Section A: Artificial intelligence

Sandbox AI: Royal Decree 817/2023, November 8th: Before the approval of the Royal Decree, the European Commission submitted a proposal for a Regulation that lays out harmonized rules on AI. The mentioned proposal does not regulate the technology itself, but the high-risk application of AI.

In this context, Spain has launched, with the collaboration of the European Commission, the first controlled testing environment to test how to implement the requirements applicable to high-risk AI systems established by the aforementioned proposal. The purpose is to obtain evidence-based guidelines and experimentation that will facilitate entities, especially small and medium-sized enterprises, and society in general, the alignment with the proposed European Regulation on AI, also known as the future European Artificial Intelligence Act.

Such controlled testing environment will also enable cooperation between AI users and suppliers. Additionally, it will validate from both aspects the implementation of the requirements of both high-risk AI systems and foundational models with respect to compliance with the requirements of the future European Regulation.

This initiative is expected to result in the development of a report containing best practices and lessons learned, as well as technical guidelines for implementation and supervision based on evidence and experimentation.

Regarding participation, any entity selected to participate in this environment must be subject to Spanish jurisdiction. Furthermore, both AI providers and users (private legal entities and public sector entities) may participate.

SECTION B: Tax:

New requirements for computerized or electronic invoicing systems and programs: The recently approved Royal Decree 1007/2023, December 5th, contains a Regulation that sets out the requirements and technical specifications that must be met by any computer system that supports the invoicing processes for those who carry out economic activities. This regulation develops the provisions of Law 11/2021 on measures to prevent and combat tax fraud with regard to invoicing processes to ensure the standardisation of invoicing systems and software and to prevent the alteration of invoices and simplified invoices once they have been issued.

The Regulation entered into force on 7 December 2023, and taxpayers must have the computer systems adapted to the characteristics and requirements in place by 1 July 2025, except for producers and marketers of computerized invoicing systems.

The territorial scope is stipulated, establishing that it is applicable throughout Spanish territory, without prejudice to the specialties established by the Foral territories, Canary Islands, Ceuta and Melilla.

The purpose of this regulation is to establish the requirements and technical specifications to be met by the computer systems used by those who carry out economic activities when carrying out invoicing processes.

This Regulation is intended to guarantee the integrity of the invoicing records and to ensure that every commercial transaction generates an invoice and an entry in taxpayer’s computer system, preventing the subsequent alteration of such entries.

The addressees of the Regulation are:

On the one hand, users of the computerized invoicing systems:

•          Corporate Income Tax taxpayers, with some exceptions.

•          Personal Income Tax taxpayers who carry out economic activities.

•          Non-Resident Income Tax taxpayers who obtain income through a permanent establishment.

•          Entities under the income attribution regime that carry out economic activities.

However, taxpayers who keep their registry books through the electronic office of the State Agency of Tax Administration are excluded from the application of the Regulation.

On the other hand, producers, and marketers of of computerized invoicing systems.

Taxpayers can comply with the new obligations using the following options:

• A customised computer system, which must have a declaration of responsibility issued by the person or entity that produces, manufactures, or develops it.
• The computer application that the Tax Administration may develop for this purpose.

Approval of two forms concerning the special regime for impatriates established by the commonly known as Beckham Law: In 2005, the Spanish Personal Income Tax Law contemplates a new special tax regime for inpatriates that comes to work to Spain, the so-called Beckham Law Regime, which implies on a general basis, been taxed as a non-resident.

Until January 1st, 2023, to apply this Beckham Law Regime, the relocation needed to be motivated by an employment contract with a Spanish Company or as a result of been appointed as Director of a Spanish company (not participated in more than 25% by the Director). With effects January 1st 2023, the relocation could be also be motivated by additional scenarios such as remote workers of foreign company, been appointed as Director (holding more than the 25% of the shares of the employer Company), entrepreneurs, highly qualified professionals rendering services in emerging companies and persons carrying out certain training, research, development and innovation activities, as well as persons in their family environment, under certain conditions.

Last Friday, December 15, Order HFP 1338/2023 was published, by means of which approves the new modifications of the Beckham Law Regime applicable Forms, as until that date, the Forms did not contemplate the new relocation scenarios approved in 2023:

1.         Form 151 (annual official Form to declare the income obtained of the Beckham Law Regime taxpayer)

2.         Form 149, (official Form to apply, waive and communicate the exclusion of the Beckham Law Regime)

Likewise, at the beginning of December, through HFP 1338/2023, was published a new developing regulation of the Personal Income Tax linked to the Beckham Law Regime. In such developing regulation, new instructions are given for applying the Beckham Law Regime under the new scenarios approved at the beginning of 2023.

In addition, the new developing regulation extends the deadline application 6 months since the approval of the HFP 1338/2023 for certain taxpayers who have acquired their tax residence in Spain in 2023 as a result of their relocation to the Spanish territory in 2022 or in 2023.

SECTON C: Corporate:

Proposal for a Regulation at European level on combating late payment in commercial transactions: In September 2023 the European Commission presented the Proposal for a Regulation of the European Parliament and of the Council on combating late payment in commercial transactions. The new rule contained in the Proposal is intended to repeal Directive 2011/7/EU on Combating Late Payments and replace it with a Regulation which, unlike a Directive, is directly applicable and sets out the same provisions throughout the EU.

Among the aspects stipulated by the Regulation proposed, the following are worth mentioning:

• It introduces a single maximum payment term of 30 days for all commercial transactions, including those between companies and between public entities and companies. This period will apply throughout the EU and will not affect shorter payment periods established in national legislation in order to ensure legal certainty.
• It establishes the automatic and compulsory payment of interest for late payment until the debt is paid. Therefore, the creditor is exempted from the burden of claiming the payment of interest, which becomes the debtor’s obligation when paying late. The interest rate for those cases is equivalent to the reference rate of the European Central Bank plus 8 percentage points. In addition, the Proposal raises the compensation for recovery costs from €40 (or its equivalent) to €50 (or its equivalent) per commercial transaction paid late.
• It grants some flexibility to EU Member States, for example, with regard to the creation of enforcement bodies, alternative dispute resolution mechanisms and the provision of training in credit control and digital financial literacy.

Once the proposed Regulation is adopted, it will be applicable one year upon its entry into force.

For further information, please contact:

Juan Ignacio Alonso - Andersen Partner
| China Desk Coordinator
jignacio.alonso@es.Andersen.com

Wenbo Zhou - Andersen Associate
| China Desk Coordinator
wenbo.zhou@es.Andersen.com

You can download the full PDF file and its tranlation in Chinese here.