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A Spanish company sought clarification on who should appoint the representative of a tax group when the parent company is a non-resident entity. The Directorate General for Taxes (DGT) ruled that such an appointment may be made by a duly authorised person or body.
Question posed - Person or body of the non-resident parent entity in charge of the appointment of the tax group representative in Spain.
When the parent entity is not resident in Spain, it must designate the tax group representative entity by means of an agreement. Unlike the agreements of the entities joining the group, the LIS does not require that the designation of the representative by the non-resident entity be adopted by the Board of Directors or equivalent body, and it may be carried out by a proxy.
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