Spain: Bill implementing DAC7 enacted, implications for financial institutions
The bill is aimed at improving existing tax reporting framework to address challenges posed by digitization of economy
Bill implementing DAC7 enacted, implications for financial institutions
A bill implementing European Directive 2021/514 (DAC7) was published in the Official State Gazette on 25 May 2023. Read TaxNewsFlash
The bill is aimed at improving the existing tax reporting framework to address challenges posed by the digitization of the economy and includes additional reporting requirements for reporting financial institutions with respect to reportable account holders.
- Financial institutions and intermediaries are now required to report in accordance with the general taxation law (additional provisions twenty-two and twenty-three) rather than Directive 2011/16/EU.
- A new reporting requirement was included, requiring financial institutions and intermediaries to notify individuals who have financial accounts or engage in cross border arrangements that are reportable to another jurisdiction about the personal information that will be reported to the relevant tax authority. This enables individuals to exercise their personal data protection rights.
Despite the late enactment, the updates are effective for the 2022 reporting year. Thus, financial institutions are required to adhere to the new notification requirement for 2023 reporting.
Read a June 2023 report [PDF 325 KB] prepared by the KPMG member firm in Spain
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.