Law 35/2006, of 28 November, of the Tax on the Income of the Physical Persons and of partial modification of the Laws of the Taxes on Societies, on the Income of Non-Residents and on the Heritage, introduces significant changes in those taxes which have an impact on the scope of payments on account of those taxes. On the one hand, in the Income Tax of the Physical Persons a new settlement scheme has been established, as a result of the introduction of a zero-rate tranche to allow any taxpayer to obtain identical tax treatment. for the same personal and family circumstances regardless of their income level. At the same time, the tax rate has been lowered and there have been significant increases in the amounts that form the threshold for taxation, and therefore for retention, in particular, in the reduction in income from work and in the amounts of the minimum personal and family. On the other hand, new withholding assumptions have been established or income to be taken into account, as is the case with the returns of certain economic activities which determine their net return in accordance with the objective or the method of property gains derived from the forest exploitation of the neighbors in public mountains. Finally, the new treatment of savings income has meant the establishment of new types of withholding tax applicable not only in the Income Tax of the Physical Persons, but also in the Tax on Companies and in the Tax on the Income of non-residents. Consequently, the Government considers it appropriate to advance the approval of this Royal Decree prior to that of the new Regulation of the Income Tax of the Physical Persons, with the purpose of the obligation to practice Withholding and income on account may be known in good time in advance of the new rules which in the field of payments to account will be applicable from 1 January 2007, thus providing the necessary security and information for the correct compliance with their obligations as retainers. In this way, the Regulation of the Income Tax of the Physical Persons, approved by Royal Decree 1775/2004 of July 30, Royal Decree 2146/2004, of 5 November, is amended, by which the measures to address the commitments arising from the celebration of the XXXII edition of the Copa del América in the city of Valencia, the Corporate Tax Regulation, approved by Royal Decree 1777/2004 of July 30, and the Income Tax Regulation No Residents, approved by Royal Decree 1776/2004 of 30 July 2004, with the aim of adapting these (a) rules on the modifications made in the field of payments on account as a result of the approval of the said Law. This Royal Decree is structured in three chapters, four articles, three transitional provisions and one final. Chapter I regulates the modifications introduced in the Income Tax of the Physical Persons and is developed in two articles, the first modifying the Regulation of the Tax on the Income of the Physical Persons and the second, the cited Royal Decree 2146/2004. Chapter II includes a single article amending the Corporate Tax Regulation. Finally, Chapter III, also integrated by a single article, regulates the amendments to the Non-Resident Income Tax Regulation. Prior to the presentation of the main changes made to the Income Tax of the Physical Persons, it should be stated that the mere adaptation of the current Tax Regulation to the content of the new tax has been considered appropriate. Law, thus facilitating their analysis and understanding by the taxpayers. In this way, the part of the Regulation in which the payments are regulated is duly updated, constituting the legal framework to be taken into account by the taxpayers in this field as from 1 January 2007 and up to the adoption of the new tax regulation. The most important amendments made to this tax on payments to account relate to the area of income from work and economic activities. In relation to the performance of the work, the current system of determination of the type of retention is maintained. In this way, the general procedure for determining the type of retention is retained, together with the fixed rates of retention for certain yields. However, as indicated above, the significant increase in the reduction in the performance of work and the minimum personal and family performance has led to a significant increase in the retention thresholds, i.e. the amount to be paid to from which there will be an obligation to retain. In turn, this increase has forced the revision of the existing maximum retention limit for those taxpayers whose total remuneration is less than 22,000 euros, in order to avoid jump errors. Furthermore, the general procedure should be amended as a result of the new scheme for the liquidation of the tax, in which the minimum staff and family members set up a zero-rate tranche on the tax scale. In this way, it will be necessary to calculate two magnitudes to determine the type of retention; on the one hand, the base, similar to the current one, although it incorporates the new instruments of social foresight, the so-called social forecast plans business, and, on the other hand, the minimum personal and family for retention purposes. The retention scale shall be applied to both quantities, in the same way as the system configured in the tax for calculating the full quota, taking into account, where appropriate, the satisfaction of the judicial decision of annuities for food in favour of the children. The aforementioned retention scale is obtained, as has been traditional in the tax from its configuration as a partially ceded tribute to the autonomous communities, by aggregation of the two scales, state and complementary, which appear in the Law of the Tax, achieving the greatest possible adjustment between the liquid quota which could be derived from an autoliquidation to the tax administration in any part of the territory of application of the tax and the amount of the withholding and income to the account is supported by these taxpayers, while respecting the mandate legally established. Finally, the special procedures in this field have been integrated into a single article, i.e. the one applicable to the calculation of the rate of retention for recipients of passive benefits and the one determining the retention in cases of change of residence. In relation to income from economic activities, the legal provision of the new obligation to retain in relation to certain economic activities carried out by taxpayers determining the net yield of the economic activities is developed. in accordance with the objective estimation method. This retention is a consequence of Law 36/2006 of 29 November of measures for the prevention of tax fraud and basically pursues a function of control of those operations carried out by the employers determining the income of the their activity by the method of objective estimation to other entrepreneurs, so the rate of retention is fixed at 1 per cent. The economic activities subject to this new retention are those in which operations are most frequently developed between entrepreneurs, which are identified, as usual in the objective estimation method, by reference to the group or heading of the First Section of the Tariff of the Tax on Economic Activities. This is one of those included in Divisions 3 and 4 (metal carpentry, and activities for the manufacture of hardware, carpentry, furniture or clothing, ...), 5 (construction-related activities) and 7, with regard to the carriage of goods, excluding that of passengers (either collective or self-taxi). In this way, in relation to those activities, there will be an obligation to retain unless the employer who exercises the same report informs the payer of the returns which determines the performance of his activity according to the method of estimation. direct. Similarly, if the net yield is subsequently determined again in accordance with the method of objective estimation, it must inform the payer that this is the case, so that, as a result, retentions or revenue are to be reapplied. It should be noted that such withholding or revenue may be deducted in the calculation of the instalments for the tax period. On the other hand, the new withholding rates provided for in the Tax Law, i.e. 18 percent for the income of capital, are incorporated in the capital gains, including the new assumption of the income derived from the (i) the use of the resources of the Member States in the field of public procurement, in particular the leasing and sub-leasing of urban real estate, and 24% for income from the transfer of the right to the exploitation of the right of image. Some precepts are also modified, exclusively, by the need to adjust the numbering of the articles to which they refer to the new Law. Finally, the Royal Decree 2146/2004, of 5 November 2004, is adapted to the new scheme for the liquidation of the tax, so that the special reduction provided for in that rule will continue to apply before the reduction is granted returns from work. As for the Corporate Tax, the normative references contained in the subject of withholding and income to the Law of the Income Tax of the Physical Persons are modified, while the new percentages of This is the case in point of view of the fact that the Commission has not yet taken a decision on the question of the Commission's decision to grant the Commission a decision. As for the Non-Resident Income Tax, apart from a review of the regulatory referrals, the new rate of withholding of the 3 percent planned for the alleged transfer of real estate located in the territory is incorporated. This is the property of taxpayers of this tax who are taxed without permanent establishment mediation. In its virtue, on the proposal of the Minister for Economic Affairs and Finance, in agreement with the Council of State and after deliberation by the Council of Ministers at its meeting on 22 December 2006.

D I S P O N G O:

CHAPTER I

Tax on the Income of Physical Persons

Article first. Amendment of the Regulation of the Income Tax of the Physical Persons, approved by Royal Decree 1775/2004, of July 30.

The following amendments are made to the Income Tax Regulation of the Physical Persons: One. Article 73 is worded as follows:

" Article 73. Income subject to withholding or income on account.

1. The following income shall be subject to withholding or income: (a) The income of the work.

(b) The income of the capital. (c) Performance of the following economic activities:

The performance of professional activities.

The yields of agricultural and livestock activities. The yields of forestry activities. The income of the business activities provided for in Article 93.6.2. of this Regulation which determines their net performance by the method of objective estimation.

(d) the property gains obtained as a result of the transmissions or repayments of shares and shares representing the capital or assets of the collective investment institutions, as well as those arising from the forest exploitation of the neighbours in public mountains. 2. They shall also be subject to withholding or taking into account the following income, irrespective of their rating: (a) Yields from the lease or sublease of urban buildings.

For these purposes, references to the lease shall also be construed as being made to the sublease. (b) the income from intellectual property, industrial property, the provision of technical assistance, the leasing of movable property, business or mining, the sublease on the former goods and those arising from the sale of the right to the exploitation of the right of image. (c) prizes which are awarded as a result of participation in games, contests, raffles or random combinations, whether or not they are linked to the offer, promotion or sale of certain goods, products or services.

3. There shall be no obligation to practise withholding or income on the following income: (a) exempt income, with the exception of that laid down in Article 7 (y) of the Law on the Tax, and allowances and travel expenses other than lien.

(b) The income of the securities issued by the Banco de España which constitute a regulatory instrument for intervention in the money market and the returns of the Treasury bills. However, credit institutions and other financial institutions that formalise with their clients contracts of accounts based on Treasury bills shall be obliged to retain in respect of the returns obtained by the holders of those accounts. (c) the conversion premiums for debt securities. (d) the income of foreign accounts satisfied or paid by permanent establishments abroad of credit institutions and financial institutions resident in Spain. (e) returns arising from the transmission or redemption of financial assets with explicit performance, provided that they meet the following requirements:

1. º That are represented by annotations in account.

2. º That are traded in an official secondary market of Spanish securities.

Financial institutions involved in the transmission, amortisation or redemption of such financial assets shall be required to calculate the performance attributable to the value holder and inform the holder as well as the tax administration, which shall also provide the data for the persons involved in the operations listed above.

The Minister of Economy and Finance is empowered to establish the procedure to make the exclusion of regulated retention effective in this paragraph. By way of derogation from this subparagraph, credit institutions and other financial institutions which formalise with their clients contracts of accounts based on transactions in respect of the above securities shall be obliged to retain them in respect of returns obtained by the holders of those accounts. Similarly, the share of the price equivalent to the coupon in the transfers of financial assets effected within 30 days immediately preceding the expiry of the coupon shall be subject to withholding tax when the Following requirements:

1. º that the acquirer is a person or entity not resident in Spanish territory or is a taxable person of the Company Tax.

2. º That the explicit returns derived from the transmitted securities are excepted from the obligation to retain in relation to the acquirer.

(f) Prizes to be awarded as a result of games organised under the provisions of Royal Decree-Law 16/1977 of 25 February on the penal, administrative and fiscal aspects of the games of the luck, send or chance and bets, as well as those whose retention base does not exceed 300 euros.

g) Yields from the lease or sublease of urban buildings in the following assumptions:

1. º When it comes to housing rental by companies for their employees.

2. When the rent paid by the lessee to the same landlord does not exceed 900 euros per year. 3. When the activity of the lessor is classified in one of the headings of group 861 of the First Section of the Tax Rates on Economic Activities, approved by the Royal Legislative Decree 1175/1990 of 28 September, or in any other heading which empowers the activity of leasing or subleasing of urban real estate, and applying to the cadastral value of the buildings for the lease or sublease the rules for determining the quota set out in the headings of the said group 861, would not have resulted in zero quota.

For these purposes, the lessor must prove in front of the tenant the fulfilment of the aforementioned requirement, in the terms established by the Minister of Economy and Finance.

(h) returns from the return of the premium for the issue of shares or units and the reduction of capital with the return of contributions, unless they come from undistributed profits, Article 3 (3) (a) of the Law on the Law of the Tax. (i) the property gains arising from the repayment or transfer of shares or shares in collective investment institutions, where, in accordance with Article 94 of the Tax Act, their calculation is not applicable; those arising from the repayment or transfer of shares in the funds governed by Article 49 of the Regulation of Law 35/2003 of 4 November of collective investment institutions, approved by Royal Decree 1309/2005 of 4 December 2005, November. "

Two. Article 74 (2) is worded as follows:

" 2. In particular: (a) They are required to retain resident entities or permanent establishments in which the taxpayer provides services when these income from work is satisfied by another entity, resident or non-resident, linked to those in the terms provided for in Article 16 of the recast of the Companies Tax Act, or by the holder abroad of the permanent establishment based in Spanish territory.

b) In transactions on financial assets, they shall be required to retain:

1. º In yields earned on the amortization or redemption of financial assets, the person or entity issuing. However, in the event that a financial institution is entrusted with the materialisation of those transactions, the obligation to retain it shall be the financial institution in charge of the transaction.

In the case of turn instruments converted after their issuance in financial assets, at maturity they shall be obliged to retain the public purse or financial institution involved in their filing. to the collection. 2. ' In the case of returns obtained in the transfer of financial assets including the instruments of rotation referred to in the preceding paragraph, where it is channelled through one or more financial institutions, the bank, cash or entity The financial contribution shall be made on behalf of the transferor.

For the purposes of this paragraph, it shall be understood that the bank, box or financial institution receiving the order for the sale of the financial assets shall act on behalf of the transferor. 3. In the cases not mentioned in the previous paragraphs, the public purse must intervene in the operation. c) In the transmission of securities of the State Debt, the management entity of the Public Debt Market in Annotations that intervenes in the transmission must be held.

(d) In the transmission or redemption of shares or units representing the capital or assets of collective investment institutions, the following shall be applied for or on account of the following: persons or entities:

1. In the case of repayment of the investment fund shares, the management companies.

2. In the case of repurchase of shares by a variable capital investment company whose shares are not listed on the stock market or in another market or organized securities trading system, acquired by the It is a matter for the European Parliament and the Commission to take the necessary steps to ensure that the European Parliament has the right to take action. 3. In the case of collective investment institutions domiciled abroad, trading entities or intermediaries empowered to market the shares or units of those institutions and, in the alternative, the institution or entities in charge of the placement or distribution of the securities among potential subscribers, when they make the refund. 4. In the case of managers operating under the freedom to provide services, the representative appointed in accordance with the provisions of Article 55.7 and the second provision of Law 35/2003, of 4 November, of institutions of collective investment. 5. In cases where the retention practice does not apply in accordance with the preceding paragraphs, it shall be obliged to make a payment to the account of the partner or participate in the transfer or obtain the refund. The said payment shall be made in accordance with the rules laid down in Articles 94, 95 and 96 of this Regulation.

(e) In the case of operations carried out in Spain by insurance companies operating under the freedom to provide services, the designated representative shall be required to carry out a retention or entry into account Article 86.1 of the recast text of the Law on the Management and Supervision of Private Insurance, approved by the Royal Legislative Decree 6/2004 of 29 October.

(f) In transactions carried out in Spain by pension funds domiciled in another Member State of the European Union developing employment pension schemes subject to Spanish legislation, in accordance with the provided for in Directive 2003 /41/EC of the European Parliament and of the Council of 3 June 2003 on the activities and supervision of pension funds for employment, shall be required to carry out retention or entry into account of the representative who they have been appointed in accordance with the fourth paragraph of Article 99.2 of the Tax Act. '

Three. Article 78 is worded as follows:

" Article 78. Amount of withholding tax on income from work.

1. The retention to be carried out on the income of the work shall be the result of applying to the total amount of the remuneration to be paid or paid, the rate of retention corresponding to the following: 1. Article 84 of this Regulation is to be retained.

2. The determined according to the special procedure applicable to recipients of passive benefits regulated in Article 87 of this Regulation. 3. º 35% for the remuneration to be collected by the the status of administrators and members of the Boards of Directors, of the Boards of Directors and other members of other representative bodies. 4. 15% for income derived from teaching courses, conferences, colloquia, seminars and the like, or derived from the elaboration of literary, artistic or scientific works, provided that the right to their exploitation is given.

2. The rate of retention resulting from the above shall be divided by two in the case of income from work obtained in Ceuta and Melilla benefiting from the deduction provided for in Article 68.4 of the Tax Act. "

Four. Article 79 (1) is worded as follows:

" 1. No retention shall be made on the income of the work, the amount of which, as determined in accordance with Article 81.2 of this Regulation, does not exceed the annual amount set out in the table below according to the number of children and other descendants and the situation of the taxpayer:

		Contributor situation	Children and others descendants
			0	1	2 or more
	1. Single Contributor, widowed, divorced, or separated legally.	-	12,775 euros	14.525 euros
		12,340 euros	13,765 euros	15,860 euros
	3 Other Situations.	9.650 euros	10.365 euros	11.155 euros

For the purposes of the application as provided in the table above, it is understood by children and other descendants those who give the minimum right by descendants provided for in Article 58 of the Tax Law.

As for the taxpayer's situation, this may be one of the following three:

1. Single contributor, widowed, divorced or legally separated. This is the single, widowed, divorced or legally separated taxpayer with descendants, when they are entitled to the reduction laid down in Article 84.2.4. of the Tax Act for single parent family units.

2. Taxpayer whose spouse does not earn income of more than EUR 1,500, excluding those exempt. The taxpayer is married, and not legally separated, whose spouse does not earn annual income of more than EUR 1,500, excluding those exempt. 3. Other situations, including the following:

(a) The married taxpayer, and not legally separated, whose spouse obtains income above 1,500 euros, excluding those exempt.

(b) The single, widowed, divorced or legally separated taxpayer, without descendants or descendants of his or her dependants, where, in the latter case, he is not entitled to the reduction laid down in Article 84.2.4. the Law of Tax for the circumstance of coexistence referred to in the second subparagraph of that paragraph. (c) Taxpayers who do not manifest themselves in any of the previous situations 1 and 2. "

Five. Article 80 is worded as follows:

" Article 80. General procedure for determining the amount of the retention.

In order to calculate the deductions on income from work, as referred to in Article 78.1.1. of this Regulation, the following operations shall be carried out successively: 1. Article 81 of this Regulation, the basis for calculating the rate of retention.

2. It shall be determined, in accordance with the provisions of Article 82 of this Regulation, the minimum personal and family to calculate the rate of retention. 3. The retention quota shall be determined in accordance with Article 83 of this Regulation. 4. The rate of retention shall be determined in the manner provided for in Article 84 of this Regulation. 5. The amount of the withholding tax shall be the result of applying the rate of withholding to the total amount of the remuneration to be paid or paid, (a) the arrears to be charged against earlier financial years and taking into account the regularisations which come under Article 85 of this Regulation. The above arrears will be applied to the fixed rate of 15%. "

Six. Article 81 is worded as follows:

" Article 81. Base to calculate the hold type.

1. The basis for calculating the rate of retention shall be the result of a reduction in the total amount of the remuneration of the work, determined in accordance with the following paragraph, in the concepts referred to in paragraph 3 of this Article.

2. The total amount of remuneration for the work shall be calculated in accordance with the following rules:

1. General Rule: In general, the sum of the remuneration, cash or in-kind which, in accordance with applicable contractual rules or stipulations and other foreseeable circumstances, will normally be taken to receive the taxpayer in the calendar year, with the exception of business contributions to pension schemes, business social security schemes and social welfare insurance schemes which reduce the tax base of the taxpayer, as well as the arrears to be attributed to previous financial years. For these purposes, the remuneration in kind shall be computed by its value determined in accordance with Article 43 of the Tax Law, without including the amount of the income to be taken into account.

The sum of the remuneration, calculated in accordance with the preceding paragraph, shall include both fixed remuneration and foreseeable variables. For these purposes, variable remuneration shall be presumed to be at least foreseeable in the previous year, unless circumstances permit an objective to be established in an objective manner. 2. Specific rule: In the case of manual workers who receive their remuneration for daily wages or wages, the result of a sporadic and daily relationship with the employer, the remuneration shall be taken as the result of the multiply by 100 the amount of the daily or daily wage.

3. The total amount of remuneration for work, cash and in-kind, calculated in accordance with the preceding paragraph, shall be reduced by the following amounts: (a) In the reductions provided for in Article 18 (2) and (3), and Eleventh and twelfth of the Tax Act.

(b) In the case of social security contributions, compulsory general mutual funds of officials, shares for liabilities and contributions to schools of orphans or similar institutions, to which they are refer to paragraphs (a), (b) and (c) of Article 19.2 of the Tax Act. (c) in the reductions for the production of income from the work that is regulated in Article 20 of the Tax Law. For the purposes of calculating such reductions, the payer shall take into account, exclusively, the amount of the net performance of the work resulting from the mini-sentences provided for in paragraphs (a) and (b) above. (d) In the amount applicable, according to the following circumstances:

In the case of taxpayers who receive pensions and liabilities under the Social Security and Passive Classes scheme or who have more than two descendants who are entitled to the application of the minimum for their intended descendants In Article 58 of the Tax Law, 600 euros. When they are unemployment benefits or allowances, EUR 1,200. These reductions are compatible with each other. (e) Where the recipient of the performance of the work is obliged to satisfy by judgment of the court a compensatory pension to his spouse, the amount of the pension may decrease the amount resulting from the provisions of the preceding paragraphs. To this end, the taxpayer shall, in the manner provided for in Article 86 of this Regulation, bring to the attention of its payer the following circumstances, accompanied by a total or partial literal testimony of the decision determining the pension. '

Seven. Article 82 is worded as follows:

" Article 82. Minimum personal and family to calculate the retention rate.

The minimum personal and family to calculate the rate of retention shall be determined in accordance with the provisions of Title V of the Tax Law, applying the following specialties: 1. The retainer shall not take into account the The circumstances referred to in Article 61.2. of the Tax Law.

2. Descendants shall be counted in half, except where the taxpayer is entitled, exclusively, to the application of the entire family minimum for this concept. "

Eight. Article 83 is worded as follows:

" Article 83. Retention fee.

1. For the calculation of the retention fee, the following operations shall be carried out successively: 1. The basis for calculating the rate of retention referred to in Article 81 of this Regulation shall be applied to the rates indicated in the following scale:

		Base to calculate the hold type- Up to Euro	retention- Euros	Rest base to calculate the hold type- Up to Euro	Type applicable- Percentage
	0.00	0.00	17.360	24
		17.360	4.166.4	15,000	28
		32.360	8.366, 4	20,000	37
			52.360	15.766, 4	Forward	43

2. The resulting amount shall be reduced in the amount to be applied to the amount of the minimum personal and family to calculate the rate of retention referred to in Article 82 of this Regulation, the scale provided for in the number 1. previous, without it being negative as a consequence of such a minorprayer. 2. Where the recipient of income from work satisfies annuities for food in favour of children by judicial decision, provided that the amount is lower than the basis for calculating the rate of retention, in order to calculate the withholding fee, The following operations shall be carried out successively: 1. The scale provided for in the first subparagraph of paragraph 1 shall be applied separately to the amount of such annuities and to the rest of the base for calculating the rate of retention.

2. The resulting total amount shall be reduced by the amount of the scale provided for in the number 1 of the preceding paragraph to the amount of the minimum personal and family to calculate the rate of retention increased by EUR 1,600 per year, without being negative as a result of such a sentence.

To this end, the taxpayer must, in the manner provided for in Article 86 of this Regulation, bring to the attention of its payer the fact, accompanying a literal or partial testimony of the judgment of the court. determining the annuity.

3. Where the taxpayer obtains a total amount of remuneration, as referred to in Article 81.2 of this Regulation, not exceeding EUR 22,000 per year, the retention fee, calculated in accordance with the provisions of the preceding paragraphs, will have as the maximum limit the smaller of the following two amounts:

(a) The result of applying the percentage of 43% to the positive difference between the amount of that amount and the amount corresponding, according to their situation, to the minimum withholding tax provided for in Article 79 of this Regulation. Regulation.

(b) When regularisations occur, the result of applying the percentage of 43% on the total amount of remuneration to be met until the end of the year.

4. The limit of the previous 43 percent will apply to any taxpayer. "

Nine. Article 84 (1) is worded as follows:

" 1. The retention rate shall be obtained by multiplying by 100 the ratio obtained from dividing the holding fee by the total amount of remuneration referred to in Article 81.2 of this Regulation. Where the difference between the basis for calculating the retention rate and the minimum personal and family basis for calculating the retention rate is zero or negative, the rate of retention shall be zero.

The retention rate, calculated in accordance with the preceding paragraph, shall be expressed in whole numbers. In cases where the retention rate is not an integer, it shall be rounded up by default if the first decimal place is less than five, and by excess of five decimal places. '

Ten. Article 85 is worded as follows:

" Article 85. Regularisation of the type of retention.

1. The type of retention shall be regularised in the cases referred to in paragraph 2 below and shall be carried out in the manner provided for in paragraph 3 and following of this Article.

2. The retention rate shall be regularised in the following circumstances:

1. º If at the end of the period initially foreseen in a contract or relationship the worker continues to provide his services to the same employer or return to do so within the calendar year.

2. If after the suspension of the recovery of unemployment benefits, the right to unemployment benefit is resumed or the unemployment benefit is paid, within the calendar year. 3. Where, by virtue of rules of a general nature or the applicable sectoral rules, or as a result of the promotion, promotion or fall of the category of the worker or, for any other reason, changes occur during the year the amount of the remuneration or the deductible expenses which have been taken into account for the determination of the rate of retention which has been applied up to that time. 4. If the worker continues or extends his or her work, if he or she is 60 and five years old. 5. If in the course of the calendar year the pensioner started to receive new pensions or liabilities which were added to those which he already received, or increased the amount of the latter. 6. When the worker transfers his habitual residence to a new municipality and results in the increase in the reduction for obtaining income from the work provided for in Article 20.2.b) of the Tax Law, for giving an alleged geographical mobility. 7. If in the course of the calendar year there is an increase in the number of descendants or a variation in their circumstances, the condition of the disabled will be exceeded or the degree of disability will increase in the recipient of income from work or in his/her descendants, provided that these circumstances determine an increase in the minimum personal and family to calculate the rate of retention. 8. Where, by judicial decision, the recipient of income from work is obliged to pay a compensatory pension to his spouse or annuities for food in favour of the children, provided that the amount of the latter is less than the base to calculate the hold type. 9. If in the course of the calendar year the spouse of the taxpayer obtains income of more than 1,500 euros per year, excluding those exempt. 10. When in the course of the calendar year the taxpayer will change his habitual residence of Ceuta or Melilla, Navarra or the Historical Territories of the Basque Country to the rest of the Spanish territory or the rest of the Spanish territory to the cities of Ceuta or Melilla, or when the taxpayer acquires his/her status for change of residence. 11. " If in the course of the calendar year there is a variation in the number or circumstances of the ascending line that gives rise to a variation in the minimum personal and family to calculate the type of retention.

3. The regularisation of the holding rate shall be carried out as follows: (a) A new amount of the withholding tax shall be calculated in accordance with the procedure laid down in Article 80 of this Regulation, taking into account the circumstances that motivate regularisation.

(b) This new amount of the withholding tax shall be reduced by the amount of the withholding tax and income to account for that period. In the case of taxpayers who acquire their status for residence, the new amount of the withholding tax will be reduced to the withholding tax and income from the Income Tax of non-residents practiced during the period tax in which the change of residence occurs, as well as the fees paid for this tax due during the tax period in which the change of residence occurs. (c) The new rate of retention shall be obtained by multiplying by 100 the ratio obtained from dividing the difference resulting from the preceding paragraph between the total amount of the remuneration referred to in Article 81.2 of this Regulation which subtracted until the end of the year and shall be expressed in whole numbers, rounded to the nearest. Where the difference between the basis for calculating the retention rate and the minimum personal and family basis for calculating the retention rate is zero or negative, the rate of retention shall be zero.

In this case, no refund will be made for the deductions previously practiced, without prejudice to the fact that the recipient subsequently requests, where appropriate, the return in accordance with the provisions of the Tax Law.

The provisions of this paragraph shall be without prejudice to the retention minima provided for in Article 84.2 of this Regulation. 4. The new rates of retention shall apply from the date on which the variations referred to in the numbers 1, 2, 2, 3, 3, 4 and 5. of this Article and from the moment when the recipient of the income of the Member State is concerned, shall be applied. (a) to inform the payer of the variations referred to in the numbers 6. º, 7. º, 8. º, 9. º, 10. and 11. of that paragraph, provided that such communications occur at least five days prior to the preparation of the corresponding payroll, without prejudice to the responsibilities in which the recipient may incur when the (a) the application of a lower rate to which it corresponds, in the terms provided for in Article 107 of the Tax Act. The regularisation referred to in this Article may be carried out, at the option of the payer, from 1 April, July and October, in respect of variations which have occurred in the quarters immediately. prior to these dates. 5. The rate of retention, calculated in accordance with the procedure laid down in Article 80 of this Regulation, may not be increased when regularisations are carried out in circumstances which determine a reduction in the positive difference between the basis for calculating the rate of retention and the minimum personal and family to calculate the rate of retention, or for being obliged by the judicial decision to satisfy annuities for food in favour of the children and is applicable provided for in Article 83 (2) of this Regulation. Also, in cases of regularisation by circumstances which determine an increase in the positive difference between the base for calculating the rate of retention and the minimum personal and family basis for calculating the rate of retention prior to the regularisation, the new rate of retention applicable may not determine an increase in the amount of the withholding tax in excess of the variation in that magnitude. '

Once. Article 86 (2) is worded as follows:

" 2. The lack of communication to the payer of such personal and family circumstances or variation shall determine that the person applies the corresponding type of retention without taking into account those circumstances, without prejudice to the responsibilities of the the recipient may incur when the lack of communication of such circumstances determines the application of a lower rate than that which corresponds to the terms provided for in Article 107 of the Tax Act. "

Twelve. Article 87 is worded as follows:

" Article 87. Special procedures for withholding taxes and income on account.

A) Special procedure for determining the type of withholding tax applicable to taxable persons receiving passive benefits: 1. Taxpayers whose only income from the work consists of the passive benefits to which they are Article 17 (2) (a) of the Tax Law may require the Tax Administration to determine the total amount of the withholding tax applicable to the aforementioned income, in accordance with the procedure provided for in this Article, provided that the following requirements are met: (a) the benefits are received in the form of income.

(b) The full annual amount does not exceed EUR 22,000. (c) They come from more than one payer. (d) all payers are obliged to practise withholding tax.

2. The determination of the type of retention shall be carried out in accordance with the following special procedure: (a) The procedure shall be initiated by application of the person concerned relating to the amounts of the passive benefits which are will be charged throughout the year, as well as the identification of the payers. The application shall be accompanied by the communication model to the payer of the personal and family situation of the recipient referred to in Article 86.1 of this Regulation.

The application will be submitted during the months of January and February of each year and its content will be adjusted to the model approved by resolution of the Director General of the State Tax Administration Agency, who establish the place of presentation and the conditions under which its presentation by telematic means is possible. (b) In the light of the data contained in the application and in the communication of the personal and family situation, the tax administration shall determine, taking into account all the passive benefits and in accordance with the provisions of the Articles 80, 81, 82 and 83 of this Regulation, the annual amount of deductions to be applied by each payer and shall, within the maximum period of 10 days, be given to the taxpayer by a communication for each of the respective payers, in which shall be included. The taxpayer must transfer the said communications to each of the payers before the 30th of April, obtaining and maintaining a record of the transfer. In the event that, for failure to comply with any of the requirements set out above, the application of this procedure does not apply, that circumstance shall be communicated to the person concerned by the tax administration, with the expression of causes that motivate her. (c) Each of the payers, in the light of the communication received from the taxpayer, containing the total amount of the annual deductions to be made, and taking into account the benefits already paid and the deductions already made, determine the rate of retention applicable to benefits to be met until the end of the financial year. The rate of retention shall be the result of multiplying by 100 the ratio obtained from dividing the difference between the annual deductions and the deductions already made between the amount of the benefits to be met until the end of the exercise. This type of retention shall be expressed in whole numbers, rounded to the nearest. The payer shall maintain the communication of the tax administration provided by the taxpayer.

The rate of retention thus determined may not be changed for the remainder of the year by a new request from the taxpayer or in the event of any of the circumstances which, within the meaning of the Article 85 of this Regulation determines the regularisation of the type of retention. However, where, during the tax period, there is an increase in the benefits to be paid by the same payer, in such a way that the total amount exceeds EUR 22,000 per year, he shall calculate the rate of retention by applying the general procedure of Article 80 of this Regulation, with a view to regularisation.

3. The procedure referred to in the preceding paragraphs shall be exclusively annual and shall be irrevocable by the taxpayer for the financial year in respect of which he has applied, once he has transferred the payers of the (a) Communication from the tax administration. However, each payer shall, at the beginning of the following financial year, provisionally apply the same rate of retention as it applied at the end of the preceding period, unless the taxpayer expressly disclaims from the respective payer, during the months of November and December. Once the taxpayer transfers to the payer, in accordance with the procedure and time limits provided for in the previous paragraph, the tax administration's communication containing the annual amount of the withholding tax to be used in the financial year, the new type of retention shall be calculated in accordance with the provisions of paragraph 2 (c) above. If, within the period referred to in subparagraph (b) of paragraph 2 above, the taxpayer does not transfer the communication from the tax administration referred to in the preceding subparagraph to the payer, the taxpayer shall determine the type of withholding (a) to be satisfied in accordance with the general procedure for determining the type of restraint referred to in Article 80 of this Regulation, in accordance with the relevant regularisation. 4. The exclusive limit of the obligation to declare EUR 22,000 per year provided for in Article 96.3 (a) (2) of the Tax Act shall not apply to taxpayers covered by the special scheme provided for in this Article when any of the following circumstances occur:

(a) The number of payers of passive benefits in respect of those initially reported by the taxpayer has increased throughout the financial year in the form of their application for the application of the special scheme.

b) That the amount of the benefits actually paid by the payers differs from the statement initially made by the taxpayer in formulating their application. For these purposes, it shall be estimated that the amount of benefits paid does not differ from those reported by the taxpayer where the difference between the two does not exceed the amount of EUR 300 per year. (c) that during the financial year there has been some other of the circumstances provided for in Article 85 of this Regulation determining an increase in the rate of retention.

B) Special procedure for determining withholding and income on account of income from work in the event of change of residence: 1. Employees who are not taxpayers for this tax, but who are to acquire such a condition as a result of their movement to Spanish territory, may inform the tax administration of that fact, by means of the communication model approved by the Minister of Economy and Finance, who shall establish the form, place and time limit for his presentation, as well as the documentation to be attached to it.

This communication will include the identification of the worker and the payer of the performance of the work, the date of entry into Spanish territory and the date of commencement of the work in this area. territory for that payer, as well as the existence of objective data in that employment relationship that make it foreseeable that, as a result of the same, there will be a stay in the Spanish territory of more than one hundred and eighty-three days, counted from the beginning of the provision of the work in Spanish territory, during the calendar year in which produces the offset or, failing that, the following. 2. The tax administration, in the light of the communication and documentation submitted, shall issue to the worker, if appropriate, within the maximum period of 10 working days following the date of submission of the communication, a document supporting the the date from which the withholding tax will be applied for this tax. 3. The worker shall provide the paying agent with a copy of the document issued by the tax administration, in order to ensure that the latter, for the purposes of withholding tax, considers it a tax payer. on the Income of the Physical Persons as of the date indicated therein. 4. The document is received, the obligation to retain, having regard to the date indicated, it will practice retentions as established by the rules of this Tax, applying, if necessary, the regularisation provided for in article 85.2.10. of this Regulation. 5. When the person concerned does not become a contributor to this tax in the year of posting, in his declaration for the Income Tax of non-residents, he will be able to deduct the deductions practiced on account of this tax. Also, where the provisions of Article 32 of the recast text of the Non-Resident Income Tax Act would have been applied, and the worker would not have acquired the condition of a taxpayer for the Income Tax. In the year of the posting abroad, the withholding and income to account for that tax will have the consideration of payments to account for the Income Tax of the Physical Persons. "

Thirteen. Article 88 is worded as follows:

" Article 88. Amount of withholding tax on income from capital.

1. The retention to practice on capital returns will be the result of applying to the retention basis the percentage of 18 per cent.

2. This type of retention shall be divided by two in the case of income to which the deduction provided for in Article 68,4 of the Tax Act is applied, from companies which operate effectively and materially in Ceuta or Melilla and with a registered office and an exclusive social object in those cities. '

Fourteen. Article 91 is worded as follows:

" Article 91. Basis of retention on the returns on capital.

1. As a general rule, the withholding tax on capital returns shall constitute the full consideration payable or satisfied. Under no circumstances shall the exemption provided for in Article 7 (e) of the Tax Law be taken into account.

2. In the case of amortisation, redemption or transfer of financial assets, the positive difference between the redemption, redemption or transmission value and the acquisition or subscription value of such assets shall be the basis of retention. The acquisition value shall be the value of the accrediting certification of the acquisition. For these purposes, the ancillary costs shall not be reduced to the operation. Without prejudice to the withholding tax, in the event that the issuing institution acquires a financial asset issued by it, the withholding tax shall be applied and income shall be levied in any form of transmission. subsequent to the title, excluding amortisation. 3. Where the obligation to retain has its origin as provided for in the last paragraph of Article 73.3 (e) of this Regulation, it shall constitute the basis of withholding the part of the price equivalent to the run-off coupon of the transmitted value. 4. If the reduction referred to in Article 26 (2) of the Tax Act is applied to the yields referred to in Article 25 (4) of the Tax Act, the retention basis shall be calculated by applying the total amount of such reduction. yields the reductions that are applicable. 5. In the case of perceptions arising from insurance contracts and for life income and other temporary income resulting from the imposition of capital, the withholding tax shall be the amount to be included in the taxable amount calculated in accordance with the Law of the Tax. '

Fifteen. Article 93 (1) is worded as follows:

" 1. Where yields are offset from a professional activity, the rate of retention of 15 per cent on full income shall be applied.

However, in the case of taxpayers initiating the exercise of professional activities, the rate of retention shall be 7% in the tax period for the commencement of activities and in the following two years, provided that they had not exercised any professional activity in the year preceding the date of commencement of the activities. For the purposes of applying the type of retention provided for in the preceding paragraph, the taxpayer shall be required to inform the payer of the performance of that circumstance and the payer shall be obliged to keep the communication properly. signed. The retention rate will be 7 percent in the case of satisfied returns to:

a) Municipal recauders.

(b) Insurance Mediators using the services of external auxiliaries. c) Commercial delegates of the business public entity Lotteries and Gambling of the State.

These percentages will be divided by two when yields are entitled to the deduction in the quota provided for in Article 68.4 of the Tax Act. "

Sixteen. A paragraph 6 is added to Article 93, which is worded as follows:

" 6.1. When yields are offset from one of the economic activities referred to in the number 2. º of this paragraph and the net yield of the same according to the objective estimation method is determined, will apply the rate of 1 percent retention on full income.

2. The provisions of this paragraph shall apply in respect of the economic activities classified in the following groups and epigraps of the First Section of the Fees of the Tax on Activities Economic:

		I. A. E.	Economic activity
	314 and 315	Metal Carpentry and Manufacturing of Metal Structures and Calderwork.
	316.2, 3, 4 and 9	Manufacturing Articles of hardware, locksmith, tornery, wire, menaje and other articles in metals n.e.c.
	453	Garment of garments and their accessories, except when their execution is done mostly by order of third.
	453	Garment in series of garments and their add-ons executed directly by the company itself, when perform exclusively for third parties and for order.
	463	Manufacture of carpentry parts, park, and timber structures for construction
	468	Wood Furniture
	474.1	Printing texts or images
	501.3
			504.1	Installations and mounts (except plumbing, cold, heat, and air conditioning)
	504.2 and 3	Plumbing, cold, heat, and conditioning installations air.
	504.4, 5, 6, 7, and 8	Installation of lightning rods and the like. Assembly and installation of kitchens of all kinds and class, with all its accessories. Assembly and installation of lifting devices of any kind and type. Telephone, telegraphic, telegraphic and television facilities, in buildings and buildings of any kind. Metal assemblies and complete industrial installations, without selling or providing the machinery or the elements object of installation or assembly
	505.1, 2, 3 and 4	Coatings, solates and pavements and placement of isolations.
	505.5	Carpentry and locksmith
	505.6	Painting of any type and class and coatings with paper, fabric or plastics and building and local decoration and decoration
	505.7	Jobs in gypsum and plaster and decoration of buildings and premises.
	722	Transport of goods by road
	757	Move Services.

3. The practice of the retention provided for in this paragraph shall not proceed when, in accordance with the provisions of Article 99 (10) of the Tax Act, the taxpayer exercising the economic activity communicates to the a payer that determines the net performance of the same according to the direct estimation method, in any of its embodiments. The following information shall be given in such communications: (a) Name, last name, tax address and tax identification number of the communicant. In the event that economic activity is carried out through an entity under the allocation of income, it must also communicate the entity's name and the name and the tax identification number of the entity, as well as its status as a representative of the same.

(b) Economic activity which develops from those provided for in the previous No 2, with an indication of the heading of the Economic Activities Tax. (c) It determines the net performance of such activity according to the method of direct estimation in any of its modalities. d) Date and signature of the communicant. (e) Identification of the person or entity to whom such communication is addressed.

When the taxpayer subsequently redetermines the returns on that activity in accordance with the objective estimation method, it must communicate to the payer such a circumstance, together with the data provided for in the points (a), (b), (d) and (e) above, before the birth of the obligation to retain.

In any event, the payer shall be obliged to keep the data communications duly signed. 4. The failure to comply with the obligation to communicate correctly the data provided for in the previous No 3 will have the tax consequences arising from the provisions of Article 107 of the Tax Law. objective estimation occurs in the form provided for in Article 31.1 (b) of this Regulation or in the third paragraph of Article 33.2 of the Value Added Tax Regulation, approved by Royal Decree 1624/1992 of 29 December 1992, understand that the taxpayer determines the net performance of its economic activity according to the method of direct estimation as from the date on which the corresponding split payment is made for this Tax or the declaration-settlement of the Value Added Tax. '

seventeen. Article 94 is worded as follows:

" Article 94. Amount of withholding tax on capital gains arising from transfers or repayments of shares and units of collective investment institutions.

The retention to practice on the property gains arising from the transmissions or repayments of shares and units of collective investment institutions shall be the result of applying to the withholding percent of 18 percent. "

Eighteen. Article 97 is worded as follows:

" Article 97. Amount of holds on other property gains.

1. The retention to practice on cash prizes will be 18 per cent of your amount.

2. The retention to practice on the property gains arising from the forest exploitation of the neighbors in public mountains will be 18 percent of its amount. "

nineteen. Article 98 is worded as follows:

" Article 98. Amount of holds on leases and subleases of real estate.

The retention to practice on income from the lease or sublease of urban buildings, whatever their qualification, will be the result of applying the 18 percent percentage on all concepts that are satisfied to the lessor, excluding Value Added Tax.

This percentage will be divided by two when the urban property is located in Ceuta or Melilla, in the terms provided for in Article 68.4 of the Tax Law. "

Twenty. Article 99 is worded as follows:

" Article 99. Amount of withholding tax on image rights and other income.

1. The withholding tax on income from the transfer of the right to the exploitation of the right of image, whatever its qualification, will be the result of applying the 24 per cent rate of withholding tax on income. satisfied.

2. The withholding tax on the income of the other items referred to in Article 73.2.b) of this Regulation, whatever its rating, will be the result of applying the 18 per cent rate of withholding tax on income. satisfied. "

Twenty-one. Article 100 is worded as follows:

" Article 100. Income on account of remuneration in kind of work.

1. The amount of the income to account which corresponds to the remuneration paid in kind shall be calculated by applying to its value, determined in accordance with the rules of Article 43.1 of the Tax Law, and by the application, where appropriate, of the the procedure provided for in the second provision of this Regulation, the rate corresponding to those provided for in Article 78 of this Regulation.

2. There shall be no obligation to make income on account of the contributions paid by the promoters of pension schemes, business social security schemes and social welfare insurance schemes which reduce the tax base. '

Twenty-two. Article 103 is worded as follows:

" Article 103. Income on account of certain property gains.

1. The amount of the revenue to be made by the awards in kind, which constitute a property gain, shall be calculated by applying the percentage provided for in Article 97.1 of this Regulation to the result of increase by 20 percent the acquisition or cost value for the payer.

2. The amount of the income to be made corresponding to the assets that are paid in kind derived from the forest exploitation of the neighbours in public funds shall be calculated by applying the percentage of the percentage of the income to the market value of the percentage provided for in Article 97.2 of this Regulation. "

Twenty-three. Article 105 is worded as follows:

" Article 105. Income to account on image rights.

The percentage for calculating the income to be charged in the case referred to in Article 92 (8) of the Tax Law shall be 18 percent. "

Twenty-four. Article 106 is worded as follows:

" Article 106. Formal obligations of the retainer and the obligation to enter into account.

1. The taxable person shall, in the first twenty calendar days of the month of April, July, October and January, declare the amounts withheld and the revenue to be taken into account by him. immediate natural quarter prior, and enter your amount in the Public Treasury.

However, the declaration and entry referred to in the preceding paragraph shall be made in the first twenty calendar days of each month, in relation to the amounts withheld and the revenue to account corresponding to the for the preceding month, in the case of retainers or obliged to whom the circumstances referred to in Article 71 (1) and (1) (a) of the Value Added Tax Regulation are referred to in Article 71 (3). Royal Decree 1624/1992 of 29 December 1992. By way of derogation, the declaration and entry for the month of July shall be made during the month of August and the first twenty calendar days of the month of September. The provisions of the preceding paragraph shall also apply in the case of retainers or obliged to take into account the consideration of public administrations, including social security, the last annual budget of which is prior to the commencement of the financial year exceeds the amount of EUR 6 million, in relation to the amounts withheld and the revenue for the income referred to in paragraphs 1 (a) and (c) and the paragraph (c) in Article 73 (2) of this Regulation. Notwithstanding the foregoing, the retention and corresponding income, when the entity paying the performance is the State Administration and the procedure established for its payment so permits, shall be made directly. The holder or obliged to enter into account shall submit a negative statement if, despite the fact that he has satisfied income from withholding or income, he would not have carried out the practice of withholding or taking into account the amount of his income. one. No negative statement shall be made where the income for the declaration is not satisfied in the reporting period. 2. The retainer or obliged to enter into account must present in the first twenty calendar days of January an annual statement of the withholding and income to account made. However, if this statement is to be found in support directly readable by computer or has been generated by the use, exclusively, of the corresponding printed modules developed for this purpose, by the Tax administration, the time limit for filing shall be between 1 January and 31 January of the year following the year of which that declaration corresponds. In this declaration, in addition to its identification data, it may be required that a nominee relationship be established with the following data:

a) First and last names.

b) Tax identification number. (c) Income obtained, with an indication of the identification, description and nature of the concepts, and of the financial year in which the income was due, including income not subject to withholding or income on account of the amount of the income, as well as the exempted allowances and the exempt income. (d) the reductions applied in accordance with Articles 18 (2) and (3), (2) and (3), (d) and (2) and (12) of the Tax Act. (e) deductible expenses referred to in Articles 19.2 and 26.1 (a) of the Tax Law, with the exception of the fees paid to trade unions and professional associations and those for legal protection, provided that they have been deducted by the payer of the satisfied returns. (f) Personal and family circumstances and the amount of reductions that have been taken into account by the payer for the application of the corresponding retention rate. (g) Amount of compensatory pensions between spouses and annuities for foods which have been taken into account for the practice of withholding taxes. (h) Retaining or entry into account effected. (i) Reintegrated amounts to the payer from income earned in previous years.

The same obligations set out in the preceding paragraphs shall be subject to resident or resident domiciled entities in Spain, which pay for income which is subject to withholding tax or which are depository or manage the collection of income from securities.

3. The holder or the person to be admitted shall issue in favour of the taxpayer certifying evidence of the withholding tax or of the income to be paid, as well as of the other data relating to the taxpayer who must be included in the annual declaration referred to in the preceding paragraph. Such certification shall be made available to the taxpayer before the opening of the period of return for this tax. The same obligations laid down in the preceding paragraphs shall be subject to the institutions domiciled, resident or represented in Spain, who pay for income which is subject to withholding tax or which are depository or manage the recovery of Value income. 4. The payers shall communicate to the taxpayer the withholding or income at the time they satisfy the income, indicating the percentage applied, except in income from economic activities. 5. The declarations referred to in this Article shall be made in the models for each class of income established by the Minister of Economy and Finance, who may also determine the data to be included in the declarations, referred to in paragraph 2 above, the holder being obliged to enter into account to complete all the data so determined and contained in the statements that affect him. The declaration and entry shall be made in the form and place to be determined by the Minister for Economic Affairs and Finance, who may lay down the assumptions and conditions for the submission of the statements by telematic means and extend the corresponding period of time. declarations which may be submitted in this way, on the basis of technical reasons, and to amend the amount of the annual budget and the nature of the income referred to in the third subparagraph of paragraph 1 of this Article. 6. The declaration and entry of the payment into account referred to in Article 74.2.d (3) of this Regulation shall be made in the form, place and time limit to be determined by the Minister for Economic Affairs and Finance. "

Twenty-five. Article 108 is worded as follows:

" Article 108. Amount of fractionation.

1. The taxpayers referred to in the preceding Article shall, within each period, enter the following quantities: (a) For the activities which are in the direct estimation method, in any of its forms, 20% of the yield net corresponding to the period of time from the first day of the year to the last day of the quarter to which the split payment relates.

Of the amount resulting from the application of the provisions of this letter, the fractional payments entered in the preceding quarters of the same year shall be deducted. (b) For activities which are in the method of objective estimation, 4% of the net yields resulting from the application of that method according to the data-base of the first day of the year to which the split payment is concerned or, in case of start of activities, of the day they have started. However, in the case of activities with only one person who is salaried, the percentage above will be 3 percent, and in the event that there is no salaried staff, this percentage will be 2 percent. Where one of the basic data cannot be determined on the first day of the year, it shall be taken, for the purposes of the split payment, for the preceding year. On the assumption that no date-base could be determined, the fractionated payment will consist of 2 percent of the quarter's sales volume or revenue. (c) Dealing with agricultural, livestock, forestry or fisheries activities, whatever the method of determining the net yield, 2% of the quarter's revenue volume, excluding capital grants and compensation.

2. The percentages referred to in the preceding paragraph shall be divided by two for the economic activities which are entitled to the deduction in the quota provided for in Article 68.4 of the Tax Act.

3. Of the quantity resulting from the provisions of the preceding paragraphs, the following shall be deducted:

(a) Withholding taxes and income for account incurred for the period of time from the first day of the year to the last day of the quarter to which the split payment relates, in the case of -1. Professional activities to determine their net performance by the method of direct estimation, in any of its modalities.

2. Tenancy of urban buildings constituting economic activity. 3. Cession of the right to the exploitation of the image or of the consent or authorization for its use which constitutes economic activity, and other income provided for in Article 73.2.b) of this Regulation.

(b) Withholding taxes and income on account effected in accordance with Articles 93 and 102 of this Regulation for the quarter, in the case of: 1. Economic activities to be determined by the net yield by the objective estimation method. However, where the amount of the withholding tax and revenue incurred in the quarter is higher than the amount resulting from the application of paragraph 1 (b) above, that difference may be deducted in any of the following split payments for the same tax period.

2. Agricultural or livestock activities. 3. Forest activities.

4. The taxpayers may apply in each of the payments broken down percentages higher than those indicated. "

Twenty-six. The fourth transitional provision is worded as follows:

" Transitional provision fourth. Dividends from transparent and heritage companies.

1. There shall be no obligation to practise withholding or income tax on the income of the physical persons in respect of dividends or shares in profits which come from tax periods during which the institution which the It is distributed in the form of a tax transparency system, in accordance with the provisions of the transitional provision 15th of the consolidated text of the Law on Corporate Tax, approved by the Royal Decree-Law 4/2004 of 5 March.

2. There shall be no obligation to practise withholding or income tax on the income of the physical persons in respect of dividends or shares in profits as referred to in Article 25 (1) (a) and (b) of the Law. the tax which comes from tax periods during which the distribution system has been applied to the entity which distributes them, in accordance with the provisions of the transitional provision twenty-second of the Recast of the Law on Corporate Tax, approved by the Royal Decree-Law 4/2004, of 5 March. "

Article 2. Amendment of the Royal Decree 2146/2004, of 5 November, for which the measures are developed to meet the commitments resulting from the celebration of the XXXII edition of the Copa del América in the city of Valencia.

Article 13 (2) is worded as follows:

" 2. The reduction provided for in paragraph 1 (c) above shall be taken into account for the determination of the basis for calculating the rate of retention referred to in Article 81 of the Financial Income Tax Regulation, approved by the Royal Decree 1775/2004 of 30 July 2004 in the following terms: (a) It shall apply to the amount of the net performance of the work resulting from the mini-sentences provided for in Article 8 (1) (a) and (b) of the Tax Regulation.

(b) account shall be taken for the implementation of the reductions provided for in Article 8 (3) (c) of the Tax Regulation. "

CHAPTER II

Corporate Tax

Article 3. Amendment of the Corporate Tax Regulation, approved by Royal Decree 1777/2004 of 30 July 2004.

The following amendments are made to the Corporate Tax Regulation: One. Article 58 is worded as follows:

" Article 58. Income subject to withholding or income on account.

1. Withholding tax shall be applied in respect of: (a) the income derived from the participation in own funds of any kind of entity, from the transfer to third parties of the own capital and the other income provided for in Article 25 of Law 35/2006 of 28 November of the Tax on the Income of the Physical Persons and the partial modification of the Laws of the Taxes on Societies, on the Income of Non-residents and on the Heritage.

(b) The prizes derived from participation in games, contests, raffles or random combinations, whether or not they are linked to the offer, promotion or sale of certain goods, products or services. (c) the consideration of any consideration obtained as a result of the assignment of charges of administrator or counsellor in other companies. (d) the income from the transfer of the right to the exploitation of the image or the consent or authorisation for use, even if they constitute income derived from economic holdings. (e) income from the lease or sub-lease of urban buildings, even if they constitute income derived from economic holdings. (f) Income obtained as a result of transfers or repayments of shares or shares representing the capital or assets of collective investment institutions.

2. Where the same contract includes the provision of services or the transfer of immovable property, together with the transfer of goods and rights to the goods and services referred to in Article 25 (4) of Law 35/2006 of 28 November of the Tax on the Income of the Physical Persons and of partial modification of the Laws of the Taxes on Societies, on the Income of Non-Residents and on the Heritage, will have to practice retention on the total amount.

Where the same contract includes the lease, sublease or transfer of rustic estates, together with other movable property, the retention shall not be performed except in the case of the lease or sale of business or mines. 3. An income from the Company Tax corresponding to the recipient shall be made in respect of the income of the preceding paragraphs, when they are satisfied or paid in kind. "

Two. Paragraph (v) of Article 59 is read as follows:

" v) The income from the change of assets in which the provisions of life insurance are invested in which the taker assumes the risk of the investment.

For the application of the provisions of the preceding paragraph, insurance institutions shall communicate to the entities required to carry out the retention, on the basis of the transfer or redemption of assets, the the fact that this is an insurance contract in which the taker assumes the risk of the investment and in which the conditions laid down in Article 14.2.h of the Law 35/2006 of 28 November of the Income Tax are met. Natural Persons and partial modification of the Laws of the Taxes on Societies, on the Income of no Residents and on the Heritage. The entity required to carry out the retention shall keep the communication duly signed. '

Three. Article 64 is worded as follows:

" Article 64. Percentage of retention and income on account.

The percentage of retention or income on account will be as follows: a) With a general character, 18 percent.

In the case of income from the lease or sub-lease of urban buildings located in Ceuta, Melilla or its premises, obtained by entities domiciled in those territories or operating in by establishment or branch, that percentage shall be divided by two. (b) in the case of income from the transfer of the right to the exploitation of the image or the consent or authorization for use, 24%. "

Four. Article 66 is worded as follows:

" Article 66. Obligations of the retainer and the obligation to enter into account.

1. The retainer and the obliged to enter into account must present in the first twenty calendar days of the months of April, July, October and January, before the competent organ of the tax administration, declaration of the quantities retained and the income on account that corresponds to the previous immediate calendar quarter and enter its amount in the Public Treasury.

However, the declaration and entry referred to in the preceding paragraph shall be made in the first twenty calendar days of each month, in relation to the amounts withheld and the revenue to account corresponding to the for the immediate past, in the case of retainers or obliged to the circumstances referred to in Article 71 (3.1) of the Value Added Tax Regulation, approved by Royal Decree 1624/1992, of the December 29. By way of derogation, the declaration and entry for the month of July shall be made during the month of August and the first twenty calendar days of the month of September. No negative statement shall be made where the income for which it is withheld or entered into account has not been satisfied in the period of the declaration. 2. The retainer or obliged to enter into account must present in the first twenty calendar days of January an annual statement of the withholding and income to account made. However, if this statement is to be found in support directly readable by computer or has been generated by the use, exclusively, of the corresponding printed modules developed for this purpose, by the Tax administration, the time limit for filing shall be between 1 January and 31 January of the year following the year of which that declaration corresponds. In this declaration, in addition to its identification data, it may be required that a nominee relationship be established with the following data:

a) Denomination of the entity.

b) Tax identification number. (c) Income obtained, indicating the identification, description and nature of the concepts, as well as the financial year in which the income was due. (d) Retaining or entry into account.

The same obligations set out in the preceding paragraphs shall be subject to institutions domiciled, resident or represented in Spain, who pay for income which is subject to withholding tax or which are depository or manage the collection of income from securities.

3. The holder or obliged to enter into account shall issue in favour of the taxable person certifying evidence of the withholding tax, or of the revenue to be paid, and of the other data relating to the taxable person who must be included in the annual declaration referred to in the preceding paragraph. The said certification must be made available to the taxable person before the time of the tax return. The same obligations laid down in the preceding paragraphs shall be subject to the institutions domiciled, resident or represented in Spain, who pay for income which is subject to withholding tax or which are depository or manage the recovery of Value income. 4. Payors shall report to taxable persons the withholding or entry into account at the time they satisfy the income, indicating the percentage applied. 5. The declarations referred to in this Article shall be made in the models for each class of income established by the Minister of Economy and Finance, who may also determine the data to be included in the declarations, referred to in paragraph 2 above, the holder being obliged to enter into account to complete all the data so determined and contained in the statements that affect him. The declaration and entry shall be made in the form and place to be determined by the Minister for Economic Affairs and Finance. 6. The declaration and entry of the payment into account referred to in Article 60.6 (4) of this Regulation shall be made in the form, place and time limit to be determined by the Minister for Economic Affairs and Finance. "

CHAPTER III

Non-Resident Income Tax

Article 4. Amendment of the Non-Resident Income Tax Regulation, approved by Royal Decree 1776/2004, of July 30.

The following amendments are made to the Non-Resident Income Tax Regulation: One. Article 10 (3) is worded as follows:

" 3. For the purposes of paragraph 4 of Article 31 (4) of the Tax Law, no withholding tax shall be applied for the following income: (a) The property gains.

Notwithstanding the above, if there is an obligation to practice retention or income on account of:

1. The prizes derived from participation in games, contests, raffles or random combinations, whether or not they are linked to the offer, promotion or sale of certain goods, products or services.

2. The transfer of immovable property located in Spanish territory as referred to in Article 14 of this Regulation. 3. The income derived from transmissions or repayments of shares or shares/units representative of the capital or equity of collective investment institutions, other than those deriving from shares in the funds governed by Article 49 of the Regulation of Law 35/2003 of 4 November of investment institutions approved by Royal Decree 1309/2005 of 4 November 2005.

(b) The income referred to in paragraphs (b), except those obtained through qualified countries or territories as tax havens, (c), (e), (f) and (h) of Article 73 (3) of the Tax Regulation. the Income of the Physical Persons, approved by Royal Decree 1775/2004, of July 30. "

Two. Article 14 is worded as follows:

" Article 14. Retention or entry into account in the acquisition of real estate.

1. In the case of transfers of immovable property located in Spanish territory by taxpayers of the Income Tax of non-residents acting without permanent establishment mediation, the acquirer shall be obliged to retain and to enter 3 percent, or to make the corresponding income, of the agreed consideration, as a payment on account of the Income Tax of non-residents corresponding to those.

2. The acquirer shall not have the obligation to retain or to make the entry into account in the following cases:

(a) When the transmitte accredits its attachment to the Income Tax of the Physical Persons or to the Company Tax by certification issued by the competent authority of the tax administration.

(b) In the case of the transfer of immovable property, in the constitution or increase of capital of companies resident in Spanish territory.

3. The obligation to retain or to enter into account must present a declaration to the Delegation or Administration of the State Administration of Tax Administration in whose territory the property is located and the amount of the a corresponding withholding tax or income in the Public Treasury, within one month of the date of the transfer.

4. The non-resident taxpayer in Spanish territory must declare, and enter into his case, the definitive tax, compensating in the quota the amount retained or entered into account by the acquirer, within three months from the date of the the term of the entry of the withholding tax. The tax authorities shall, where appropriate, carry out any necessary checks on the return to the taxpayer of the excess retained or entered into account. 5. If the withholding or income referred to above has not been entered, the goods transmitted shall be affected by the payment of the lesser amount between such withholding or income and the corresponding tax, and the Registrar of the property will record it by note to the margin of the respective registration, indicating the amount of the property. This notice shall be cancelled, where appropriate, by expiry or by the lodging of the letter of payment or administrative certification attesting to the non-subjection or the prescription of the debt. "

Three. Article 15 is worded as follows:

" Article 15. Obligations of the retainer and the obligation to enter into account.

1. The retainer or the obligation to enter into account for the Income Tax of non-residents must present in the first twenty calendar days of the months of April, July, October and January, before the competent organ of the Administration tax, statement of the amounts withheld and of the income to account made corresponding to the previous immediate calendar quarter and to enter its amount in the Treasury.

However, the declaration and entry referred to in the preceding paragraph shall be made in the first twenty calendar days of each month, in relation to the quantities withheld and the revenue to be taken into account. correspond to the preceding immediate month, in the case of retainers or obligors in which the circumstances referred to in Article 71 (3.1) of the Value Added Tax Regulation, approved by the Royal, are met. Decree 1624/1992 of 29 December 1992. By way of derogation, the declaration and entry for the month of July shall be made during the month of August and the first twenty calendar days of the month of September. The retainers and those who are obliged to enter into account shall submit a negative statement if they have satisfied the income referred to in Article 31 (4) of the Tax Law, except in the cases where the tax is established by the Minister of Economy and Finance. 2. The retainer and the obliged to enter into account must present in the first twenty calendar days of January an annual declaration of the withholding and income to account made. In this declaration, in addition to its identification data, it must include a nominative relationship of the recipients of the income subject to the tax paid or paid by the retainer or obliged to enter into account, including those to whom income from which no withholding tax would have been paid pursuant to Article 31 (4) of the Tax Act would have been satisfied. The ratio of recipients shall contain the data to be determined by the Minister for Economic Affairs and Finance. However, if this statement is to be found in support directly readable by computer or has been generated by the use, exclusively, of the corresponding printed modules developed for this purpose, by the Tax administration, the time limit for filing shall be between 1 January and 31 January of the year following the year of which that declaration corresponds. The same obligations set out in the preceding paragraphs are the subject of institutions domiciled, resident or represented in Spain, which pay for income from income subject to withholding tax or deposit or manage the collection of income from securities. Without prejudice to the foregoing paragraphs of this paragraph, the Minister for Economic Affairs and Finance may, on a technical basis, extend the time limit for declarations which may be submitted by way of telematics. 3. The retainer or obliged to enter into account shall be issued in favour of the taxpayer certifying evidence of the withholding tax, or of the income to account effected, as well as of the other data relating to the taxpayer should be included in the annual declaration referred to in the preceding paragraph. To the same obligations set out in the preceding paragraph are the entities domiciled, resident or represented in Spain, who pay for income other income subject to withholding or income to account or which are depository or manage the recovery of income from securities. 4. The payers shall inform the taxpayer of the withholding or income to be paid at the time they satisfy the income, indicating the percentage applied. "

First transient disposition. Deadline for the publication of the Order of approval of the method of objective estimation of the Income Tax of the Physical Persons and of the simplified special regime of the Value Added Tax for 2007.

The Ministerial Order regulating the objective estimation method of the Income Tax of the Physical Persons for 2007 and the simplified special regime of the Value Added Tax should be published in the "Official Gazette of the State" within 15 days of the entry into force of the Royal Decree which approves the Income Tax Regulation of the Physical Persons.

Second transient disposition. Renunciation and revocations to the method of objective estimation of the Income Tax of the Physical Persons, to the simplified special regime and to the one of the agriculture, livestock and fishing of the Tax on the Value Added for 2007.

The waiver of the method of objective estimation of the Income Tax of the Physical Persons, and the simplified and special regimes of agriculture, cattle raising and fishing of the Value Added Tax for the year 2007, thus as the revocation of the same, may be effected in the month following the publication in the "Official Gazette of the State" of the Ministerial Order that regulates for 2007 the method of objective estimation of the Tax on the Income of the Physical Persons and the simplified special scheme of value added tax.

Transitional provision third. Retention applicable to certain economic activities to which the objective estimation method is applicable.

The retention practice provided for in Article 93 (6) of the Income Tax Regulation shall not proceed until the time limit stated in the second transitional provision of this Regulation is completed. royal decree.

Final disposition. Entry into force.

The provisions of this royal decree will enter into force on January 1, 2007.

Given in Madrid, on December 22, 2006.

JOHN CARLOS R.

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