Key Benefits:
The Regulation of Law 35/2003 of 4 November of collective investment institutions, approved by Royal Decree 1309/2005 of 4 November 2005, states in its article 20, as a novelty, the possibility, provided that they are complied with. certain requirements, of which shares and units of Spanish collective investment institutions are marketed in other countries through the legally qualified entities in these countries to carry out the marketing activity. The third final provision of Royal Decree 1309/2005 of 4 November 2005 has added to the Non-Resident Income Tax Regulation, approved by Royal Decree 1776/2004 of 30 July 2004, a single additional provision which is application where, in accordance with Article 20 of the Regulation 35/2003, the management companies or, where appropriate, the investment companies, regulated in that Act, register in global accounts in the name of intermediary entities (a) resident abroad the cross-border marketing by such entities of shares or units of collective investment institutions that are managed by those institutions or, in the case of investment companies, of their own shares. The so-called global account system basically consists in the fact that in the register of shareholders or unit-holders of the Spanish collective investment institution, shareholders or members who are channelled through the trading entity must appear on behalf of the customer, on behalf of his clients. Likewise, in accordance with the said single additional provision, shares or shares acquired on behalf of persons or entities having their tax residence in Spain or permanent establishments of non-permanent establishments may not be included in the aggregate account. residents located on Spanish territory. Therefore, the income obtained by the clients of the marketing companies on the occasion of the perception of profits distributed by the collective investment institution resident in Spain, or of refunds or transfers of shares or shares of that, they are considered to be income obtained in Spanish territory under the terms of Article 13 (1) (1) of the recast of the Law on Income Tax on Non-Resident Income, approved by the Royal Decree Legislative 5/2004, of 5 March, and subject to withholding or entry into account. Notwithstanding the foregoing, these rents may be exempt under Spanish domestic law (in the case of capital gains) and, in the case of taxpayers resident in States with which Spain has signed Conventions for to avoid double taxation, by virtue of the same, to these income, or they could be subject to lower tax rates than the rate laid down in the Spanish domestic law (in the case of distribution of profits); or may be subject to taxation exclusively in the State of residence of the transferor (in the case of property gains). In accordance with the general rules currently in force, to carry out the retentions applying those limited rates, as well as in the cases where there is no need to practice withholding or entry into account as a result of exemptions (a) a certificate of residence for each of the taxpayers issued by the relevant tax authority is required under the internal or agreed rules. The single additional provision of the Non-Resident Income Tax Regulation, in paragraph 2, provides that the accreditation of the identity and the residence of the clients of the trader will be carried out according to the procedure that the Minister for Economic Affairs and Finance, by referring to the certifications and relations provided for in paragraph 3 of that single additional provision. Paragraph 3 sets out different obligations for the trading entities abroad, with the Minister for Economic Affairs and Finance being entrusted with the specific development of these obligations. In particular, these institutions shall send to the Spanish tax authorities an individualised relationship between the members or shareholders that are perceptive or transmittable and an individual annual relationship of the investment position of all their shareholders. clients. They shall also inform the managing body or the investment company of the fulfilment of those obligations and send them, on the occasion of the receipt of benefits, or refunds or transmissions, certificates on the residence of their clients. In application of the above, and in order to facilitate the mechanism of the practice of retentions, this Order establishes a special procedure of accreditation of the residence to the exclusive effects of the practice of withholding. This special procedure is established for two purposes. First, in order to justify the practice of withholding or income on account, where a limit of taxation laid down in a Convention is applied in order to avoid double taxation, or where withholding tax is not practised by application of the internal rules or It shall apply only in the case of taxpayers who are resident in the same country as the market in which Spain has signed a Convention to avoid double taxation with a provision for the exchange of information. Notwithstanding the foregoing, in any event, the general system of justification for the practice of withholding taxes or income may be applied, with certain particularities, when a limit of taxation laid down in a Convention is applied for to avoid double taxation of less than the rate of internal taxation, or where withholding tax is not applied for the purposes of withholding tax. Secondly, even if there is no application of a limited rate lower than the internal rate or an exemption from the practice of withholding tax, through this procedure, the trading entity has the obligation to retain that the income obtained for all its clients tax in the area of Income Tax of non-residents, income obtained without mediation of permanent establishment. The procedure is based on a certificate of tax residence of a global character, without the identification of the taxpayers, issued by the foreign marketing entity, which must be sent to the managing body or investment company with the opportunity to receive benefits or refunds or transfers of shares or shares of collective investment institutions and which shall serve as a document proving the tax residence for the purposes set out in the paragraphs previous. In addition, in this Order the reporting obligations imposed on the trading entities abroad and the procedure for the fulfilment of such obligations are regulated. The marketer shall forward to the Spanish tax administration, in the first three months of the following year to which the information relates, an individualised annual ratio of recipients and transferors, and from investment positions to December 31 of all its clients. The foreign market shall also inform the managing body or the investment company that has made such a referral. It is therefore appropriate to incorporate the special procedure for the accreditation of residence in the provisions of the legislation specifying the supporting documents for the purposes of withholding tax. To this end, the 13th paragraph of the Order of 9 December 1999 approving, in pesetas and in euro, the model 216 declaration-document of income from withholding and income to account in respect of the certain income under the Income Tax of non-residents obtained by taxpayers of that tax without permanent establishment and the annual summary, model 296, of withholding and income to account effected in relation to those income, as well as certain provisions relating to the accounts of non-residents, and the fifth paragraph of the Order of 15 December 1999 approving models 187, in pesetas and in euro, of an information declaration of shares and units representing the capital or assets of the institutions for collective investment and of the summary the annual withholding tax and income on account of the Income Tax of the Physical Persons, the Tax on Societies and the Income Tax of Non-Residents, in relation to the income or property gains obtained as a result of the transmissions or repayments of those shares or units, as well as the physical designs and For the compulsory presentation of the abovementioned models 187 for direct computer-readable support, the Order of 22 February 1999, for which the models 117, in pesetas and in euro, are approved, is amended. The Order, in coherence with the global account system, in which foreign traders are, and not the taxpayers, who appear as recipients of the distributed profits or as transmitts, provides that in the model declarations 187 and 296, the tax obliged to its presentation group the information, for each perception of benefits or frequency with which the collective investment institution stores the refund or transmission, in the name of the foreign market. Also as a consequence of the system of global account, the Order provides that in the declarations model 187, the tax obliged to its presentation in the cases of subscriptions or acquisitions of participations or shares of investment institutions Spanish collective channels through foreign marketing companies, as a partner or participate in the trading entity. In summary, under the provisions of the single additional provision of the Non-Resident Income Tax Regulation, in this Order, in Articles 1 and 2, the special procedure for the accreditation of residence is established. of certain shareholders or non-residents, for the purposes of the practice of withholding tax, in the case of contracts for the cross-border marketing of shares or units of Spanish collective investment institutions by means of global accounts subscribed to intermediary entities resident abroad; in the Article 3, the obligations for the provision of information of foreign residents residing abroad to the Spanish tax authorities and, in Article 4, the procedure for the presentation of the relations which they are obliged to forward to the tax authorities those entities. In its virtue, I have:
Article 1. Amendment of the Order of 9 December 1999 approving, in pesetas and in euro, the model 216 declaration-document of income from withholding and income to account effected in respect of certain income subject to the tax on the Income of non-residents obtained by taxpayers of that tax without permanent establishment and the annual summary, model 296, of withholding and income to account effected in relation to said income, as well as certain provisions relating to the accounts of non-residents.
The Order of 9 December 1999 approving, in pesetas and in euro, the model 216 declaration-document of income of withholding and income to account effected in respect of certain income subject to the Tax on the Income of non-residents obtained by taxpayers of that tax without permanent establishment and the annual summary, model 296, of withholding and income to account effected in relation to said income, as well as certain provisions concerning to the accounts of non-residents, it is amended as follows: 1. A number 4 is added to the thirteenth section "Documentation", with the following wording:
" 4. In the case of contracts for the cross-border marketing of shares or units of Spanish collective investment institutions, by means of global accounts in the name of the trading entities, as referred to in the provision In addition to the non-resident Income Tax Regulation, the following procedure for the accreditation of residence is established for the purposes of the practice of withholding or income on account of the benefits distributed by the Spanish collective investment institutions to taxpayers of the Income Tax of no Residents without permanent establishment: (a) Where the foreign trading entity is resident in a country with which Spain has signed a Convention to avoid double taxation with a provision for the exchange of information in which a lower tax limit is fixed than the Article 25 of the recast text of the Law on Income Tax of Non-Residents, approved by the Royal Legislative Decree 5/2004, of 5 March, shall issue and deliver to the management company or to the investment company a certificate, by each collective investment institution or, where appropriate, by each compartment or class of units or series of actions of the same, on the occasion of the perception of benefits distributed by the collective investment institution, containing: 1. Place and date on which the certificate is issued. 2. Name of the marketing entity, Tax Identification Number attributed by the Spanish tax administration and full address in your country of residence. 3. Identification and charge of the person who subscribes to the certificate, who must have sufficient power to do so. 4. Name of the collective investment institution, Tax Identification Number attributed by the Spanish tax administration and tax domicile. 5. Where applicable, the name of the compartment and the class of the shares or the series of shares. 6. ISIN code of the units or shares of the collective investment institution or, where appropriate, of the compartment or class or series thereof. 7. Where applicable, name of the managing body, Number of Tax Identification attributed by the Spanish tax administration and tax domicile. 8. Date of distribution of benefits. 9. The number of resident recipients, within the meaning of the Convention, of the same country as the marketing firm and the total amount of the benefits received. 10. The number of other recipients and the total amount of benefits received. Managing companies or investment companies, resident in Spain, may justify withholding or taking into account the application of the limit of taxation laid down in the Convention on the corresponding distributed profits, exclusively, to the resident recipients, within the meaning of the Convention, in the same country as the trader, and the withholding or entry into account applying the rate of charge of Article 25 of the recast of the Income Tax Act of non-residents on the benefits distributed to the other recipients, by means of the certificate mentioned above. In addition, the foreign trading entity shall forward to the management companies or investment companies a certificate of residence for tax purposes of the same issued by the tax authorities of its country which shall be valid for three years. from their date of issue. (b) Where the foreign trading entity is resident in a country or territory other than those referred to in point (a) above, it shall issue and deliver to the management company or the investment company a certificate, for each institution of collective investment or, where appropriate, by each compartment or class of shares or series of shares of the same, on the occasion of the collection of profits distributed by the collective investment institution, containing: 1. Place and date of the certificate is issued. 2. Name of the marketing entity, Tax Identification Number attributed by the Spanish tax administration and full address in your country of residence. 3. Identification and charge of the person who subscribes to the certificate, who must have sufficient power to do so. 4. Name of the collective investment institution, Tax Identification Number attributed by the Spanish tax administration and tax domicile. 5. Where applicable, the name of the compartment and the class of shares or series of shares. 6. ISIN code of the units or shares of the collective investment institution or, where appropriate, of the compartment or class or series thereof. 7. Where applicable, name of the managing body, Number of Tax Identification attributed by the Spanish tax administration and tax domicile. 8. Date of distribution of benefits. 9. The number of recipients and the total amount of benefits received. Managing companies or investment companies, resident in Spain, may justify withholding or taking into account the tax rate of Article 25 of the recast of the Income Tax Act of no Residents on the benefits distributed, by means of the aforementioned certificate. In addition, the foreign trading entity shall forward to the management companies or investment companies a certificate of residence for tax purposes of the same issued by the tax authorities of its country which shall be valid for three years. from their date of issue. (c) The foreign trading entity may issue and deliver to the management company or the investment company the certificates referred to in points (a) and (b) above relating to the same calendar month in the first 10 days of the month natural next. In such cases, the foreign trading entity may issue a single certificate, stating its monthly character, which shall collect the data referred to in those letters, corresponding to the calendar month, ordered by the date of distribution. of benefits. The form of reference referred to in the preceding subparagraph shall be without prejudice to the obligation of the trading entity to communicate to the management company or to the investment company on the occasion of the collection of profits distributed by the collective investment institution, the information necessary for the correct practice of withholding or taking into account. (d) The managing body resident in Spain or, where appropriate, the investment company shall be required to keep the documentation provided for in this issue at the disposal of the tax administration, during the period of limitation referred to in the Article 70 of Law 58/2003, of 17 December, General Tax. (e) The managing body or the investment company, for the purposes of the completion of the annual summary of holds, model 296, shall group, for each benefit perception, the information referred to the collective of integrated recipients on the certificate issued by the trader, where appropriate, in two or more notice of receipt, a comprehensive one of the contributors who have incurred a withholding rate of less than the rate of charge of Article 25 of the recast of the Non-Resident Income Tax Act and another referred to the other taxpayers. The managing body or the investment company shall, in both cases, record as a recipient the foreign trading entity. The other information in the model relating to the recipients shall be understood as referring to the foreign market. (f) The special procedure for accreditation regulated in this number 4 shall be without prejudice to the power of the tax authorities to require, where appropriate, any taxpayer to justify their right to the application of the Convention. (g) notwithstanding the foregoing in the preceding letters of this number 4, regardless of the country or territory of residence of the marketing entity, and even if it does not coincide with the recipient's residence, the obligation to retain or to enter it may apply the provisions of Article 2 (2) of this third paragraph to justify the practice of withholding or revenue in respect of a type of tax laid down in a Convention to avoid double taxation which is applicable, type of internal charge. In this case, the following requirements must be met: 1. The obligation to retain or to enter into account must have the corresponding certificates of residence of the recipients and keep them, in the terms of numbers 1 and 2 of This paragraph is thirteenth. 2. In the certificates referred to in points (a) and (b) of this number 4, the information relating to these recipients shall be broken down, indicating: 1. Type of person: physical (F) or entity (J). 2. First Name and name, or denomination. 3. Number of Spanish tax identification, if the taxpayer has it. 4. Number of tax identification assigned to the taxpayer in the territory or country of residence, if available. 5. Country or territory of residence, adjusted to the keys of countries and territories listed in Annex 11 of the Order HAC 3626/2003, of 23 December. 6. The amount of benefits received. 3. For the purposes of the completion of the annual summary of retentions, model 296, the managing body or the investment company shall not group the information referred to these recipients but appear in individual fields or registers name of the preceptors. '
2. The content of the 'Subkey' box in the 'Data common to all recipients' section of the 'Compliant Indoor' sheet of instructions, as set out in Annex IV, is amended and is worded as follows:
"Subkey box": The corresponding item shall be entered, depending on the circumstances taken into account for the calculation of the withholding tax or income, according to the following ratio: 1. Retention to the general rates or Article 25 tax scales of the recast of the Income Tax Act of Non-Residents. 2. Retention practiced by applying the limits of the imposition of Conventions. 3. Internal exemption (mainly: Article 14 of the recast text of the Non-Resident Income Tax Act). 4. Exemption by application of a Convention. 5. No withholding tax paid by the taxpayer or its representative. 6. The declared recipient is a foreign entity for collective management of intellectual property rights, having been retained by applying the limit of taxation, or the exemption, of a Convention, as provided for in issue No 3. Third paragraph of the Order of 9 December 1999 approving the model 296, in the wording given by Order EHA/63/2005 of 19 January 2005. 7. The recipient is a taxpayer of the Income Tax of the Physical Persons of the special tax regime for the Income Tax of non-residents, as referred to in article 9.5 of the recast of the Law of the Tax on the Income of the Physical Persons. 8. The declared recipient is an entity resident abroad on the market of shares or units of Spanish collective investment institutions, having been retained by applying an imposition limit set out in the Convention. less than that provided for in Article 25 of the recast text of the Non-Resident Income Tax Act, in accordance with the special procedure laid down in Article 4 (4) of the Order of 9 December 1999, for which the approves the model 296. 9. The declared recipient is an entity resident abroad on the market of shares or units of Spanish collective investment institutions, having been retained in accordance with the rate of charge provided for in Article 25 of the recast text of the Non-Resident Income Tax Act, in accordance with the special procedure laid down in Article 4 (4) of the Order of 9 December 1999 approving the model 296. In the cases referred to in numbers 6, 7, 8 and 9 of the previous relationship, these specific sub-keys shall always be reported without taking into account the other sub-keys. '
3. New wording is given to the instructions for completion of the 'SUBKEY' field of the type 2 register (register of recipients) of the physical and logical designs, which are set out in Annex V to that order of 9 December 1999:
"The instructions in the" SUBKEY " field (positions 102-103) are worded as follows:
| Nature | Field Description |
|
| 102-103 | Numeric. | The corresponding in function of the circumstances taken into account for the calculation of the withholding tax or income, depending on the relationship next: 01. Withholding tax on the general rates or tax scales of Article 25 of the Non-Resident Income Tax Act. 02. Retention practiced by applying the limits of the imposition of Conventions. 03. Internal exemption (mainly: Article 14 of the Non-Resident Income Tax Act). 04. Exemption by application of a Convention. 05. No withholding tax paid by the taxpayer or its representative. 06. The declared recipient is a foreign entity for collective management of intellectual property rights, having been subject to the application of the limit of taxation, or the exemption, of a Convention, as provided for in No 3 of the Thirteenth paragraph of the Order of 9 December 1999, approving the model 296, in the wording given by Order EHA/63/2005 of 19 January. 07. The recipient is a taxpayer of the Income Tax of the Physical Persons of the special tax regime for the Income Tax of non-residents, as referred to in article 9.5 of the Law of Income Tax of the Physical Persons. 08. The declared recipient is an entity resident abroad on the market of shares or units of Spanish collective investment institutions, having been retained by applying an imposition limit set out in the Convention. less than that provided for in Article 25 of the Non-Resident Income Tax Act, in accordance with the special procedure laid down in Article 25 (4) of the Order of 9 December 1999, in respect of which the model is approved 296. 09. The declared recipient is an entity resident abroad on the market of shares or units of Spanish collective investment institutions, having been retained in accordance with the rate of charge provided for in Article 25 of the Treaty. the Income Tax Act of non-residents, in accordance with the special procedure provided for in the order of number 4 in the order of 9 December 1999, number 4 of the Order of 9 December 1999, approving the model 296. assumptions referred to in sub-keys 06, 07,08 and 09 of the previous relationship, shall be reported always these specific subkeys without taking into consideration the rest of the subkeys. " |
Article 2. Amendment of the Order of 15 December 1999 approving the model 187, in pesetas and in euro, of an information declaration of shares or shares representing the capital or the assets of the institutions for collective investment and the annual summary of withholding and income on account of the Income Tax of the Physical Persons, the Corporate Tax and the Income Tax of Non-Residents, in relation to the income or property gains obtained as a result of transmissions or repayments of such shares or participations.
The Order of 15 December 1999 approving the model 187, in pesetas and in euro, of an information declaration of shares or units representing the capital or assets of investment institutions collective and the annual summary of withholding and income on account of the Income Tax of the Physical Persons, the Tax on Societies and the Income Tax of Non-Residents, in relation to the income or property gains obtained as a result of the transmissions or repayments of those shares or shares, amended as follows: 1. A sub-paragraph three is added to the fifth paragraph " Retentions and income on account of income obtained without the intermediary of permanent establishment by taxpayers of the Income Tax Residents ":
" Three. In the case of contracts for the cross-border marketing of shares or units of Spanish collective investment institutions, by means of global accounts in the name of the trading entities, as referred to in the provision In addition to the non-resident Income Tax Regulation, the following procedure for the accreditation of the residence is established for the purposes of the practice of withholding or income on account of the property gains obtained by taxpayers of the Income Tax of non-residents without permanent establishment, arising from the repayments or transfers of shares or shares of Spanish collective investment institutions: (a) Where the trading entity is resident in a country with which Spain has concluded a Convention to avoid double taxation with a provision for the exchange of information, it shall issue and deliver a certificate to the management company or to the the investment company, for each collective investment institution or, where appropriate, for each compartment or class of shares or series of shares in the investment company, with the frequency at which the investment institution meets the reimbursement or transmission, and referring exclusively to those operations which generate property gains, containing: 1. Place and date on which the certificate is issued. 2. Name of the marketing entity, Tax Identification Number attributed by the Spanish tax administration and full address in your country of residence. 3. Identification and charge of the person who subscribes to the certificate, who must have sufficient power to do so. 4. Name of the collective investment institution, Tax Identification Number attributed by the Spanish tax administration and tax domicile. 5. Where applicable, the name of the compartment and the class of shares or series of shares. 6. ISIN code of the units or shares of the collective investment institution or, where appropriate, of the compartment or class or series thereof. 7. Where applicable, name of the managing body, Number of Tax Identification attributed by the Spanish tax administration and tax domicile. 8. Date of transmission or refund. 9. For resident taxpayers in the same country as the marketing person to whom the withholding tax applies for the application of an exemption under the internal or agreed rules: 1. (a) transmitting assets that are residents of the same country as the marketing company, with the right to the exemption application. 2. Number of shares or shares to be reimbursed or transferred to those taxpayers. 3. The total amount of refunds or transmissions. 4. th Total amount of acquisition corresponding to those refunds or transmissions. 10. With respect to other contributors: 1. Number of transmitters who have obtained property gains. 2. Number of shares or shares to be reimbursed or transferred to those taxpayers. 3. The total amount of refunds or transmissions. 4. th Total amount of acquisition corresponding to those refunds or transmissions. 5. th Total amount of property gains. Managing companies or investment companies, resident in Spain, may justify the exclusion of withholding tax or income on account of an exemption under domestic or agreed rules, to taxpayers who are entitled to to apply an exemption resident in the same country as the trader, and the withholding or entry into account by applying the tax rate of Article 25 of the recast of the Non-Resident Income Tax Act, approved by the Royal Legislative Decree 5/2004 of 5 March 2004 on the profits made by the other taxpayers, by the certificate referred to above. In addition, the foreign trading entity shall forward to the management companies or investment companies a certificate of residence for tax purposes of the same issued by the tax authorities of its country which shall be valid for three years. from their date of issue. (b) Where the foreign trading entity is resident in a country or territory other than those listed in (a) above, it shall issue and deliver a certificate to the management company or the investment company, for each institution of collective investment or, as the case may be, for each compartment or class of shares or series of shares of the same, with the frequency at which the investment institution coIectivates the reimbursement or transmission, and referred exclusively to those operations that generate capital gains, containing: 1. Place and date on which the certificate is issued. 2. Name of the marketing entity, Tax Identification Number attributed by the Spanish tax administration and full address in your country of residence. 3. Identification and charge of the person who subscribes to the certificate, who must have sufficient power to do so. 4. Name of the collective investment institution, Tax Identification Number attributed by the Spanish tax administration and tax domicile. 5. Where applicable, the name of the compartment and the class of shares or series of shares. 6. ISIN code of the units or shares of the collective investment institution or, where appropriate, of the compartment or class or series thereof. 7. Where applicable, name of the managing body, Number of Tax Identification attributed by the Spanish tax administration and tax domicile. 8. Date of transmission or refund. 9. Number of transmitters. 10. Number of shares or shares to be reimbursed or transferred to those taxpayers. 11. Total amount of refunds or transmissions. 12. Total amount of acquisition corresponding to these reimbursements or transmissions. 13. Total amount of capital gains. The managing companies or investment companies, resident in Spain, may justify the withholding or entry into account by applying the tax rate of Article 25 of the recast of the Non-Resident Income Tax Act. by means of the certificate referred to above, which shall have no effect on the exclusion of withholding or entry into account of an exemption under domestic or agreed rules. In addition, the foreign trading entity shall forward to the management companies or investment companies a certificate of residence for tax purposes of the same issued by the tax authorities of its country which shall be valid for three years. from their date of issue. (c) The foreign trading entity may issue and deliver to the management company or the investment company the certificates referred to in points (a) and (b) above relating to the same calendar month in the first 10 days of the month natural next. In such cases, the foreign trading entity may issue a single certificate, stating its monthly character, which shall collect the data referred to in those letters, corresponding to the calendar month, ordered by the date of transmission or reimbursement. The form of reference referred to in the preceding subparagraph shall be without prejudice to the obligation of the trading entity to communicate to the management company or to the investment company, with the frequency at which the investment institution coIectiva to the reimbursement or transmission of the shares/units, the information necessary for the correct practice of the withholding or income to account. (d) The managing body resident in Spain or, where appropriate, the investment company shall be required to keep the documentation provided for in this sub-paragraph at the disposal of the tax administration, during the period of limitation referred to in paragraph 1. Article 70 of Law 58/2003, of 17 December, General Tax. (e) the managing body or the investment company, for the purposes of the completion of the reporting of shares or shares representing the capital or assets of the collective investment institutions and the annual summary For the purposes of this Regulation, the Commission shall, in the case of the Commission, take into account the information referred to in Article 1 (2) of Regulation (EC) No 718/77 of the European Parliament and of the Council. taxpayers who have not supported retention by application of exemption under internal rule or agreed, and another relative to the other contributors. The managing body or the investment company shall either record in both cases as a partner or participate in the foreign trading entity. The other information in the model relating to the partner or participant shall be understood as referring to the foreign trader. The amount of the gain shall be entered, if any, in the field referred to in those of a term of generation equal to or less than one year. (f) The special accreditation procedure laid down in this subparagraph shall be without prejudice to the power of the tax authorities to require, where appropriate, any taxpayer, the justification of their right to the application of the Convention or the provenance of the application of exemption from the internal rules, due to the residence of the taxpayer. (g) notwithstanding the provisions of the preceding subparagraphs of this sub-paragraph three, irrespective of the country or territory of residence of the trading entity, and even if it does not coincide with the residence of the recipient, the obligation to retain or (a) to enter into account may apply the provisions of subparagraph (2) of this paragraph 5 to justify the exclusion of withholding tax for the application of an exemption under the internal or agreed rules to which the taxpayer. In this case, the following requirements must be met: 1. The obligation to retain or to enter into account must have the corresponding tax residence certificates of the taxpayers and retain them in the terms of sub-paragraph two. of this paragraph 5. 2. In the certificates referred to in points (a) and (b) of this subparagraph, the information relating to these contributors shall be broken down, indicating: 1. Type of person: physical (F) or entity (J). 2. First Name and name, or denomination. 3. Number of Spanish tax identification, if the taxpayer has it. 4. Number of tax identification assigned to the taxpayer in the territory or country of residence, if available. 5. Country or territory of residence, adjusted to the keys of countries and territories listed in Annex 11 of the Order HAC 3626/2003, of 23 December. 6. Number of shares or shares to be reimbursed or transferred to the taxpayer. 7. º Amount of reimbursement or transmission. 8. º Amount of the acquisition corresponding to the refund or transmission. 9. º Amount of the wealth gain. 3. For the purposes of the completion of the information declaration of shares or shares representing the capital or assets of the collective investment institutions and of the annual summary of withholding and revenue to be taken into account, model 187, the managing body or the investment company shall not group the information referred to by the taxpayer, but shall appear in individual records on behalf of the taxpayer. '
2. A sixth paragraph "Subscription or acquisition of shares or shares of Spanish collective investment institutions through trading entities abroad" is added with the following wording:
" Sixth. -Subscription or acquisition of shares or shares of Spanish collective investment institutions through foreign marketing entities. In the case of subscriptions or acquisitions of shares or shares of Spanish collective investment institutions channelled through foreign-resident trading entities acting on behalf of their clients under the terms of the for the marketing contracts referred to in Article 20 of the Regulation of Law 35/2003 of 4 November of collective investment institutions for the purposes of the completion of the information declaration of shares or shares representing the capital or assets of the collective investment institutions and the annual summary of withholding and revenue to account, model 187, the managing body or the investment company shall enter as a partner or participate in the foreign trading entity. The other information in the model relating to the partner or participant shall be understood as referring to the foreign trader. '
3. New wording is given to the instructions for completion of the fields 'Partner type or participant' and 'Type of operation' of the type 2 register (operation record) of the physical and logical designs, as set out in Annex III to that Regulation. Order of 15 December 1999.
a) The instructions in the "Partner Type or Participate" field (position 81) are worded as follows:
| Nature | Field Description |
|
| 81 | Alphabetical. | Partner Type or Participate. The partner type will be entered or participate according to the following values: R: Resident and non-resident who gets rent by permanent establishment. N: Non-resident who gets rent without permanent establishment mediation. |
b) The instructions in the "Operation type" field (position 104) are worded as follows:
| Nature | Field Description |
|
| 104 | Alphabetical. | Operation Type. The type of operation will be specified according to the following values:
B is to be entered: Acquisitions of shares or units that are reinvestment of amounts previously obtained in the transmission or reimbursement of other shares or shares in collective investment institutions, and where the amount of the assets obtained, as provided for in the second subparagraph of Article 95.1.a of the recast text, has not been taken into account the Income Tax Law of the Physical Persons. E: Enajenations (transmissions or reimbursements), except those in which the keys F, G or H. F: Enajenations (transmissions or reimbursements) are to be entered in which, by application of the Article 95.1.a) second paragraph of the recast text of the Income Tax Act of the Physical Persons, does not proceed to compute the profit or loss generated. G: Transmissions or refunds, where the key 'C' has been entered in the 'partner type' or 'partner' field, having been retained by application of an exemption under internal or agreed rules, in accordance with the special procedure provided for in paragraph 3 of the fifth paragraph of the Order of 15 December 1999 approving the Model 187. H: Transmissions or reimbursements, in which the key "C" has been entered in the "partner type" or "partner" field, having been retained in accordance with the rate of charge provided for in Article 25 of the recused text of the Non-Resident Income Tax Act, in accordance with the procedure Special provisions referred to in sub-paragraph 3 of the fifth paragraph of the Order of 15 December 1999 approving the model 187 |
Article 3. Obligations for the provision of information to the Spanish tax authorities of the trading entities resident abroad.
1. In the case of cross-border marketing of shares or units of Spanish collective investment institutions to which the single additional provision of the Non-Resident Income Tax Regulation is applicable, added by the third final provision of Royal Decree 1309/2005 of 4 November 2005, as provided for in paragraph 3 (c) of that additional provision, on behalf of the overseas trading entities resident abroad, on behalf of the the management company or investment company, are obliged to refer to the State Agency Tax administration the following relationships: (a) An individualized relationship of its customers perceptors of profits distributed by the collective investment institution, as well as those on behalf of which the entity (a) it has made repayments or transfers of shares or shares of the said institution, which shall be related to the distributed profits and repayments or transfers made during the preceding year.
b) An individualized annual relationship of its clients with its investment position in the collective investment institution referred to on 31 December of the previous year.
2. The abovementioned relations shall be submitted within the first three months of each calendar year.
3. The obligation to present the individualised relationship of the unit-holders or shareholders who have been recipients of profits distributed by the collective investment institution or who have made repayments or transfers of the institution's shares or shares, as referred to in point (a) of the preceding number 1, shall be fulfilled by sending a computer file in accordance with the procedure laid down in Article 4 of this Order; the file shall, less, the following content:
a. NIF of the trading entity.
b. Name of the trading entity. c. Country or territory of residence of the trading entity. d. The tax identification number of the marketer in its territory or country of residence, if available.
For each customer and for each benefit perception or transmission or redemption of shares or units:
e. Type of person: physical (F) or entity (J).
f. If it is a natural person, the name, and if it is an entity, its name. g. If this is a natural person, first last name. h. If this is a natural person, second last name, if applicable. i. Spanish tax identification number, if the taxpayer has it. j. Tax identification number assigned to the taxpayer in the territory or country of residence, if available. k. Nationality, adjusted to the keys of countries and territories listed in Annex 11 of the Order HAC 3626/2003, of 23 December. l. Country or territory of residence, adjusted to the keys of countries and territories listed in Annex 11 of the HAC Order 3626/2003 of 23 December. m. Name of the collective investment institution n. NIF of the collective investment institution. or. Name of the management company, if any. p. NIF of the management company, if applicable. q. If applicable, name of the compartment. r. Where applicable, name of the class of the shares or series of shares. s. ISIN code of the units or shares of the collective investment institution or, where applicable, of the compartment or class or series thereof.
If these are benefits distributed by the collective investment institution:
t. Date of distribution of profits.
u. Total amount received as a result of the distributed profits, expressed in euro. v. Amount of the withholding tax in Spain on those benefits, expressed in euro.
If this is a refund or transfer of shares or shares of the collective investment institution:
w. Date of transmission or refund.
x. Number of shares/shares repaid or transmitted. and. Amount of the acquisition of such holdings or shares, expressed in euro. z. Amount obtained in the refund or transfer of such shares or shares, expressed in euro. aa. Where applicable, the amount of the withholding tax in Spain, expressed in euro.
4. The obligation to present the individual annual customer relationship with the investment position in the collective investment institution, referred to at 31 December of the preceding year, as referred to in point (b) number 1 above, shall be the file is completed by sending a computer file in accordance with the procedure laid down in Article 4 of this Order; this file shall have at least the following content:
a. NIF of the trading entity.
b. Name of the trading entity. c. Country or territory of residence of the trading entity. d. The tax identification number of the marketer in its territory or country of residence, if available.
For each client:
e. Type of person: physical (F) or entity (J).
f. If it is a natural person, the name, and if it is an entity, its name. g. If this is a natural person, first last name. h. If this is a natural person, second last name, if applicable. i. Spanish tax identification number, if the taxpayer has it. j. Tax identification number assigned to the taxpayer in the territory or country of residence, if available. k. Nationality, adjusted to the keys of countries and territories listed in Annex 11 of the Order HAC 3626/2003, of 23 December. l. Country or territory of residence, adjusted to the keys of countries and territories listed in Annex 11 of the HAC Order 3626/2003 of 23 December. m. Name of the collective investment institution. n. NIF of the collective investment institution. or. Name of the management company, if any. p. NIF of the management company, if applicable. q. If applicable, name of the compartment. r. Where applicable, name of the class of the shares or series of shares. s. ISIN code of the units or shares of the collective investment institution or, where applicable, of the compartment or class or series thereof. t. Number of shares or shares as of December 31. or. The acquisition value of those units or shares, expressed in euro. v. Liquidative value of those units or shares as at 31 December, expressed in euro.
5. The format, layout and content of the computer files referred to in the preceding numbers 3 and 4 shall be those which, at any time, are on the website of the State Agency for Tax Administration on the Internet.
6. Once the information relations referred to in the earlier numbers have been referred to the State Tax Administration Agency, the foreign marketing entity shall communicate to the management company or investment company in the month following the end of the period laid down in the preceding number 2. This communication must be carried out by means of a document signed by a person with sufficient power to act on behalf of the trading entity, including at least the following information:
1. Name of the trading entity.
2. NIF of the trading entity. 3. Identification of who subscribes to the communication. 4. Place and date of issue.
With respect to each related relationship, identifying whether it is the individualised relationship of the customers perceptive of benefits or transmitts, or of the individualized annual relationship of the clients with the investment position to 31 December:
6. Date of referral of the relationship to the State Tax Administration Agency.
7. Electronic validation code communicated by the State Agency of Tax Administration of the relationship referred to. 8. Name of the collective investment institution. 9. NIF of the collective investment institution. 10. Name of the management company, if any. 11. NIF of the management company, if applicable.
Article 4. Procedure for the presentation of the relations.
The trading entity shall present the relationships referred to in Article 3 above in accordance with the following procedure: (a) The trading entity shall be connected to the page of the State Administration Agency. Tax on the Internet, address www.agenciatributaria.es, and access to the section entitled, for these purposes, for the fulfilment of the obligation to supply regulated information in the single additional provision of the Tax Regulation the Income of non-residents.
Within this menu, the foreign marketing entity must record its Fiscal Identification Number attributed by the Spanish tax administration and request the validation of a key for its subsequent access. The State Tax Administration Agency shall, where appropriate, perform the validation of the key. The trading entity may verify the validation of this key by accessing the same section of the page of the State Tax Administration Agency. The trading entity shall use its Fiscal Identification Number and the validated key to send the files referred to in Article 3 of this Order. Once these files have been transmitted, the State Tax Administration Agency will return a document identifying the validated information with an electronic code, the date and time of the presentation. If the presentation is rejected, the description of the detected errors will be displayed on the screen. In this case, the same should be done and the information transmitted again. The trading entity shall print and keep the identification document of the information transmitted with the corresponding electronic code.
Single end disposition. Entry into force.
This Order shall enter into force on the day following that of its publication in the Official Gazette of the State and shall apply: (a) For the special procedure for the accreditation of residence: publication.
(b) As regards the modifications of models 296 and 187, for the first time, with respect to the information for 2006 to be submitted in 2007.
(c) Regarding the obligation of foreign trading entities to forward information to the tax authorities and their communication to the management company for the first time in respect of the operations carried out in 2006, and the investment position at 31 December 2006.
What I communicate for your knowledge and effects.
Madrid, 24 May 2006.
SOLBES MIRA
Mr. Director-General of the State Tax Administration Agency and Mr. General Director of Taxation.
