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Thread: Spanish Matriculation Tax - Update

  1. #1
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    Default Spanish Matriculation Tax - Update

    Spanish Matriculation Tax (19 January 2014)

    By Alex Chumillas Amat – Tax Marine Spain, S.L.

    Following the amendment of the Spanish Excise Duties Law (Law 38/1992), introduced by the Law 22/2013, and published 23 December 2013 on the Spanish Official State Gazette (BOE). Tax Marine is pleased to inform about the latest changes in Spain concerning the yacht charter activity.

    On one hand the amendment of the article 66.One.ñ of the Excise Duties Law and its current interpretation by the Spanish Tax Authorities seems to open the possibility for yacht owners (UBO) to use their vessels for a 3 months period in Spanish waters and to apply for the matriculation tax exemption if the yacht intention is to be engaged in commercial activity.

    This new provision is a very important change compared with the existing previous situation, which did not allow a single use of the yacht by the ultimate owners and relax the requirements to keep the matriculation tax relief.

    On the other hand, the wording of the new article 70.Bis, seems to establish that if the owner wants to use its yacht for a period exceeding the mentioned 3 months time in Spain, the matriculation tax will be due proportionally to the time exceeding this period.

    The current rates defined in the article 70.Bis of the Law, in case the 3 months time is exceeded are:

    · First 12 months exceeding the allowed period of use: 3%
    · Next 12 months and up to 24 months: 2%
    · Over 25 months : 1%

    It is expected during next month to be published a binding opinion from the Spanish Directorate of Tax (Direccion General de Tributos) clarifying the terms and conditions how these provisions will be implemented.

    Our firm expects to be in a position in the next weeks to clarify another important issue: the understanding of the Spanish authorities with regards the non EU flagged yachts.

    Tax Marine is a founding member of The Barcelona Nautical Cluster actively and permanently involved with the national and regional authorities to achieve a clear tax and legal frame for the charter activity in Spain.

    Alex Chumillas
    Tax Marine
    Marina Port Vell
    C/Escar, 18 - Local 5
    08039 Barcelona
    TF: +34 932218201
    Móvil: +34 667 663 521
    Website: www.taxmarine.com

  2. #2
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    Charter Yachts News: Isle of Man flagged yachts (05 March 2014)
    By Alex Chumillas Amat – Tax Marine Spain, S.L.

    Following the conversations kept by our firm with the Spanish authorities last week we are in position to confirm there is no inconvenient for the Spanish authorities and more specifically the Balearic authorities to authorize the charter activity for Isle of Man registered vessels.

    Therefore it is perfectly legal for an Isle of Man registered yacht to apply for a charter license provided the rest of requirements requested by the Spanish authorities are met.

    Our firm is currently working to clarify the situation with other jurisdictions not belonging to the EU. We do expect to be able to provide a clarification in the incoming weeks.

    Tax Marine is a founding member of The Barcelona Nautical Cluster actively and permanently involved with the national and regional authorities to achieve a clear tax and legal frame for the charter activity in Spain.

    Alex Chumillas
    Tax Marine
    Marina Port Vell
    C/Escar, 18 - Local 5
    08039 Barcelona
    TF: +34 932218201
    Móvil: +34 667 663 521
    Website: www.taxmarine.com

  3. #3
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    CORRECTION
    Further to the announcement released by our firm one week ago, according to the written information provided by the Department of Transports of the Balearic Government, we regret to inform that the Balearic Authorities have informed they committed a mistake when informed about the possibility for IOM flagged yachts to be authorized.

    Despite the position of the Balearic Customs office is to consider there is no inconvenient from a tax point of view for IOM commercially operate in the region, the Department of Transport informed this week that will be necessary a decision from its legal team to authorize this jurisdiction (IOM) to operate there, which therefore puts on hold the announcement released by our firm last week,

    We regret for any inconvenience this inexact information provided by the Balearic Authorities might have produced among the industry. As part our firm transparency policy we want to share this information as soon as possible with all the agents.

    We want to remind that is still possible for IOM flagged yachts to get licensed in other regions of Spain, being this restriction only applicable for yacht charters starting in the Balearics. Our firm will keep working to get a clear response from the Authorities; we do expect to have some more news in the incoming weeks.

    Kind regards.

    Alex Chumillas
    Tax Marine
    Marina Port Vell
    C/Escar, 18 - Local 5
    08039 Barcelona
    TF: +34 932218201
    Móvil: +34 667 663 521
    Website: www.taxmarine.com

  4. #4
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    The 2014 season is almost here and the latest changes of the Spanish tax law open for the very first time a real opportunity to all those interested in chartering their yachts in Spain.

    During this year 2014 Tax Marine participated at the Düsseldorf Yacht Show and the Italian Superyacht Forum in Viareggio. Now we are pleased to inform in the next month will take part in the following events:

    o 3 & 4 April: Malta Superyacht Fiscal Conference
    o 14 & 15 April: Monaco Fiscal Superyacht Management Meeting
    o 23 April: Antibes Yacht Show
    o 28 & 29 April: Genoa MYBA Charter Show
    o 1 & 2 May: Palma Yacht Show

    We would be delighted to meet and inform you about the changes occurred in Spain and how our firm can assist.

    Tax Marine is a Spanish company based in Barcelona which provides fiscal agency and representative services to yachts chartering in Spanish waters. With more than 15 years experience in the Spanish yacht industry our team of lawyers and economists will be glad to help you to resolve the bureaucratic, regulatory and administrative matters concerning your yacht in Spain.

    We look forward to meeting you.
    Best wishes,
    The Tax Marine Team

    Alex Chumillas
    Tax Marine
    Marina Port Vell
    C/Escar, 18 - Local 5
    08039 Barcelona
    TF: +34 932218201
    Móvil: +34 667 663 521
    Website: www.taxmarine.com

  5. #5
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    We are pleased to inform about the new criterion adopted by the Spanish Tax Agency with regards the existing limitation of use on ultimate beneficial owners of yachts that benefit from Spanish Matriculation Tax exemption.

    Since October 2013, the amendments introduced in the Spanish Excise Duties Law allow chartered yachts, regardless their length, to benefit from Matriculation Tax relief. Before the law amendment the exemption only applied to chartered yachts less than 15 meters LOA.
    The wording of the exemption of the article 66.One.g of the 38/1992 law, under consideration here, establishes a very important additional limitation: the prohibition of use of a vessel that benefits from this tax relief to related parties of the owning company. In other words, the lease of a vessel to related parties, such as ultimate beneficial owners is not considered to be a commercial activity under the Spanish tax law, even the lease is agreed at arm’s length and VAT paid. In these cases the exemption requirements are not longer met and the benefit lost, being the tax enforced.

    Since the approval of the law amendment, Tax Marine has been actively working to clarify the tax and legal frame surrounding yacht charter in Spain. Among the latest actions carried out, our firm submitted a tax enquiry to the Directorate-General for Taxation (department of the Spanish Tax Agency in charge to provide clarification on the practical implementation of tax law), asking for clarification on the requirements to be met to benefit from matriculation tax exemption. Particularly, it was our firm interest to clarify which was the position of those related persons or entities, which did not have the status of Spanish tax residents.

    In response to this enquiry the Spanish Tax Agency binding answer V0860-14 has provided two important clarifications and a new approach to the situation:

    · If a vessel that benefits from the exemption established on the article 66.One.g, is leased to related persons or entities of the charter company, who are not residents in Spain nor owners establishments in Spain, the Matriculation Tax event does not occur and the requirements to benefit from the tax relief are still met. In other words this response allows the vessel to be leased to ultimate beneficial owners, when that person is not resident in Spain. This interpretation is a radical change compared with the previous situation, which did not allow a single use of the yacht by a related person or entity to the owning company. In those cases where the related party is resident in Spain the limitation still applies. We do understand that to structure this use by the beneficial owner, there should be a charter agreement on place, the charter fee should be agreed at arm’s length and VAT applied.

    · The second conclusion concerns to the geographical scope where the limitation to related parties, established in article 66.One.g, should be applicable. The answer provided by the Tax Agency clarifies that the use of the yacht outside the Spanish territorial waters does not involve a Matriculation Tax event. Therefore in this case it seems even possible for Spanish related parties to lease to themselves the yacht outside the Spanish waters and keep meeting the requirements to benefit from the tax relief.

    If you were interested to obtain the official document confirming this new approach, please do not hesitate to contact us.

    For the latest information on yacht charter in Spain, please visit http://www.taxmarine.com/articles/

    Alex Chumillas
    Tax Marine
    Marina Port Vell
    C/Escar, 18 - Local 5
    08039 Barcelona
    TF: +34 932218201
    Móvil: +34 667 663 521
    Website: www.taxmarine.com

  6. #6
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    Further to our company newsletter released on first of May informing about the new criterion adopted by the Spanish Tax Agency with regards the use limitation established in the Spanish Matriculation tax law for related parties, we are pleased to provide you access to the original answer produced by the tax authorities.

    Our company in an exercise of transparency requested an official translation of the information provided by the Spanish authorities in order to share it with the industry. We trust this will be of your interest.

    The English version of this document is available at http://www.taxmarine.com/articles/
    The Spanish version of this document is available at http://www.taxmarine.com/es/articles/

    If you were interested to obtain additional information, please do not hesitate to contact us.

    Kind regards,

    Alex Chumillas
    Tax Marine
    Marina Port Vell
    C/Escar, 18 - Local 5
    08039 Barcelona
    TF: +34 932218201
    Móvil: +34 667 663 521
    Website: www.taxmarine.com

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