In recent years, the Spanish tax administration and Spanish courts have had a clear tendency to challenge the provision of intragroup services, denying its corporate income tax deductibility and increasing the tax burden for taxpayers carrying out these transactions in Spain.
In this regard, the Spanish National Court did not consider the provision of services to be sufficiently proven in its January 25 judgment because, among other reasons, the taxpayer had not provided a contract. This judgment reflects the understanding that the Spanish National Court is adopting a more restrictive position than in previous case law regarding the required proof to support the deductibility of intragroup services.
Source MNETax
