The Spanish Supreme Court, in line with OECD Guidelines, has established new criteria for cash pooling and transfer pricing operations. The aim is to ensure compliance with the arm’s length principle and prevent imbalances in intragroup remuneration
Key consequences:

• Mandatory symmetry in interest rates
• Reference to the group’s credit rating
• Reclassification of contributions as loans, not deposits
• Prohibition of additional margins if the central entity does not assume risks
• Urgent review of agreements and transfer pricing documentation to avoid tax risks