The Regulation on the development of Law 50/1985 of 27 December, adopted by Royal Decree 1535/1987 of 11 December 1987, provided for the adaptation of regional incentives to the rules in force in the European Communities and more in particular to the communication from the European Commission [SG (87) D/6759] of 1 June, by which this institution carried out, within its functions of assessment of the compatibility with the common market of the aid schemes with regional purpose, the delimitation of eligible areas and the maximum intensities of such aid.

Consequently, and on the basis of the Community authorisation, the maximum aid ceilings, expressed in terms of net grant equivalent (SNE), which could be implemented, were established in Article 14 of the Royal Decree. in the different regions, four different areas with a maximum aid intensity of 50 per 100, 40 per 100, 30 per 100 and 20 per 100 (SNE) are fixed.

at the same time, the European Commission has been moving in all Member States to the delimitation of areas which can be assisted by the Structural Funds; in particular in the period 1994-99 it carried out a review of the regional aid map in the light of the principle of free competition and its exceptions, and in accordance with the provisions of Article 92 et seq. of the Treaty of Rome, in order to adapt the map to the socio-economic conditions of the different regions and by means of communication from the European Commission (SG (95) D/1130 8), 7 of In September, the Community authorization was produced which contained the new terms of the Spanish regional aid map, which represented a modification of the previous one in respect of both the maximum aid limits to be granted in each area as to the geographical coverage of the regional aid and the maximum period of temporary validity ending on 31 December 1999. Subsequently the European Commission on 11 April 2000 approved the regional aid map for the period 2000-2006.

Moreover, the Regulation of the Commercial Registry, approved by Royal Decree 1597/1989 of 20 December 1989, and the subsequent one approved by Royal Decree 1784/1996 of 19 July 1996, contains an additional provision 4 establishes the obligation for the registered subjects in that register, to which the regional economic incentives are granted, to submit within two months the corresponding administrative decision to the Commercial Registrar accompanied by its acceptance, in order to be entered on its sheet by means of a marginal note concession and its conditions. Similarly, the extension, modification or loss by change of ownership, of the expressed incentives, shall be reported.

All this has required a series of amendments to Royal Decree 1535/1987, which was adopted by the Law of the Development of Law 50/1985, contained in the Royal Decrees 897/1991 of 14 June; 302/1993, of 26 of February, 2315/1993, 29 December and 78/1997 of 24 January. In its opinion of 28 November 1996, the Council of State, in its opinion of 28 November 1996, stated that it was appropriate to correct such a situation by bringing this matter together in a single text, with the consequent repeal of the abovementioned provisions. provisions and their replacement by a single one that collects all the development of the Law produced up to that time.

On the other hand, the additional twenty-ninth provision of Law 14/2000 of 29 December included the procedures for granting regional incentives and those for authorization for the modification of the initial project superior to the 10 per 100, in the exception provided for in Article 43 (2) of the Law on the Legal Regime of Public Administrations and the Common Administrative Procedure as regards the sense of administrative silence.

Law 38/2003, of 17 November, General of Grants contains the provisions governing the general legal system of subsidies granted by public administrations, establishing the procedures of grant and management of the same, reimbursement, financial control, as well as the issue of infringements and penalties.

Likewise, the Royal Decrees 553/2004 of April 17 and 562/2004 of April 19 establish the new restructuring of the ministerial departments, as well as the organic structure of several of them, including the Ministry of Economy and Finance, an organic structure which subsequently developed, as far as that Ministry is concerned, Royal Decree 1552/2004 of 25 June, as amended by Royal Decree 756/2005 of 24 June. In particular, they are attributed to the Directorate-General for Community Funds, under the Secretariat-General for Budgets and Expenditure of the Secretariat of State for Finance and Budget, the functions relating to regional incentives.

On the other hand, on 4 March 2006 the Official Journal of the European Union published the Guidelines on State Aid for Regional Finality for the period 2007-2013 (2006/C 54/08) by virtue of the commitment made by the Member States at the Stockholm European Council on the overall reduction of State aid and its reorientation towards horizontal objectives of common interest. They set out the rules according to which State aid is intended to promote the development of the poorest regions and also determines the criteria for the selection of the regions eligible for regional aid. define the roofs of the same.

Regulation (EC) No 1628/2006 of 24 October 2006 on the application of Articles 87 and 88 of the EC Treaty to regional investment aid provides for the possibility of exemption from the obligation to notify the Article 88 (3) of the Treaty to aid schemes which respect the provisions laid down therein. To this end, according to Article 3.1.b) the aid schemes must include an express reference to that Regulation, citing its title, and publication references in the Official Journal of the European Union.

All of these circumstances imply the need to revise Royal Decree 1535/1987 which approves the Regional Incentive Regulation, which is embodied by the regulation approved by this Royal Decree.

For this purpose, this Regulation is articulated in six titles. Title I is divided into four chapters, the first of which is dedicated to the promotable areas, the second referred to the projects, the third to the incentives and the fourth to the beneficiaries; for its part the Title II is composed of 2 chapters, In the case of the management bodies and the procedure for granting regional incentives, Title III focuses on the implementation of the projects; Title IV on financial and budgetary management and the winding-up of grants; Title V collects in a single chapter the obligations, incidents and maintenance of the conditions with after the end of the term. Finally, Title VI contains in a single chapter the scope of the inspection and control of Regional Incentives.

It is new to point out of the regulation the chapter dedicated to the beneficiaries, as well as the articles on presentation in the Mercantile Register of the resolutions of concession and extension and the elimination of the lands as the subject of a grant. Finally, it is important to highlight the new requirements regarding the start of investments imposed by the European Union in which this Regulation is adapted to the new Regional Finality Aid Guidelines.

The Economic Promotion Zones will be designated by Royal Decrees, one for each area, in which will also be established, among other things, aid ceilings and priority actions and zones, including areas priority for rural development.

In its virtue, on the proposal of the Minister of Economy and Finance, after the approval of the Minister of Public Administration, in agreement with the Council of State and after deliberation by the Council of Ministers at its meeting on July 2007,

D I S P O N G O:

Single item. Approval of the Regional Incentive Regulation.

The Regulations of Regional Incentives for the Development of Law 50/1985 of 27 December, which are set out in the Annex to this royal decree, are approved.

This royal decree is issued pursuant to Regulation No 1628/2006 of 24 October on the application of Articles 87 and 88 of the EC Treaty to regional investment aid.

Single additional disposition. Faculties.

The Minister of Economy and Finance is empowered to dictate how many provisions require the implementation and enforcement of this Royal Decree.

Single transient arrangement. Requests.

For the period from 1 January 2007 to 30 June 2007, the following rules apply:

(a) The applications submitted until 31 December 2006 will be resolved in accordance with Royal Decree 1535/1987 of 11 December, only to the extent that it is delivered before 30 June 2007. In any event, the maximum aid ceilings resulting from the new Spanish regional aid map applicable to the 2007-2013 period will be respected as of 1 January 2007.

(b) Applications submitted up to 31 December 2006 and which are pending resolution of 30 June 2007 shall be resolved in accordance with this Royal Decree.

(c) Applications submitted from 1 January 2007 shall in any event be governed by the provisions of this Royal Decree.

Single repeal provision. Regulatory repeal.

Royal Decree 1535/1987, of 11 December, Regulation of the Development of Law 50/1985, of Regional Incentives is hereby repealed.

Final disposition first. Amendment of Royal Decree 1784/1996 of 19 July.

The fourth additional provision of Royal Decree No 1784/1996 of 19 July 1996 on the Regulation of the Trade Register is hereby worded as follows:

1. The taxable persons to whom the regional economic incentives provided for in Law 50/1985 of 27 December 1985 are granted must submit within one month of the date of acceptance of the concession, the corresponding administrative decision before the Commercial Registrar accompanied by its acceptance, in order to be recorded in its sheet by means of a marginal note such concession and its terms. They must also submit within one month all the resolutions after the granting of the Regional Incentives: the resolutions of extension, modification of the incentives or loss of the rights if the change of ownership of the incentives, which shall also be reported by note.

2. The note referred to in the preceding paragraph shall be cancelled on the basis of which the conditions of the concession are fulfilled. The seat shall be performed by virtue of the relevant certificate of compliance.

3. In the case of non-compliance, the cancellation of the marginal concession note may be noted only when the amounts resulting from the repayment of the concession are credited to the Treasury by means of the corresponding certification. the amounts unduly paid and the demand for the interest for late payment as provided for in Article 7.1 of Law 50/1985 of 10 December 1985 on Regional incentives for the correction of economic imbalances interterritorial.

Final disposition second. Entry into force.

This royal decree will enter into force on January 1, 2007.

Given in Madrid, July 6, 2007.

JOHN CARLOS R.

The Second Vice President of the Government and Minister of Economy and Finance,

PEDRO SOLBES MIRA

REGIONAL INCENTIVE RULES,
DEVELOPMENT OF LAW 50/1985 OF 27 DECEMBER

TITLE I

From the concept and classes of regional incentives, the general criteria for their application and the beneficiaries

CHAPTER I

Promotable Zones

Article 1. Concept and scope of regional incentives.

1. As established by Article 1.1 of Law 50/1985 of 27 December 1985, regional incentives for the correction of inter-territorial economic imbalances are regional incentives for financial aid granted by the State for the purpose of to promote entrepreneurial activity and to direct its location to previously determined areas, in order to reduce the differences in economic situation in the national territory, to share more balanced economic activities on the and reinforce the endogenous development potential of the regions.

2. In accordance with the provisions of Article 2.1 of Law 50/1985, regional incentives for the correction of inter-territorial economic imbalances may be applied to the financing of investment projects which, in accordance with the requirements of the required in this Regulation and in the provisions that develop it, are implemented in areas with a lower level of development, or in those whose special circumstances so advise.

Article 2. Promotable zone classes.

1. The geographical areas of the State with a lower level of development will have the character of economic promotion zones.

2. The Government may define other areas of application of regional incentives where special circumstances so advise, with incentive limits higher than those referred to in Article 11 but not exceeding the maximum ceilings. of the regional aid agreed by the European Commission and always in accordance with the guidelines of regional policy. This will also be in line with the provisions of Article 13 on aid concurrency.

Article 3. Areas of economic promotion.

1. In order to determine the areas of economic promotion, the GDP per inhabitant and the unemployment rate will be taken into account as basic criteria. In addition to these, other representative of the intensity of regional problems may be taken into consideration.

2. On the basis of the above criteria, the maximum incentive limits for the different geographical areas will be set in the Royal Decrees of delimitation, in accordance with their level of development and respecting the ceilings authorised by the Commission. the European Commission in the regional aid map.

Article 4. Delimitation of the promotable areas.

1. In the light of the above articles, the Council of Regional Incentives Rector will propose to the Government, through the Minister of Economy and Finance, and prior knowledge of the Government Delegation for Economic Affairs and of the Autonomous Communities, the geographical areas where regional incentives may be applied and the maximum aid intensity ceiling that can be applied.

2. According to the Autonomous Community concerned, the Regional Incentive Rector Council may propose within the economic promotion zones that they will be given priority status.

3. As set out in Article 2.3 of Law 50/1985 of 27 December, the geographical delimitation of the promotable areas will be done by Royal Decree.

Article 5. Actual Delimitation Decrees.

1. The Actual Delimitation Decrees of the Promotable Zones shall contain:

(a) Geographical scope and, where appropriate, priority areas.

(b) The maximum ceiling for aid which may be granted for the same project.

c) The goals that are intended to be achieved.

d) The regional incentive classes that may be granted.

e) The promotable economic sectors, which will respect the Community criteria and guidelines.

(f) The criteria for assessing the projects among which will be the employment created in relation to the investment of the project, the use of advanced technology and its impact on the improvement of the productivity of the area and the protection of the environment, and the dynamising effect of the project.

g) The minimum size of the projects, the types and concepts of investment to which regional incentives may be granted; the concepts of investment must, in any case, be respected by the Guidelines on regional state aid in force at any time.

(h) The contribution of the beneficiary to the financing of the project in accordance with Article 8 of this Regulation.

i) The term of validity of the promotable zone.

(j) How many other stipulations are deemed necessary in order to better align the provisions of this Regulation with the objectives to be achieved in each area.

2. The period of validity of an area may be modified, where appropriate, the appropriate fulfilment of the objectives envisaged, by agreement of the Government Delegation of the Government for Economic Affairs on a proposal of the Council of Incentives Regional, after communication to the Autonomous Community.

CHAPTER II

Of Projects

Article 6. Inclusion within the promotable sectors.

1. Projects which are intended to benefit from the regional incentive scheme should be included in some of the economic sectors which are eligible for promotion in the Royal Decree of delimitation of the respective area.

2. All those who are not excluded in the Royal Decree of delimitation of the respective area or the European Union regulations will be eligible sectors.

3. The Governing Council of Regional Incentive may, on a temporary basis, exclude promotional sectors where the situation or characteristics of the Regional Incentive Board so advise, in accordance with the guidelines which the Government fixes at any time in its sectoral policies and taking into account, where appropriate, the considerations of the Autonomous Communities.

Article 7. Promotable project classes.

1. They shall have the character of projects which are, for the purposes of this Regulation, promotable for the creation of new establishments, enlargement and, where appropriate, modernisation, provided that they respond to a balanced composition between their different investment concepts in accordance with the activity in question and are of an amount not less than the minima laid down in the Royal Decrees of delimitation.

2. They are projects for the creation of new establishments, the investments that give rise to the initiation of a business activity and also create new jobs.

3. Investment projects which involve the development of an already established activity or the initiation of others are projects of expansion. In the case of the development of an already established activity, related or not to the one already developed by the operator, the project must involve a significant increase in the productive capacity. Enlargement projects should also involve the creation of new jobs and the maintenance of existing ones.

4. Investments that meet the following conditions are modernization projects:

(a) that the investment constitutes an important part of the fixed assets of the establishment which is modernised and which involves the acquisition of technologically advanced machinery which produces a significant increase in the productivity and

(b) The investment results in the diversification of the production of an establishment to cater for new and additional product markets or a fundamental transformation in the overall production process of a existing establishment.

c) That existing jobs be maintained.

5. They are excluded from the scope of the promotable projects for substitution investments. These are the projects that consist of the technological upgrade of an already amortized machinery park that, while it could be a modernization, does not imply a fundamental change in the product or in the production process.

Also considered replacement investments:

(a) Remodeling or adaptations of buildings derived from previous investments, either by compliance with safety standards, environmental good or any other adaptation by legal imperative.

b) The additions of the latest state of art in technology without fundamental changes in the process or product.

Article 8. Other conditions required for projects.

Investment projects that are intended to benefit from the regional incentive scheme must meet the following requirements:

a) Be technically, economically and financially viable, according to the documentation provided in the application.

b) Dispose of a level of self-financing not less than that specified in the Royal Decrees of delimitation and in any case equal to or greater than 25%.

(c) The application to benefit from the benefits must be submitted before the start of the investment for which the regional incentives are requested. The investment may also not be initiated before the confirmation provided for in Article 24 is received.

Investments shall be considered to be initiated when there is any firm commitment to the acquisition of goods or services that affect the project. The "start of investments" means either the start of construction work or the first firm commitment to the order of equipment, excluding prior feasibility studies.

Article 9. Incentive investment concepts.

1. The investment concepts which may be encouraged shall be fixed assets of a new or first-use material, referred to the following investment elements:

a) Civil Work.

b) Equipment assets, excluding foreign transport items.

c) Prefeasibility studies.

d) Other concepts, exceptionally.

For the determination of the amounts of eligible investments corresponding to the previous paragraphs, the Regional Incentive Rector may set up modules per unit of measure, so that ensure that market prices are not exceeded.

2. The approved investment of a project shall consist exclusively of the concepts referred to in the previous point. The assets which are the subject of the investment must be acquired by the beneficiary as long as the payment is effectively realised and in full within the period of validity. For these purposes, the form of extinction of obligations referred to in Article 1.156 of the Civil Code shall be understood as a payment.

When using promissory notes, exchange letters or other currency effects, investments shall only be considered eligible when the payment of the same shall be made effective before the end of the term of validity.

3. The acquisition of the assets that are the subject of the investment may be accepted by means of leasing arrangements provided that the assets become the property of the beneficiary before the end of the term of the profits and in addition the payments have been effectively and in their entirety within that period.

4. In no case shall the amount corresponding to the value added tax or other taxes be included within the eligible investment.

5. The subsidised assets shall be affected by the repayment of the subsidy in accordance with Article 39.10 of this Regulation.

6. As a general rule, acquisitions of assets are not eligible, either in the form of the supply of goods or the provision of services, made to related entities, with the exception of express authorisation in the granting decision, upon request. which must be included in the application for incentives for the purposes of their authorisation and take account of the determination of the eligible investment.

Where there is a link between the beneficiary of the aid and the person providing the services or delivering the goods constituting the eligible investment, those transactions shall be valued at the cost of production, with the limit maximum prices that would be agreed under normal market conditions between independent companies.

7. For the purposes of this Regulation, persons or entities involved shall be deemed to be persons or entities, where the circumstances laid down for this purpose are provided for in Royal Decree-Law No 4/2004 of 5 March 2004 approving the recast text of the Corporate Tax Law.

8. For the purposes of this Regulation, group of companies shall be defined in accordance with the Rules for the formulation of the Consolidated Annual Accounts, approved by Royal Decree 1815/1991 of 20 December.

CHAPTER III

Incentives

Article 10. Incentive classes.

1. The regional incentives that may be granted shall be as follows:

a) Back-end grant lost on approved investment.

b) Subsidy of interest on loans that the applicant obtains from the Financial Entities.

c) Subsidy for amortization of loans referred to in the previous paragraph.

d) Any combination of the above grants.

(e) Bonification of the business quota for common social security contingencies for a maximum number of years to be determined on a regulated basis and subject to the rules governing concurrency, maximum amount the rules on incentives for recruitment and promotion of employment are not available. The cost of the said bonus will be borne by the Ministry of Economy and Finance, which will be charged to the budget credit for the payment of regional incentives.

2. As set out in Article 3.4 of Law 50/1985 of 27 December, the Administration may implement technical support and advisory measures to facilitate access to regional incentives.

Article 11. Maximum amount of regional incentives.

The maximum amount of regional incentives that may be granted to a project in the promotable areas, expressed in terms of the grant percentage on the approved investment, will be the one specified in the Royals Decrees of delimitation of the same.

Article 12. Transformation of regional incentives as a percentage of subsidy on approved investments.

To transform the regional incentives in Article 10 (b), (c) and (d) of this Regulation, in terms of the grant percentage on the approved investment, the following shall be done as follows:

(a) Current euro shall be calculated as the absolute values for each year of the interest subsidy and the repayment of loans granted to the project.

(b) The updated values referred to in the previous paragraph shall be added to the lost fund grant and its amount shall be expressed as a percentage of the approved investment as determined in the Aid Guidelines. regional purpose state.

Article 13. Financial aid concurrency.

1. No project under Law 50/1985 of 27 December of Regional Incentives for the correction of inter-territorial economic imbalances may be the beneficiary of other financial aid, whatever its nature, the body o Administration to grant them, in addition to those of Article 10, exceed the maximum aid ceilings for approved investment, to be established in the Royal Decrees for the delimitation of the zones.

2. In the event of aid, if the subsidy exceeds the ceilings laid down in the Spanish regional aid map, the rate of aid granted under Law 50/1985 of 27 January 1985 must be changed ex officio. December, of Regional Incentives.

3. If the subsidy exceeds the ceilings established on the basis of a subsidy not reported at the time specified in Article 16 (h), the procedure for non-compliance in Article 45 shall be processed.

CHAPTER IV

From the beneficiaries

Article 14. Of the beneficiaries.

1. As a general rule, natural or legal persons may be beneficiaries of the incentives or, even if they are not, they shall be resident in accordance with the provisions of the Organic Law 4/2000 of 11 January 2000. rights and freedoms of foreigners in Spain and their social integration, and in their development regulations, which have their residence in Spanish territory, which have full capacity to act and credit their economic, financial and technical solvency or professional.

2. The entities in which one of the following requirements is met shall be considered to be resident in Spanish territory:

(a) Having their registered office and registered office or tax residence in Spanish territory.

b) That they have their headquarters of effective address in Spanish territory.

For these purposes, an entity shall be deemed to have its headquarters of effective address in Spanish territory when on the radiating the address and control of the whole of its activities.

Article 15. Requirements for obtaining the payee condition.

1. In no case shall the regional incentives be accessible to the persons or entities in which one of the following conditions is present:

(a) Have been sentenced by a firm sentence to the penalty of loss of the possibility of obtaining grants or public aid.

b) Haber requested the declaration of contest, have been declared insolvent in any proceedings, found in contest, be subject to judicial intervention or have been disabled according to the Law without the end of the period of disqualification set out in the qualification judgment of the competition.

c) To have given place, for cause of which they have been found guilty, to the firm resolution of any contract concluded with the Administration.

d) The physical person, the administrators of the commercial companies or those who have the legal representation of other legal persons, in any of the cases of Law 5/2006, of April 10, Regulation of the conflicts of interest of the members of the Government and of the High Charges of the General Administration of the State, of Law 53/1984, of December 26, of Incompatibilities of Personnel to the Service of Public Administrations, or be dealt with by any of the elective offices regulated in the Organic Law 5/1985 of 19 June, General Electoral Regime, in the terms established in the same or in the autonomic regulations governing these matters.

(e) Not to be current in compliance with the tax or social security obligations imposed by the provisions in force.

f) Having the tax residence in a country or territory regulated as a tax haven or having shareholders or being engaged by other companies with registered office in a tax haven.

g) Not to be subject to the payment of grant repayment obligations.

h) Have been sanctioned by firm administrative resolution with the loss of the possibility of obtaining grants.

2. The prohibitions set out in paragraphs (b), (d), (e), (f) and (g) of paragraph 1 of this Article shall be automatically assessed and shall remain in the same way as the circumstances which, in each case, determine them.

3. The prohibitions contained in paragraphs (a) and (h) of paragraph 1 of this Article shall be automatically assessed. The scope of the prohibition shall be that determined by the judgment or final judgment. In the absence of such a decision, the scope shall be determined in accordance with the procedure laid down in the rules, without exceeding five years if the prohibition does not lead to a final judgment.

4. The assessment and scope of the prohibition contained in paragraph 1 (c) of this Article shall be determined in accordance with Article 15, in conjunction with Article 20 (c) of the recast of the Law on Contracts of Public Administrations, approved by the Royal Legislative Decree 2/2002 of 16 June.

Article 16. Of the obligations of the beneficiaries.

1. As a general rule, the beneficiary's obligations are:

a) Perform the activity and adopt the behavior that bases the granting of the incentives.

(b) If the aid is determined as a percentage of the approved investment, it must be maintained in the economic promotion area where the aid was granted and under normal operating conditions for a minimum period of five years from the end of life date set out in the individual grant resolution.

(c) Maintain the positions required in the terms of the Individual Resolution, for a minimum period of two years from the end of life date set forth in the Individual Concession Resolution.

(d) Credit, within the stipulated time limits, before the competent authority of the Autonomous Community, the performance of the activity, as well as the fulfilment of the requirements and conditions that determine the granting or enjoyment of the incentives.

(e) Collaborating with the actions of verification and control, to be carried out by the Directorate-General of Community Funds, and, where appropriate, by the European Union, without prejudice to the powers conferred on other bodies by the legislation; bodies of the State Administration and the Autonomous Communities.

(f) Communicating within the time limits established for the Directorate-General of Community Funds through the competent bodies of the Autonomous Communities any alteration of the social conditions affecting the beneficiary of the incentives, changes of address or other circumstances affecting the ownership of the file.

g) Credit, at any time requested, and, in any event, at the end of the term of validity and when applying for the collection of the grant, which is in the current of its tax obligations and in the face of Social Security.

h) Communicate both the application and the obtaining of grants or aid for the same purpose, from any public or private, national or international authorities. Such communication shall in any event be made at the time of the request for the incentives, at the time of the application for settlement and at the time of accrediting the fulfilment of the conditions at the end of validity, whether or not they have been changed the circumstances of the previous communication.

2. With regard to the control and inspection functions attributed to the Directorate-General for Community Funds and regulated in Title VI of this Regulation, the beneficiaries are obliged to:

(a) Make available to the Directorate-General for Community Funds the documentation and supporting documents relating to the investments made, including, where appropriate, the books and records of accounts, as well as the to the data presented in the incentive applications.

b) To carry out as many other documents or records as necessary to justify the fulfilment of the conditions (c) that would have been established in the corresponding individual resolution of the grant of benefits.

c) Facilitate the practice of accurate checks to verify the status of investment projects.

(d) Keep all the documentation related to the incentives during the period in which the verification, inspection and control actions of the same referred to in Article 43.2 can be carried out. In any event, where the condition of the beneficiary of the European Regional Development Fund is also met, the European Regional Development Fund must keep the documentation, as well as all the documents required by the Community regulations relating to the European Development Fund. Regional, at least during the period provided for in these.

3. The information to be provided by the beneficiary to the Administration shall be made in electronic form in the cases and format to be established by the Ministry of Economy and Finance, and, in addition, in cases where it is requested expresses the beneficiary.

TITLE II

Of the organs and the processing

CHAPTER I

Of The Managing Bodies

Article 17. Administrative Management Bodies of the incentives.

The management of regional incentives will be carried out by the Regional Incentive Rector Board, the Directorate General of Community Funds of the Ministry of Economy and Finance and the Autonomous Communities concerned.

Article 18. The Governing Council of Regional Incentives. Its composition.

1. The Governing Council of Regional Incentives, attached to the Ministry of Economy and Finance in accordance with Article 4.2 of Law 50/1985 of 27 December, of regional incentives for the correction of economic imbalances interterritorial, shall be composed of the following members:

President: The Secretary of State for Finance and Budget.

First Vice President: The Secretary General of Budgets and Expenses.

Second Vice President: A representative, with a category of Director General, from the Ministry of Public Administration.

Vocals: The Director-General of Community Funds, two representatives, with a category of Director General, of the Ministry of Industry, Tourism and Trade, a representative, with a category of Director General, of the Ministries of Economy and Finance, Education and Science, Labour and Social Affairs, Agriculture Fisheries and Food and Environment.

Secretary: An official, with the category of Deputy Director General, of the Directorate-General for Community Funds.

2. The Regional Incentive Governing Council may invite representatives of other bodies to attend when it deems appropriate.

3. They may delegate their duties in relation to the Governing Council of Regional Incentives The President in a Vice President and the Vocals in the Deputy Directors General to determine.

Article 19. Functions of the Regional Incentive Rector Board.

1. The functions of the Regional Incentive Rector Board shall be as follows:

(a) Schedule and promote state actions in the field of regional incentives, and in particular:

1. Prepare proposals for the delimitation of the promotion and priority areas, if any.

2. Propose the promotable sectors of each zone.

3. Propose in itself, or by delegation in Working Groups, the granting of regional incentives to the projects that correspond according to the criteria of correction of the interterritorial imbalances established in each case.

4. Propose the adoption of exceptional measures in order to achieve positive discrimination in the granting of regional incentives for location and/or activity reasons by establishing the duration of the measures.

(b) To ensure coordination of regional incentives with the other instruments of regional development policy and, for the purposes of Article 13 of this Regulation, with other aid of impact regional.

2. According to the provisions of Article 4.4 of Law 50/1985, of 27 December, of Regional Incentives The Council of Regional Incentives, through the Minister of Economy and Finance, will raise the Government on a quarterly basis, and when the requires, an explanatory memorandum of the regional incentives granted in each of the promotable areas, as well as their impact on investment and employment.

Article 20. Composition of the Working Groups.

The Working Groups referred to in the previous article will be integrated by the following members:

President: The Director-General of Community Funds or person to whom you delegate.

Vocals: A representation of the affected Autonomous Community and the relevant Departments by reason of the matter.

Secretary: An official from the General Directorate of Community Funds.

Article 21. Functions of the Directorate-General for Community Funds.

In the field of Regional Incentives the Directorate-General of Community Funds is responsible for the following tasks:

a) The execution, at the state level, of the regional incentive policy. Act as an organ of support to the Rector Council of Regional Incentives and to hold the Secretariat of the Council. Prepare the draft provisions to regulate the Regional Incentive policy.

(b) The exercise of the inspection and verification actions that correspond to the State Administration in relation to the regional economic incentives, without prejudice to the financial control functions that correspond to the to other organs of the General Administration of the State.

(c) Approve that the implementation of the projects has been carried out in accordance with the conditions laid down and, where appropriate, order the release of guarantees.

d) Start infringement and penalty procedures.

e) To process the procedures for non-compliance and sanctioning and to propose to the competent bodies the adoption of the resolutions that put an end to them.

(f) Others arising from Law 50/1985 of 27 December 1985 and which are not assigned to higher bodies of the State Administration or to the competent bodies of the Autonomous Communities, without prejudice to the generic competencies corresponding to the Directorate-General for Budgets and the General Intervention of the State Administration in the field of allocation and control of public resources.

Article 22. Functions of the Autonomous Communities.

1. The Autonomous Communities in the territory of which there are promotable areas, in addition to those which correspond to them in concurrence with the State Administration as set out in this Regulation, shall have the following functions:

a) Promote regional incentives in your territory.

b) Collaborate with the Regional Incentive Rector Council in the elaboration of the proposal for the geographical delimitation of the priority areas of its territory.

c) To transmit to the Regional Incentive Rector Council its priorities regarding the determination of the sectors to promote in the assisted areas located in its territory.

(d) Report to the Governing Council on Regional Incentives For Public Financial Assistance to be granted on its territory.

e) Forming part of the Working Groups of the Council of Regional Incentives Council responsible for drawing up, by delegation, proposals for the granting of regional incentives.

(f) Manage and process the application files and in particular, make the communication to the data subject referred to in Article 24.

g) Report to the Directorate-General of Community Funds on the implementation of projects under the conditions laid down.

h) Track the files that have been granted regional incentives.

i) Issue the report on the extent to which concessions are met and, where appropriate, request the Directorate-General for Community Funds to initiate the infringement procedure.

2. The Autonomous Communities, whatever the legal nature of the body or entity to which the exercise of the functions listed in the preceding paragraph is attributed, shall adjust their action to the requirements of Law 50/1985 of 27 In December, in accordance with Law 38/2003, of 17 November, General of Grants and Law 30/1992, of 26 November, of Legal Regime of Public Administrations and of the Common Administrative Procedure, except for specialties contained in this Regulation.

CHAPTER II

The procedure for granting regional incentives

Article 23. Requests.

To access the regional incentives regulated in this Regulation will be presented in the competent organ of the respective Autonomous Community, through any of the places provided for in article 38.4 of Law 30/1992, 26 November of the Legal System of Public Administrations and of the common administrative procedure, the following documentation:

(a) Application instance of the interested party in a standardised model, addressed to the Minister for Economic Affairs and Finance.

(b) Supporting documentation of the personal circumstances of the applicant, of the registrals in the case of a constituted company and, if it is in the form of a constitution, of the intended ones, as well as those of the promoter acting on your name.

(c) Memory of the investment project to be carried out, in a standard model to which the documentation certifying compliance with all environmental requirements must be attached.

d) Statement of the aid requested or granted for the same project, according to standard model.

e) Justification of the company's compliance with its tax obligations and in the face of social security or, where appropriate, authorization to the Directorate-General of Community Funds to obtain the certificates to be issued by the State Administration of Tax Administration and by the General Treasury of Social Security. In the case of a partnership in the form of a constitution, the obligation shall be understood as referring to the sponsor.

Article 24. Start of the investment.

The applicants for regional incentives will be able to implement the investments without waiting for the final resolution to be adopted, provided they properly credit, in the form established by the Ministry of Economics and Finance, which were not initiated before the time when the competent authority of the Autonomous Community has confirmed in writing to the applicant that the project, subject to the final result derived from a detailed verification is, at first sight, susceptible to being eligible in compliance with the general conditions of (a) location and productive investment, without the assumption of compliance with the other conditions to be required for the granting of regional incentives and therefore without prejudice to the decision to be taken at the end of the year.

Article 25. Preparation of proposals for the granting of incentives.

1. The Regional Incentive Governing Council shall determine the cases in which the proposal for the granting of regional incentives will be delegated to the working groups.

2. In order to speed up the proposal for the granting of regional incentives and without prejudice to Article 19 of this Regulation, the Regional Incentive Governing Council may delegate such a role to working groups of members. more restricted when considering smaller projects or presenting special features that warrant it.

Article 26. Granting regional incentives.

1. The granting of regional incentives shall be made by:

(a) The Government's Delegate Committee for Economic Affairs when it comes to concessions to projects in which eligible investment exceeds six million ten thousand and twenty-one euro.

b) The Minister of Economy and Finance, in other cases.

2. The maximum period for resolving and notifying the applications for regional incentives shall be six months from the date on which the application has entered the register of the Ministry of Economic Affairs and Finance. That period shall be extended in accordance with the provisions of Law No 30/1992 of 26 November 1992 on the Legal Regime of Public Administrations and the Common Administrative Procedure.

3. Where the initial period has elapsed and, where appropriate, the extension, without a resolution, the application for the granting of the incentives may be deemed to be rejected, in accordance with the additional twenty-ninth provision of Law 14/2000, of 29 December, on fiscal, administrative and social measures.

Article 27. Notification and acceptance of concessions.

1. The Directorate-General for Community Funds, taking into account the provisions of Law No 30/1992 of 26 November 1992 on the Legal Regime of Public Administrations and the Common Administrative Procedure, shall notify the parties concerned, through the competent authority of the Autonomous Community, the individual resolution relapse for each project. That resolution shall incorporate the rights and obligations of the beneficiary which affect the development of the project.

2. The beneficiaries of regional incentives shall express their acceptance within a maximum of 15 working days of their notification by the competent authority of the Autonomous Community. After such a period has not been effected, the competent authority of the Autonomous Community shall inform the Directorate-General of Community Funds and the latter shall declare the holder of the Community Funds to be entitled to the grant and the right to grant it. archiving the case.

3. The acceptance of the benefits will entail the obligation of the person concerned to fulfil the determining conditions of the concession, as well as of the requirements imposed on it and how many are derived from the provisions of the regulatory regional incentives.

In the individual resolution the date of the end of the grant of incentives will be established that determines the end of the term for the execution of the project and to fulfill all the conditions set in the own grant resolution. The fulfilment of these conditions shall be credited to that due date.

4. Notwithstanding the foregoing, the individual resolution may set interim deadlines prior to the end of life date to demonstrate compliance with specific conditions.

Article 28. Companies incorporated after the request for incentives.

1. Where the benefits are granted to a company in the form of a constitution, the company shall have a period of four months from the date of acceptance of the Individual Concession Resolution, in order to present the evidence of the registration of the Company with the competent authority of the Autonomous Community.

2. After the period established in the previous point, the company will have one month to present to the competent organ of the Autonomous Community the ratification of the acceptance of the concession of regional incentives.

3. After the deadline, without having complied with paragraphs 1 and 2 of this Article, this fact shall be notified by the Autonomous Community to the Directorate-General for Community Funds, which shall without effect declare the grant and the will be archived.

Article 29. Presentation in the Mercantile Register of the resolutions.

1. The beneficiary shall submit the grant decision to the Trade Register within one month from the date of acceptance of the concession for the purpose of complying with the Additional Fourth Disposition of the Commercial Register, approved by Royal Decree 1784/1996 of 19 July. It must also present in the same period all the resolutions after the granting of the Regional Incentives: the resolutions of extension, modification of the incentives or loss of the rights if the change of ownership occurs of the incentives.

In the case of beneficiaries who are not subject to registration in the Commercial Registry, the obligation set out in the preceding paragraph shall be construed as referring to the registration in the Register that corresponds to its nature.

2. Compliance with this condition must be accredited to the competent authority of the Autonomous Community within four months of the acceptance of the relevant decision, except in the case of a company in the a constitution in which case the accreditation shall be carried out within six months of the said acceptance.

3. In the event that the fulfilment of this obligation is not established in time, the Autonomous Community shall notify the Directorate-General of Community Funds which shall declare without effect the grant not presented before the Registry. Mercantile.

TITLE III

From project execution

Article 30. Subject to the conditions laid down.

The execution of the projects must comply with the conditions, prescriptions and deadlines that are established in the granting of the incentives, leaving the beneficiary bound by the documentation presented by the beneficiary. request and subsequent modifications accepted.

Article 31. Post-concession incidents.

1. The incidents following the granting of Regional Incentives will be resolved by the Directorate-General for Community Funds and in particular when they relate to the following aspects:

(a) Amendments to the initial draft, provided that they entail a reduction of the incentives granted, the amount of the investment approved or the number of jobs to be created, which do not exceed 10% of the total initially approved.

b) Change of denomination or of the corporate circumstances with or without change of ownership affecting the project.

c) Change project location when it occurs within the same economic promotion zone.

d) Amendments to the time limits and/or timetables for fulfilling the conditions for the implementation of the project and for the fulfilment of the particular conditions of the concession, which must be requested at least 2 months before the date of the expiration of the same.

e) Changes in jobs to be maintained by the holder as a result of corporate operations.

2. Where the amendments to the initial draft involve change of activity, variation of the incentives, the amount of investment approved, or the jobs to be created, which exceed the limits laid down in point (a) of paragraph 1. above, they will be resolved by the body that approved the initial concession.

3. The impact on the beneficiary's ownership of paragraph 1 (b). This Article shall be communicated to the competent authority of the Autonomous Community within a maximum of two months from the entry of the public deed which contains it. The impact will be resolved by the Directorate-General for Community Funds.

Article 32. Modification procedure.

1. The request for amendment of the projects referred to in the previous Article shall be submitted to the competent authority of the Autonomous Community and addressed to the Minister for Economic Affairs and Finance, and shall specify those conditions. which have been modified since the initial request.

2. The maximum period for resolving and notifying the resolution shall be six months from its receipt in the Directorate-General for Community Funds. After that period without resolving the person concerned, he may understand his request, except for amendments to the initial draft which entail variation in the incentives referred to in paragraph 2 of the previous Article, in which case, after that period, they shall be deemed to be dismissed, in accordance with the additional twenty-ninth provision of Law 14/2000 of 29 December.

Article 33. Performing intermediate conditions.

1. Within the time limits laid down for the intermediate conditions in the relevant concession resolution referred to in Article 27.4, the beneficiary shall accredit to the relevant organ of the Autonomous Community the compliance with the same. Such accreditation shall be carried out by means of the documents to be established by the Minister for Economic Affairs and Finance.

The competent authority of the Autonomous Community shall analyse the documentation provided by the person concerned and may request the necessary documentation and expertise to clarify the extremes it deems appropriate.

2. The competent authority of the Autonomous Community shall inform the Directorate-General of Community Funds of the fulfilment or failure to comply with each of the conditions, in accordance with the model laid down by the Minister for Economic Affairs and Hacienda.

Article 34. Compliance with the final conditions.

1. Within four months of the end of the period of validity, the beneficiary must prove to the competent authority of the Autonomous Community that the conditions laid down in the granting decision are met. by the presentation of the documents to be established by the Minister for Economic Affairs and Finance and which shall in any case include an inventory of the assets that are the subject of the investment.

2. The Autonomous Community shall carry out a physical check on the reality of the investment project and may request the necessary documentation and expertise to clarify the extremes it deems appropriate, after which it shall issue a report on the degree of compliance with the conditions for which the person concerned will be transferred.

3. The Autonomous Community may issue a positive report on the degree to which conditions are met where there are deviations in the different items of the incentive investment, provided that the deviation does not exceed by more or less than 10% of the each item and that this does not amount to a change in the total amount of the incentive investment. Where such a circumstance occurs, such an end must be stated in the report on the degree of compliance with the conditions.

4. If the Autonomous Community issues a positive report on the degree of compliance with the conditions, the person concerned may submit the application for recovery as referred to in Article 37 of this Regulation. In other cases, it shall forward the report on the degree of compliance with the conditions to the Directorate-General for Community Funds for the purposes of Article 45 of this Regulation.

5. The positive report on the degree of compliance with conditions issued by the Autonomous Community is the document which will give rise to the initiation of the winding-up proceedings once the person concerned has been informed in accordance with the provisions of the and without prejudice to the powers of inspection and control.

TITLE IV

Financial management and settlement of incentives

CHAPTER I

Financial and budgetary management

Article 35. Financial management of the Incentives.

The budgetary implementation procedure shall be based on the multi-annual nature of the expenditure and on which the implementation of the credit provides for grants awarded in previous years.

Article 36. Commitment of expenditure.

1. Prior to the grant of the grant, it shall be for the Directorate-General for Community Funds to establish, for each aid file, the existence of adequate and adequate credit.

2. The commitment of expenditure shall be proposed by the Directorate-General for Community Funds and shall be made when the first settlement of the file is processed, unless such recognition or other circumstances are collected in the Concession Act. specific case files.

CHAPTER II

From the liquidation of the grants

Article 37. Forms of settlement.

1. Final settlement.

After the expiry of the term of validity, the beneficiary may only request the total settlement of the grant awarded or to which it is entitled in accordance with the provisions of Article 45.7.

2. Total account settlement.

Within the period of validity, and except in the case provided for in the following paragraph, the beneficiary may only ask the competent authority of the Autonomous Community for a single payment for the total grant once made the whole of the investment to be subsidised and on presentation of a bank guarantee in the terms described in Article 39 of this Regulation. Even if you have received the total amount of the grant before the end of the term of validity, the beneficiary must complete what is set out in that article.

This settlement may only be filed after the date of compliance and accreditation of any and all conditions imposed on the holder and prior to the end of the term.

Once this settlement is requested, no request for amendment concerning the project affecting the quantity or characteristics of the investment or the investment will be admissible before the Directorate-General for Community Funds. job level.

3. Partial account settlement.

Within the period of validity, the beneficiary may apply to the Autonomous Community for payment on account of the grant, as the investment is justified, provided that it is authorised in the corresponding Individual Concession Resolution.

Even if you have received partial amounts of the grant before the end of the term, the beneficiary must complete the provisions of Article 38 of this Regulation.

In no case will the associated investment and grant schedules be agreed upon for files with a grant amount of less than € 5 million.

Article 38. Settlement procedure.

1. Once the relevant positive report has been issued on the level of compliance with the conditions or, where appropriate, the resolution referred to in Article 45.7, the Autonomous Community shall forward it to the Directorate-General for Community Funds together with the The following documents:

(a) The request for recovery of the data subject according to standard model, addressed to the Minister of Economy and Finance.

(b) The proof of compliance by the company with its tax obligations and in the face of social security at the date of filing of the request for recovery, authorization to the General Directorate of Funds Community to collect certificates to be issued by both the State Tax Administration Agency and the General Treasury of Social Security.

(c) The declaration of aid applied for or granted to the same project, together with the supporting documents for granting it.

d) Banking endorsement commitment, if any.

e) Accreditation of investments made, according to the standard model, corresponding to the liquidation and linked to the approved investment, through the contribution of the documents to be established by the Minister of Economy and Hacienda.

f) Accreditation of compliance with other conditions set out in the grant resolution and which should be justified at that time.

g) Supporting documentation of the registration in the corresponding register, of the eligible goods to be registered.

h) Inventory of the assets that are the subject of the investment as provided for in Article 34.1.

i) Any other supporting documentation required for settlement.

2. The Autonomous Community shall analyse the documentation provided by the person concerned and may request the necessary documentation and expertise to clarify the extremes it deems appropriate, after which it shall forward to the Directorate-General for Community Funds a report on the investment made and the remaining conditions to be met on the date of application for recovery, as well as the documentation referred to in points (b) and (c) of the previous paragraph.

3. Once this documentation has been received, the Directorate-General for Community Funds, in the light of the available budgetary resources, will carry out the necessary procedures for the full or partial payment of the subsidy. The release of the guarantees which it would have established within six months shall also be carried out on its own initiative.

Article 39. Of the guarantees.

1. For the purposes of processing the payment of the accounts provided for in Article 37 of this Regulation, the person concerned shall be required to provide a guarantee in favour of the Directorate-General for Community Funds.

2. Such guarantee shall be made by means of bank guarantees provided exclusively, in the form and conditions, by banks registered in the corresponding Registers of the Banco de España.

The guarantee must be deposited in the General Deposit Box or in its branches in the Provincial Delegations of Economy and Finance.

3. The amount of the guarantee shall be communicated to the beneficiary by the Directorate-General for Community Funds through the competent authority of the Autonomous Community prior to the payment procedure. This amount shall be set by a sufficient amount to ensure the repayment of the amount whose liquidation is requested, plus any legal interest increased by 20 per 100, in anticipation of fluctuations in the interest rate and of other possible additional expenses.

4. For the calculation of interest, the period between the date of establishment of the guarantee and the end of the term of validity indicated in the extended incentive award resolution shall be used within six months. If the term of validity is amended, a supplementary guarantee, the amount of which shall also be established by the Directorate-General for Community Funds, shall be provided to cover the interest of the additional period. granted.

The interest rate to be used shall be the legal interest of the money set in the General Budget Law of the State in force at the time the security is established.

5. In the text of the endorsement it must be specifically stated that it cannot be cancelled until the Administration has authorized it and that it can be executed without more than the guarantor entity is required by the Administration for it.

6. Institutions providing guarantees to the beneficiary of incentives shall not be able to use the excision benefit referred to in Article 1830 and consistent with the Civil Code.

7. The guarantor or insurer shall be considered to be an interested party in the procedures affecting the security provided under the terms laid down in Law 30/1992 of 26 November 1992 on the Legal Regime of Public Administrations and the Procedure Common Administrative.

8. In the case of change of ownership of the incentives, no refund or cancellation of the guarantee provided by the transferor shall be made until the guarantee is formally established that of the transferee.

9. Once the Report on the degree of compliance with positive conditions referred to in Article 34 of this Regulation or, where appropriate, the resolution of non-compliance, has been issued, if it is not a matter of responsibility, exercise of the guarantee, or if the verification and inspection actions are initiated or the procedure for non-compliance or drawback of the file has been carried out, the approval of the guarantee shall be made of its own initiative.

10. The eligible assets are affected by the payment of the repayment of the amounts received and the interest on late payment, regardless of their ownership, unless it is a third party protected by the public register or justify the acquisition of the goods in good faith and right or in a commercial or industrial establishment in the case of non-registered movable property.

Article 40. Suspension of the payment procedure.

The payment procedure can be suspended when some of the following situations are present:

(a) Where performance of verification, inspection or processing of non-compliance with the same beneficiary under the same or other incentive file is being carried out, up to its resolution without prejudice to the provided in point (c).

(b) Where the beneficiary has outstanding repayment due to a breach of an incentive file, until its cancellation.

c) When any other unresolved circumstances exist that affect the case.

(d) When, after the concession, the beneficiary incurs any of the circumstances provided for in Article 15.

TITLE V

From Post-End Obligations

Article 41. Post-End Entitlement Incidents.

1. All incidents in the beneficiary's ownership affecting the project produced during the five years following the end of the grant shall be communicated to the competent authority of the Autonomous Community. The impact will be resolved by the Directorate-General for Community Funds.

2. The incidents shall relate to cases of transfer of the holding or any other concerning the legal personality of the holder which affects the project, after the end of the term and which includes, inter alia, the alleged transmission, dissolution, merger, absorption, and division of the incentive holder. In the case of a partial division, the share of the social heritage which is transmitted, divided or segmented shall form an economic unit containing the establishment subject to the grant, which shall in no case be segregated.

3. The resolution of the incidence of transmission shall include the joint and several liability of the transmitter, the holder of the incentives, and of the new acquirer in respect of the compliance with the conditions to be met taking into account the two-year period. for the maintenance of employment and five years for the maintenance of the investment. This responsibility must be expressly accepted by the two companies.

4. They will be attributed to the new company, which would be in solidarity with the previous holder of the incentives, the responsibilities arising from the failure to meet the conditions of regional incentives regardless of the person responsible for the failure.

Article 42. Maintenance of the conditions.

1. Compliance with the obligation to maintain investment which is the subject of regional incentives under normal operating conditions shall in any event require that the disposal or charge of the goods not be carried out without prior authorization. which make up the same, except as provided for in Article 41.

Normal operating conditions will be considered to be the replacement of assets by others that serve in similar conditions to the end for which the incentives were granted and this use is maintained until the end of the period set.

2. In order to carry out the checks on the maintenance obligation described in the previous point, the beneficiary must make an inventory of the goods covered by the grant referred to in the Article at the end of the period of validity. 34.1. This inventory shall contain the information necessary to verify the maintenance of the investments in his property within five years of the end of the term of validity in accordance with the standard model established by the the Ministry of Economy and Finance. In the period from six to three months before the end of the five-year period required for the maintenance of investments, the beneficiary shall, once again, submit to the competent authority of the Community Autonomous the same model of inventory of goods to that date and in which they will be reflected, in their case, the casualties of assets and the dates in which they were produced, as well as the identification of the substitute goods and the dates of their incorporation. The competent authority of the Autonomous Community shall forward to the Directorate-General for Community Funds the report on the degree of compliance with this condition, after the physical verification of the existence of the goods before the Completion of the five-year period mentioned above.

The failure to comply with paragraph 1 or the failure to submit within the prescribed time limits of the inventory of goods referred to in this paragraph could result in the declaration of loss of the grant awarded prior to the processing of the non-compliance procedure laid down in Article 45.

3. The granting of Regional Incentives shall be subject to maintenance at least for two years from the date of the end of the period of the required posts, which shall include the posts to be maintained for the duration and the maintenance of the posts to be set up on that date. For these purposes, in order to determine the jobs actually maintained, the unmaintained jobs must be disposed of without a continuity solution for the following two years at the end of the term of validity, unless justified. the exercise of the necessary actions, in the shortest possible time, in order to maintain the continued coverage of those posts and have effectively been covered.

4. The justification for the maintenance of the condition of employment after the end of the term shall be made before the competent authority of the Autonomous Community within four months of the end of the two-year period. by the presentation of the monthly evolutionary status of the workforce. The competent authority of the Autonomous Community shall inform the Directorate-General of Community Funds within four months of the information provided by the beneficiary together with other information which, if appropriate, considers relevant, or either report the non-submission of justification.

TITLE VI

From control and inspection of incentives

Article 43. Competence and scope of action.

1. It is the responsibility of the Directorate-General for Community Funds, without prejudice to the powers conferred on other bodies or bodies of the State Administration and the Autonomous Communities, to monitor the proper implementation of the Regional incentives, which can be used to carry out checks, inspections and checks, and to collect information that it deems appropriate.

2. The surveillance and inspection functions shall be extended to any questions raised in relation to the grants awarded under Law 50/1985 of 27 December of Regional Incentives and may be carried out until after four years from the expiration of the period of the last of the conditions to be fulfilled or maintained, imposed by virtue of the corresponding Individual Resolution. This period shall be interrupted:

(a) By any action of the Administration, carried out with formal knowledge of the beneficiary, leading to the recognition, regularisation, verification, inspection and liquidation of the incentives granted.

b) By the interposition of resources of any kind, by the remission of both guilt to the criminal jurisdiction or by the filing of denunciation before the Fiscal Ministry and the processing of them until their resolution in firm.

(c) For any strong performance of the beneficiary in relation to the verification, settlement, payment and repayment of the incentives.

Article 44. Powers of the Directorate-General for Community Funds.

1. In the performance of its tasks, the Directorate-General for Community Funds has the following powers:

(a) To carry out investigations or information, with respect to public or private bodies and private individuals, which directly or indirectly serve to verify the proper application of the incentives regional, preserving, in any case, the freedom and confidentiality of those who supply the information.

b) Analyze and directly verify the documentation that the grant beneficiary is required to submit in accordance with the terms set out in Article 16, being able to take note through its agents of how much data it deems appropriate and obtain copies of any background you need.

(c) Access to the facilities or establishments in which the investment has been carried out to carry out the actions it deems appropriate and in particular to check whether the beneficiary's assets or holdings fulfil the obligations which they correspond to. You can also perform the ordered tests for the same purpose.

d) Practice measurements, take samples, obtain photographs, sketches or drawings, as well as claim expert advice on issues relating to eligible activities.

(e) agree to the retention of invoices, equivalent or substitute documents and any other relating to transactions in which evidence is expressed or which indicates that they have been carried out for the purposes of the incorrect procurement, enjoyment or destination of the grant or aid received.

2. The outcome of the control and inspection measures, which may cover all or only one of the conditions to be met by the beneficiary, shall be recorded in the relevant report, which shall be issued by the body which has carried out such checks and inspections. actions. This report shall serve as a basis, where appropriate, to initiate the relevant non-compliance procedure provided for in Article 45.

Article 45. Procedure for non-compliance.

1. The report on the degree of compliance with the conditions and if it determines that the project has not been implemented according to the conditions laid down will be carried out by the Directorate-General for Community Funds to analyse the causes and extent of the non-compliance, initiating the infringement procedure.

Exceptionally, the Directorate-General for Community Funds may grant an extraordinary extension for the implementation of the project, provided that the Governing Council has a favourable report on Regional Incentives and concurs circumstances of public interest or non-compliance is not attributable to the beneficiary.

2. The infringement procedure shall be initiated by notification to the beneficiary of the determining causes of the non-compliance. The interested parties may, at any time in the proceedings, prior to the hearing procedure, submit claims and provide documents or other evidence. In those procedures where, due to the complexity and size of the investment, it is considered necessary, a report will be requested from the Regional Incentive Rector Board.

3. Having regard to the procedure, and immediately before drawing up the motion for a resolution, it shall be made clear to the parties concerned, who shall have a period of 15 days in which to submit and submit the documents and justifications which they consider to be relevant.

4. The statements made or after 15 days without reply by the beneficiary shall be submitted, together with the proposal of the Directorate-General for Community Funds, to the holder of the Ministry of Economic Affairs and Finance. or the Government's Delegated Committee for Economic Affairs, in accordance with their respective powers, to adopt the resolution as appropriate.

The resolution shall rule on the obligation to return, where applicable in accordance with Article 46, and shall include the settlement of the interest on late payment provided for in Article 38 of Law 38/2003, of 17 November, General of Grants. For this purpose, it shall either quantify the amount of interest on late payment or fix the basis on which the winding-up is to be carried out, in such a way as to consist of a mere arithmetic operation, which shall, in this case, be carried out by the body responsible for the notification of the act, which shall form an inseparable part.

5. The maximum time limit for resolving and notifying the resolution of the non-compliance procedure shall be 12 months from the date of the initiation agreement. That period may be suspended in accordance with the provisions of Article 42 (5) of Law No 30/1992 of 26 November 1992 on the Legal Regime of Public Administrations and the Common Administrative Procedure. If the cessation of the procedure is attributable to the person concerned, the maximum period shall be interrupted while the cause of the cessation of the proceedings is subsisting.

If the time limit for resolving without express resolution has passed, the procedure shall be expired, without prejudice to any further action until its termination and without being deemed to be interrupted. prescription for actions carried out until the end of the term.

6. The body responsible for dealing with and instructing the proceedings shall notify the person concerned of the decisions ending the procedure. In the event of a grant from the person concerned, the person concerned may request recovery of the same following the procedure laid down in Article 38.

7. If, before the initiation of the infringement procedure is agreed, the beneficiary shall communicate to the Directorate-General for Community Funds, directly or through the competent authority of the Autonomous Community, its conformity with the causes of non-compliance and with the consequences of non-compliance, where appropriate, the corresponding resolution of non-compliance, without the need for any other act of instruction, as long as the resolution is in accordance with those extremes.

Article 46. Failure to comply with conditions and graduation of its scope.

1. The declaration of non-compliance and, where appropriate, the total or partial drawback of the amounts received, and the requirement of interest for late payment due from the date of payment of the subsidy up to the date on which the source is agreed of the drawback, in the following cases:

(a) Failure to comply with the obligations of justification, communication or accreditation, insufficient justification, or justification outside the time limit set.

b) Get the grant without meeting the required conditions for it.

c) Distortion, inaccuracy or omission in the data provided by the beneficiary who have served as the basis for the concession.

d) Failure to comply with the purpose for which the grant was granted.

e) Failure to comply with the conditions imposed on the beneficiaries on the basis of the grant of the grant.

f) Incur at any time before the end of the term of validity of the incentives in any of the causes provided for in Article 15 of this Regulation.

g) Obtain the subsidy for an amount, the amount of which, in isolation or in competition with grants or aid from other public or private authorities or other public authorities, exceeds the maximum investment ceilings approved in accordance with Article 13 of this Regulation, as well as the corresponding Royal Decrees of delimitation.

h) Failure to comply with the obligations of the beneficiary provided for in Article 16 of this Regulation.

2. In the case of conditions relating to the amount of the investment, the extent of the non-compliance shall be determined in proportion to the investment which has been unduly paid or practised.

If the breach exceeds 50 per 100 the scope of the default will be total.

3. In the case of conditions relating to the creation and maintenance of jobs, the extent of the non-compliance shall be determined in the proportion where that condition has been breached by relating to posts not created or not those which the beneficiary would have been obliged to in the relevant decision.

If the default exceeded 50 per 100 or resulted in the destruction of employment, the extent of the default will be total.

4. In any case, the extent of the non-compliance will be total in the following cases:

a) Get the grant without meeting the required conditions for it.

(b) Where the minimum level of self-financing required by the award decision is not credited on the basis of Article 8 (b).

c) Failure to comply with the purpose for which the grant was granted.

d) Non-registration in the Official Records required by the legislation for the development of the subsidised activity.

e) When the beneficiary does not credit that it is aware of its tax obligations and social security.

f) The lack of collaboration with the verification and control actions referred to in Article 16.1.e.

g) When, at any time of validity, the beneficiary incurs the situations of prohibition of access to the regional incentives provided for in Article 15 of this Regulation.

(h) If, as a result of the non-compliance, the eligible investment is below the minimum set in the actual delimitation decrees for concession purposes.

i) When the resulting amount of the incentives does not exceed 35 per 100 of the initially approved.

(j) Where the time-limits provided for in the granting resolution for the accreditation of compliance with conditions, including those provided for in the intermediate conditions provided for in Article 33, are not met.

k) Where the grant received for the same project exceeds the ceilings established on the basis of a subsidy not communicated within the time limits laid down in Article 16 (h).

l) When the post-granting incidents are not reported within the time limit provided for in Article 31.3.

m) Non-filing within the specified period of the inventory of goods referred to in Article 42.2.

5. In the case of incentives for an amount, the amount of which, in isolation or in competition with other subsidies or public aid, exceeds the maximum ceilings referred to in Article 3.2 of Law 50/1985, the amount of the incentives in excess of the maximum ceilings of the approved investment.

6. If the non-compliance derives from the non-observance of any condition or assumption other than the previous ones, its scope, total or partial, shall be determined according to the degree and entity of the unfulfilled condition.

7. The concurrence of different causes of non-compliance will result in the joint appreciation of the same in order to determine the extent of the non-compliance.

For these purposes, the scope of the default, as long as 100, will be obtained by subtracting from 100 the product of the degree of compliance, by 100, of each and every one of the conditions.

8. Where the extent of the non-compliance is total as set out in the preceding paragraphs, no grant shall be granted to the beneficiary, giving rise, where appropriate, to the reimbursement of the amounts received and the requirement of the interest for late payment.

In other cases, the subsidy to be granted to the beneficiary will be obtained by reducing the subsidy granted in the percentage of the scope of the non-compliance, giving rise, where appropriate, to the reimbursement of the amounts overperceived and the requirement of the corresponding interest for late payment.