Definitions and concepts

Given the peculiarities of this information model, it is necessary to define a series of general concepts as an introduction:

• Group: A group of companies is one formed by a dominant entity and all its subsidiaries. A group exists when one entity holds or may hold control over another or others, according to the criteria established in Article 42 of the Commercial Code, regardless of its residence and the obligation to prepare consolidated annual accounts.

  Country-by-country reporting is required when the net turnover of all the individuals and entities comprising the group, in the twelve months prior to the start of the tax period, is at least €750 million.

• Multinational group (subject of this statistic): Any group consisting of two or more enterprises whose tax residence is in different jurisdictions, or which consists of an enterprise resident for tax purposes in one jurisdiction and taxed in another jurisdiction for activities carried out through a permanent establishment.
• Subgroup: A subgroup is made up of the combined member entities of a multinational group of companies operating in the same tax jurisdiction.
• Ultimate Parent Entity (UPE): An entity that directly or indirectly holds a sufficient stake in one or more entities within the multinational group of companies, requiring it to submit country-by-country information.

  An entity resident in Spanish territory that is the parent entity of a group and is not, at the same time, dependent on another entity, whether resident or non-resident.