not be required to appoint a representative, provided that in the latter case, there are regulations on mutual assistance in matters of tax information exchange and collection.