Our firm can manage prior requests for information on the value of buildings that will be the subject of acquisition or transmission, as well as the previous valuation agreements for you and your company. These procedures are as follows.
Regarding prior information on the value of real estate, the interested parties may request from each tax authority to report, concerning the taxes corresponding to each of them, on the value for tax purposes of the immovable property to be acquired or transferred within their territory. The information provided by the Administration shall have binding effects for a period of three months from the notification to the interested party; however, for this purpose, the request must be before the deadline for submitting the corresponding declaration or self-assessment and with an indication of correct and sufficient data to the Administration.
Consequently, to verify whether the data provided by the applicant is true, such information shall not preclude the subsequent administrative verification of the elements of fact and circumstances manifested by the tax obligation.
As with written tax consultations, there is no appeal against the information, although subjects may appeal against subsequent administrative acts based on the information. Finally, failure to reply does not imply acceptance of the value that, if any, the person concerned would have included in the application.
Regarding previous valuation agreements, taxpayers may request these from the Tax Administration, provided that the laws or regulations specific to each tax allow, to determine, on a prior and binding basis, the valuation of income, products, goods, expenditures, and other determinants of tax debt for tax purposes.
This request is submitted in writing before the taxable act or, where appropriate, within the deadlines established for each tax, accompanied by a proposal by the taxpayer. The Administration will issue a written agreement, stating the valuation, the factual assumption to which it relates, the tax to which it applies and its binding character, following the procedure and within the time limits set in the rules of each tax.
However, in this case, unlike the written consultations and the request for preliminary information on the value of the real estate, the failure by the tax administration to reply at the proper time will involve the acceptance of the values proposed by the tax liability.
However, neither here can tax obligations appeal against these agreements, although they may do so against the administrative act or acts subsequently enacted in applying the assessments included in the agreement.
Once the agreement has been issued, and until the law is changed or the economic circumstances underlying the valuation vary significantly, the Tax Authority that had issued the agreement shall be obliged to apply the values expressed. The agreement is valid for a maximum term of three years, provided the regulation does not establish otherwise.