The tax authority (Dirección General de Tributos—DGT) favorably responded to a taxpayer request for recognition of a cost-sharing agreement. The taxpayer (a multinational insurance company) had a structure in Spain that did not allow for the creation of a group for value added tax (VAT) purposes. Thus, it requested that a cost-sharing agreement be recognized so as to enhance the efficiency of the taxpayer’s economic and organizational structure.
Source: KPMG
