Application of the reduced corporate income tax (IS) rate of 15% to dormant companies
Applicability of reduced 15% CIT rate to newly created companies that have remained inactive from incorporation until sale of its shares. Start of activities is crucial. The General Directorate of Taxes (DGT) in binding consultation V2203-23 of 26 July 2023 analyses the case of Article 29. 1 of Law 27/2014, of 27 November, on Corporate […]
Modification of the statute of limitations to claim for directors’ liability for company debts
The statute of limitations for the action for directors’ liability for company debts shall coincide with the limitation period of the action to claim the company’s debt with the same starting date. In the Ruling STS 4540/2023 of 31 October, the Supreme Court, sets precedent in considering that neither the four-year period from the date […]
Liability of the director for the actions of the previous director
A new director of a company may be liable for damages caused by the actions of the previous director, as long as it has been established that the director has not acted with sufficient diligence. The Provincial Court of Madrid, in Decision 307/2023 of 3 April, sentences the former director of a company to pay […]
The Constitutional Court declares the measures affecting Corporate Income Tax since 2016 unconstitutional
The Constitutional Court (TC) announced the declaration of unconstitutionality of certain tax measures introduced in the Corporate Income Tax (CIT) in 2016. Through a briefing note, the TC announced the ruling of the Plenary session of the TC declaring unconstitutional the measures regarding the CIT, introduced by Royal Decree 3/2016 of 2 December and which […]
Non-attendance of the directors of a company at the general shareholders’ meeting
The directors of a company are not allowed to delegate proxies to attend the general meeting, although their absence is not a cause for nullity of the resolutions adopted, with some exceptions. The general shareholders’ meeting of a limited liability company appointed a new joint director of the company. The directors of the company did […]
A director whose term of o ce has expired may convene a meeting to appoint a new director
A general meeting of shareholders may be convened by a director whose term of office has been expired for more than thirteen years and who has not been re-elected, for the purposes of appointing directors and consequently approving outstanding annual accounts and thus causing the re-opening of the company’s register sheet. In a Resolution dated […]
A director whose term of office has expired may convene a meeting to appoint a new director
A general meeting of shareholders may be convened by a director whose term of office has been expired for more than thirteen years and who has not been re-elected, for the purposes of appointing directors and consequently approving outstanding annual accounts and thus causing the re-opening of the company’s register sheet. In a Resolution dated […]
Startups and the new non-habitual resident regime (NHR 2024)
With the start of the new year of 2024, a new regime for non-habitual residents in Portugal also came into force, where innovation finds tax advantages. Embracing the vibrant start-up ecosystem, Portugal offers a series of tax benefits in terms of personal income tax to employees and board members of certified start-ups. Qualification Criteria Portugal […]
Global minimum tax for multinationals and large national groups in Spain
The tax would be applicable as of 1 January 2024 for Spanish entities that are part of multinational groups and those with revenues of more than EUR 750 million. On 19 December 2023, the Preliminary Draft Law transposing Council Directive (EU) 2022/2523 of 14 December 2022 was approved, for the creation of a supplementary tax, […]
The certifying powers of joint directors of a company with more than two directors
In companies with three joint directors appointed in the articles of association, certificates of corporate resolutions must be drawn up by all the directors of the company and not just by two of them. The Pontevedra Mercantile Register rejected the filing of the annual accounts presented with certification of only two of the three joint […]
