Information Alert: Analysis of Law 5/2022, taking into account the criterion of the CJEU in relation to model 720

On 10 March 2022, Law 5/2022, of 9 March, which amends Law 27/2014, of 27 November, on Corporate Income Tax, and the revised text of the Law on Non-Resident Income Tax, approved by Royal Legislative Decree 5/2004, of 5 March, in relation to hybrid asymmetries, was published in the Official State Gazette (BOE).

The aforementioned Law adapts the regulations of the Information Return on Assets and Rights Located Abroad (hereinafter, Form 720) to adapt it to the recent Ruling of the Court of Justice of the European Union (CJEU) of 27 January 2022, which declared it contrary to European Union (EU) law as regards non-applicability of statutes of limitation and its penalty regime.

Below, we set out the amendments introduced by Law 5/2022 in relation to Form 720, as well as the consequences deriving from these amendments and the possible options open to taxpayers. Consult the alert at the following link.