Changes to the annual informative tax return for third party transactions (Form 347) for the 2008 fiscal year.

11 March 2009

In order to properly prepare and file the form, it is worth bearing in mind that this form includes a series of changes and modifications which were introduced through Royal Decree 1065/2008 dated July 27 which approved the General Guidelines for tax management and inspection actions and procedures set forth in Form 347 of the Tax Ministry’s Order 3012/2008 dated October 20.

We would like to highlight the purely informative changes as follows:

1.- Said return must include amounts above 6,000 Euros paid in cash by each of the individuals or entities listed in the return.

To that end, it must be specified that income received from transactions declared for the fiscal year will be declared. That is, if I have an invoice from a client for the amount of 60,000 Euros from the 2007 fiscal year, which was declared in 2007 but the income was received in 2008, there is no obligation to declare the cash movement in 2008.

2.- A list of the amounts paid in consideration for property transfers which constitute deliveries subject to VAT must be included, separate from the other transactions.

For further information, please contact Victor Manzanares Saínz: vmanzanares@mmmm.es