New Standard Model for Related Party Transactions
A related party transaction is a transaction/agreement between two related parties for the transfer of resources, services or obligations, whether or not a price is charged, and may affect an entity’s profit or loss and financial position. The requirement to disclose such transactions between related parties in the financial statements is required. Related parties may also enter into transactions that unrelated parties may not.
- Transactions with the subsidiary, associate and joint venture;
- Transactions with directors, key management personnel, relatives of directors and key management personnel.
- Transactions with relatives of the owner of the entity.
Transfer pricing rules
In the field of transfer pricing rules, it has been simplified the specific documentation that has to be filled in by people concerned about, these are entities or groups of entities whose net turnover is less than 45 million Euros per year.
For companies or entities that can apply the special tax regime of small companies, the specific documentation can follow the standard document prepared for this purpose by the Ministry of Finance.
On June 7, 2016, was published in the BOE that standard document, to be used by the operations carried out from January 1, 2015.