FELIPE VI

KING OF SPAIN

To all who present it and understand it.

Sabed: That the General Courts have approved and I come to sanction the following law.

INDEX

Title I. Nature and scope of application of the tax.

Article 1. Nature.

Article 2. Spatial application scope.

Article 3. Treaties and conventions.

Title II. The taxable fact.

Article 4. Taxable fact.

Article 5. Concept of economic activity and heritage entity.

Article 6. Allocation of income.

Title III. Contributors.

Article 7. Contributors.

Article 8. Residence and tax domicile.

Article 9. Exemptions.

Title IV. The tax base.

Chapter I. Concept and determination of the tax base. Temporary imputation rules.

Article 10. Concept and determination of the tax base.

Article 11. Temporary imputation. Accounting enrollment of revenue and expenditure.

Chapter II. Limitation to the deductibility of expenses.

Article 12. Value adjustments: redemptions.

Article 13. Value adjustments: impairment loss of the value of the assets.

Article 14. Provisions and other expenses.

Article 15. Non-deductible expenses.

Article 16. Limitation on the deductibility of financial expenses.

Chapter III. Valuation rules.

Article 17. General rule and special rules of assessment in the case of lucrative and societarian transmissions.

Article 18. Related operations.

Article 19. Changes of residence, operations carried out with or by persons or entities resident in tax havens and amounts subject to retention. Special rules.

Article 20. Effects of the accounting valuation other than tax.

Chapter IV. Exemption to eliminate double taxation. Securities representing the own funds of permanent institutions and institutions.

Article 21. Exemption to avoid double taxation on dividends and income derived from the transmission of securities representative of the own funds of resident and non-resident entities on Spanish territory.

Article 22. Exemption from income earned abroad through a permanent establishment.

Chapter V. Reductions in the tax base.

Article 23. Reduction of income from certain intangible assets.

Article 24. Benefit-social work of savings banks and bank foundations.

Article 25. Capitalization reserve.

Article 26. Compensation of negative taxable bases.

Title V. Tax period and tax accrual.

Article 27. Tax period.

Article 28. Tax accrual.

Title VI. Tax liability.

Chapter I. Type of charge and full quota.

Article 29. The type of lien.

Article 30. Full quota.

Chapter II. Deductions to avoid international double taxation.

Article 31. Deduction to avoid double taxation: tax borne by the taxpayer.

Article 32. Deduction to avoid double international economic taxation: dividends and profit shares.

Chapter III. Bonuses.

Article 33. Bonus for rent obtained in Ceuta or Melilla.

Article 34. Bonus for the provision of local public services.

Chapter IV. Deductions to incentivize the realization of certain activities.

Article 35. Deduction for research and development activities and technological innovation.

Article 36. Deduction for investments in film productions, audiovisual series and live performances of performing and musical arts.

Article 37. Deductions for job creation.

Article 38. Deduction for job creation for workers with disabilities.

Article 39. Common rules for deductions provided for in this chapter.

Chapter V. Fracked payment.

Article 40. The split payment.

Chapter VI. Deduction of payments on account.

Article 41. Deduction of holds, income on account, and fractional payments.

Title VII. Special tax regimes.

Chapter I. Definition and rules of application of special tax regimes.

Article 42. Application definition and rules.

Chapter II. Economic, Spanish and European interest groups and temporary joint ventures.

Article 43. Groupings of Spanish economic interest.

Article 44. European groupings of economic interest.

Article 45. Temporary unions of companies.

Article 46. Imputation criteria.

Article 47. Identification of members or member companies.

Chapter III. Entities engaged in the leasing of housing.

Article 48. Scope of application.

Article 49. Bonuses.

Chapter IV. Companies and funds of venture capital and regional industrial development companies.

Article 50. Venture capital institutions and their partners.

Article 51. Partners of regional industrial development companies.

Chapter V. Collective Investment Institutions.

Article 52. Taxation of the Collective Investment Institutions.

Article 53. Taxation of the partners or members of the Collective Investment Institutions.

Article 54. Taxation of the partners or members of the Collective Investment Institutions incorporated in countries or territories qualified as tax havens.

Chapter VI. Tax consolidation regime.

Article 55. Definition.

Article 56. Taxpayer.

Article 57. Tax liabilities arising from the application of the tax consolidation regime.

Article 58. Definition of the tax group. Dominant entity. Dependent entities.

Article 59. Inclusion or exclusion of entities in the tax group.

Article 60. Determination of the domain and voting rights in the indirect participations.

Article 61. Implementation of the tax consolidation regime.

Article 62. Determination of the tax group's tax base.

Article 63. Special rules applicable to the determination of the individual taxable bases of the entities in the tax group.

Article 64. Removals.

Article 65. Additions.

Article 66. Compensation of negative taxable bases.

Article 67. Special rules for the incorporation of entities into the tax group.

Article 68. Tax period.

Article 69. Tax rate of the tax group.

Article 70. Full membership of the tax group.

Article 71. Deductions and bonuses from the tax group's full quota.

Article 72. Reporting obligations.

Article 73. Causes determining the loss of the fiscal consolidation regime.

Article 74. Effects of the loss of the fiscal consolidation regime or the extinction of the tax group.

Article 75. Statement and self-validation of the tax group.

Chapter VII. Special arrangements for mergers, divisions, transfers of assets, exchange of securities and exchange of registered offices of a European Company or a European Cooperative Company from one Member State to another of the European Union.

Article 76. Definitions.

Article 77. System of income derived from the transmission.

Article 78. Tax assessment of purchased goods.

Article 79. Tax valuation of shares or shares received in consideration of the contribution.

Article 80. Tax regime for the exchange of securities.

Article 81. Taxation of partners in merger and division operations.

Article 82. Shares in the capital of the transferring entity and the acquiring institution.

Article 83. Limitation on the deduction of financial expenses for the acquisition of equity shares in the capital or in the own funds of institutions.

Article 84. Subrogation in tax rights and obligations.

Article 85. Losses of permanent establishments.

Article 86. Accounting obligations.

Article 87. Non-cash contributions.

Article 88. Rules to avoid double taxation.

Article 89. Implementation of the tax regime.

Chapter VIII. Tax regime for mining.

Article 90. Mining entities: freedom of amortisation.

Article 91. Exhaustion factor: scope and modes.

Article 92. Exhaustion factor: investment.

Article 93. Exhaustion factor: requirements.

Article 94. Exhaustion factor: non-compliance with requirements.

Chapter IX. Tax regime for the investigation and exploitation of hydrocarbons.

Article 95. Exploration, research and exploitation of hydrocarbons: depletion factor.

Article 96. Exhaustion factor: requirements.

Article 97. Exhaustion factor: non-compliance with requirements.

Article 98. Shared ownership.

Article 99. Amortization of intangible investments and research expenditure. Compensation of negative taxable bases.

Chapter X. International tax transparency.

Article 100. Imputation of positive income obtained by non-resident entities.

Chapter XI. Tax incentives for small-scale entities

Article 101. Scope of application. Business figure.

Article 102. Freedom of amortisation.

Article 103. Depreciation of new elements of tangible fixed assets and real estate investments and intangible fixed assets.

Article 104. Impairment losses on claims for possible insolvencies of debtors.

Article 105. Reserve of levelling of taxable bases.

Chapter XII. Tax regime for certain leasing contracts.

Article 106. Leasing contracts.

Chapter XIII. Regime of foreign securities holding entities.

Article 107. Foreign securities holding entities.

Article 108. Profit distribution. Transmission of participation.

Chapter XIV. Scheme of partially exempt entities.

Article 109. Scope of application.

Article 110. Exempt income.

Article 111. Determination of the tax base.

Chapter XV. Regime of communities with common hand-held neighborhood mounts.

Article 112. Regime of communities with common hand-held neighborhood mounts.

Chapter XVI. Arrangements for shipping entities on the basis of tonnage.

Article 113. Scope of application.

Article 114. Determination of the tax base by the objective estimation method.

Article 115. Type of levy and fee.

Article 116. Split payments.

Article 117. Application of the scheme.

Title VIII. Tax management.

Chapter I. The Entity Index

Article 118. Index of entities.

Article 119. Low in the entity index.

Chapter II. Accounting obligations. Goods and rights not accounted for. Voluntary revaluations. Estimate of rents in the indirect estimation method.

Article 120. Accounting obligations. Powers of the Tax Administration.

Article 121. Goods and rights not accounted for or not declared: presumption of obtaining income.

Article 122. Voluntary accounting revaluations.

Article 123. Estimate of rents in the indirect estimation method.

Chapter III. Declaration, self-settlement and provisional settlement.

Article 124. Statements.

Article 125. Self-validation and income of the tax liability.

Article 126. Provisional settlement.

Chapter IV. Return.

Article 127. Return.

Chapter V. Obligation to retain and enter into account

Article 128. Withholding and income on account.

Article 129. Rules on retention, transmission and formal obligations relating to financial assets and other transferable securities.

Chapter VI. Conversion of deferred tax assets into chargeable credit against the tax administration.

Article 130. Conversion of deferred tax assets into chargeable credit against the tax administration.

Chapter VII. Powers of the Administration to determine the tax base.

Article 131. Powers of the Administration to determine the tax base.

Title IX. Court order.

Article 132. Competent jurisdiction.

Additional disposition first. Restrictions on the double taxation of dividends.

Additional provision second. Regime of the Tax on the Increase in the Value of Urban Nature's Land in Business Restructuring Operations.

Additional provision third. Grants from the Community's agricultural and fisheries policy and public aid.

Additional provision fourth. Tax incentives for the renewal of the merchant fleet.

Additional provision fifth. Impact of the reserve for investments in the Canary Islands in the calculation of the instalments.

Additional provision sixth. Exemption from income derived from the transmission of certain buildings.

Additional provision seventh. Sports entities.

Additional disposition octave. Tax regime applicable to the restructuring and resolution of credit institutions.

Additional provision ninth. Preferred shares.

Additional provision 10th. Powers of verification of the tax administration.

Additional provision eleventh. Regulatory referrals.

Additional disposition twelfth. Tax groups with a dominant entity subject to the rules of the Autonomous Community of the Basque Country.

First transient disposition. Regularisation of extra-accounting adjustments.

Second transient disposition. Tax regime for the investigation and exploitation of hydrocarbons and for the promotion of mining.

Transitional provision third. Tax benefits of reconversion and reindustrialisation.

Transitional disposition fourth. Leasing contracts concluded prior to the entry into force of Law 43/1995 of 27 December of the Company Tax.

Transient disposition fifth. Balances of the provision for insolvencies covered by Article 82 of the Company Tax Regulation, approved by Royal Decree 2631/1982 of 15 October 1982.

Transitional disposition sixth. Transitional arrangements for financial operations benefits.

Transitional disposition seventh. Tax value of the units of collective investment institutions.

Transient disposition octave. Tax regime for the transmissions of assets made in compliance with provisions with the range of law of the competition law.

transient disposition ninth. Tax regime for holdings in entities that have applied the special tax transparency tax regime set out in Law 43/1995 of 27 December of the Corporate Tax.

Transient disposition tenth. Tax regime for shares in entities that have applied the special regime of property companies established in the Recast Text of the Companies Tax Law, approved by the Royal Decree of Law 4/2004, 5 of March.

Transient disposition eleventh. Tax value of the assets awarded to the partners on the occasion of the dissolution of transparent companies and of property companies.

Transient Disposition twelfth. Tax regime for accounting adjustments for the first implementation of the General Accounting Plan, approved by Royal Decree 1514/2007 of 16 November, of the General Plan for the Accounting of Small and Medium-sized Enterprises and the accounting criteria specific to micro-enterprises, approved by Royal Decree 1515/2007 of 16 November or the Accounting Plan of the insurance institutions, approved by Royal Decree 1317/2008 of 24 July.

transient disposition thirteenth. Application of the depreciation table provided for in this Law on previously acquired assets. Freedom of amortization to be applied.

Transitional disposition fourteenth. Financial goodwill fund.

15th transient disposition. Impairment losses on tangible fixed assets, real estate investments, intangible fixed assets and debt securities.

Transient disposition sixteenth. Transitional arrangements applicable to losses due to the deterioration of the securities representing the equity or equity of institutions and negative income obtained abroad through an establishment permanent, generated in tax periods initiated prior to 1 January 2013.

transient disposition seventeenth. Regime applicable to certain financial instruments issued or granted before 20 June 2014.

18th transient disposition. Debt for the acquisition of shares in the capital or in the own funds of institutions.

Nineteenth transient disposition. Income derived from the transfer of shares.

Transient Disposition 20th. Transitional arrangements for the reduction of income from certain intangible assets.

Transient disposition twenty-first. Negative taxable bases to be offset in the Company Tax.

Transient disposition twenty-second. Newly created entities. Reduced rate of charge for maintenance or job creation.

Transient disposition twenty-third. Transitional regime in the Tax on Deductions Societies to avoid double taxation.

Twenty-fourth transient disposition. Deductions to incentivise the performance of certain activities to be carried out in the Company Tax.

Twenty-fifth transient disposition. Tax groups.

Transient disposition twenty-sixth. Tax consolidation regime for groups formed by credit institutions that are members of an institutional system for the protection of savings banks.

Twenty-seventh transient disposition. Shares in the capital of the transferring entity and the acquiring institution.

Transient disposition twenty-eighth. Depreciation of assets to be reinvested by small-scale enterprises.

Twenty-ninth transient disposition. Tax regime for certain leasing contracts.

Transient Disposition 30th. Application of the Decision of the European Commission of 17 July 2013 on the tax regime applicable to certain leasing agreements.

Transient disposition thirtieth first. Foreign securities holding entities.

Transient disposition thirtieth. Civil societies subject to this Tax.

Transient disposition thirtieth third. Conversion of deferred tax assets generated in tax periods initiated prior to 1 January 2015 in credit payable to the tax administration.

Transient thirtieth disposition. Temporary measures applicable in the 2015 tax period.

Transient disposition thirteenth. Tax regime applicable to intangible assets acquired prior to 1 January 2015.

Transient Disposition 30th. Limit on the compensation of negative taxable bases and deferred tax assets for the year 2016.

Transient disposition thirteenth. Deduction for reversion of temporary measures.

Repeal provision.

Final disposition first. Entities covered by Law 20/1990 of 19 December on the Tax Regime of Cooperatives.

Final disposition second. Entities covered by Law 49/2002, of 23 December, of the tax regime of non-profit entities and of tax incentives for patronage.

Final disposition third. Entities covered by Law 11/2009, of 26 October, on the regulation of Anonymous Listed Companies for Investment in the Real Estate Market.

Final disposition fourth. Amendments to the Law 20/1990 of 19 December on the Tax Regime of Cooperatives.

Final disposition fifth. Amendments to Law 49/2002 of 23 December on the tax regime of non-profit entities and tax incentives for patronage.

Final disposition sixth. Amendments to the Recast Text of the Corporate Tax Law, approved by the Royal Legislative Decree 4/2004 of 5 March 2004.

Final disposition seventh. Amendments to Law 11/2009 of 26 October on the regulation of Anonymous Listed Companies for Investment in the Real Estate Market.

Final disposition octave. Amendments to Law 16/2013 of 29 October laying down certain measures in the field of environmental taxation and adopting other tax and financial measures.

Final disposition ninth. Ratings to the State General Budget Law.

Final disposition tenth. Regulatory enablement.

Final disposition eleventh. Competence title.

Final disposition twelfth. Entry into force.

PREAMBLE

I

Direct taxation in the field of economic activity, developed by legal persons, is a substance in the Corporate Tax. This tax figure is a basic pillar of direct taxation in Spain along with the Income Tax of the Physical Persons, finding both figures their reason for being in Article 31 of the Constitution, which requires the contribution of the maintenance of public expenditure, in accordance with the economic capacity of each taxpayer.

Law 43/1995, of December 27, of the Tax on Societies established the essential rules of the current structure of the Tax on Societies, inspired by the principles of neutrality, transparency, systematization, international coordination and competitiveness. Thus, Law 43/1995, of December 27, established as one of its principal novelties the determination of the tax base of the Tax in a synthetic way, from the accounting result, corrected by the legally classified exceptions.

Later, in order to increase the clarity of the tax system and improve legal certainty, the Recast Text of the Law on Corporate Tax was approved, through the Royal Decree-Law 4/2004, of March 5, which aimed to integrate all the provisions affecting this tax into a single normative body, except in exceptional cases.

Since such approval, however, the recast text has been subject to constant, partial changes, which, all of them being individually consistent, have not been accompanied by a required global review of the entire tax figure, a review that is indispensable at the time of the adoption of this Law with a new and competitive impulse for the Spanish business sector.

This Law maintains the same structure of the Company Tax that has already existed since 1996, so that the accounting result remains the nuclear element of the tax base and constitutes a starting point key in their determination. However, this law provides for such an indispensable global review, incorporating a greater identity to the Corporation Tax, which has long abandoned the role of supplement to the Income Tax of the Physical Persons, but without abandon the essential principles of neutrality and justice inspired by the Constitution itself.

Likewise, membership of an increasingly interactive globalized world marked very prominently by the European Union's environment, the need to compete in international markets, the adaptation of the rule to law Community or the increase of the necessary fight against tax fraud, are reasons founded to proceed to this general review of the Tax on Societies.

On the other hand, we cannot forget the small and medium-sized enterprises, which are a characteristic element in the configuration of our business fabric and which requires simpler and more neutral standards, which will enable us to growth, consolidating the competitiveness of our economy.

Likewise, the exceptional crisis that the tax collection has suffered, beyond the economic crisis that has occurred in recent years, cannot fail to be mentioned. the legislator's reaction to reposition this tax as a key element in its contribution to the sustainability of public burdens.

Finally, certain specific rules, the inclusion of which would determine a dispersion of the rules contained in them, continue to be maintained outside the scope of this Law by affecting an area higher than the tax itself. Companies. This is the case, for example, of Law 20/1990, of 19 December, on the Tax Regime of Cooperatives, Law 19/1994, of 6 July, amending the Economic and Fiscal Regime of the Canary Islands, Law 49/2002, of 23 December, of the tax on non-profit-making entities and on tax incentives for sponsorship, or Law 11/2009 of 26 October on the regulation of Anonymous Listed Companies for Investment in the Real Estate Market.

II

In addition to the already commented necessary global review of the standard applicable to Corporate Tax, other clear objectives that have inspired this reform must be added, highlighting the following as the main ones:

a) Neutrality, equality and justice. These three constitutional principles become the primary objective of the current reform, so that the application of the taxes does not generate substantial alterations in the business behavior, except that the tax is indispensable. to cover certain inefficiencies produced by the market itself. Outside of these assumptions, the Corporate Tax continues to maintain and sharpen its neutral and egalitarian character. As examples of the application of these principles, it is sufficient to highlight the approximation between the treatment of self-financing, the approximation between the type of nominal charge and the cash or the elimination of tax incentives.

b) Increase in economic competitiveness. It is essential at the present time to favour, with a primary character, business competitiveness and ensure sustained growth in economic activity. In this respect, the reduction in the general tax rate from 30% to 25% is an essential element in the achievement of this objective. In addition, the treatment of international income favors the repatriation of dividends without tax costs and becomes an essential instrument in the internationalization of the Spanish company. Finally, the new extension of the exemption regime in the treatment of income from shares in Spanish entities is also noteworthy.

c) Simplification of the Tax. It is necessary to introduce a greater simplicity of the tax, which contributes to the best compliance with the standard. At this point, measures such as the simplification of depreciation tables, the rationalisation of the rules applicable to related transactions, the elimination of different types of taxation, in line with the rules, are worthy of mention. recommendations of international bodies, or the application of a regime of generalised exemption in income from significant shareholdings.

d) Adaptation of the rule to Community law. Today, the Community's environment is an essential element to be taken into account in any reform of the Spanish tax system. In this sense, within the measures sought by this adaptation, special consideration is given to the treatment of the system of elimination of double taxation established in the Recast Text of the Law on Corporate Tax, which was This law is being challenged by the European Commission, so that this law is intended to comply with Community law, equating the treatment of internal and international income. Similarly, the amendments made to the special arrangements for fiscal consolidation and restructuring are intended, inter alia, to promote compliance with the essential compatibility with Community law. In short, this Law seeks to be particularly rigorous from the perspective of its compatibility with the Community order.

e) Stability of resources and fiscal consolidation. It must not be forgotten again that the tax on corporate tax has fallen in recent years, which has made it necessary to adopt measures to alleviate the shortfall in resources, in order to achieve the necessary stability. The sustainability of the public sector requires. In this sense, measures are taken that seek to extend the tax base, as is the case for the extension of the non-deductibility of the deterioration of value to all the assets of the business immobilized, or the changes introduced in the limitation to the deductibility of financial expenses, as well as the elimination of certain deductions.

f) Capitalization-capitalization. In 2012, a limitation was introduced in the deductibility of financial expenses, establishing a specific criterion of temporary imputation other than the accounting officer, in order to indirectly favor the capitalization of the company. In this same trend, it is necessary to have an impact on neutrality in the recruitment of business finance, stabilising a balance which has long been inclined to finance others. In this respect, the new capitalisation reserve, as well as the changes that are incorporated in the treatment of financial expenditure, is particularly important.

g) Legal security. The reform also seeks to increase the legal certainty required by a rule of this nature. The special characteristics of this tax, which seeks to provide a legal framework in such a changing economic reality, make it necessary to try to reduce litigation. This Law collects doctrinal and jurisprudential criteria, and clarifies issues that generate or can generate an unwanted conflict, guaranteeing the necessary transparency to undertake any investment decision. In this field, the rules applicable to time-limits may be mentioned, the non-integration into the tax base of those revenues arising from the reversal of non-deductible expenses or the possibility of partial application of the restructuring operations.

h) Fight against fraud. Last but not least, it is essential to step up measures to promote an effective fight against tax fraud, not only internally but also in the field of international taxation. It is precisely in this area that the latest work produced by the Organisation for Economic Cooperation and Development and the action plans against the erosion of the tax base and the transfer of profits are a major step forward. a fundamental tool for the analysis of international tax fraud. In this context, this reform anticipates measures aimed at this objective, such as the treatment of hybrids, or the changes made to international tax transparency or related operations.

III

This Law is structured in 9 titles, with a total of 132 articles, 12 additional provisions, 37 transitory, one repeal and 12 endings.

The main new developments that this Law introduces in relation to the previous one are mentioned below.

In the regulation of the taxable fact, the concept of economic activity is incorporated, which does not present any relevant differences with respect to the concept traditionally used in the Income Tax of the Physical Persons. However, it is essential that a tax whose primary purpose is to tax the income obtained in carrying out economic activities, and this is the tax which taxes the income of this type of activity, contains a definition in this respect, adapted to the very nature of legal persons. It also introduces the concept of a patrimonial entity, which takes as a starting point for companies whose main activity is the management of a movable or immovable property, although it is adapted to the specific needs of This Tax.

In the area of taxpayers, civil societies that have a commercial object are incorporated into the Corporate Tax, and they were taxed until the passage of this Law as taxpayers of the Income Tax. Natural persons through the income allocation scheme. This measure requires the incorporation of a transitional regime in the Income Tax of the Physical Persons that regulates the translation of this type of entities as taxpayers of the Income Tax of the Physical Persons to taxpayers of This Tax.

In the structuring of the tax, new developments are introduced in the general system of taxation that affect the determination of the tax base, the treatment of double taxation, the tax rates, the tax incentives, as well as in special schemes.

1. The tax base is modified, inter alia, in the following relevant aspects:

(a) In the case of temporary imputation, the accrual principle is updated in line with the principle of accounting for the General Accounting Plan, approved by Royal Decree 1514/2007 of 16 November, as well as in the the General Accounting Plan for SMEs approved by Royal Decree 1515/2007 of 16 November. Likewise, the Law expressly states something evident, but not regulated so far, in relation to the non-integration in the tax base of the reversal of those expenses that would not have been tax deductible.

In a similar way to the previously established for transmissions of securities representative of the capital or equity of entities, as well as of permanent establishments, the integration at the base is different in time taxable income which could be generated by the transfer of material assets, real estate investments, intangible assets and debt securities, when such transmission is carried out in the field of a group of companies. Additionally, neutrality is guaranteed and double taxation assumptions are avoided through a mechanism that limits negative income to those actually obtained within the business group.

b) It is important to simplify the tables of depreciation, reducing their complexity, with more updated tables and better practical application. However, the treatment of depreciation remains flexible in terms of the possibility of applying different methods of depreciation. In addition, the different traditional assumptions of freedom of amortisation are maintained, highlighting, above all, that linked to R & D + i activity.

c) in respect of the deterioration of the value of the assets, together with the non-deductibility already introduced in 2013 in relation to those corresponding to securities representing the capital or own funds of the entities, the non-deductibility of any type of deterioration corresponding to other types of assets is established as a novelty, with the exception of stocks and claims and items to be recovered.

On the one hand, the fixed income securities which, having a financial nature similar to the securities representing the equity or the equity of institutions, applied different tax arrangements as regards the effect of their assessment, so that the non-deductibility of the deterioration of these elements is established, giving greater consistency to the rule.

On the other hand, the non-deductibility of the deterioration corresponding to those assets whose imputation as expenditure on the tax base is done in a systematic way is established. In these cases, the depreciation of the assets or the maintenance of a special rule of imputation of the expenditure on the tax base where there is no such depreciation, as is the case with the intangible assets of indefinite useful life, In addition to the trade fund, they allow integration into the tax base of investments in a way that is provided over time, favouring the levelling of the tax base, irrespective of the economic activity, and without may consider that the differences in value exceptionally attributable to such items assets should have an impact on the tax capacity of taxpayers.

In this way, a more balanced distribution is achieved in the time of the expenses associated with the investments, without the variation in the patrimonial value of the elements of the asset incited in the tax base. An exception should be made in relation to land, which, with the exception of very exceptional cases, is not subject to depreciation and to which the same rule applies.

d) New developments in the deductibility of certain expenses are also introduced.

First of all, the tax rule is separated from accounting in those financial instruments that are mercantibly represented in the capital or equity of entities, and yet they have the consideration of financial liabilities. In these cases, the tax law chooses to attribute to these instruments the tax treatment which corresponds to any participation in the capital or own funds of institutions, irrespective of whether the accounts alter that nature, how it could happen with the silent actions or the rescue actions. In addition, the tax treatment of equity loans granted by entities belonging to the same group of companies is attracted by the tax treatment, equating the tax treatment that corresponds to the financing via contributions to own funds or via a participative loan within a business group.

Second, the tax deductibility of the attentions to clients is limited, up to 1 percent of the net amount of the entity's business figure, while the deductibility of lower amounts is subject to the general rules of registration, justification and temporary imputation. Special mention should be made of the inclusion of a standard on hybrid operations, such as those with different tax ratings in the intervening parties. The purpose of the said rule is to avoid deductibility of those expenses that determine an income exempt or subjected to a nominal tax of less than 10 percent, a consequence of this different tax classification, when this transaction is performs between related parties.

The norm also echoes the recommendations made by international organizations, affecting the limitation of the fiscal deductibility of financial expenses. The tax treatment of financial expenses was the subject of a profound reform in the Royal Decree-Law 12/2012 of 30 March, introducing various tax and administrative measures aimed at reducing the public deficit, which introduced two types of limitations. The first of these was related to the non-deductibility of the financial expenses generated within a trade group, intended for the performance of certain transactions between entities belonging to the same group, saving, However, those transactions which are reasonable from the economic perspective, such as may be alleged to be restructuring within the group, direct consequence of an acquisition to third parties, or those assumptions in which a authentic management of the participating entities acquired from the Spanish territory. The second limitation had a general scope, which becomes the practice in a specific temporary imputation rule. It is in relation to this second measure that it is even more important, in accordance with the recommendations. In this respect, an additional limitation is provided for the financial expenses associated with the acquisition of units in entities where, subsequently, the acquired entity is incorporated into the fiscal consolidation group to which the acquirer is either the subject of a restructuring operation, in such a way that the activity of the acquired entity or any other that is the subject of incorporation into the tax group or restructuring with the acquirer in the 4 years later, does not support the financial expense arising from its acquisition. However, this limitation shall not apply where the debt associated with the acquisition of the shares reaches a maximum of 70% and is reduced in proportion to at least 8 years, until it reaches a level of 30%. percent on the purchase price.

e) The arrangements for the related transactions were subject to a thorough amendment on the occasion of Law 36/2006 of 29 November of measures for the prevention of tax fraud and which was essential to the introduction of the of specific documentation obligations due to related operations. On the other hand, the tax treatment of related transactions is an internationally important element, specifically dedicated to both the European Union and the OECD. In this regard, it should be borne in mind that the interpretation of the precept governing these operations should be carried out precisely in accordance with the OECD Transfer Pricing Guidelines and the recommendations of the Joint Forum. of EU Transfer Prices, in so far as they do not contradict the expressly stated in that precept, or in their development regulations.

In the field of related operations this Law presents new developments in relation to the specific documentation to be produced by the affected entities, which will have a simplified content for those entities or groups of entities whose net turnover is less than EUR 45 million, and shall not be required in relation to certain transactions.

It is also novel the restriction of the perimeter of the linkage, perimeter that was barely altered in Law 36/2006 and in respect of which has been revealed the increasing need to restrict the assumptions of linkage in the field of the socio-society relationship, which is fixed in the 25 percent participation.

Moreover, in relation to the own valuation methodology of the transactions, the hierarchy of methods contained in the previous regulation is eliminated to determine the market value of the related transactions, In addition, other methods and techniques of assessment may be used in the alternative, provided that they respect the principle of free competition. In addition, specific rules of valuation are established in this Law for the operations of the partners with the professional societies, adjusted to the economic reality.

Finally, the modification of the sanctioning regime, which becomes less burdensome, and the tightness of the valuation carried out in accordance with this specific regulation of the transactions linked to the an assessment that could be made in other areas, such as the value of the customs value.

f) The treatment of the compensation of negative taxable bases is substantially modified, highlighting the applicability of such taxable bases in the future without a time limit. However, a quantitative limitation is introduced in 70% of the tax base prior to its compensation and, in any event, a minimum amount of EUR 1 million is allowed. In addition, in order to avoid the acquisition of inactive or quasi-inactive companies with negative tax bases, measures are established that prevent their use, and they are an incentive to fight against tax fraud.

Additionally, the extension of the period of compensation or deduction of certain tax credits beyond the limitation period for the benefit of the taxpayers is accompanied by the limitation, to a period of 10 years, of the deadline which the Administration has to verify the origin of the compensation or deduction originated.

With this modification it is possible not only to guarantee the right of the taxpayer to benefit from these credits, but also to ensure the correct exercise of other rights, such as, for example, the rectification of their autoliquidations when in the verification of the origin of the rectification the Administration has to verify aspects related to exercises in respect of which the prescription of the right to liquidate occurred.

2. One of the most novel aspects of this Law is the treatment of double taxation. Following the reasoned opinion of the European Commission No 2010/4111 on the tax treatment of dividends, a review of the mechanism for the elimination of double taxation in the tax on dividends is completely necessary. Companies, with two main objectives: (i) to equate the treatment of income derived from shares in resident and non-resident entities, both in terms of dividends and transmission of dividends, and (ii) to establish a system of general exemption in the area of significant shareholdings in resident entities.

This Law incorporates a general exemption regime for significant participations, applicable both internally and internationally, eliminating in this second area the requirement for the realization of economic activity, although a minimum taxation requirement is incorporated into the 10% nominal rate, with this requirement being met in the case of countries with which a Convention has been concluded to avoid double taxation. international taxation.

This new exemption mechanism is a mechanism of unquestionable relevance to promote the competitiveness and internationalisation of Spanish companies. Furthermore, the exemption regime in the treatment of domestic capital gains significantly simplifies the previous situation, which included a complex mechanism to ensure the elimination of double taxation. This treatment of income derived from holdings is complemented by an important reform of the international tax transparency regime, with the restructuring of all the treatment of double taxation with a normative set. whose main objective is to attract to Spanish territory the taxation of those passive income, most of which are located outside the Spanish territory for an eminently fiscal purpose.

Finally, the treatment of double taxation in securities lending operations is modified and is homogenised with other types of contracts with the same economic effects, as may be certain sales transactions. with a share repurchase agreement or equity swap, where the common denominator in all of them is that the legal recipient of the dividends or benefit shares has an obligation to restore them to its economic operator. In this case, it is expressly stated that the exemption will apply, if proceeding, by that entity which maintains the accounting record of the securities, provided that it meets the necessary requirements for this.

3. In relation to the tax rate, the same presents two innovative elements.

The first is the reduction of the general tax rate, which goes from 30 percent to 25 percent, so that Spain is placed at a substantially lower level of taxation in relation to countries in our environment. However, in the case of newly created entities, the tax rate remains at 15% for the first tax period in which they obtain a positive tax base and the next. All of this directly affects the competitiveness of the Spanish economy and business internationalisation.

This decrease is accompanied by a second element of equating the general tax rate with that of small and medium-sized enterprises, thereby eliminating a difference in the rates of charge which bodies The International Monetary Fund (IMF) considers it a disincentive or an obstacle to business growth, to the increase in productivity, so as to simplify the application of the tax. However, the rate of charge of 30% is maintained for credit institutions, which are subject to the same rate as those other entities engaged in the exploration, research and exploitation of hydrocarbons.

4. With regard to tax incentives, it highlights (i) a simplification of the tax, eliminating certain incentives whose maintenance is deemed unnecessary, (ii) the introduction of two new incentives linked to the increase in net worth, one applicable to the general scheme and one specific to small-scale enterprises, and (iii) the enhancement of other existing incentives, as is the case for the film sector.

(a) In the first place, the deduction for environmental investments disappears, taking into account that the environmental requirements are higher and higher, becoming mandatory, so that It is paradoxical to maintain an incentive of these characteristics. Again, the tax neutrality prevails, and it is preferable that other parameters be taken into account in order to make investments of this nature.

b) Second, the deduction for reinvestment of extraordinary profits is eliminated, and the newly created deduction for profit investment, replacing both incentives with a new one called reserve In the case of the capital, the amount of the capital is not the same as that of the capital, and that the non-taxation of that part of the profit which is intended to constitute an unavailable reserve, without any investment requirement of this reserve in any particular type of asset, is established. The aim of this measure is to increase corporate capitalisation by increasing net worth, thereby encouraging the consolidation of enterprises and their competitiveness. Similarly, this measure, together with the limitation of financial expenditure, further neutralises the treatment of non-funded companies in the Corporate Tax, which is a primary objective after the crisis. economic and in line with the recommendations of international bodies.

c) With an exclusive destination for small and medium-sized enterprises, the creation of a reserve for the levelling of taxable bases, which is referred to below, is a novelty.

d) The deduction for research, development and technological innovation and employment creation deductions, including the one for workers with disabilities, is maintained, improved, and incentives all are considered essential in the current configuration of the Company Tax. However, given that the percentages of deduction are not altered, in general, in respect of the above rules, the minoritages of the tax rate are translated into an effective increase of the incentives. It highlights the increase in the amount of the application without limit and credit of the deduction in the case of research and development, in respect of those entities that make considerable effort in this type of activities.

e) The treatment of the film and performing arts sector requires a special section, collecting this Law a substantial increase in the tax incentives linked to it.

On the one hand, in order to benefit the development of the Spanish film industry, the percentage of deduction for investments in cinematographic productions and audiovisual series is increased to 20 percent for the first million euros, which, together with the referred reduction of the rate of charge substantially the deduction destined for the cinema and the audiovisual series. If the production exceeds that amount, the excess will have an 18 percent deduction. Furthermore, in line with the Communication from the European Commission on State aid to cinematographic works and other productions in the audiovisual sector, 15 November 2013, the requirement for territorialisation is introduced. the application of the incentive in productions made substantially in Spain. A new tax incentive is also introduced in the event of live performances of the performing and musical arts.

On the other hand, a deduction of 15 percent of the expenses incurred in Spanish territory, in the case of large international productions, is established in order to attract Spain this type of productions that have a high economic and, in particular, tourist impact. In order to ensure the practical application of this international deduction, a monetization mechanism similar to the existing one for the deduction for R & D + i is established.

5. The special tax regimes are also the subject of a general review, as a result of (i) the incorporation of a new system to eliminate double taxation based on the exemption method, (ii) the need to adapt the (iii) the need to update, modernise and establish a consistency of all corporate tax rules.

Among them, they deserve a special mention, because of their importance, the system of fiscal consolidation, the regime of the restructuring operations and the regime of the small-scale enterprises.

(a) The fiscal consolidation regime incorporates new developments, first of all, in the configuration of the fiscal group, requiring, on the one hand, that the majority of the voting rights of the entities included in the consolidation perimeter and allowing, on the other hand, the incorporation into the fiscal group of entities indirectly involved through others that will not be part of the fiscal group, as may be the case for non-resident entities in the territory or entities commonly engaged by another non-resident in that territory.

Secondly, it highlights the configuration of the group as such, even in the determination of the tax base, so that any requirement or qualification will be determined by the configuration of the tax group as a single entity. This configuration is translated into specific rules for determining the tax base of the tax group, so that certain adjustments, such as the case of the capitalization or levelling reserve, are made at the group level.

Finally, this Law provides that the integration of a tax group in another does not entail the effects of the extinction of that group, prevailing the economic nature of this type of operations, so that taxation remains neutral in restructuring operations affecting fiscal consolidation groups.

(b) The special arrangements applicable to restructuring operations have four substantial new developments.

First of all, this scheme is expressly set out as the general scheme applicable to restructuring operations, thus disappearing the option for its implementation and establishing a generic obligation to communication to the tax administration of the conduct of operations that apply the same.

The second notable novelty is based on the disappearance of the tax treatment of the merger trade fund, an immediate consequence of the application of the exemption regime in the transfer of domestic shares, which makes it unnecessary to maintain this complex mechanism as an instrument for eliminating double taxation. This novelty considerably simplifies the application of the tax, eliminating the need for proof of taxation in another taxpayer, which is difficult to fulfill on occasion, as is the assumption of acquisition of shares through an organised market.

As a third novelty, the subrogation of the acquiring entity is expressly established in the negative taxable bases generated by a branch of activity, when the same is transmitted by another entity, so that the taxable bases accompany the activity that has generated them, whichever is the legal holder of the activity.

Finally, the partial inapplication of the scheme and the division of regularisations which could be carried out in the area of the tax advantage obtained in this type of operation is expressly regulated.

(c) Finally, the system of small-scale entities is still being shaped over the net amount of the turnover, although it highlights the elimination of the scale of taxation that came with this tax regime, minoring the lien type of these entities.

This kind of tax rate is accentuated by the novel reserve of leveling negative tax bases, which amounts to a reduction of the same rate up to 10 percent of its amount. This measure is more incentive than the one commonly referred to as 'carry back' in relation to the treatment of negative tax bases, since it allows the taxation of a certain tax period to be undermined in respect of taxable bases. the negative ones that will be generated in the next 5 years, thus anticipating, in time, the application of the future negative tax bases. In the absence of any negative tax bases in this period, a difference occurs during 5 years of the taxation of the constituted reserve.

This measure aims to promote the competitiveness and stability of the Spanish company, allowing in practice to reduce its tax rate to 22.5 percent, and, in addition to the capitalization reserve previously pointed out, it again has an impact on the tax treatment of paid and self-financing.

IV

The additional provisions basically contain those contained in the recast text of the Companies Tax Act and are currently considered in force.

Equal occurs with an important part of the transitional provisions, which collect those that had such a character in the previous regulations, since it is deemed necessary to maintain the status quo that was established in them.

However, new transitional arrangements are included, such as those that reflect the effect of the first application of the new simplified amortisation tables, the transitional regime for the reversal of the deterioration of the value of certain assets, the treatment of negative taxable bases to be offset and the double taxation deductions and tax incentives to be applied, the specific rules for tax groups which are set up on the occasion of this Act, or the transitional arrangements applicable to acquired shares which have generated taxation on the transmitts and for which the previous system of elimination of double taxation is required to be maintained. Finally, transitional arrangements are included which take into account the temporary measures applicable in 2015. In this sense, all the temporary measures which had been established, in relation to the Company Tax, in Law 16/2013 of 29 October, laying down certain measures in the field of taxation, are reproduced. Other tax and financial measures are adopted. In addition, for the year 2015, they highlight the establishment of the general tax rate at 28% and the non-application of the limitation of negative tax bases introduced by this Law, resulting from the application of the temporary measures affecting exclusively to large enterprises.

The final provisions recognize the maintenance of the specific rules that apply to cooperative entities, non-profit entities, and listed companies for Investment in the Market. Real estate.

On the other hand, the Law 20/1990 of 19 December on the Tax Regime of Cooperatives is amended, with the aim of equating the treatment of the negative tax quotas to the regime provided for in this Law in relation to the negative tax bases. Furthermore, in line with the Royal Decree-Law 14/2013 of 29 November, of urgent measures for the adaptation of Spanish law to the European Union's rules on the supervision and solvency of financial institutions, the specific tax treatment on this regulated for certain deferred tax assets, in relation to cooperatives.

In the field of Law 49/2002, of 23 December, of tax regime of non-profit entities and of tax incentives to patronage, an increase of the percentage of deduction applicable by persons is established. The rate of physical activity is estimated at 27.5 percent, while the percentage is 27.5 percent. Additionally, the loyalty of donations, made by both natural and legal persons, is encouraged. In particular, natural persons may apply a deduction of 75% for the first 150 euros to be donated, and 35% for the excess, provided that donations have been made to the same entity in the last few years. three years, although these percentages are in the 50 and 32.5%, respectively, in the financial year 2015. Loyalty donations for a minimum of 3 years, made by legal persons, will be entitled to a deduction of 40 per cent, albeit in 2015, that percentage is set at 37.5 per cent.

Also, the Law 11/2009 of 26 October, which regulates the listed companies of Investment in the Real Estate Market, is modified, with the exception of the retention in the distribution of dividends between two entities covered by the Special tax regime on the regulated market, where both are tax residents in Spanish territory. Also, the transfer of shares in this type of entities by non-resident partners in Spanish territory is excepted when they do not have a significant participation in these entities.

Finally, the General Budget Law of the State is entitled to amend certain aspects of this Law.

In sum, a set of novelties that, returning to the initially pointed out, acquire sufficient entity to configure a new Law of the Tax on Societies, which results here object of approval.

TITLE I

Nature and scope of the Tax

Article 1. Nature.

The Company Tax is a direct and personal tax that taxes the income of companies and other legal entities in accordance with the rules of this Law.

Article 2. Spatial application scope.

1. The Company Tax will apply throughout the Spanish territory.

For the purposes of the preceding paragraph, the Spanish territory also includes those areas adjacent to the territorial waters over which Spain may exercise its rights, relating to the soil and marine subsoil, suprayacent waters, and its natural resources, in accordance with Spanish law and international law.

2. The provisions of the preceding paragraph shall be without prejudice to the foral tax systems of concert and economic agreement in force respectively in the Historical Territories of the Autonomous Community of the Basque Country and in the Community Foral de Navarra.

Article 3. Treaties and conventions.

The provisions of this Law shall be without prejudice to the provisions of international treaties and conventions that have become part of the internal order, in accordance with Article 96 of the Constitution. Spanish.

TITLE II

The taxable fact

Article 4. Taxable fact.

1. The taxable event shall constitute the income from the taxpayer, whatever its source or source.

2. In the special arrangements for economic, Spanish and European interest groups and temporary associations of undertakings, income shall be deemed to be imputation to the taxpayer of the taxable bases, expenses or other items of the institutions. subject to such a scheme.

In the international tax transparency regime, it will be understood as income to impute the tax base of the positive income obtained by the non-resident entity.

Article 5. Concept of economic activity and heritage entity.

1. Economic activity shall mean the own-account management of the means of production and human resources or of one of them for the purpose of intervening in the production or distribution of goods or services.

In the case of real estate leasing, it is understood that there is economic activity, only when it is used, at least, for a person employed on a labour contract and a full day.

In the case of entities forming part of the same group of companies according to the criteria set out in Article 42 of the Trade Code, regardless of residence and the obligation to make annual accounts consolidated, the concept of economic activity shall be determined taking into account all those who are part of it.

2. For the purposes of this Law, it is understood as a patrimonial entity and therefore does not carry out an economic activity, in which more than half of its assets are constituted by securities or not, in the terms of the previous paragraph, to an economic activity.

The value of the asset, the securities and the assets not affected by an economic activity shall be the value of the average of the quarterly balance sheets of the institution's financial year or, in the case of a parent of a group according to the criteria laid down in Article 42 of the Trade Code, irrespective of the residence and the obligation to formulate consolidated annual accounts, of the consolidated balance sheets. For this purpose, no account shall be taken of any money or credit claims arising from the transfer of property assets to economic activities or securities referred to in the following subparagraph, which has been carried out in the tax period or in the two previous tax periods.

For these purposes, they will not be computed as values:

(a) The possessed to comply with statutory and regulatory obligations.

(b) Those incorporating credit rights arising from contractual relations established as a result of the development of economic activities.

(c) Those held by securities companies as a result of the exercise of the constituent activity of their object.

(d) Those who grant at least 5% of the capital of an institution and are held for a minimum period of one year in order to direct and manage participation, provided that the relevant the organisation of material and personal means, and the participating entity is not included in this paragraph. This condition shall be determined in the light of all the companies forming part of a group of companies in accordance with the criteria laid down in Article 42 of the Trade Code, irrespective of the residence and the obligation of formulate consolidated annual accounts.

Article 6. Allocation of income.

1. The income corresponding to civil societies that do not have the consideration of taxpayers of this Tax, lying inheritances, communities of property and other entities as referred to in Article 35.4 of Law 58/2003, of December 17, General Tax, as well as the withholding and income on account that they have incurred, shall be attributed to the members, heirs, communes or unit-holders, respectively, in accordance with the provisions of Section 2. of Title X of Law 35/2006, of 28 of November, 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.

2. Entities under the income allocation scheme shall not be taxed by the Company Tax.

TITLE III

Contributors

Article 7. Contributors.

1. They will be tax payers, when they have their residence in Spanish territory:

(a) Legal persons, excluding civil societies which do not have a business object.

(b) Agricultural processing companies, regulated in Royal Decree 1776/1981 of 3 August, approving the Statute governing the Agrarian Processing Societies.

c) Investment funds, regulated in Law 35/2003 of 4 November, of Collective Investment Institutions.

(d) The temporary unions of undertakings, governed by Law 18/1982 of 26 May on the taxation of temporary associations and associations of undertakings and of regional industrial development companies.

(e) Equity-risk funds and collective investment funds of a closed rate regulated by Law 22/2014 of 12 November 2014 on the regulation of venture capital institutions, other collective investment entities of a type closed and the management companies of collective investment entities of type closed, and by which the Law 35/2003, of 4 November, of the Institutions of Collective Investment is amended.

f) Pension funds, regulated in the recast of the Law on the Regulation of Pension Plans and Funds, approved by the Royal Legislative Decree 1/2002 of 29 November.

g) The mortgage market regulation funds, regulated in Law 2/1981 of March 25, of regulation of the mortgage market.

h) Mortgage securitisation funds, regulated in Law 19/1992, of July 7, on the Company and Real Estate Investment Funds and on Mortgage Securitisation Funds.

(i) The asset-securitisation funds referred to in the Additional Provision of 14 April of Law 3/1994 of 14 April, adapting the Spanish legislation in the field of credit to the Second Coordination Directive Banking and other changes to the financial system are introduced.

j) Investment guarantee funds, regulated in Law 24/1988, of July 28, of the Securities Market.

k) The communities holding common hand-side neighborhood mounts regulated by Law 55/1980 of November 11, common hand-held neighborhood mountains, or in the corresponding autonomous legislation.

(l) The Banking Assets Funds referred to in the 10th Additional Provision of Law 9/2012 of 14 November of restructuring and resolution of credit institutions.

2. Taxpayers shall be taxed for all the income they obtain, regardless of where they were produced and whatever the residence of the payer.

3. The taxpayers of this Tax shall be designated abbreviated and indistinctly by the denominations companies or entities throughout this Law.

Article 8. Residence and tax domicile.

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

(a) That they were constituted according to the Spanish laws.

b) Having their registered office in Spanish territory.

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

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

The tax administration may presume that an entity located in any country or territory of zero taxation, as provided for in paragraph 2 of the Additional Provision of Law 36/2006 of 29 November 2009, measures for the prevention of tax fraud, or qualified as a tax haven, as provided for in paragraph 1 of that provision, has its residence in Spanish territory where its principal assets, directly or indirectly, consist of property or rights which are fulfilled or exercised in Spanish territory, or where their activity principal is developed in this, unless such entity accredit that its management and effective management take place in that country or territory, as well as that the constitution and operative of the entity responds to valid economic reasons and reasons substantive business other than the management of securities or other assets.

2. The tax domicile of taxpayers resident in Spanish territory shall be that of their registered office, provided that the administrative management and management of their businesses are effectively centralised in the latter. In another case, it shall be treated to the place where such management or management is carried out.

In cases where the place of the tax domicile cannot be established, in accordance with the above criteria, the place where the highest value of the fixed assets will be used shall prevail.

Article 9. Exemptions.

1. They will be totally exempt from the Tax:

a) The State, Autonomous Communities, and local entities.

(b) The autonomous bodies of the State and entities governed by public law of the same nature as the Autonomous Communities and local authorities.

(c) The Bank of Spain, the Credit Entities Deposit Insurance Fund and the Investment Guarantee Funds.

d) The Social Security Management and Common Services Entities.

(e) The Institute of Spain and the Royal Academias, which are integrated in that and the institutions of the Autonomous Communities with their own official language, which are similar to those of the Royal Spanish Academy.

(f) The public bodies referred to in the Additional Provisions 9 and 10 (1) of Law 6/1997 of 14 April of the Organization and the Functioning of the General Administration of the State, as well as the entities of public law of the same nature as the Autonomous Communities and local authorities.

g) State agencies referred to in the first, second and third provisions of Law 28/2006 of 18 July of the State Agencies for the Improvement of Public Services, as well as those Agencies public that they are totally exempt from this Tax and are transformed into State Agencies.

h) The International Council of Public Oversight in standards of audit, professional ethics and related matters.

2. They shall be partially exempt from the tax in accordance with the terms of Title II of Law 49/2002 of 23 December of the tax regime of non-profit-making entities and of tax incentives for patronage, institutions and institutions not for profit to which this title applies.

3. They shall be partially exempt from the tax in accordance with Chapter XIV of Title VII of this Law:

a) Non-profit entities and institutions not included in the previous paragraph.

b) Unions, federations and confederations of cooperatives.

c) Professional colleges, business associations, official chambers and workers ' unions.

(d) Employment promotion funds constituted under Article 22 (2) of Law 27/1984 of 26 July on conversion and reindustrialisation.

e) The Mutual Social Security Partners, regulated in the recast text of the General Law of Social Security, approved by the Royal Legislative Decree 1/1994, of June 20.

f) The public law entities Ports of the State and the respective Autonomous Communities, as well as the Port Authorities.

4. Political parties will be partially exempt from the Tax, in the terms established in the Organic Law 8/2007 of 4 July on the financing of political parties.

TITLE IV

The tax base

CHAPTER I

Concept and determination of the tax base. Temporary imputation rules

Article 10. Concept and determination of the tax base.

1. The taxable amount shall be based on the amount of the income obtained in the tax period, which is reduced by the compensation of negative taxable bases for previous tax periods.

2. The tax base will be determined by the method of direct estimation, by the objective estimation method when this Law determines its application and, in the alternative, by the indirect estimation, in accordance with the provisions of Law 58/2003, 17 of December, General Tax.

3. In the method of direct estimation, the tax base shall be calculated, correcting, by application of the provisions laid down in this Law, the accounting result determined in accordance with the rules laid down in the Code of Trade, other laws relating to such determination and the provisions to be laid down in the development of those rules.

4. In the objective estimation method, the tax base may be determined in whole or in part by the application of the signs, indices or modules to the sectors of activity determined by this Law.

Article 11. Temporary imputation. Accounting enrollment of revenue and expenditure.

1. The revenue and expenditure arising from transactions or economic facts shall be charged to the tax period in which the accrual is incurred, in accordance with the accounting rules, irrespective of the date of payment or recovery thereof, in accordance with the correlation between each other.

2. The tax effectiveness of the criteria for the temporary allocation of revenue and expenditure, other than those provided for in the previous paragraph, used exceptionally by the taxpayer to obtain the true image of the assets, of the financial situation and the results, in accordance with the provisions of Articles 34.4 and 38.i) of the Trade Code, shall be subject to approval by the Tax Administration in the manner that it is regulated.

3. 1. No expenses that have not been accounted for in the profit and loss account or in a reserve account shall not be fiscally deductible if this is established by a statutory or statutory rule, except as provided for in this Law. assets that can be amortised freely or in an accelerated manner.

The income and expenses attributable to the profit and loss account or an account of reserves in a tax period other than that in which the temporary imputation proceeds, as provided for in the paragraphs shall be charged in the appropriate tax period in accordance with the provisions laid down in those paragraphs. However, in the case of expenditure incurred in such accounts in a tax period after the date on which the temporary imputation or revenue entered in the accounts is incurred during a previous tax period, the (a) the time-period for the entry into force of the entry into force of the entry into force of the first paragraph of Article 1 (1) of Regulation (EU) No 720; and Article 1 (1) of Regulation (EU) No 720; provided for in the preceding paragraphs.

2. No charges or credits to reserve items, recorded as a result of changes in accounting criteria, shall be integrated into the tax base of the tax period in which they are made.

However, those charges and credits to reserves that are related to income or expenses, respectively, accrued and accounted for in accordance with the accounting criteria in place, shall not be integrated into the tax base. the previous tax periods, provided that they have been integrated into the tax base of those periods. Nor shall such expenditure and revenue be entered in the taxable amount again on the occasion of their accrual, in accordance with the change in the accounting criterion.

4. In the case of transactions in instalments or with deferred price, the income shall be understood as a proportion as the corresponding charges are payable, except that the entity decides to apply the accrual criterion.

To be considered to be transactions in instalments or with deferred price, those whose consideration is payable, in whole or in part, by successive payments or by means of a single payment, provided that the period between the accrual and the expiration of the last or only term is higher than the year.

In the event of the endorsement, discount or early recovery of the deferred amounts, the income to be charged shall be deemed to have been obtained at that time.

It shall not be fiscally deductible for the impairment of the value of the claims in respect of that amount which has not been the subject of integration in the tax base by application of the criterion set out in this paragraph, until the latter is perform.

5. The reversal of expenses that have not been tax deductible shall not be integrated into the tax base.

6. The reversal of a impairment or correction of value that has been fiscally deductible shall be charged in the taxable amount of the tax period in which the reversal has occurred, either in the entity that performed the correction or in another related entity. with it. The same rule shall apply in the case of losses arising from the transfer of assets which have been acquired again.

7. Where provisions are removed, because they have not been applied for their purpose, without payment of an income account for the financial year, their amount shall be integrated into the taxable amount of the institution which has provided them, in so far as such provision has been made. considered deductible expense.

8. Where the institution is a beneficiary or has recognised the right to rescue life insurance contracts where, in addition, it assumes the risk of investment, it shall in any event integrate the difference between the liquidative value of the assets affected by the policy at the end and at the beginning of each tax period.

The provisions of this paragraph shall not apply to insurance which implements pension commitments assumed by the companies in the terms provided for in the Additional Provision of the Recast Text of the Law of Regulation of the Pension Plans and Funds, approved by the Royal Legislative Decree 1/2002 of 29 November, and in its implementing legislation.

The amount of the revenue attributed will result in the performance of the revenue from the collection of the contracts.

9. Negative income generated by the transfer of assets of tangible assets, real estate investments, intangible fixed assets and debt securities, where the acquirer is an entity of the same group of companies as criteria laid down in Article 42 of the Code of Commerce, irrespective of residence and the obligation to draw up consolidated annual accounts, shall be charged in the tax period in which such assets are discharged in the balance sheet of the acquiring institution, be transmitted to third parties other than that referred to group of companies, or where the transferring entity or the acquirer ceases to be a part of the entity.

However, in the case of depreciable property assets, negative income shall be integrated, prior to such circumstances, in the tax periods which will render the elements transmitted, in the form of function of the amortisation method used with respect to the items referred to.

10. Negative income generated in the transmission of securities representing the equity or equity of institutions, where the acquirer is an entity of the same group of companies according to the criteria laid down in the Article 42 of the Code of Commerce, irrespective of the residence and the obligation to make consolidated annual accounts, shall be charged in the tax period in which the assets are transferred to third parties other than that referred to in Article 4 (1) of the Code of Commerce. group of companies, or where the transferring or acquiring entity ceases to form part of the same, which is included in the amount of positive income obtained from such transfer to third parties. However, the minoritages of positive earnings will not occur if the taxpayer proves that these rents have effectively taxed at least 10% of the tax rate.

The provisions of the preceding paragraph shall also apply in the case of the transfer of shares in a temporary union of undertakings or in forms of collaboration similar to those located abroad.

The provisions of this paragraph shall not apply in the event of termination of the transmitted entity, unless the institution concerned is the result of a restructuring operation received by the special scheme established in the Chapter VII of Title VII of this Law.

11. Negative income generated by the transfer of a permanent establishment, where the acquirer is an entity of the same group of companies in accordance with the criteria laid down in Article 42 of the Trade Code, irrespective of the residence and the obligation to draw up consolidated annual accounts, shall be charged in the tax period in which the permanent establishment is transmitted to third parties outside the group of companies or where the entity transmitting or the acquirer ceases to be part of it, minted in the amount of the positive income obtained in such transmission to third parties. However, the minoritages of positive earnings will not occur if the taxpayer proves that these rents have effectively taxed at least 10% of the tax rate.

The provisions of this paragraph shall not apply in the case of cessation of the activity of the permanent establishment.

12. Appropriations for impairment of claims or other assets arising out of the possible insolvencies of debtors not linked to the taxpayer, not owed by entities governed by public law and whose deductibility does not occur by application of the Article 13 (1) (a) of this Law, as well as those arising from the application of Article 14 (1) and (2) of this Law, corresponding to allocations or contributions to social security systems and, where appropriate, pre-retirement generated assets by deferred tax, will be integrated into the tax base according to the established in this Law, with the limit of 70% of the positive tax base prior to its integration, to the application of the capitalization reserve established in Article 25 of this Law and to the compensation of taxable bases negative.

Non-integrated amounts in a tax period will be subject to integration in the following tax periods with the same limit. For these purposes, the appropriations corresponding to the oldest tax periods shall be integrated first.

13. The income corresponding to the accounting record of the quitas and waits as a result of the application of Law 22/2003, of July 9, Bankruptcy, will be imputed in the taxable base of the debtor as it proceeds to record with subsequent financial expenses derivatives of the same debt and up to the limit of that income.

However, in the event that the amount of income referred to in the preceding paragraph is higher than the total amount of financial expenditure to be recorded, derived from the same debt, the imputation of that at the base taxable shall be made in proportion to the financial costs recorded in each tax period in respect of the total financial expenditure to be recorded for the same debt.

CHAPTER II

Limitation to expense deductibility

Article 12. Value adjustments: redemptions.

1. The amounts which, by way of depreciation of tangible fixed assets, intangible assets and real estate investments, correspond to the actual depreciation suffered by the various elements by way of operation, use, enjoyment or obsolescence.

Depreciation will be considered effective when:

a) Be the result of applying the linear amortization coefficients set to the following table:

Installations

Machinery

Moldes, arrays, and models

25%

Type	Maximum Linear Coefficient	Maximum Years Period
Work
general civil	2%	100
Pavements	6%	34
7%	30
Central	30
Central Hydraulic	2%	100
Power Stations
60	4%	4%	50
	7%	30
Other Central	5%	40
industry	3%	68
Dedicated Terns exclusively to tailings	4%	50
and deposits (gaseous, liquid and solid)	7%	30
, administrative, administrative, services and housing	2%	100
Substations. Energy transport and distribution networks	5%	40
Cables
10%	10%	10%
18
%	15%	18	18
Elements
Locomotives, wagons, and traction equipment
10%
Transport Elements	10%	20
External transport elements	16%	14
Autotrucks	20%	10
Furniture and Enbeings
	10%	20
25%		8
	Cristaleria
4
%		25%	4
33%	6
Other Beings	15%
and computer equipment. Systems and programs
Equipment
	10	10	10	8
systems and programs.	33%	6
, phonographic, video, and audio series productions	33%	6
Other items	10%	20

Reglamentarily the coefficients and periods provided in this letter may be modified, or additional coefficients and periods may be set.

b) Be the result of applying a constant percentage on the outstanding value of amortization.

The constant percentage will be determined by weighting the linear depreciation coefficient obtained from the amortisation period according to officially approved amortization tables, by the following coefficients:

1. º 1.5, if the item has a amortization period of less than 5 years.

2. º 2, if the item has a amortization period equal to or greater than 5 years and less than 8 years.

3. º 2.5, if the item has a amortization period equal to or greater than 8 years.

The constant percentage cannot be less than 11 percent.

Buildings, furniture and goods shall not be eligible for depreciation by a constant percentage.

c) Be the result of applying the digit numbers method.

The sum of digits will be determined based on the amortization period set in the officially approved amortization tables.

Buildings, furniture and goods shall not be eligible for amortisation by digit numbers.

d) Adjust to a plan formulated by the taxpayer and accepted by the Tax Administration.

e) The taxpayer justifies its amount.

The procedure for the resolution of the plan referred to in point (d) shall be approved.

2. Intangible fixed assets with defined useful life shall be amortised on the basis of the duration of the fixed asset.

3. However, they may be freely amortised:

(a) The elements of the material, intangible and real investments of the public limited companies and of the limited companies affected to the performance of their activities, acquired during the five years first years from the date of their qualification as such.

(b) Elements of tangible and intangible fixed assets, excluding buildings, affected by research and development activities.

Buildings may be amortised in a linear manner over a period of 10 years, in the part that is affected by research and development activities.

(c) Research and development expenses activated as intangible fixed assets, excluding depreciation of items enjoying the freedom of redemption.

(d) the elements of the intangible or intangible fixed assets of the entities which have the status of priority associative holdings in accordance with the provisions of Law 19/1995 of 4 July 1995 on the modernization of the agricultural holdings, acquired during the first five years from the date of their recognition as a priority holding.

(e) Elements of new tangible assets, the unit value of which does not exceed EUR 300, up to the limit of EUR 25 000 referred to the tax period. If the tax period has a duration of less than one year, the limit set shall be the result of multiplying EUR 25,000 by the ratio between the duration of the tax period for the year.

The amounts applied to the freedom of amortisation shall, for tax purposes, be the value of the amortised elements.

Article 13. Value adjustments: impairment loss of the value of the assets.

1. The losses due to the deterioration of the claims arising from the possible insolvencies of the debtors shall be deductible, when at the time of the accrual of the tax there are any of the following circumstances:

a) That the 6-month period has elapsed from the expiration of the obligation.

(b) The debtor is declared to be in a competitive position.

c) That the debtor is prosecuted for the crime of raising goods.

(d) that the obligations have been legally claimed or are the subject of a judicial dispute or arbitration procedure for which the settlement depends on its recovery.

The following credit impairment losses will not be deductible:

1. The corresponding to claims owed by entities governed by public law, except that they are the subject of an arbitral or judicial procedure to be viewed on their existence or amount.

2. The corresponding to claims owed by persons or entities related, unless they are in a competitive position and the opening of the settlement phase by the judge has occurred, in the terms established in the Law 22/2003, dated July 9, Insolvency.

3. The corresponding to global estimates of the risk of client and debtor insolvencies.

Rules on the determining circumstances of the deductibility of appropriations for impairment of claims and other assets arising from the possible insolvencies of debtors of the debtor shall be established. financial institutions and those concerning the amount of losses for the coverage of that risk. Those rules shall also apply in relation to the deductibility of the value impairment of the debt instruments valued at their amortised cost held by the mortgage-backed securities and the debt instruments. the asset-securitisation funds referred to in points (h) and (i), respectively, of Article 7 (1) of this Law.

2. They will not be deductible:

(a) The impairment losses on tangible fixed assets, real estate investments and intangible fixed assets, including goodwill.

(b) The impairment losses of the securities representative of the equity or equity of institutions.

(c) The impairment losses on the representative debt securities.

The impairment losses noted in this section will be deductible under the terms of Article 20 of this Law.

3. The purchase price of the open-ended intangible asset, including the purchase price, shall be deductible with the maximum annual limit of twenty-one part of its amount.

This deduction is not conditional upon your accounting imputation on the profit and loss account. The amounts deducted shall, for tax purposes, be the value of the corresponding intangible fixed assets.

Article 14. Provisions and other expenses.

1. Expenditure by provisions and internal funds for the coverage of identical or similar contingencies to which they are the subject of the recast of the Law on the Regulation of Pension Plans and Funds, approved by the Royal Decree, shall not be deductible. Legislative 1/2002 of 29 November.

These expenses will be fiscally deductible in the tax period in which benefits are paid.

2. Expenditure relating to long-term remuneration to staff shall not be deductible by means of defined contribution or defined benefit systems. However, the contributions of the promoters of pension schemes regulated in the recast of the Law on the Regulation of Pension Plans and Funds, as well as those made to business social security plans, will be deductible. Such contributions shall be charged to each participant or insured party, in the relevant party, except those made to pension schemes in an extraordinary manner pursuant to Article 5.3.c) of the said recast text of the Law on the Regulation of Pension plans and funds.

Contributions for the coverage of similar contingencies to those of pension plans shall also be deductible, provided that the following requirements are met:

1. Let people be fiscally imputed to those who are linked to benefits.

2. º That the right to the perception of future benefits is irrevocably transmitted.

3. The ownership and management of the resources in which these contributions consist.

Furthermore, the contributions made by the sponsoring undertakings 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 the employment pension funds, provided that the above requirements are met, and the contingencies covered are those provided for in Article 8.6 of the recast of the Law on the Regulation of Pension Plans and Funds.

3. The following expenses associated with provisions shall not be deductible:

a) The implied or implied obligation derivatives.

b) Those concerning the costs of fulfilling contracts that exceed the economic benefits expected to be received from them.

(c) Restructuring derivatives, except where they relate to legal or contractual obligations and not merely tacit.

d) Those relating to the risk of sales returns.

e) Personnel that correspond to payments based on equity instruments, used as a remuneration formula to employees, and are met in cash.

4. The costs associated with environmental actions will be deductible when they correspond to a plan formulated by the taxpayer and accepted by the tax administration. The procedure for the resolution of the plans to be formulated shall be laid down.

5. Expenditure which, in accordance with the three preceding paragraphs, would not have been tax deductible, shall be integrated into the tax base of the tax period in which the provision is applied or the expenditure is intended for its purpose.

6. Personnel costs that correspond to payments based on equity instruments, used as a remuneration formula for employees, and are met by the delivery of the same, will be fiscally deductible when this occurs. delivery.

7. Expenditure relating to technical provisions made by insurance institutions shall be deductible up to the amount of the minimum amounts laid down by the applicable rules. With the same limit, the amount of the allocation in the financial year to the stabilisation reserve shall be deductible in the determination of the tax base, even if it has not been integrated into the profit and loss account. Any application of such reservation shall be integrated into the tax base of the tax period in which it occurs.

Impairment corrections of premiums or outstanding fees shall be incompatible, for the same balances, with the envelope for the coverage of possible insolvencies of debtors.

8. Expenditure relating to the fund of technical provisions made by mutual guarantee companies, with a profit and loss account, shall be deductible until the said fund reaches the minimum required amount to be paid. Article 9 of Law 1/1994 of 11 March on the Legal Regime of Reciprocal Guarantee Societies. Allocations exceeding the mandatory amounts will be deductible by 75 percent.

Grants granted by public authorities to mutual guarantee companies and the income resulting from such subsidies will not be integrated into the tax base, provided that some and all of them are allocated to the fund of technical provisions. The provisions of this paragraph will also apply to the societies of reaffiability in terms of the activities that according to the provisions of article 11 of the Law on the Legal Regime of the Societies of Reciprocal Guarantee, have to integrate necessarily its social object.

9. The costs inherent in the risks arising from repair and review guarantees shall be deductible up to the amount necessary to determine a balance of the provision not exceeding the result of applying to the sales with live guarantees of the tax period the percentage determined by the proportion in which the costs incurred in dealing with the guarantees in the tax period and in the previous two in relation to sales with guarantees had been found made in those tax periods.

The provisions of the preceding paragraph will also apply to endowments for ancillary expense coverage for sales returns.

New establishment entities may also deduct the amounts referred to in the first subparagraph by fixing the percentage referred to in this respect for the expenses and sales made during the tax periods. which would have elapsed.

Article 15. Non-deductible expenses.

They will not have the consideration of fiscally deductible expenses:

(a) Those representing a remuneration of own funds.

For the purposes of this Law, it shall be considered as a remuneration of own funds, corresponding to the securities representative of the capital or the own funds of institutions, regardless of their own funds. accounting consideration.

In addition, they will have the consideration of their own funds for participative loans granted by entities that are part of the same group of companies according to the criteria established in the Article 42 of the Trade Code, irrespective of residence and the obligation to make consolidated annual accounts.

(b) Derivatives of the accounting of corporate tax. Revenue from such accounting shall not be taken into account.

(c) Criminal and administrative fines and penalties, executive period surcharges, and surcharge for extemporaneous declaration without prior notice.

d) Game losses.

e) Donations and liberalities.

This letter (e) shall not be construed as meaning that the expenses for the care of customers or suppliers or those that are carried out in accordance with the customs and customs are carried out in respect of the staff of the undertaking or those carried out to promote, directly or indirectly, the sale of goods and the provision of services, or those which are correlated with revenue.

However, fees for clients or suppliers will be deductible with the limit of 1 percent of the net amount of the business figure of the tax period.

Nor shall the remuneration of directors for the performance of senior management functions, or other functions resulting from a contract of a work nature with the institution, be understood as such.

f) The costs of actions contrary to the legal order.

g) the costs of services relating to operations carried out, directly or indirectly, with persons or entities resident in countries or territories which are classified as tax havens, or which are paid through persons or entities resident in these entities, except that the taxpayer proves that the accrued expense is in response to an effectively performed transaction or transaction.

The rules on international tax transparency shall not apply in relation to the income corresponding to expenses that are rated as fiscally non-deductible.

(h) The financial expenses incurred in the tax period, arising from debts to group entities according to the criteria set out in Article 42 of the Trade Code, irrespective of residence and obligation to draw up consolidated annual accounts for the acquisition, other entities of the group, holdings in the capital or own funds of any type of institution, or to make contributions in the capital or own funds of the other entities in the group, unless the taxpayer proves that there are economic reasons valid for the performance of such operations.

(i) Expenses arising from the extinction of the employment relationship, common or special, or the business relationship referred to in Article 17.2.e) of Law 35/2006 of 28 November of the Income Tax Physical and partial modification of the laws of the Taxes on Societies, on the Income of non-residents and on the Patrimony, or both, even if they are satisfied in several tax periods, that exceed, for each perceptor, of the greater of the following amounts:

1. 1 million euros.

2. The amount established on a compulsory basis in the Workers ' Statute, in its implementing rules or, where appropriate, in the rules governing the execution of judgments, without it being considered as such established by virtue of agreement, pact or contract. However, in the case of collective redundancies carried out in accordance with Article 51 of the Staff Regulations, or produced by the causes provided for in Article 52 (c) of the Staff Regulations, provided that, in both cases, are due to economic, technical, organisational, production or force majeure causes, shall be the amount laid down in the abovementioned Staff Regulations for the wrongful dismissal.

For these purposes, the amounts satisfied by other entities forming part of the same group of companies in which the circumstances provided for in Article 42 of the Code of Commerce are met shall be computed. independence of his residence and the obligation to draw up consolidated annual accounts.

(j) Expenses related to transactions made with persons or entities related which, as a result of a different tax classification in these, do not generate income or generate an income exempt or subject to a type of nominal lien less than 10 percent.

Article 16. Limitation on the deductibility of financial expenses.

1. Net financial expenses will be deductible with the limit of 30 percent of the exercise's operating profit.

For these purposes, net financial expenses shall be the excess of financial expenses in respect of the income from the transfer to third parties of own capital accrued in the tax period, excluding those expenses to referred to in points (g), (h) and (j) of Article 15 of this Law.

Operating profit shall be determined on the basis of the operating profit of the profit and loss account for the financial year determined in accordance with the Trade Code and other accounting standards for development, eliminating the depreciation of fixed assets, the allocation of grants for non-financial and other fixed assets, the deterioration and the result of fixed assets, and the addition of the financial income for equity instruments, provided that they correspond to dividends or shares in the profits of entities in the either the percentage of direct or indirect participation is at least 5%, or the acquisition value of the holding is more than EUR 20 million, except that those shares have been acquired with debts whose financial expenses are not deductible by application of Article 15 (1) (h) of this Law.

In any case, net financial expenses of the tax period shall be deductible in the amount of EUR 1 million.

Net financial expenses that have not been deducted may be deducted in the following tax periods, together with those of the corresponding tax period, and with the limit provided for in this paragraph.

2. Where the net financial expenditure of the tax period does not meet the limit laid down in paragraph 1 of this Article, the difference between the said limit and the net financial expenditure of the tax period shall be added to the the limit laid down in paragraph 1 of this Article, in respect of the deduction of net financial expenditure in the tax periods ending in the immediate and successive 5 years, until such difference is deducted.

3. The net financial expenses charged to the partners of the entities that are taxed in accordance with Article 43 of this Law shall be taken into account by those for the purposes of the application of the limit provided for in this Article.

4. If the tax period of the institution has a duration lower than the year, the amount provided for in the fourth subparagraph of paragraph 1 of this Article shall be the result of multiplying EUR 1 million by the ratio between the duration of the tax period for the year.

5. For the purposes of this Article, the financial expenses arising from debts intended for the acquisition of equity or equity of any kind of institution shall be deducted with the additional limit of 30%. the operating profit of the institution itself which made such an acquisition, without including in that operating profit the corresponding to any entity merging with that entity in the 4 years after that acquisition, when the merger does not apply the special tax regime provided for in Chapter VII of Title VII of this Law. These financial expenses shall also be taken into account in the limit referred to in paragraph 1 of this Article.

Non-deductible financial expenses resulting from the application of the provisions of this paragraph shall be deductible in the following tax periods with the limit provided for in this paragraph and in paragraph 1 of this Article.

The limit provided for in this paragraph shall not apply in the tax period in which holdings in the capital or equity of institutions are acquired if the acquisition is financed by debt at the latest by 70%. percent of the purchase price. Also, this limit shall not apply in the following tax periods provided that the amount of that debt is mined, from the time of the acquisition, at least in the proportional share corresponding to each of the following 8 years, up to the debt reaches 30 percent of the purchase price.

6. The limitation provided for in this article will not be applicable:

a) To credit institutions and insurers.

For these purposes, credit institutions shall be treated as entities whose voting rights correspond, directly or indirectly, in full to those entities, and whose sole activity consists in the issuance and placement of credit institutions. in the market for financial instruments to strengthen regulatory capital and the financing of such entities.

The same treatment will also receive mortgage securitization funds, regulated in Law 19/1992, of July 7, on the Company and Real Estate Investment Funds and on Mortgage Securitisation Funds, and the asset-backed securitisation funds referred to in the additional provision of Article 2 of Law 3/1994 of 14 April, adapting the Spanish legislation on credit to the Second Banking Coordination Directive and introducing it other amendments relating to the financial system.

(b) In the tax period in which the institution's extinction occurs, unless it is the result of a restructuring operation.

CHAPTER III

Assessment Rules

Article 17. General rule and special rules of assessment in the case of lucrative and societarian transmissions.

1. The assets shall be valued in accordance with the criteria laid down in the Trade Code, corrected by the application of the provisions laid down in this Law.

However, changes in value arising from the application of the fair value criterion shall not have tax effects as long as the profit and loss account is not to be charged. The amount of accounting revaluations shall not be included in the tax base, except where they are carried out under statutory or regulatory rules which require the inclusion of their amount in the profit and loss account. The amount of the non-integrated revaluation in the tax base shall not determine a higher value for tax purposes of the revalued items.

2. Capital raising or own funds operations by way of compensation for claims shall be assessed on the basis of the amount of such increase from the market point of view, irrespective of the accounting valuation.

3. The assets transferred under merger and total or partial excision shall be valued at the headquarters of the entities and their partners in accordance with Chapter VII of Title VII of this Law.

The assets transferred to entities and the securities received in consideration, as well as the securities acquired by redemption, shall be valued in accordance with the provisions of Chapter VII of Title VII of this Law.

However, in the event of failure to apply the regime established in Chapter VII of Title VII of this Law in any of the operations referred to in this paragraph, the related assets shall be valued at agreement with the following section.

4. The following heritage elements shall be valued for their market value:

a) Transmitted or acquired for a lucrative title. Grants will not have this consideration.

(b) The contributions to institutions and the securities received in consideration, unless the scheme provided for in Chapter VII of Title VII of this Law is applicable or where paragraph 2 above applies.

c) Transmitted to the partners due to dissolution, separation of these, reduction of capital with return of contributions, distribution of the premium of emission and distribution of benefits.

(d) Transmitted under merger, and total or partial excision, unless the scheme provided for in Chapter VII of Title VII of this Law is applicable.

e) Those acquired by permuse.

(f) Purchased by exchange or conversion, unless the arrangements provided for in Chapter VII of Title VII of this Law apply.

Market value shall be understood to have been agreed between independent parties and any of the methods provided for in Article 18.4 of this Law may be accepted.

5. In the cases referred to in points (a), (b), (c) and (d) of the previous paragraph, the transmitting entity shall, in its taxable amount, integrate the difference between the market value of the transmitted elements and their tax value. However, in the case of an increase in capital or own funds by way of compensation, the transferring entity shall, in its taxable amount, integrate the difference between the amount of the capital increase or own funds in the proportion which it corresponds, and the tax value of the capitalized credit.

In the assumptions provided for in points (e) and (f) of the previous paragraph, institutions shall integrate into the tax base the difference between the market value of the items acquired and the tax value of the delivered.

In the lucrative acquisition, the acquiring entity will integrate into its taxable base the market value of the acquired asset item.

The integration into the tax base of the income referred to in this Article shall be made in the tax period in which the transactions resulting from such income are carried out.

6. In the reduction of capital with return of contributions, the excess of the market value of the elements received on the tax value of the participation shall be integrated into the taxable base of the partners.

The same rule applies in the case of distribution of the share or equity issue premium.

However, in the case of transactions carried out by variable capital investment companies governed by Law 35/2003 of 4 November, of Collective Investment Institutions, not subject to the general rate of charge, the total amount perceived in the reduction of capital with the limit of the increase in the liquidative value of the shares from its acquisition or subscription up to the time of the reduction of the share capital, will be integrated into the tax base of the partner without right to no deduction in full quota.

Whatever amount is collected as a distribution of the emission premium made by such variable capital investment companies, it shall be integrated into the taxable base of the non-deductible partner some in the full quota.

The above shall apply to collective investment undertakings equivalent to variable capital investment companies that are registered in another State, irrespective of any limitation they have. in respect of restricted groups of investors, in the acquisition, disposal or redemption of their shares; in any event it shall apply to companies covered by Directive 2009 /65/EC of the European Parliament and of the Council of 13 July 2009, coordinating the laws, regulations and administrative provisions relating to certain undertakings for collective investment in transferable securities.

7. In the profit distribution, the market value of the items received will be integrated into the partners ' taxable base.

8. In the dissolution of entities and separation of partners, the difference between the market value of the items received and the tax value of the cancelled participation shall be integrated into the tax base of the partners.

9. In the merger, total or partial absorption or division, the difference between the market value of the participation received and the tax value of the cancelled participation shall be integrated into the taxable base of the partners unless the special tax regime provided for in Chapter VII of Title VII of this Law.

10. The reduction of capital whose purpose is different from the return of contributions shall not determine for the members income, positive or negative, which are inclusive in the tax base.

11. In the case of accounting hedges and items covered with recognised value changes in the profit and loss account, those shall be the value of the profit and loss account for the purposes of determining the tax treatment corresponding to the income obtained.

Article 18. Related operations.

1. Transactions carried out between persons or related entities shall be valued at their market value. Market value shall mean a market value that would have been agreed by independent persons or entities under conditions that respect the principle of free competition.

2. The following shall be considered as persons or entities:

a) An entity and its partners or unit-holders.

(b) An entity and its directors or directors, except as to remuneration for the performance of their duties.

c) An entity and spouses or persons joined by relationships of kinship, in direct or collateral line, by consanguinity or affinity to the third degree of the partners or members, counselors or administrators.

d) Two entities that belong to a group.

e) An entity and the advisors or administrators of another entity, when both entities belong to a group.

(f) An entity and the spouses or persons joined by kinship relationships, in direct or collateral line, by consanguinity or affinity to the third degree of the partners or unit-holders of another entity when both entities belong to a group.

g) An entity and another entity engaged by the first entity indirectly in at least 25 percent of the equity or equity capital.

(h) Two entities in which the same partners, unit-holders or their spouses, or persons joined by relationships of kinship, in direct or collateral line, by consanguinity or affinity to the third degree, participate, direct or indirectly in at least 25% of the share capital or equity capital.

i) An entity resident in Spanish territory and its permanent establishments abroad.

In cases where the linkage is defined according to the relationship of the partners or unit-holders with the entity, the participation must be equal to or greater than 25 percent. The mention of the administrators shall include those in law and in fact.

There is a group where an entity has or may be in control of another or other entity in accordance with the criteria laid down in Article 42 of the Trade Code, irrespective of its residence and the obligation to make accounts consolidated annual accounts.

3. The persons or entities involved, in order to justify that the transactions carried out have been valued at their market value, must be kept at the disposal of the tax administration, in accordance with the principles of proportionality and sufficiency, the specific documentation to be regulated.

Such documentation shall have a simplified content in relation to the persons or entities concerned whose net amount of the business figure, as defined in the terms of Article 101 of this Law, is less than 45 Millions of euros.

In no case, the simplified content of the documentation will result in the following operations:

1. The ones made by taxpayers of the Tax on the Income of the Physical Persons, in the development of an economic activity, to which the method of objective estimation results with entities in which those or their spouses, ascendants or descendants, individually or jointly among all of them, have a percentage equal to or greater than 25% of the share capital or equity capital.

2. Business Transmission Operations.

3. The transmission of securities or shares representing the equity of equity of any type of entity not admitted to trading on any of the regulated securities markets; or are admitted to trading on regulated markets located in countries or territories qualified as tax havens.

4. RE Operations.

5. Operations on intangible assets.

Specific documentation will not be required:

(a) To transactions between entities that are integrated into the same fiscal consolidation group, without prejudice to the provisions of Article 65.2 of this Law.

(b) to the transactions carried out with its members or with other entities belonging to the same group of fiscal consolidation by the economic interest groups, as provided for in Law 12/1991 of 29 April Associations of Economic Interest and temporary unions of undertakings, governed by Law 18/1982 of 26 May 1982 on the taxation of temporary associations and associations of undertakings and of regional industrial development companies and registered in the Special register of the Ministry of Finance and Public Administrations. However, the specific documentation shall be required in the case of temporary unions of undertakings or forms of collaboration analogous to temporary unions, which are in accordance with the arrangements laid down in Article 22 of this Law.

(c) Operations carried out in the field of public offering for sale or public offering for the acquisition of securities.

(d) To transactions carried out with the same person or related entity, provided that the amount of the consideration of the set of operations does not exceed EUR 250,000, in accordance with the market value.

4. For the determination of the market value any of the following methods shall apply:

(a) A comparable free price method, for which the price of the goods or service is compared in an operation between persons or entities linked to the price of an identical good or service or similar characteristics in a operation between persons or independent entities in comparable circumstances by making, if necessary, the corrections required to obtain equivalence and to consider the particularities of the operation.

(b) Method of increased cost, by adding to the purchase or production value of the good or service the usual margin in identical or similar operations with persons or independent entities or, failing that, the margin which persons or independent entities apply to comparable transactions by making, if necessary, the corrections required to obtain equivalence and to consider the particularities of the operation.

(c) Method of the resale price, whereby the sales price of a good or service is subtracted from the margin applied by the reseller itself in identical or similar transactions with independent persons or entities or, failing that, the margin which persons or independent entities apply to comparable transactions by making, if necessary, the corrections required to obtain equivalence and to consider the particularities of the operation.

(d) Method of the distribution of the result, by which each person or entity is assigned to jointly perform one or more transactions on the part of the common result arising from such transaction or operations, in function of a criterion that adequately reflects the conditions that would have been subscribed by persons or independent entities in similar circumstances.

(e) Method of the operational net margin, for which the transactions made with a related person or entity are attributed to the net result, calculated on costs, sales or the magnitude that is most appropriate for the purposes of the the characteristics of identical or similar operations carried out between independent parties, making, where necessary, the necessary corrections to obtain equivalence and to consider the particularities of the operations.

The choice of the valuation method will take into account, among other circumstances, the nature of the related transaction, the availability of reliable information and the degree of comparability between the related transactions and not linked.

When it is not possible to apply the above methods, other generally accepted methods and valuation techniques that respect the principle of free competition may be used.

5. In the case of services provided between persons or related entities, valued in accordance with paragraph 4, the services provided shall be required to produce or be able to produce an advantage or utility to the recipient.

In the case of services provided jointly in favour of a number of related persons or entities, and provided that the individualisation of the service received or the quantification of the determining elements of the service is not possible remuneration, it will be possible to distribute the total consideration between the beneficiaries and persons in accordance with the rules of distribution that meet the criteria of rationality. This criterion shall be understood where the method applied takes into account, in addition to the nature of the service and the circumstances in which it is provided, the benefits obtained or liable to be obtained by persons or entities Recipients.

6. For the purposes of paragraph 4 above, the taxpayer may consider that the agreed value coincides with the market value in the case of a service provision by a professional partner, a natural person, to a related entity. and the following requirements are met:

(a) That more than 75% of the entity's income come from the exercise of professional activities and has the material and human means appropriate for the development of the activity.

(b) The amount of remuneration corresponding to the whole of the business-professionals for the provision of services to the institution is not less than 75% of the result prior to the deduction of remuneration for the whole of the professional partners for the provision of their services.

(c) The following requirements shall be met by the amount of remuneration for each of the professional partners:

1. Be determined on the basis of the contribution made by the entity to the good march of the institution, and the applicable qualitative and/or quantitative criteria must be recorded in writing.

2. No less than 1.5 times the average wage of the employees of the entity that perform functions analogous to those of the professional partners of the entity. In the absence of the latter, the amount of such remuneration may not be less than 5 times the Public Indicator of Multiple Effects.

Failure to comply with the requirement set out in this number 2. in relation to any of the professional partners, will not prevent the application of the provisions of this paragraph from the remaining professional partners.

7. In the case of cost sharing arrangements for goods or services concluded between persons or related entities, the following requirements shall be met:

(a) The persons or entities participating in the agreement shall have access to the property or other right which has similar economic consequences on the assets or rights that are the subject of acquisition, production or development as a result of the agreement.

(b) The contribution of each participating person or entity shall take into account the forecast of earnings or benefits that each of them expects to obtain from the agreement in consideration of rationality criteria.

(c) The agreement shall include the variation of its circumstances or participating persons or entities, establishing the compensatory payments and adjustments deemed necessary.

The agreement between persons or related entities shall comply with the requirements to be determined.

8. In the case of taxpayers who have a permanent establishment abroad, in cases where they are established in a convention to avoid double taxation which would result from them being applied, they shall be included in the taxable income of the income estimated by internal transactions carried out with the permanent establishment, valued at its market value.

9. Taxpayers may ask the tax authorities to determine the valuation of transactions carried out between persons or entities related to the performance of such persons or entities. Such a request shall be accompanied by a proposal based on the principle of free competition.

The tax administration may conclude agreements with other administrations for the purpose of jointly determining the market value of the transactions.

The valuation agreement shall have effect on the transactions carried out after the date on which it is approved, and shall be valid for the duration of the tax periods specified in the agreement itself, without any exceed the 4 tax periods following the date of the approval. In addition, it may be determined that their effects will be achieved in the operations of prior tax periods provided that the right of the Administration to determine the tax liability by the timely settlement has not been prescribed. firm settlement that falls on the operations to be requested.

In the event of significant variation of the economic circumstances existing at the time of the approval of the tax administration agreement, the tax administration may be modified to adapt it to the new circumstances. economic.

The proposals referred to in this paragraph may be deemed to be rejected after the time limit for resolution has elapsed.

The procedure for the resolution of the related transaction valuation agreements, as well as that of their possible extensions, will be established.

10. The tax authorities may verify the transactions carried out between persons or related entities and shall, where appropriate, make any corrections to the terms which have been agreed between independent parties in accordance with the the principle of free competition, in respect of transactions subject to this Tax, to the Income Tax of the Physical Persons or to the Income Tax of non-residents, with the documentation provided by the taxpayer and the data and information available to you. The tax administration shall be bound by such correction in relation to the other related persons or entities.

The correction practiced will not determine the taxation of this tax, nor, where appropriate, the income tax of the physical persons or the income tax of non-residents of a higher income than the actual income. derived from the operation for the set of persons or entities that would have performed it. For the purpose of the comparison, account shall be taken of that part of the income which is not included in the tax base as a result of application of an objective estimation method.

11. In those transactions where the agreed value is determined to be different from the market value, the difference between the two securities shall have, for the persons or entities related, the tax treatment corresponding to the nature of the Income from the income shown as a result of the existence of such a difference.

In particular, in cases where the linkage is defined according to the partner relationship or the entity-entity, the difference shall, in general, be treated as follows:

(a) Where the difference is in favour of the partner or is involved, the part of the partner or part corresponding to the percentage of participation in the entity shall be considered as remuneration of own funds for the institution and as participation in benefits for the partner. The part of the difference that does not correspond to that percentage shall have for the entity the consideration of the remuneration of own funds and for the partner or the perceived utility of an entity for the condition of shareholder, shareholder, In accordance with Article 25 (1) (d) 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 No Residents and on Heritage.

(b) Where the difference is in favour of the institution, the share of the difference corresponding to the percentage of participation in the entity shall be considered as a contribution by the partner or participate in the own funds of the institution. entity, and will increase the acquisition value of the partner's participation or participate. The part of the difference that does not correspond to the percentage of participation in the entity, will have the consideration of income for the entity, and of liberality for the partner or participate. In the case of non-resident income tax payers without permanent establishment, the income shall be considered as a property gain in accordance with the provisions of Article 13.1.i) .4. of the recast of the Law of the Non-Resident Income Tax, approved by the Royal Legislative Decree 5/2004, of 5 March.

The provisions of this paragraph shall not apply where the return of assets between persons or entities in connection with the terms that they regulate is established. This refund shall not determine the existence of income in the parties concerned.

12. The verification of the related operations shall be regulated, in accordance with the following rules:

1. The verification of the related operations shall be carried out within the procedure initiated in respect of the tax liability whose tax situation is the subject of verification. Without prejudice to the provisions of the following subparagraph, such actions shall be construed exclusively with such a tax obligation.

2. " If against the provisional liquidation carried out on the tax authority as a result of the verification, the latter shall apply the corresponding remedy or claim, the other persons shall be notified of this the related entities concerned, so that they can be personified in the relevant procedure and present the appropriate claims.

After the appropriate time-limits without the tax obligation having brought an action or complaint, the liquidation shall be notified to the other persons or entities involved in the case, so that those who wish to do so they can jointly choose to bring the appropriate action or complaint. The interposition of appeal or complaint shall interrupt the limitation period of the right of the tax administration to carry out the appropriate liquidations to the tax obligation and to the other persons or entities affected, to whom it shall communicate such interruption and the calculation of that period shall be renewed once the liquidation carried out by the Administration has become final.

3. The firmness of the settlement shall determine its effectiveness and firmness vis-à-vis the other persons or entities involved. The tax authorities shall carry out the regularisations which correspond, unless such regularisations have been carried out by the person or entity concerned, in the terms which they regulate.

4. The provisions of this paragraph shall apply with respect to the persons or entities concerned affected by the correction which are taxpayers of the Company Tax, the Income Tax of the Physical Persons or of the Non-Resident Income Tax.

5. The provisions of this paragraph shall be without prejudice to the provisions of international treaties and conventions that have become part of the internal order.

6. Where the verification of the value of the transaction is carried out within the verification referred to in this paragraph, the provisions of Article 57 (2) and Article 135 of the Law shall not apply. 58/2003, dated December 17, General Tax.

13. 1. The lack of any contribution or the incompleteness of the documentation, or false data, of the documentation which, as provided for in paragraph 3 of this Article and in its implementing legislation, must be maintained. the provision of the tax administration by the persons or entities involved, where the tax administration does not make corrections in application of the provisions of this Article.

This violation will be considered a serious violation and will be sanctioned according to the following rules:

(a) The penalty shall consist of a fixed pecuniary fine of EUR 1 000 for each item of data and EUR 10,000 per data set, omitted, or false, for each of the documentation obligations to be laid down in regulation for the group or for each person or entity as a contributor.

(b) The penalty provided for in the preceding subparagraph shall be limited to the maximum of the following two amounts:

-10 percent of the total amount of transactions subject to this Tax, to the Income Tax of the Physical Persons or to the Income Tax of non-residents made in the tax period.

-1 percent of the net amount of the business figure.

2. The following assumptions are established in the Constitution, provided that corrections are made by the tax administration, in accordance with the provisions of this article with respect to the transactions subject to the tax. to this Tax, to the Income Tax of the Physical Persons or to the Income Tax of Non-Residents:

(i) the lack of input or the provision of incomplete documentation, or with false data from the documentation which, as provided for in paragraph 3 of this Article and in its implementing legislation, must be maintained; Provision of the tax administration by the persons or entities involved.

(ii) that the market value derived from the documentation provided for in this article and in its development regulations is not that stated in the Company Tax, the Income Tax of the Physical Persons or the Non-Resident Income Tax.

These infringements will be considered as serious infringements and will be punishable by a 15% proportional pecuniary fine on the amount of the amounts resulting from the corrections corresponding to each operation. This penalty shall be incompatible with that which applies, where appropriate, by the application of Articles 191, 192, 193 or 195 of the General Tax Law, by the part of the bases which would have resulted in the imposition of the infringement provided for in this issue. 2. º

3. The corrections made by the tax administration in application of the provisions of this article with respect to transactions subject to this Tax, to the Income Tax of the Physical Persons or to the Tax on the Income of non-residents, who determine a lack of income, misappropriation of tax refunds or determination or accreditation of items to compensate in future declarations or the net income is incorrectly declared without result in a lack of income or return for being compensated for in a procedure In the case of checks or investigations pending amounts of compensation, the obligation of specific documentation referred to in paragraph 3 of this Article shall not constitute the commission of the infringements of Articles 191, 192, 193 or 195 of Law 58/2003, of December 17, General Tax, by the part of bases that would have given place to the referring corrections.

4. The penalties provided for in this paragraph shall be compatible with that established for the resistance, obstruction, excuse or refusal of the actions of the tax administration in Article 203 of the General Tax Law, for disattention to the requirements made.

Regarding the penalties imposed in accordance with this article will result from application of the provisions of paragraphs 1.b) and 3 of article 188 of the General Tax Law.

14. The market value for the purposes of this Tax, the Income Tax of the Physical Persons or the Income Tax of non-residents, will not produce effects with respect to other taxes, except express provision to the contrary. Also, the value for the purposes of other taxes shall not produce effects on the market value of the transactions between persons or entities related to this tax, the Income Tax of the Physical Persons or the Tax on the Income of non-residents, unless otherwise expressed.

Article 19. Changes of residence, operations carried out with or by persons or entities resident in tax havens and amounts subject to retention. Special rules.

1. The difference between the market value and the tax value of the assets which are the property of an entity resident in Spanish territory which transfers its residence outside the territory of the country is integrated into the tax base. assets are affected by a permanent establishment located in the Spanish territory of the said entity. In case of affectation to a permanent establishment, it shall be applicable to those heritage elements as provided for in Article 78 of this Law.

The payment of the tax liability resulting from the application of the provisions of the preceding paragraph, in the case of assets transferred to a Member State of the European Union or the European Economic Area with the that there is an effective exchange of tax information in the terms provided for in paragraph 4 of the Additional Provision of Law 36/2006 of 29 November, of measures for the prevention of tax fraud, will be deferred by the Tax administration at the request of the taxpayer until the date of transmission to third parties the assets affected, resulting from the application of the provisions of Law 58/2003 of 17 December, General Tax, and its implementing rules, as regards the accrual of interest for late payment and the provision of guarantees for such deferment.

2. Transactions carried out with persons or entities resident in countries or territories qualified as tax havens shall be valued at their market value.

Those who perform the operations referred to in the preceding paragraph shall be subject to the obligation of documentation referred to in Article 18.3 of this Law with the specialties that they regulate.

3. The recipient of the amounts on which this tax is to be withheld shall be calculated by the full consideration.

When the retention has not been practiced or has been less than due, for cause attributable exclusively to the retainer, the recipient will deduct from the fee the amount that should have been withheld.

In the case of legally established remuneration that would have been met by the public sector, the recipient will only be able to deduct the amounts effectively withheld.

When the full consideration cannot be proven, the tax administration may compute as an amount in full an amount that, once the withholding tax has been deducted from it, yields the effectively perceived amount. In this case, the difference between what was actually perceived and the full amount will be deducted from the fee, as a withholding tax.

4. The income to be shown as a result of the exercise of the right to rescue collective insurance contracts which implement pension commitments, as provided for in the Additional Provision of the recast Text of the Law on the Regulation of Pension Plans and Funds, approved by the Royal Legislative Decree 1/2002, of 29 November, will not be subject to the Company Tax of the holder of the economic resources that in each case corresponds, in the Assumptions:

(a) For the full or partial integration of the commitments made in the policy into another insurance contract that meets the requirements of the above First Disposition.

(b) For the integration into another collective insurance contract, of the rights that correspond to the worker under the original insurance contract in the case of termination of the employment relationship.

The assumptions set out in (a) and (b) above will not alter the nature of the premiums in respect of their tax allocation by the company, nor the calculation of the age of the premiums paid in the contract of the original insurance. However, in the case referred to in point (b) above, if the premiums were not imputed, the company may deduct them on the occasion of this mobilisation.

No income shall be subject to the income that is evidenced as a result of the participation in benefits of insurance contracts that implement pension commitments in accordance with the provisions of the Additional Provision The first of the Recast Text of the Law on the Regulation of Pension Plans and Funds, when such participation in benefits is intended to increase the benefits secured in such contracts.

5. Any positive or negative income arising from the payment of the tax debts referred to in Article 125 (2) of this Law and the tax debts referred to in Article 125 (2) shall not be included in the taxable amount. Article 73 of Law 16/1985 of 25 June of the Spanish Historical Heritage.

6. Subsidies granted to taxpayers of this tax which operate managed forestry estates in accordance with technical plans for forest management, montastic management, dasocratic plans or plans of projects will not be integrated into the tax base. afforestation approved by the competent forest administration, provided that the average production period, according to the species concerned, determined in each case by the competent forest administration, is 20 years or more.

Article 20. Effects of the accounting valuation other than tax.

When an asset or a service has a different accounting and tax valuation, the acquiring entity of that entity shall, in its taxable base, the difference between the two, as follows:

(a) Dealing with assets belonging to the working asset, in the tax period in which they are motivated by the accrual of an income or an expense.

(b) In the case of non-depreciable assets belonging to the fixed assets, in the tax period in which they are transmitted or discharged.

(c) In the case of depreciable assets which are members of the fixed assets, the depreciation method used in respect of those referred to above is applied in the tax periods to which it is based. elements, unless they are previously transmitted or lowered, in which case they shall be integrated on the occasion of the same.

(d) For services, in the tax period in which they are received, except that their amount is to be incorporated into a patrimonial element in which case it will be provided for in the preceding paragraphs.

CHAPTER IV

Exemption to remove double taxation. Securities representing the own funds of permanent institutions and institutions

Article 21. Exemption to avoid double taxation on dividends and income derived from the transmission of securities representative of the own funds of resident and non-resident entities on Spanish territory.

1. Dividends or shares in the profit of institutions shall be exempt, where the following requirements are met:

(a) that the percentage of direct or indirect participation in the capital or in the own funds of the institution is at least 5% or that the acquisition value of the holding is more than 20 million euro.

The corresponding share must be held uninterruptedly during the year preceding the day on which the profit to be distributed or, in the absence thereof, will be required to be maintained for the time necessary to complete this deadline. For the purposes of calculating the time limit, account shall also be taken of the period in which the holding has been held uninterruptedly by other entities meeting the circumstances referred to in Article 42 of the Code of Trade to be part of the the same group of companies, irrespective of the residence and the obligation to make consolidated annual accounts.

In the event that the investee entity obtains dividends, shares in profits or income derived from the transmission of securities representative of the capital or equity of entities in more than 70 percent of the their income, the application of this exemption in respect of such income shall require the taxpayer to have an indirect participation in those entities which meets the requirements set out in this letter. The percentage of revenue shall be calculated on the consolidated profit or loss of the financial year in the event that the directly involved entity is the parent of a group in accordance with the criteria laid down in Article 42 of the Trade Code; and formulate consolidated annual accounts. However, indirect participation in subsidiaries of a second or subsequent level must comply with the minimum percentage of 5%, unless such subsidiaries meet the circumstances referred to in Article 42 of the Trade Code to form a part of the same group of companies with the entity directly involved and formulating consolidated accounting statements.

The requirement laid down in the preceding paragraph shall not apply where the taxpayer proves that the dividends or shares in profits received have been integrated into the taxable amount of the direct entity or indirectly involved as dividends, shares in profits or income arising from the transfer of securities representing the capital or the own funds of institutions without being entitled to the application of an exemption or exemption scheme Double taxation deduction.

(b) In the case of shares in the capital or in the own funds of non-resident entities in Spanish territory, in addition, the participating entity has been subject and not exempted by a foreign tax of a nature identical or similar to that tax at a nominal rate of at least 10% in the year in which the profits to be distributed or in which the profits are received have been obtained, irrespective of the application of any kind of exemption, bonus, reduction or deduction on those.

For these purposes, account shall be taken of foreign taxes which have been used to impose the income obtained by the participating entity, regardless of whether the purpose of the tax is to be income, the income or any other item of income of that income.

This requirement shall be deemed to be met, where the participating entity is resident in a country with which Spain has an agreement to avoid international double taxation, which is applicable to it and contains a clause information exchange.

On the assumption that the non-resident participating entity obtains dividends, shares in profit or income arising from the transfer of securities representative of the capital or equity of institutions, the application of this exemption in respect of such income shall require that the requirement provided for in this subparagraph be met, at least, in the entity indirectly involved.

On the assumption that the participating entity, resident or non-resident in Spanish territory, obtains dividends, shares in profits or income derived from the transmission of securities representative of the capital or funds own entities from two or more entities in respect of which only in some or some of them the requirements referred to in points (a) or (a) and (b) above are fulfilled, the application of the exemption shall cover that part of the dividends or shares in profits received by the taxpayer in respect of entities in the the above requirements are met.

The exemption provided for in this paragraph shall not apply, in respect of the amount of those dividends or benefit units whose distribution generates a tax deductible expense on the paying entity.

For the application of this article, in the case of distribution of reserves, the designation contained in the social agreement will be considered and, failing that, the last amounts paid to these reserves will be considered to be applied.

2. 1. The consideration of dividends or shares in profits, derivatives of securities representative of the capital or of the own funds of institutions, irrespective of their accounting consideration.

2. The consideration of dividends or shares in exempt profits shall be granted to remuneration corresponding to participative loans granted by entities that are part of the same group of companies according to the criteria established in Article 42 of the Trade Code, regardless of residence and the obligation to make consolidated annual accounts, unless they generate a tax expense deductible on the paying entity.

3. The exemption provided for in paragraph 1 of this Article shall not apply in respect of dividends or participations in received profits the amount of which is to be the subject of delivery to another entity on the occasion of a contract to be viewed on the values of which those proceed, recording an expense to the effect.

The entity receiving that amount pursuant to the said contract may apply the exemption provided for in paragraph 1 to the extent that the following requirements are met:

a) That you keep the accounting record of those values.

b) To prove that the dividend has been perceived by the other contracting entity or an entity belonging to the same group of companies of either entity, in the terms set out in Article 42 of the Trade.

c) That the conditions set out in the previous section for the application of the exemption are met.

3. The positive income obtained in the transmission of the holding in an institution shall be exempt, where the requirements laid down in paragraph 1 of this Article are met. The same scheme shall apply to the income obtained in the entity's liquidation assumptions, separation of the partner, merger, total or partial division, reduction of capital, non-cash contribution or global transfer of assets and liabilities.

The requirement referred to in paragraph 1 (a) of this Article shall be met on the day on which the transmission occurs. The requirement laid down in paragraph 1 (b) shall be fulfilled in each and every exercise of holding the holding.

However, in the event that the requirement provided for in paragraph 1 (b) is not met in some or some of the holding exercises, the exemption provided for in this paragraph shall be applied in accordance with the following rules:

(a) In respect of that part of the income that corresponds to a net increase of undistributed profits generated by the participating entity during the holding time of the holding, that portion shall be deemed to be exempt. party corresponding to the profits generated in those financial years in which the requirement laid down in paragraph 1 (b) is met.

(b) In respect of that part of the income that does not correspond to a net increase of undistributed profits generated by the participating entity during the holding time of the holding, the same shall be understood to be generated in a linear manner, unless otherwise proved, during the holding time of the holding, where the proportion of the holding in the exercises in which the requirement laid down in the financial year has been met is considered to be exempt. point (b) of paragraph 1.

In the case of a transfer of the holding in the capital or in the own funds of a resident or non-resident entity in Spanish territory which, in turn, will participate in two or more entities in respect of which only one or more some of them are met with the requirements laid down in points (a) or (b) of paragraph 1, the exemption provided for in this paragraph shall apply in accordance with the following rules:

1. The percentage of that part of the income that corresponds to a net increase of undistributed profits generated by the entities indirectly involved during the holding time of the holding, it shall be exempt from that part of the income corresponding to the profits generated by the entities in which the requirement laid down in paragraph 1 (b) is met.

2. The percentage of that part of the income that does not correspond to a net increase of undistributed profits generated by the entities indirectly involved during the holding time of the holding, it shall be deemed to be exempt from the proportion which is proportionally attributable to the entities in which the requirement laid down in paragraph 1 (b) has been met.

The part of the income that is not entitled to the exemption in the terms mentioned in this paragraph will be integrated into the tax base, having the right to the deduction set out in Article 31 of this Law, in the event of its application, provided that the necessary requirements are met. However, for the purposes of paragraph 1 (a) of that Article, the amount of the amount paid shall be taken exclusively for the purposes of taxation of an identical nature or similar to that of the tax. part of the proportion of the income which is not entitled to the exemption for those financial years or entities in respect of which the requirement laid down in point (b) of paragraph 1 of this Article has not been met; in relation to the total income obtained in the transmission of the participation.

4. In the following cases, the application of the exemption provided for in the preceding paragraph shall have the following specialties:

(a) Where the participation in the entity has been valued in accordance with the rules of the special regime of Chapter VII of Title VII of this Law and the application of those rules, even in an earlier transmission, there would be determined the non-integration of income in the tax base of this Tax, the Income Tax of the Physical Persons or the Income Tax of non-residents, derived from:

1. The transmission of participation in an entity that does not meet the requirement of point (a) or, in whole or in part at least in any financial year, the requirement referred to in point (b) of paragraph 1 of this Article.

2. The non-cash contribution of other assets other than the equity or equity holdings of entities.

In this case, the exemption will only apply to the income corresponding to the positive difference between the transmission value of the holding in the entity and the market value of the entity at the time of its acquisition. by the transmitting entity, in accordance with the terms set out in paragraph 3. On the same terms, the deferred income will be integrated into the taxable base of the period during the operation received under Chapter VII of Title VII of this Law, in the event of partial application of the exemption provided for in the previous paragraph.

(b) In the case of successive transmissions of homogeneous values, the exemption shall be limited to the excess over the amount of net negative income obtained in previous transmissions which have been the subject of integration at the base taxable.

5. The exemption provided for in paragraph 3 of this Article shall not apply:

(a) To that part of the income derived from the transmission of the direct or indirect participation in an entity which has the consideration of a patrimonial entity within the terms laid down in Article 5 (2) this Act, which does not correspond to an increase in non-distributed profits generated by the participating entity during the holding time of the holding.

(b) To that part of the income derived from the transmission of the participation in a grouping of Spanish or European economic interest, which does not correspond to an increase in non-distributed profits generated by the entity participated during the time of holding the participation.

(c) To income arising from the transmission of direct or indirect participation in an entity which meets the requirements laid down in Article 100 of this Law, provided that at least 15% of its income is subject to the international tax transparency regime governed by that Article.

Where the circumstances referred to in points (a) or (c) of this paragraph are met only in some or some of the tax periods of holding of the holding, the exemption shall not apply in respect of that part of the the income referred to in those letters in proportion to those tax periods.

The provisions of this paragraph shall also apply in the case of the liquidation of the institution, separation of the partner, merger, total or partial division, reduction of capital, non-cash contribution or global transfer of asset and liability.

6. If a negative income is obtained in the transmission of the holding in an entity which has been previously transmitted by another entity which meets the circumstances referred to in Article 42 of the Trade Code to be part of a the same group of companies with the taxpayer, irrespective of the residence and the obligation to make consolidated annual accounts, such negative income shall be reduced by the amount of the positive income obtained in the preceding transmission and the exemption regime would have been applied.

7. The amount of negative income arising from the transmission of the holding in an institution shall be reduced by the amount of the dividends or shares in profits received from the participating entity from the tax period initiated in 2009, provided that the related dividends or profit shares have not undermined the acquisition value and that they have been entitled to the application of the exemption provided for in paragraph 1 of this Article.

In the case of successive transmissions of homogeneous values, the amount of negative income shall be further reduced by the amount of net positive income obtained in previous transmissions which have been the right to apply the exemption provided for in this Article.

8. The exemption provided for in this Article shall not apply:

(a) To the income distributed by the public nature regulation fund of the mortgage market.

(b) To income obtained by Spanish and European economic interest groups, and by temporary joint ventures, when, at least one of its partners, has the status of a natural person.

(c) To foreign source income that the entity integrates in its tax base and in relation to which it chooses to apply, if applicable, the deduction provided for in Articles 31 or 32 of this Act.

9. In no case shall the provisions of this Article apply where the participating entity is resident in a country or territory qualified as a tax haven, except that it resides in a Member State of the European Union and the taxpayer credits its constitution and operational response to valid economic reasons and which carries out economic activities.

Article 22. Exemption from income earned abroad through a permanent establishment.

1. Positive income obtained abroad shall be exempt through a permanent establishment situated outside the Spanish territory where the latter has been subject and not exempt from a tax of a similar nature or similar to that tax. with a nominal rate of at least 10% in the terms of paragraph 1 of the previous Article.

Negative income obtained abroad shall not be included in the taxable amount through a permanent establishment, except in the case of transmission of the same or cessation of its activity.

2. Positive income derived from the transmission of a permanent establishment in respect of which the requirement of taxation is met in the terms of the previous Article shall also be exempt.

The amount of negative income arising from the transfer of a permanent establishment or cessation of its activity shall be reduced by the amount of the net positive income previously obtained which has been entitled to the exemption provided for in this Article or the double taxation deduction provided for in Article 31 of this Act, from the same.

3. An entity shall be deemed to be operating by a permanent establishment abroad where, by any title, it has, on a continuous or regular basis, outside the Spanish territory, facilities or workplaces in which it carries out all or part of its activity, or acts in it by means of an agent authorized to hire, in the name and on behalf of the taxpayer, to exercise such powers with habituality. In particular, it shall be understood as permanent establishment of the headquarters, branches, offices, factories, workshops, warehouses, shops or other establishments, mines, oil or gas wells, quarries, agricultural, forestry or livestock holdings or any other place of exploration or extraction of natural resources, and construction, installation or assembly works for which the duration exceeds 6 months. If the permanent establishment is located in a country with which Spain has an agreement to avoid double international taxation, which will be applicable to it, it will be as far as it is.

4. A taxpayer shall be deemed to operate through different permanent establishments in a given country, where the following circumstances are present:

a) That they perform clearly differentiable activities.

b) The management of these is carried out separately.

5. Income from a permanent establishment shall be considered to be those which it would have been able to obtain if it were a separate and independent entity, taking into account the functions developed, the assets used and the risks incurred by the entity through the permanent establishment.

For these purposes, the income estimated by internal transactions with the institution itself shall be taken into account in those cases in which it is established in an agreement to avoid international double taxation resulting from the application.

6. The arrangements provided for in this Article shall not apply where the circumstances provided for in paragraph 8 of the preceding Article are given in respect of income obtained abroad. The option referred to in point (c) of that paragraph shall be exercised for each permanent establishment outside the Spanish territory, even if there are several in the territory of a single country.

7. In no case shall the provisions of this Article apply where the permanent establishment is situated in a country or territory qualified as a tax haven, except in the case of a Member State of the European Union and the taxpayer that its constitution and operation are valid for economic reasons and that it carries out economic activities.

CHAPTER V

Reductions in the tax base

Article 23. Reduction of income from certain intangible assets.

1. Income from the transfer of the right of use or exploitation of patents, drawings or models, plans, formulas or secret procedures, of rights on information relating to industrial, commercial or scientific experience, integrate into the tax base by 40% of their amount, where the following requirements are met:

(a) The transferor has created the assets to be transferred at least 25 percent of its cost.

b) That the transferee uses the rights of use or exploitation in the development of an economic activity and that the results of that use do not materialise in the delivery of goods or services by the transferee that generates tax deductible expenses in the transferor, provided that in the latter case, that entity is linked to the transferee.

(c) That the transferee is not resident in a country or territory of no taxation or qualified as a tax haven, unless it is situated in a Member State of the European Union and the taxpayer is credited with responding to the valid economic reasons and to carry out economic activities.

(d) Where the same transfer contract includes ancillary services, the consideration for such services shall be differentiated in that contract.

e) that the entity has the necessary accounting records in order to be able to determine the direct revenue and expenditure for the assets that are transferred.

The provisions of this paragraph shall also apply in the case of transmission of intangible assets referred to therein, where such transmission is carried out between entities which are not part of a group of companies in accordance with the criteria laid down in Article 42 of the Trade Code, irrespective of residence and the obligation to make consolidated annual accounts.

2. In the case of the transfer of intangible assets, for the purposes of the preceding paragraph, irrespective of whether the asset is recognised in the institution's balance sheet, income shall be understood as the positive difference between the income of the institution. exercise of the right of use or exploitation of the assets, and the amounts deducted therein by application of Articles 12.2 or 13.3 of this Law, if any, and by those expenses of the financial year directly related to the given asset.

3. This reduction shall be taken into account for the purposes of determining the amount of the full quota referred to in Article 31.1.b) of this Act.

4. In no case shall the income from the transfer of the right of use or exploitation, or the transfer, of trade marks, literary, artistic or scientific works, including cinematographic films, of rights be reduced. personal property which may be transferred, such as image rights, software, industrial, commercial or scientific equipment, or any other right or asset other than those referred to in paragraph 1.

5. For the purposes of applying this reduction, the taxpayer may, prior to the performance of the operations, request the tax administration to adopt a prior assessment agreement with regard to the revenue from the the disposal of the assets and the associated costs, as well as the income generated by the transfer. Such an application shall be accompanied by a valuation proposal, which shall be based on the market value.

The proposal may be deemed to be rejected after the deadline has elapsed.

The procedure for the resolution of the prior assessment agreements referred to in this paragraph shall be fixed.

6. Also, prior to the conduct of the operations, the taxpayer may ask the tax administration for a prior agreement of qualification of the assets as belonging to one of the categories referred to in the paragraph 1 of this Article, and valuation in relation to income from the disposal of those and associated expenses, as well as from the income generated in the transmission. Such an application shall be accompanied by a valuation proposal, which shall be based on the market value.

The proposal may be deemed to be rejected after the deadline has elapsed.

The resolution of this agreement will require a binding report issued by the General Tax Directorate in relation to the rating of the assets. In the event of a request, the General Tax Directorate may request non-binding opinion from the Ministry of Economy and Competitiveness.

The procedure for the resolution of the prior qualification and assessment agreements referred to in this paragraph shall be established.

Article 24. Benefit-social work of savings banks and bank foundations.

1. The amounts that savings banks and bank foundations will allocate from their results to the financing of social-welfare works, in accordance with the rules for which they are governed, will be tax deductible.

2. The amounts allocated to the benefit-social work of the savings banks and the banking foundations shall be at least 50%, in the same tax period to which the allocation corresponds, or in the immediate following, to the the implementation of the investments concerned, or to cover the costs of supporting the institutions or establishments covered by the investment.

3. They will not be integrated into the tax base:

(a) The maintenance costs of the benefit-social work carried out by the social fund, even if they exceed the allocations made, without prejudice to the consideration of future implementation assignments. However, such expenses shall be fiscally deductible when, in accordance with the applicable accounting rules, they are registered with the profit and loss account.

b) The income derived from the transmission of investments affected by the work-social work.

4. The allocation to the benefit-social work carried out by the banking foundations or, where appropriate, the maintenance costs of the benefit-social work which, in accordance with the applicable accounting rules, are recorded by the account of the losses and gains, may reduce the tax base of the credit institutions in which they participate, in the proportion that the dividends received from the institutions concerned represent the total income of the banking foundations, up to the ceiling of the above dividends. To this end, the banking foundation must inform the credit institution that it has paid the dividends the amount of the reduction calculated and the non-application of that amount as a fiscally deductible item in its declaration of this Tax.

In the case of non-application of the amount indicated for the purposes of its work-social, the banking foundation must communicate the non-compliance of the said purpose to the credit institution, in order to regulate the amounts unduly deducted in the terms set out in Article 125.3 of this Act.

Article 25. Capitalization reserve.

1. Taxpayers who are taxed at the rate provided for in Article 29 (1) or (6) of this Law shall be entitled to a reduction in the tax base of 10% of the amount of the increase in their own funds, provided that meet the following requirements:

(a) that the amount of the increase in the institution's own funds is maintained for a period of 5 years from the close of the tax period to which this reduction corresponds, except for the existence of accounting losses in the entity.

(b) A reserve shall be provided for the amount of the reduction, which shall be on the balance sheet with absolute separation and appropriate title and shall be unavailable for the period laid down in the preceding subparagraph.

For these purposes, it will not be understood that this reservation has been made, in the following cases:

a) When the shareholder or shareholder exercises its right to separate from the entity.

b) When the reservation is eliminated, in whole or in part, as a result of operations to which the special tax regime established in Chapter VII of Title VII of this Law applies.

(c) Where the institution is required to apply the reserve under a legal obligation.

In no case, the right to the reduction provided for in this paragraph may exceed the amount of 10% of the positive tax base of the tax period prior to this reduction, to the integration referred to in the Article 11 (12) of this Law and the compensation of negative taxable bases.

However, in the event of insufficient tax base to apply the reduction, the amounts outstanding may be applied in the tax periods ending in the immediate and successive 2 years at the end of the the tax period in which the right to a reduction has been generated, together with the reduction which may be applicable, where appropriate, by application of the provisions of this Article in the corresponding tax period, and with the limit laid down in the preceding paragraph.

2. The increase in own funds shall be determined by the positive difference between the own funds existing at the end of the financial year without including the results of the financial year, and the own funds existing at the start of the financial year, without including results from the previous year.

However, for the purposes of determining the increase, they shall not be taken into account as own funds at the beginning and end of the tax period:

a) The contributions of the partners.

(b) Capital increases or own funds for credit clearing.

(c) Extensions of own funds for operations with own or restructuring operations.

d) Legal or statutory reservations.

e) Unavailable reserves that are provided pursuant to the provisions of Article 105 of this Law and in Article 27 of Law 19/1994, of July 6, of modification of the Economic and Fiscal Regime of the Canary Islands.

(f) Own funds corresponding to an issue of compound financial instruments.

g) Own funds that correspond to changes in deferred tax assets arising from a decrease or increase in the tax rate of this Tax.

These items will also not be taken into account to determine the maintenance of the increase in own funds for each tax period in which it is payable.

3. The reduction corresponding to the reserve provided for in this Article shall be incompatible in the same tax period with the reduction in the taxable amount as a factor of exhaustion provided for in Articles 91 and 95 of this Law.

4. Failure to comply with the requirements laid down in this Article shall give rise to the regularisation of the amounts unduly reduced and the interest on late payment in accordance with the terms laid down in Article 125.3 of the Law.

Article 26. Compensation of negative taxable bases.

1. Negative taxable bases which have been the subject of liquidation or self-settlement may be offset against the positive income of the following tax periods with the limit of 70% of the taxable amount prior to the application of the Reserve of capitalisation as set out in Article 25 of this Law and its compensation.

In any case, negative taxable bases may be compensated in the tax period up to the amount of EUR 1 million.

The limitation to the compensation of negative taxable bases will not result from application in the amount of the income corresponding to the reduction or expectations as a result of an agreement with the creditors of the taxpayer. The negative taxable bases which are the subject of compensation with such income shall not be taken into account in respect of the amount of EUR 1 million referred to in the preceding paragraph.

The limit provided for in this paragraph shall not apply in the tax period in which the institution's extinction occurs, unless it is the result of a restructuring operation to which the institution is applying. special tax regime established in Chapter VII of Title VII of this Law.

2. If the tax period is shorter than the year, the negative tax bases which may be the subject of compensation in the tax period, in the terms laid down in the second subparagraph of the preceding paragraph, shall be the result of EUR 1 million to be multiplied by the ratio between the duration of the tax period for the year.

3. The limit laid down in the first subparagraph of paragraph 1 of this Article shall not apply in the case of newly created entities referred to in Article 29.1 of this Law, in the first 3 tax periods in which a positive tax base prior to their compensation.

4. Negative tax bases shall not be eligible for compensation when the following circumstances are met:

(a) The majority of the share capital or the rights to participate in the results of the entity that has been acquired by a person or entity or by a set of related persons or entities, after the conclusion of the tax period to which the negative tax base corresponds.

(b) The persons or entities referred to in the preceding paragraph would have had a share of less than 25% at the time of the conclusion of the tax period to which the negative tax base corresponds.

c) The acquired entity is in any of the following circumstances:

1. No. You do not come performing any economic activity within the 3 months prior to the acquisition;

2. º. It will carry out an economic activity in the 2 years after the acquisition other than or in addition to the one previously carried out, which will determine, in itself, a net amount of the turnover in those subsequent years. more than 50% of the average amount of the business figure of the entity corresponding to the previous 2 years. A different or additional activity shall be understood to mean that which has a different group assigned to it previously, in the National Classification of Economic Activities.

3. This is a patrimonial entity in the terms set out in Article 5 (2) of this Law.

4. The entity has been discharged from the index of entities by application of the provisions of Article 119 (1) (b) of this Law.

5. The right of the Administration to verify or investigate the negative taxable bases pending compensation shall be prescribed at 10 years from the day following the day on which the time limit laid down for the submission of the declaration is completed or self-settlement for the tax period in which the right to compensation was generated.

After that period, the taxpayer must prove that the negative tax bases the compensation of which is intended to be paid out, as well as the amount thereof, by the display of liquidation or self-settlement and the accounting, with accreditation of its deposit during the said term in the Mercantile Register.

TITLE V

Tax period and tax accrual

Article 27. Tax period.

1. The tax period shall coincide with the financial year of the institution.

2. In any case, the tax period will end:

a) When the entity is exting.

(b) Where a change of residence of the resident entity is taking place in Spanish territory abroad.

(c) When the transformation of the entity's legal form occurs and this determines the non-attachment to this Tax of the resulting entity.

In order to determine the tax base corresponding to this tax period, the entity shall be deemed to have been dissolved with the effects set out in Article 17.5 of this Act.

(d) Where the transformation of the entity's corporate form is produced, or the modification of its status or legal status, and it determines the modification of its tax rate or the application of a tax system different.

The income derived from the subsequent transmission of the existing assets at the time of the transformation or modification, shall be understood to be generated in a linear manner, unless otherwise proved, throughout the period of holding of the transmitted element. The part of such income generated up to the time of the conversion or modification shall be taxed at the rate of the levy and the tax system which would have been the entity having retained its original form, status or scheme.

3. The tax period shall not exceed 12 months.

Article 28. Tax accrual.

The tax will become due on the last day of the tax period.

TITLE VI

Tax Debt

CHAPTER I

Type of charge and full quota

Article 29. The type of lien.

1. The general tax rate for taxpayers of this tax will be 25 percent.

However, newly created entities carrying out economic activities will be taxed, in the first tax period in which the tax base is positive and in the next, at the rate of 15%, except if, according to As provided for in this article, they must be taxed at a lower rate.

For these purposes, an economic activity is not initiated:

(a) Where economic activity has been carried out on a prior basis by other persons or entities related within the meaning of Article 18 of this Law and transmitted, by any legal title, to the new entity creation.

(b) Where economic activity has been exercised, during the year preceding the institution's constitution, by a natural person holding a direct or indirect holding in the capital or in the own funds of the institution. new creation entity greater than 50 percent.

They will not have the consideration of newly created entities that are part of a group in the terms set out in Article 42 of the Trade Code, regardless of residence and the obligation to formulate consolidated annual accounts.

The 15 percent rate provided for in this paragraph shall not apply to those entities that have the consideration of an equity entity, in accordance with the terms set out in Article 5 (2) of this Article. Law.

2. Tax-protected cooperative societies shall be taxed at 20%, except as regards extracooperative results, which shall be taxed at the general rate.

Credit unions and rural boxes will be taxed at the general rate, except for the extra-operating results, which will be taxed at the rate of 30 percent.

3. The entities to which the tax regime established in Law 49/2002, of December 23, of the tax regime of the non-profit entities and of the tax incentives to patronage, shall be taxed at 10 percent.

4. They will be taxed at the rate of 1 percent:

(a) The variable capital investment companies regulated by Law 35/2003 of 4 November of the Collective Investment Institutions, provided that the number of shareholders required is at least that provided for in their article. 9.4.

(b) The investment funds of a financial nature provided for in that Law, provided that the number of members required is at least that provided for in Article 5.4.

(c) Real estate investment companies and real estate investment funds regulated in that Act, other than those provided for in point (d) below, provided that the number of shareholders or members required is, as Article 4 (4) of that Law provides that, with the character of non-financial collective investment institutions, the investment in any type of immovable property of an urban nature for the purposes of the law is exclusive. lease.

The application of the tax rates provided for in this paragraph shall require that the immovable property which is the asset of the Collective Investment Institutions referred to in the preceding paragraph shall not be used until the at least 3 years have elapsed since its acquisition, except where, exceptionally, it mediates the express authorisation of the National Securities Market Commission.

The transfer of such buildings before the minimum period referred to in point (c) shall determine that the income derived from such transfer shall be taxed at the general rate of charge of the tax. In addition, the entity shall be required to enter, together with the fee for the period in which the goods were transmitted, the amounts resulting from the application of the income corresponding to the property in each of the periods (c) the difference between the general rate of taxation in force in each period and the rate of 1%, without prejudice to the interest on late payment, surcharges, in respect of which the tax rate is applicable and penalties which, where appropriate, are derived.

(d) Real estate investment companies and real estate investment funds regulated in the Collective Investment Institutions Act which, in addition to meeting the requirements set out in point (c), develop the activity of exclusively promotion of housing for the purpose of leasing them and fulfilling the following conditions:

1. Investments in real estate affected by property promotion activity may not exceed 20 percent of the total assets of the company or real estate investment fund.

2. The activity of property promotion and the leasing activity shall be the subject of separate accounting for each property acquired or promoted, with the breakdown that is necessary to know the income corresponding to Each housing, local or farm is independent in that they are divided, without prejudice to the calculation of investments in the total assets for the purposes of the percentage provided for in point (c).

3. The real estate derived from the promotion activity must remain leased or offered on lease by the company or real estate investment fund for a minimum period of 7 years. This period shall be computed from the date of completion of the construction. For these purposes, the completion of the construction of the building shall be established by means of the final certificate of work referred to in Article 6 of Law 38/1999 of 5 November of Ordination of the Building.

The transmission of such buildings before the minimum period referred to in point (d) or (c) above, as appropriate, shall determine that the income derived from such transmission shall be taxed at the general rate of taxation of the tax. In addition, the entity shall be required to enter, together with the fee for the period in which the goods were transmitted, the amounts resulting from the application of the income corresponding to the property in each of the periods (d) the difference between the general rate of charge in force for each period and the rate of 1%, without prejudice to the interest on late payment, surcharges and charges, and the rate of the amount of the penalties which, where appropriate, are provided.

Real estate investment companies or real estate investment funds that develop the housing promotion activity for their lease will be required to communicate that circumstance to the Administration. tax in the tax period in which the activity is initiated.

e) The mortgage market regulation fund, as set out in Article 25 of Law 2/1981 of 25 March, on the regulation of the mortgage market.

5. The pension funds regulated in the recast of the Law on the Regulation of Pension Plans and Funds, approved by the Royal Legislative Decree 1/2002 of 29 November

will be taxed at the rate of zero percent.

6. Credit institutions will be taxed at the rate of 30 percent, as well as entities that are engaged in the exploration, research, and exploitation of oil deposits and reservoirs in the terms established in the Law 34/1998 of 7 October of the hydrocarbon sector.

The activities relating to the refining and any other activities other than those of exploration, research, exploitation, transport, storage, purification and sale of extracted hydrocarbons, or of the storage activity Underground hydrocarbons owned by third parties shall be subject to the general rate of charge.

Entities that exclusively develop the hydrocarbon storage activity owned by third parties will not be applicable to the special regime established in Chapter IX of Title VII of this Law and will be taxed. at the rate of 25 percent.

7. They shall be taxed at the rate of excise duty resulting from the provisions of Article 43 of Law 19/1994 of 6 July 1994 amending the Economic and Fiscal Regime of the Canary Islands, the entities of the Special Area of the Canary Islands, on the basis of the basic the taxable amount corresponding to the operations carried out effectively and materially in the geographical area of the Special Area of the Canary Islands.

Article 30. Full quota.

Full quota is the amount resulting from applying to the tax base the rate of charge.

In the case of entities applying the provisions of Article 105 of this Law, the full quota will be determined by the result of applying the tax rate to the taxable or increased tax base, as appropriate, for the quantities referred to in Article 105.

CHAPTER II

Deductions to avoid international double taxation

Article 31. Deduction to avoid double taxation: tax borne by the taxpayer.

1. Where income obtained and taxed abroad is included in the taxable amount of the taxpayer, the amount shall be deducted from the total of the following two quantities:

(a) The effective amount of the foreign satisfaction by reason of a charge of a nature identical or analogous to this Tax.

Non-paid taxes will not be deducted under exemption, bonus or any other tax benefit.

A convention being applied to avoid double taxation, the deduction may not exceed the tax that corresponds to that tax.

(b) The amount of the full quota that Spain would have to pay for the above income if it had been obtained in Spanish territory.

2. The amount of tax paid abroad shall be included in the income for the purposes set out in the preceding paragraph and shall also form part of the tax base, even if it is not fully deductible.

It will have the consideration of deductible expense that part of the amount of tax satisfied abroad that is not the object of deduction in the full quota for the application of the indicated in the previous section, provided that corresponds to the performance of economic activities abroad.

3. Where the taxpayer has obtained a number of foreign income in the tax period, the deduction shall be made by grouping those from the same country other than the income of permanent establishments, which shall be calculated in isolation for each one of these.

4. The determination of the income obtained abroad through a permanent establishment shall be made in accordance with the provisions of Article 22 (5) of this Law.

Negative income obtained abroad shall not be included in the taxable amount through a permanent establishment, except in the case of transmission of the permanent establishment or cessation of its activity.

In the case of permanent establishments that have obtained negative income tax periods that have not been integrated into the entity's tax base in previous tax periods, the positive income obtained by after the amount of those.

5. In the case of negative income arising from the transfer of a permanent establishment, the amount of the income shall be reduced by the amount of net positive income previously obtained which has been eligible for the exemption provided for in Article 22. of this Act or the double taxation deduction provided for in this Article, from the same.

6. The amounts not deducted for full quota insufficiency may be deducted in the following tax periods.

7. The right of the Administration to check the double taxation deductions to be applied shall be prescribed at 10 years from the day following the day on which the time limit set for the submission of the declaration is completed or self-settlement for the tax period in which the right to its application was generated.

After that period, the taxpayer must prove that the deductions the application of which he claims are derived, as well as the amount thereof, by the display of liquidation or self-settlement and accounting, with accreditation of your deposit during the said term in the Mercantile Register.

Article 32. Deduction to avoid double international economic taxation: dividends and profit shares.

1. Where dividends or shares in profits paid by a non-resident entity in Spanish territory are computed in the tax base, the tax actually paid by the latter in respect of the profits from which it is paid shall be deducted. dividends are paid, in the corresponding amount of such dividends, provided that the amount is included in the taxable amount of the taxpayer. Compliance with the following requirements will be required for the application of this deduction:

(a) that the direct or indirect participation in the capital of the non-resident entity is at least 5%, or that the acquisition value of the holding is more than EUR 20 million.

(b) that the holding was held uninterruptedly during the year preceding the day on which the profit to be distributed or, failing that, to be maintained for as long as it is necessary to complete is payable; one year. For the purposes of calculating the time limit, account shall also be taken of the period in which the holding has been held uninterruptedly by other entities meeting the circumstances referred to in Article 42 of the Code of Trade to be part of the the same group of companies, irrespective of the residence and the obligation to make consolidated annual accounts.

In the case of distribution of reserves, the designation contained in the social agreement shall be considered and, failing that, the last amounts paid to those reserves shall be considered to be applied.

2. 1. The consideration of dividends or shares in profits, derivatives of securities representative of the capital or of the own funds of institutions, irrespective of their accounting consideration.

2. The deduction provided for in paragraph 1 of this Article shall not apply in respect of dividends or shares in received profits the amount of which is to be delivered to another entity on the occasion of a contract to be seen on the values of which those come, recording an expense to the effect. The institution receiving that amount may apply the deduction referred to in paragraph 1 to the extent that it retains the accounting record of those securities and meets the conditions set out in the previous paragraph.

3. It will also have the tax consideration actually paid for the tax paid by the entities directly involved in the company that distributes the dividend and for which, in turn, they are directly engaged by those entities, and thus successively, in the part attributable to the profits from which the dividends are paid, provided that the indirect participation in those entities is at least 5% and the requirement referred to in the previous paragraph is met with respect to the time of holding the participation.

4. This deduction, in conjunction with the one set out in the previous article in respect of dividends or shares in profits, may not exceed the full quota which would be payable in Spain for such income if it had been obtained in Spanish territory.

The excess over such limit shall not be considered for tax deductible expenditure, without prejudice to the provisions of Article 31 (2) of this Law.

5. The amounts not deducted for full quota insufficiency may be deducted in the following tax periods.

6. If a negative income is obtained in the transmission of the holding in an entity which has been previously transmitted by another entity which meets the circumstances referred to in Article 42 of the Trade Code to be part of a the same group of companies with the taxpayer, irrespective of the residence and the obligation to make consolidated annual accounts, such negative income shall be reduced by the amount of the positive income obtained in the preceding transmission and the exemption regime would have been applied.

7. The amount of negative income arising from the transmission of the holding in a non-resident entity shall be reduced by the amount of the dividends or shares in profits received from the participating entity from the tax period. which has been initiated in 2009, provided that those dividends or shares in profits have not undermined the acquisition value of the same and have been entitled to the application of the exemption provided for in Article 21 of this Law or to the deduction provided for in this article.

In the case of successive transmissions of homogeneous values, the amount of negative income shall be further reduced by the amount of net positive income obtained from previous transmissions which have been entitled to the application of the exemption provided for in Article 21 of this Law.

8. The right of the Administration to check the double taxation deductions to be applied shall be prescribed at 10 years from the day following the day on which the time limit set for the submission of the declaration is completed or self-settlement for the tax period in which the right to its application was generated.

After that period, the taxpayer must prove that the deductions the application of which he claims are derived, as well as the amount thereof, by the display of liquidation or self-settlement and accounting, with accreditation of your deposit during the said term in the Mercantile Register.

CHAPTER III

Bonuses

Article 33. Bonus for rent obtained in Ceuta or Melilla.

1. It will have a 50 percent bonus, the full share portion corresponding to the income earned in Ceuta or Melilla by entities that operate effectively and materially in those territories.

The entities referred to in the preceding paragraph shall be as follows:

(a) Spanish entities domiciled in such territories.

(b) Spanish entities domiciled in tax outside those territories and operating in them through establishment or branch.

(c) Foreign entities not resident in Spain and operating in those territories by permanent establishment.

2. Income obtained in Ceuta or Melilla shall be those corresponding to activities which determine in those territories the closure of a business cycle with economic results.

For these purposes, the provisions of the preceding paragraph shall be deemed to be fulfilled in the case of lease of buildings located in these territories.

It shall not be estimated to measure such circumstances in the case of isolated operations for the extraction, manufacture, purchase, transport, entry and exit of genera or effects in those operations and, in general, where operations are not determine on their own income.

3. For the purposes of the application of the allowance provided for in this Article, they shall be regarded as income obtained in Ceuta or Melilla from those corresponding to the entities referred to in paragraph 1 of this Article, which they hold, as minimum, a fixed place of business in those territories, up to an amount of 50,000 euros per person employed with a labor contract and full time to carry out his duties in Ceuta or Melilla, with a total ceiling of 400,000 euros. In the event of income exceeding the above amount, the application of the bonus provided for in this Article shall require the accreditation of the closure in Ceuta or Melilla of a business cycle which determines economic performance. The amounts referred to in this paragraph shall be determined at the level of the group of companies, in the case of entities forming part of it in accordance with the criteria laid down in Article 42 of the Trade Code, irrespective of the residence and the obligation to draw up consolidated annual accounts.

Also, the income from wholesale trade shall be understood in Ceuta or Melilla when this activity is organized, directed, contracted and invoiced through a fixed place of business located in those territories. count on them with the necessary material and personal means to do so.

4. Exceptionally, for the determination of the income attributable to Ceuta or Melilla, obtained by fishing entities, the following percentages shall be allocated:

a) 20 percent of the total income to the territory in which the headquarters of the effective address is located.

(b) 40% of the total income shall be distributed in proportion to the volume of landings of catches in Ceuta or Melilla.

Exports will be imputed to the territory in which it radiuses the headquarters of effective management.

(c) The remaining 40 percent of the total income, in proportion to the book value of vessels as registered in Ceuta or Melilla and in different territories.

The percentage provided for in point (c) shall apply only where the entity concerned has the headquarters of effective management in Ceuta or Melilla. In another case, the percentage shall be greater than that of point (b).

5. In maritime and air navigation entities, the income shall be attributed to Ceuta or Melilla according to the same criteria and percentages applicable to fishing undertakings, replacing the reference to landings of the catch by that of passages, Freight and leases there contracted.

6. The entities referred to in point (a) that have their headquarters of effective management in Ceuta or Melilla and those referred to in point (c) of paragraph 1 of this Article, which operate effectively and materially in Ceuta or Melilla for a period of time. less than 3 years, they may apply the allowance provided for in this Article for the income obtained outside those cities in the tax periods ending after the expiry of the said period when at least half of their assets are located in those areas. However, the income from the lease of immovable property located outside those territories shall be exempt from the provisions of this paragraph.

The maximum amount of rent entitled to bonus will be that of the income obtained in Ceuta or Melilla, in the terms mentioned in this article.

Article 34. Bonus for the provision of local public services.

You will have a 99% bonus for the full share of the income arising from the provision of any of the services referred to in Article 25 (2) or (1) (a), (b) and (c) of the Article 36 of Law 7/1985 of 2 April of 2 April, Regulating the Local Conditions of Employment, of the powers of local and regional local authorities, except where they are operated by the joint venture or capital system entirely private.

The allowance shall also apply where the services referred to in the preceding paragraph are provided by entities wholly dependent on the State or the Autonomous Communities.

CHAPTER IV

Deductions to incentivize the realization of certain activities

Article 35. Deduction for research and development activities and technological innovation.

1. Deduction for research and development activities.

Conducting research and development activities will entitle you to practice a deduction of the full quota, under the conditions set out in this section.

a) Concept of research and development.

A planned original inquiry will be considered to pursue the discovery of new knowledge and superior understanding in the scientific and technological field, and to develop the application of the results of the research or any other type of scientific knowledge for the manufacture of new materials or products or for the design of new processes or production systems, as well as for the substantial technological improvement of materials, products, pre-existing systems or processes.

Research and development activities will also be considered the materialization of new products or processes in a plan, scheme or design, as well as the creation of a first non-marketable prototype and the projects of initial demonstration or pilot projects, provided that they cannot be converted or used for industrial applications or for commercial exploitation.

The design and development of the sample for the launch of new products will also be considered as research activity. For these purposes, the introduction of a new product into the market and as a new product, the novelty of which is essential and not merely formal or accidental, will be understood.

Research and development activity will also be considered the creation, combination and configuration of advanced software, using new theorems and algorithms or operating systems, languages, interfaces and applications the production of new or substantially improved products, processes or services. This concept shall be treated as software intended to facilitate access to the services of the information society to persons with disabilities, when it is carried out without a profit. Routine or routine activities related to software maintenance or minor updates are not included.

b) Base of the deduction.

The basis of the deduction shall be the amount of research and development expenditure and, where appropriate, investments in items of tangible and intangible fixed assets excluding buildings and land.

Research and development expenses shall be considered as incurred by the taxpayer, including the write-downs of the goods affected by the above activities, as soon as they are directly related to those activities and they are effectively applied to the performance of these, consisting specifically of individual projects.

The basis of the deduction shall be in the amount of the grants received for the promotion of such activities and imputable as income in the tax period.

The research and development costs that form the basis of the deduction must correspond to activities carried out in Spain or in any Member State of the European Union or the European Economic Area.

They shall also have the consideration of research expenditure and development of the amounts paid for carrying out such activities in Spain or in any Member State of the European Union or the European Economic Area, on behalf of the taxpayer, individually or in collaboration with other entities.

Investments shall be understood to be realised where the assets are placed under operating conditions.

c) Deduction percentages.

1. º 25 percent of the expenses incurred in the tax period for this concept.

Where expenditure incurred in carrying out research and development activities in the tax period is greater than the average of those incurred in the preceding two years, the percentage established shall apply. in the preceding paragraph up to that average, and 42 percent over the excess over this. In addition to the deduction from the above paragraphs, an additional deduction of 17% of the amount of the staff costs of the institution concerned shall be made available to qualified researchers attached to the exclusive to research and development activities.

2. º 8% of investments in tangible and intangible fixed assets, excluding buildings and land, provided that they are exclusively affected by research and development activities.

The elements in which the investment materializes must remain in the taxpayer's assets, except for justified losses, until they meet their specific purpose in the research and development activities, except that their useful life in accordance with the method of depreciation, as provided for in Article 12 (1) (a), which applies, is lower.

2. Deduction for technological innovation activities.

The performance of technological innovation activities will entitle you to practice a deduction of the full quota under the conditions set out in this section.

a) Concept of technological innovation.

Technological innovation will be considered the activity whose result is a technological advance in the production of new products or production processes or substantial improvements of the existing ones. New products or processes whose characteristics or applications, from the technological point of view, differ substantially from those previously existing shall be considered new.

This activity will include the materialization of new products or processes in a plane, scheme or design, the creation of a first non-marketable prototype, initial demonstration projects or pilot projects, including related to animation and video games and display of textiles, footwear industry, tanning, leather goods, toys, furniture and wood, provided that they cannot be converted or used for applications industrial or for commercial exploitation.

b) Base of the deduction.

The basis of the deduction shall be the amount of the period's expenditure on technological innovation activities corresponding to the following concepts:

1. Technological diagnostic activities aimed at identifying, defining and guiding advanced technological solutions, regardless of the results in which they culminate.

2. Industrial design and engineering of production processes, which will include the design and elaboration of plans, drawings and supports to define the descriptive elements, technical specifications and characteristics necessary for the manufacture, testing, installation and use of a product, as well as the production of textile samples, the footwear industry, the tanning industry, the leather goods, the toy, the furniture and the wood.

3. Advanced technology acquisition in the form of patents, licenses, know-how and designs. The deduction of amounts paid to persons or entities linked to the taxpayer shall not be entitled to the deduction. The base corresponding to this concept shall not exceed the amount of EUR 1 million.

4. Obtaining the certificate of compliance with the quality assurance standards of the ISO 9000 series, GMP or the like, without including those costs related to the implementation of those standards.

The costs of technological innovation are considered to be incurred by the taxpayer as soon as they are directly related to these activities, effectively applied to the performance of these activities and specifically individualised by projects.

The costs of technological innovation that form the basis of the deduction must correspond to activities carried out in Spain or in any Member State of the European Union or the European Economic Area.

Similarly, the amounts paid for the performance of such activities in Spain or in any Member State of the European Union or the European Economic Area shall be considered as technological innovation expenditure, order of the taxpayer, individually or in collaboration with other entities.

The basis of the deduction shall be in the amount of the grants received for the promotion of such activities and imputable as income in the tax period.

c) Percentage of deduction.

12 percent of the expenses incurred in the tax period for this concept.

3. Exclusions.

Not to be considered research and development or technological innovation activities consisting of:

(a) Activities that do not involve a significant scientific or technological novelty. In particular, routine efforts to improve the quality of products or processes, the adaptation of an existing product or production process to the specific requirements imposed by a customer, the periodic or seasonal changes, except for textile and footwear industry, tanning, leather goods, toys, furniture and wood, as well as aesthetic or minor modifications of existing products to differentiate them from similar ones.

b) Industrial production activities and provision of services or distribution of goods and services. In particular, the planning of productive activity: the preparation and the start of production, including the setting of tools and other activities other than those described in point (b) of the previous paragraph; or modification of installations, machines, equipment and systems for production that are not affected by activities such as research and development or innovation; the solution of technical problems of disrupted production processes; quality control and the standardisation of products and processes; prospecting in (a) the establishment of networks or facilities for the marketing of social sciences and market research; training and training of personnel related to such activities.

c) The exploration, survey, or prospecting of minerals and hydrocarbons.

4. Application and interpretation of the deduction.

(a) For the application of the deduction regulated in this article, taxpayers may provide a reasoned report issued by the Ministry of Economy and Competitiveness, or by a body attached to it, regarding compliance the scientific and technological requirements required in paragraph 1 (a) of this Article to qualify the activities of the taxpayer as research and development, or in point (a) of paragraph 2, to qualify them as innovation; taking into account in both cases the provisions laid down in paragraph 3. Such a report shall be binding on the tax administration.

(b) The taxpayer may submit consultations on the interpretation and application of this deduction, the statement of which shall be binding on the tax administration, as provided for in Articles 88. and 89 of Law 58/2003, of December 17, General Tax.

For this purpose, taxpayers may provide a reasoned report issued by the Ministry of Economy and Competitiveness, or by a body attached to it, on compliance with scientific and technological requirements. referred to in paragraph 1 (a) of this Article in order to qualify the activities of the taxpayer as research and development, or in point (a) of paragraph 2, to qualify them as technological innovation, taking into account both cases the provisions of paragraph 3. Such a report shall be binding on the tax administration.

(c) Similarly, for the purposes of applying this deduction, the taxpayer may request the tax administration to adopt prior agreements for the valuation of expenditure and investments corresponding to projects of research and development or technological innovation, as provided for in Article 91 of the General Tax Law.

For this purpose, taxpayers may provide a reasoned report issued by the Ministry of Economy and Competitiveness, or by a body attached to it, on compliance with scientific and technological requirements. referred to in paragraph 1 (a) of this Article, in order to qualify the activities of the taxpayer as research and development, or in point (a) of paragraph 2, to qualify them as technological innovation, taking into account both cases (a) as set out in paragraph 3, as well as the identification of expenditure and investments which may be imputed to such activities. Such a report shall be binding on the tax administration only in relation to the rating of the activities.

5. Regulatory development.

Reglamentarily the factual assumptions that determine the application of the deductions contemplated in this precept, as well as the procedure of adoption of valuation agreements referred to in the paragraph, may be specified. previous.

Article 36. Deduction for investments in film productions, audiovisual series and live performances of performing and musical arts.

1. Investments in Spanish productions of cinematographic films and audiovisual series of fiction, animation or documentary, which will allow the production of a physical medium prior to its serial industrial production, will entitle the producer to to a deduction:

a) 20 percent from the first million basis of the deduction.

b) 18 percent over excess of that amount.

The basis of the deduction will be the total cost of the production, as well as the costs for obtaining copies and the advertising and promotion costs from the producer up to the limit for both of the 40%. percent of the cost of production.

At least 50 percent of the base of the deduction must correspond to expenses incurred in Spanish territory.

The amount of this deduction may not exceed 3 million euros.

In the case of a co-production, the amounts set out in this paragraph shall be determined for each co-producer according to their respective percentage of participation in that co-production.

For the application of the deduction set forth in this section, the following requirements will be required:

a ') That the production obtain the corresponding certificate of nationality and the certificate attesting the cultural character in relation to its content, its connection with the Spanish cultural reality or its contribution to the enrichment of the cultural diversity of the cinematographic works on display in Spain, issued by the Institute of Cinematography and the Audiovisual Arts.

b ') That a new and in perfect state of production be deposited in the Spanish Filmoteca or the filmotec officially recognized by the respective Autonomous Community, in the terms set out in Order Cul/2834/2009.

The deduction provided for in this paragraph shall be generated in each tax period for the cost of production incurred in the tax period, but shall apply from the tax period in which the production of the work ends.

However, in the case of animation productions, the deduction provided for in this paragraph shall apply from the tax period in which the certificate of nationality referred to in point (a) is obtained.

The basis for the deduction will be in the amount of the grants received to finance the investments that generate the right to deduct.

The amount of this deduction, in conjunction with the rest of the aid received by the taxpayer, will not exceed 50 percent of the cost of production.

2. Producers registered in the Register of Motion Picture Enterprises of the Ministry of Education, Culture and Sport who are responsible for the execution of a foreign production of film films or audiovisual works permitting the production of a physical medium prior to its serial industrial production shall be entitled to a deduction of 15% of the costs incurred in Spanish territory, provided that the costs incurred in Spanish territory are at least: of EUR 1 million.

The basis of the deduction will be the following expenses incurred in Spanish territory directly related to the production:

1. The expenses of creative personnel, provided that they have a tax residence in Spain or in any Member State of the European Economic Area, with the limit of 50,000 euros per person.

2. The expenses arising from the use of technical industries and other suppliers.

The amount of this deduction may not exceed EUR 2.5 million for each production performed.

The deduction provided for in this paragraph is excluded from the limit referred to in the last subparagraph of Article 39 (1) of this Law. For the purposes of calculating that limit, this deduction shall not be computed.

The amount of this deduction, in conjunction with the rest of the aid received by the taxpayer, will not exceed 50 percent of the cost of production.

3. Expenses incurred in producing and exhibiting live performances of performing arts and musicals will have a 20 percent deduction.

The basis of the deduction shall be the direct costs of artistic, technical and promotional character incurred in the activities referred to above.

The deduction generated in each tax period cannot exceed the amount of 500,000 euros per taxpayer.

For the application of this deduction, compliance with the following requirements will be required:

(a) That the taxpayer has obtained a certificate to the effect, in the terms that are established by the Ministerial Order, by the National Institute of Performing Arts and Music.

(b) That, of the profits made in the development of these activities in the year in which the right to deduction is generated, the taxpayer shall allocate at least 50% to the carrying out of activities which give rise to the right to the application of the deduction provided for in this paragraph. The time limit for the fulfilment of this obligation shall be that of the beginning of the year in which the profits were made and the 4 years following the end of the financial year.

The basis for this deduction will be in the amount of the grants received to finance the expenses that generate the right to the same. The amount of the deduction, together with the grants received by the taxpayer, shall not exceed 80% of those expenses.

Article 37. Deductions for job creation.

1. Entities that hire their first employee through an indefinite employment contract of support to entrepreneurs, as defined in Article 4 of Law 3/2012 of July 6, of urgent measures for the reform of the labor market, which is less than 30 years old, may deduct from the full quota the amount of EUR 3,000.

2. Without prejudice to the provisions of the preceding paragraph, institutions which have a staff of less than 50 workers at the time when they are engaged in working contracts for an indefinite period of support for entrepreneurs, as defined in Article 4 of this Regulation. The Law on urgent measures for labour market reform, with unemployed persons benefiting from a contributory unemployment benefit under Title III of the recast text of the General Law on Social Security, approved by the Royal Legislative Decree 1/1994, of 20 June, will be able to deduct from the quota 50 percent of the total the following amounts:

(a) The amount of the unemployment benefit that the worker has to receive at the time of employment.

(b) The amount corresponding to twelve monthly unemployment benefits that you have recognized.

This deduction will result from those contracts made in the tax period up to a workforce of 50, and provided that, in the 12 months following the start of the employment relationship, produces, in respect of each worker, an increase in the total average workforce of the institution in at least one unit compared to that in the previous 12 months.

The application of this deduction will be conditional on the contract worker having received unemployment benefit for at least 3 months before the start of the employment relationship. For these purposes, the worker shall provide the institution with a certificate from the State Employment Public Service about the amount of the benefit to be received at the intended start date of the employment relationship.

3. The deductions provided for in the preceding paragraphs shall apply to the full share of the tax period corresponding to the end of the test period of one year required in the relevant type of contract and shall be conditional upon the maintenance of this employment relationship for at least 3 years from the date of its commencement. Failure to comply with any of the requirements outlined in this article will determine the loss of the deduction, which will be regularised in the form set out in Article 125.3 of this Act.

However, the obligation to maintain employment shall not be deemed to be unfulfilled when the employment contract is extinguished, after the period of proof has elapsed, for objective reasons or disciplinary dismissal where one or the other is declared or recognised as coming, resignation, death, retirement or permanent total incapacity, absolute or great invalidity of the worker.

The contract worker who is entitled to one of the deductions provided for in this Article shall not be counted for the purpose of the increase in the template set out in Article 102 of this Act.

4. In the case of part-time contracts, the deductions provided for in this Article shall be applied in proportion to the working day agreed in the contract.

Article 38. Deduction for job creation for workers with disabilities.

1. The amount of EUR 9,000 per person/year of increase of the average number of workers with disabilities in a degree equal to or greater than 33% and less than 65%, contracted by the the taxpayer, experienced during the tax period, with respect to the average workforce of workers of the same nature as the previous immediate period.

2. It will be deductible from the full quota the amount of 12,000 euros for each person/year of increase of the average number of workers with disabilities in a degree equal to or greater than 65 percent, hired by the taxpayer, experienced during the tax period, with respect to the average workforce of workers of the same nature as the previous immediate period.

3. Contract workers who are entitled to the deduction provided for in this Article shall not be counted for the purposes of the freedom of amortisation with the creation of employment as regulated in Article 102 of this Law.

Article 39. Common rules for deductions provided for in this chapter.

1. The deductions provided for in this Chapter shall be carried out after the deductions and allowances of Chapters II and III of this Title are made.

The amounts corresponding to the tax period not deducted may be applied in the settlements of the tax periods that are concluded in the immediate and successive 15 years. However, the amounts corresponding to the deduction provided for in Article 35 of this Law may be applied in the liquidations of the tax periods concluded in the immediate and successive 18 years.

The calculation of the time limits for the application of the deductions provided for in this Chapter may be deferred until the first financial year in which, within the period of limitation, positive results occur, in the following cases:

a) In the newly created entities.

(b) In institutions that heal losses from previous years by the effective contribution of new resources, without the application or capitalization of reserves being considered as such.

The amount of the deductions provided for in this chapter, as applied in the tax period, may not exceed 25% of the total amount of the allowance for the deductions for the purposes of this Chapter. avoid international double taxation and bonuses. However, the limit shall be raised to 50% where the amount of the deduction provided for in Article 35 of this Law, corresponding to expenditure and investments effected in the tax period itself, exceeds 10% of the total quota, This is the case in the case of an international double taxation and bonuses.

2. However, in the case of entities to which the rate referred to in paragraph 1 or Article 29 (6) of this Law applies, the deductions for research and development and technological innovation activities shall be referred to in Article 35 (1) and (2) of this Law, may, optionally, be excluded from the limit laid down in the last subparagraph of the previous paragraph, and shall be applied at a discount of 20% of the amount of the set out in this section. In the case of insufficient quota, you may request your credit to the tax authorities by means of the tax return, after the end of the period referred to in point (a) below. This payment shall be governed by the provisions of Article 31 of Law 58/2003 of 17 December 2003, General Tax, and in its implementing legislation, without, in any event, the accrual of the interest for late payment referred to in paragraph 2 of This Article 31.

The amount of the deduction applied or paid, in accordance with the provisions of this paragraph, in the case of technological innovation activities may not exceed the amount of EUR 1 million per year. Furthermore, the amount of the deduction applied or paid for by the research and development and technological innovation activities, in accordance with the provisions of this paragraph, may not exceed, and for all the concepts, the 3 million Annual euro. Both limits shall apply to the whole group of companies, in the case of entities forming part of the same group in accordance with the criteria laid down in Article 42 of the Code of Commerce, irrespective of their residence and the obligation to formulate consolidated annual accounts.

For the application of the provisions in this section, compliance with the following requirements will be required:

(a) It shall be at least one year from the end of the tax period in which the deduction was generated, without the deduction being the subject of application.

(b) The average template or, alternatively, the average template attached to research and development and technological innovation activities is not reduced from the end of the tax period in which the deduction was generated. until the end of the period referred to in point (c) below.

(c) An amount equivalent to the deduction applied or paid, to research and development expenditure and technological innovation or to investments in elements of intangible fixed assets or immobilised exclusively affected by such activities, excluding buildings, within 24 months of the end of the tax period in which the relevant application or the application for payment is made.

(d) that the institution has obtained a reasoned report on the rating of the activity as a research and development or technological innovation or a prior agreement to assess the expenditure and investments corresponding to those activities; activities, in the terms set out in Article 35 (4) of this Act.

Additionally, in the event that the research and development expenses of the tax period exceed 10 percent of the net amount of the business figure of the same, the deduction provided for in Article 35 (1) of this Law generated in that tax period may be excluded from the limit set out in the last paragraph of the previous paragraph, and be applied or paid at a discount of 20% of its amount in the first declaration that is presented after the period referred to in point (a) above, up to an additional amount of 2 million euro.

Failure to comply with any of these requirements will result in the regularization of the amounts unduly applied or paid, in the form set out in Article 125.3 of this Law.

3. In the case of insufficient quota in the application of the deduction provided for in Article 36 (2) of this Law, it may be requested to be paid to the Tax Administration through the declaration of this Tax. This payment shall be governed by the provisions of Article 31 of the General Tax Law and its implementing legislation, without, in any event, the accrual of the interest for late payment referred to in paragraph 2 of that Article 31.

4. The same investment may not result in the application of more than one deduction in the same entity unless it is expressed, nor may it give rise to the application of a deduction in more than one entity.

5. The property assets affected by the deductions provided for in the preceding Articles shall remain in operation for 5 years, or 3 years, in the case of movable property, or during its lifetime if it is lower.

Jointly with the fee corresponding to the tax period in which the non-compliance with this requirement is manifest, the amount deducted shall be entered in addition to the interest on the delay.

6. The right of the Administration to check the deductions provided for in this Chapter shall prescribe at 10 years from the day following that in which the time limit laid down for the submission of the declaration or self-clearance is completed. corresponding to the tax period in which the right to its application was generated.

After that period, the taxpayer must prove that the deductions the application of which he claims are derived, as well as the amount thereof, by the display of liquidation or self-settlement and accounting, with accreditation of your deposit during the said term in the Mercantile Register.

CHAPTER V

Fractional payment

Article 40. The split payment.

1. In the first 20 calendar days of the months of April, October and December, taxpayers shall make a split payment on account of the settlement corresponding to the current tax period on the 1 day of each month. indicated.

They shall not make such a split payment nor shall they be required to submit the corresponding declaration to the entities referred to in Article 29 (4) and (5) of this Law.

2. The basis for calculating the split payment shall be the full share of the last tax period for which the time limit for the declaration is due on the first day of the 20 calendar days referred to in the previous paragraph, which has been reduced by deductions and bonuses to be applied to the taxpayer, as well as to the withholding and revenue for the taxpayer.

When the last completed tax period is shorter than the year, the proportional share of the above tax period will also be taken into account until a 12-month period is completed.

The amount of the split payment provided for in this section will be the result of applying to the base the percentage of 18 percent.

3. Split payments may also be made, at the option of the taxpayer, on the part of the taxable base for the period of the 3, 9 or 11 first months of each calendar year determined in accordance with the rules laid down in this Law.

Taxpayers whose tax period does not coincide with the calendar year will make the split payment on the part of the tax base corresponding to the days after the start of the tax period until the day prior to the start of each of the periods of entry for the split payment referred to in paragraph 1. In these cases, the split payment shall be due to the liquidation corresponding to the tax period which is in progress the day before the beginning of each of the said periods of payment.

For the option referred to in this paragraph to be valid and to produce effects, it shall be exercised in the corresponding census declaration, during the month of February of the calendar year from which it is to have effects, provided that where the tax period referred to in that option coincides with the calendar year. If not, the exercise of the option shall be carried out in the corresponding census declaration, within 2 months of the beginning of that tax period or within the period between the beginning of that period tax and the end of the period for making the first split payment corresponding to the tax period when the latter period is less than 2 months.

The taxpayer will be linked to this mode of payment by instalments in respect of the corresponding and subsequent payments, as long as its application is not waived through the corresponding payment. a census statement to be exercised within the same time limits as laid down in the preceding paragraph.

However, they will be obliged to apply the modality referred to in this paragraph by taxpayers whose net turnover has exceeded the amount of EUR 6 million during the 12 months preceding the year. the date on which the tax period to which the split payment corresponds is initiated.

The amount of the split payment provided for in this paragraph will be the result of applying to the base the percentage that results from multiplying by five septens the type of tax rounded by default. The resulting quota shall be deducted from the allowances in Chapter III of this Title, other allowances to be applied to the taxpayer, withholding taxes and income on account of the income of the taxpayer, and split payments made for the tax period.

4. The percentages provided for in the previous two paragraphs may be amended by the General Budget Law of the State.

5. The fractional payment shall be considered as a tax liability.

CHAPTER VI

Deduction from payments to account

Article 41. Deduction of holds, income on account, and fractional payments.

It will be full quota deductibles:

a) Reattentions to account.

b) Income to account.

c) Fracked payments.

When such concepts exceed the amount resulting from practicing in the full tax quota the bonuses and deductions that result from application to the taxpayer for this Tax, the Tax Administration proceed to return the excess of trade.

TITLE VII

Special Tax Regimes

CHAPTER I

Definition and rules of application of special tax regimes

Article 42. Application definition and rules.

1. Special tax regimes are regulated in this title, either by reason of the nature of the taxpayers concerned or by reason of the nature of the facts, acts or operations concerned.

2. The rules contained in this Title shall apply, on a preferential basis, to those provided for in the other titles of this Law, which shall be of an additional nature.

CHAPTER II

Economic, Spanish and European interest groups, and temporary joint ventures

Article 43. Groupings of Spanish economic interest.

1. To the economic interest groups governed by Law 12/1991, of 29 April, of Economic Interest Groups, the general rules of this Tax will apply with the following specialties:

(a) They shall be subject to the tax obligations arising from the application of this Law, with the exception of the payment of the tax liability for the taxable amount attributable to the members resident on Spanish territory.

In the event that the entity applies the mode of split payments as regulated in Article 40 (3) of this Law, the calculation basis shall not include the part of the taxable amount attributable to the partners to be supported. the imputation of the tax base. In no case shall the return referred to in Article 41 of this Law be referred to in relation to that same party.

(b) Its members resident on Spanish territory or non-residents with permanent establishment shall be charged:

1. The net financial expenses which, in accordance with Article 16 of this Law, have not been the subject of deduction in these entities in the tax period. Net financial expenses that are charged to your partners will not be deductible by the entity.

2. The capitalization reserve which, in accordance with the provisions of Article 25 of this Law, has not been applied by these entities in the tax period. The capitalization reserve that is charged to its members may not be applied by the entity, unless the partner is a contributor to the Income Tax of the Physical Persons.

3. º The positive, minorated or increased taxable bases, if any, in the level reserve referred to in Article 105 of this Law, or negative, obtained by these entities. The negative tax bases that are charged to its members shall not be compensable by the entity that obtained them.

4. The basis of the deductions and the allowances in the quota to which the entity is entitled. The bases of the deductions and bonuses will be integrated into the liquidation of the members, minoring the quota as appropriate for the application of the rules of this Tax or the Tax on the Income of the Physical Persons.

5. º Holds and Income to account for the entity.

The reserve for the level of taxable bases referred to in Article 105 of this Law shall be added, where appropriate, to the tax base of the economic interest group.

2. Dividends and participations in profits that correspond to non-resident partners in Spanish territory shall be taxed in such a way, in accordance with the rules laid down in the Recast Act of the Non-Resident Income Tax Law, adopted by Royal Decree-Law 5/2004 of 5 March 2004 and the agreements to avoid double taxation signed by Spain.

3. Dividends and shares in profits which correspond to partners which are liable to charge the tax base and come from tax periods during which the entity is in the present scheme shall not be taxed by the latter. Tax and the Income Tax of the Physical Persons.

The amount of these dividends or profit shares shall not be integrated into the acquisition value of the shares of the members to whom they were charged. In the case of partners who acquire the shares after imputation, their acquisition value shall be reduced by that amount.

4. In the transfer of equity shares, own funds or the results of institutions covered by this scheme, the acquisition value shall be increased by the amount of the social benefits which, without effective distribution, would have been imputed to the partners as income from their holdings in the period of time between their acquisition and transfer.

Likewise, the acquisition value will be reduced in the amount of the social losses that have been attributed to the partners. However, where the accounting criteria so establish, the acquisition value shall be reduced by the amount of the financial costs, the negative tax bases, the capitalisation reserve, and the deductions and bonuses, which have been charged to the partners in the period of time between their acquisition and transfer, until such value is cancelled, and the corresponding financial income shall also be included in the tax base.

5. This tax regime shall not apply in respect of tax periods in which activities other than those appropriate to its object are carried out or are held, directly or indirectly, in companies which are members of their own, or are control, directly or indirectly, the activities of its partners or third parties.

Article 44. European groupings of economic interest.

1. European groupings of economic interest covered by Council Regulation (EEC) No 2137/1985 of 25 July 1985 and their partners shall apply the provisions laid down in the preceding Article, with the following specialties:

(a) They shall be subject to the tax obligations arising from the application of this Law, with the exception of the payment of the tax liability.

These entities shall not make the payments in instalments referred to in Article 40 of this Law, nor shall the refund referred to in Article 41 of the same Law be carried out for them.

(b) If the entity is not resident in Spanish territory, its members resident in Spain shall integrate into the tax base of the Company Tax or the Income Tax of the Physical Persons, as appropriate, the corresponding to the profits or losses determined in the pool, corrected by the application of the rules to determine the tax base established in this Law.

When the activity carried out by the partners through the grouping has resulted in the existence of a permanent establishment abroad, the rules provided for in this Law or in the respective one shall apply. convention to avoid double international taxation subscribed by Spain.

(c) Non-resident partners on Spanish territory, irrespective of whether the entity resides in or outside Spain, shall be subject to the Non-Resident Income Tax only if, in accordance with the provisions of the Article 13 of the recast text of the Law on Income Tax of Non-Residents, approved by the Royal Decree of Law 5/2004 of 5 March, or in the respective convention of international double taxation, results in the activity carried out by those through the grouping gives rise to the existence of a permanent establishment in that territory.

(d) The benefits attributed to non-resident partners in Spanish territory who have been taxed under non-resident income tax rules shall not be subject to taxation on the basis of their distribution.

2. The arrangements provided for in the preceding paragraphs shall not apply in the tax period in which the European economic interest group carries out activities other than the activities of its object or those prohibited in Article 3 (2) of the Treaty. Regulation EEC 2137/1985 of 25 July 1985.

Article 45. Temporary unions of companies.

1. The temporary unions of undertakings governed by Law 18/1982 of 26 May on the taxation of temporary associations and associations of undertakings and regional industrial development companies and registered in the special register of the Ministry of Hacienda and Administraciones Públicas, as well as their member companies, shall be taxed in accordance with Article 43 of this Law, except in relation to the rule of valuation laid down in the second subparagraph of paragraph 4 of that Law. Article.

In the case of participations in temporary joint ventures, the acquisition value shall be reduced by the amount of the social losses that have been attributed to the partners.

2. Undertakings which are members of a temporary union of undertakings operating abroad, as well as entities participating in works, services or supplies which they perform or provide abroad by means of collaboration arrangements similar to those of unions temporary, may be eligible for income from abroad for the exemption provided for in Article 22 or the double taxation deduction provided for in Article 31 of this Law, provided that the conditions laid down therein are met.

3. The provisions of this Article shall not apply in those tax periods where the taxpayer carries out activities other than those in which its social object is to consist.

Article 46. Imputation criteria.

1. The imputations referred to in this Chapter shall be made to persons or entities who have the economic rights inherent in the quality of a member or a member undertaking on the day of the conclusion of the tax period of the institution. subject to this scheme, in the proportion resulting from the statutes of the institution.

2. The imputation shall be carried out:

(a) When members or member companies are entities subject to this scheme, at the date of the end of the tax period of the entity under this scheme.

(b) In the other cases, in the following tax period, unless it is decided to do so on an ongoing basis at the same end date of the tax period of the entity under this scheme.

The option will be stated in the first tax return in which it has to take effect and must be maintained for three years.

Article 47. Identification of members or member companies.

The entities to which the provisions of this Chapter apply shall, in conjunction with their declaration of the Corporate Tax, present a relationship of the persons who have the inherent rights or the quality of a member or a member company on the last day of its tax period, as well as the proportion in which each of them participates in the results of those entities.

CHAPTER III

Housing Lease Entities

Article 48. Scope of application.

1. Under the scheme provided for in this Chapter, companies which have as their principal economic activity the lease of dwellings located in Spanish territory which they have built, promoted or acquired. Such activity shall be compatible with the performance of other complementary activities, and with the transmission of leased buildings after the minimum maintenance period referred to in point (b) of paragraph 2 below.

For the purposes of applying this special scheme, only housing lease is defined in Article 2.1 of Law 29/1994 of 24 November 1994 on Urban Leases, provided that the requirements and conditions set out in that Act for the rental of housing contracts.

The furniture, the storage rooms, the garage spaces with the maximum of two, and any other dependencies, leased spaces or services provided as accessories of the estate by the same landlord, will be treated as housing. excluding business premises, as long as some and others come together with housing.

2. The application of the special tax regime regulated in this Chapter will require compliance with the following requirements:

(a) That the number of dwellings leased or offered on lease by the entity in each tax period is at all times equal to or greater than 8.

b) That the dwellings remain leased or offered for lease for at least 3 years. This period shall be computed:

1. In the case of dwellings which appear on the estate of the entity before the date of application of the scheme, from the date of the start of the tax period in which the option is communicated by the scheme, provided that that date the house will be rented. Otherwise, the following paragraph will be available.

2. In the case of homes acquired or promoted after the entity, from the date on which they were first leased by the entity.

Failure to comply with this requirement will imply for each dwelling, the loss of the bonus that would have been incurred. Together with the share of the tax period in which the non-compliance occurred, the amount of the bonuses applied in the whole of the tax periods in which this special scheme would have resulted should be entered. without prejudice to the interests of delay, surcharges and penalties which, where appropriate, result from them.

c) That the activities of property and leasing promotion are subject to separate accounting for each acquired or promoted property, with the breakdown that is necessary to know the income corresponding to each housing, local or independent land register in which they are divided.

(d) In the case of entities which carry out activities complementary to the main economic activity of rental housing, at least 55% of the income from the tax period, excluding those arising from the the transmission of leased buildings after the minimum maintenance period referred to in point (b) above, or alternatively at least 55 per cent of the value of the asset of the entity is liable to generate income they are entitled to the application of the allowance referred to in Article 49.1 of this Law.

3. The option for this scheme should be communicated to the tax administration. The special tax regime shall be applied in the tax period ending after that communication and in the subsequent years to be concluded before the tax administration is notified of the waiver of the scheme.

4. Where the institution is required to apply any of the other special schemes provided for in this Title VII, except for fiscal consolidation, international tax transparency and for mergers, divisions, contributions of assets, the exchange of securities and that of certain financial leasing contracts, shall not be eligible for the regulated regime in this Chapter, without prejudice to the provisions of the following paragraph.

The entities to which, in accordance with the provisions of Article 101 of this Law, apply the tax incentives for the small-scale enterprises provided for in Chapter XI of this Title VII, may choose to apply such incentives or apply the regulated regime in this chapter.

Article 49. Bonuses.

1. It will have an 85 per cent bonus share of the full share corresponding to rents arising from the lease of homes that meet the requirements of the previous article.

The allowance provided for in this paragraph shall be incompatible with the capital gains provided for in Article 25 of this Law.

2. The income that is earned derived from the lease will be integrated for each dwelling by the full income obtained, minored in the tax deductible expenses directly related to the obtaining of said income and in the part of the expenses General rules corresponding to the said income.

Dealing with dwellings that have been acquired under the leasing contracts referred to in Chapter XII of Title VII of this Law, in order to calculate the income that is bonified shall not be taken into account corrections resulting from the application of the special scheme.

3. In the case of dividends or participations in profits distributed from the income to which the allowance provided for in paragraph 1 has been applied, the exemption provided for in Article 21 of this Law shall apply to 50 percent of their amount. Such dividends or shares in profits shall not be disposed of when the entity is taxed in the tax consolidation scheme. For these purposes, the first benefit shall be deemed to be derived from unsubsidised income.

In the case of income derived from the transfer of shares in the capital of entities that have applied this tax regime, the general rules of this tax will apply. However, where the application of Article 21 of this Law is applicable, the part of the income corresponding to reserves from undistributed benefits shall be entitled to the exemption provided for in the Act on 50% of the (i) the Commission's Such income shall not be disposed of when the transmission corresponds to an internal transaction within a tax group.

CHAPTER IV

Capital-risk and venture capital funds and regional industrial development companies

Article 50. Venture capital institutions and their partners.

1. Risk capital institutions, regulated by Law 22/2014 of 12 November 2014 on the control of venture capital institutions, other closed-type collective investment entities and the management companies of collective investment entities of the closed type, and for which the Law 35/2003, of 4 November, of the Institutions of Collective Investment is amended, will be exempt in 99 percent of the positive income that they obtain in the transmission of values representative of the participation in the capital or in the own funds of the venture capital companies or entities referred to in the Article 2 of that Law, in relation to those income which do not satisfy the requirements laid down in Article 21 of this Law, provided that the transmission takes place from the beginning of the second year of the holding computed from the moment of acquisition or exclusion of quotation and up to the 15th inclusive.

Exceptionally, an extension of the latter period may be permitted up to and including the 20th year. Regulations shall determine the assumptions, conditions and requirements that they enable for such an extension.

With the exception of the assumption provided in the previous paragraph, the exemption will not apply in the first year and from the 15th.

However, in the case of income from the transfer of securities representative of the holding in the capital or in the own funds of the undertakings referred to in the second subparagraph of paragraph 1 of that Article 2 which do not satisfy the requirements laid down in Article 21 of this Law, the application of the exemption shall be conditional on at least the buildings representing 85% of the total accounting value of the entity's real estate the participants are affected, uninterrupted during the time of holding the values, to the development of an economic activity in the terms provided for in the Income Tax of the Physical Persons, other than the financial one, as defined in the Law on the Capital-Risk Entities and their Management Companies; or property.

In the event that the participating entity accesses the listing on a regulated securities market, the application of the exemption provided for in the preceding paragraphs shall be conditional on the risk capital institution proceeding to to transmit its participation in the capital of the participating undertaking within a period of not more than three years from the date on which the admission to trading of the latter was made.

2. The risk capital institutions, regulated in Law 25/2005 of 24 November, regulating risk capital institutions and their management companies, may apply the exemption provided for in Article 21.1 of this Act to dividends and dividends. holdings in profits from the companies or entities that promote or promote, whatever the percentage of the holding and the time held for the shares or units.

3. Dividends or shares in profits received by the partners of venture capital institutions shall have the following treatment:

(a) They shall be entitled to the exemption provided for in Article 21.1 of this Law, whatever the percentage of the holding and the holding time of the shares or units when their recipient is a taxpayer of this Tax or Income Tax of non-residents with permanent establishment in Spain.

(b) They shall not be understood to be obtained in Spanish territory where their recipient is a natural person or a contributing entity of Non-Resident Income Tax without permanent establishment in Spain.

4. The following treatment shall be given to the positive income shown in the transmission or redemption of shares or shares representing the capital or equity of the venture capital

:

(a) They shall be entitled to the exemption provided for in Article 21.3 of this Act, irrespective of the percentage of participation and the holding time of the shares or units when their recipient is a taxpayer of this Tax or Income Tax of non-residents with permanent establishment in Spain.

(b) They shall not be construed as being obtained on Spanish territory where their recipient is a natural person or a taxpayer of the Non-Resident Income Tax without permanent establishment in Spain.

5. The provisions of this Article shall not apply in relation to that income obtained through a country or territory qualified as a tax haven or when the acquirer resides in that country or territory.

6. The exemption provided for in paragraph 1 of this Article shall not apply if the requirements laid down in Article 21 of this Law are not met, where:

a) The acquirer resides in a country or territory qualified as a tax haven.

(b) The acquiring person or entity is linked to the risk capital institution, unless it is another risk capital institution, in which case the risk capital institution shall be subrogated to the entity's value and date of acquisition. transmit.

(c) The transmitted securities would have been acquired from a person or entity linked to the venture capital entity.

Article 51. Partners of regional industrial development companies.

The dividends or shares in profits received from the companies participating in the regional industrial development companies governed by Law 18/1982 of 26 May on the tax regime of groupings and unions (a) temporary undertakings and regional industrial development companies shall enjoy the exemption provided for in Article 21.1 of this Law, irrespective of the percentage of participation and the holding time of the shares or participations.

CHAPTER V

Collective Investment Institutions

Article 52. Taxation of the Collective Investment Institutions.

1. The collective investment institutions governed by Law 35/2003 of 4 November, of collective investment institutions with the exception of those subject to the general rate of charge, shall not be entitled to the exemption provided for in Article 21 of the Treaty. This Law and the deductions to avoid the double taxation provided for in Articles 31 and 32 of this Law.

2. Where the amount of the instalments, deductions and income on account of the income exceeds the amount of the full quota, the tax administration shall, on its own initiative, return the excess.

Article 53. Taxation of the partners or members of the Collective Investment Institutions.

1. The members or members of the Collective Investment Institutions referred to in the previous article, who have the consideration of taxpayers of this Tax, or of the Income Tax of non-residents who obtain their income by means of permanent establishment on Spanish territory, shall include in the tax base the dividends or shares in profits distributed by those institutions, as well as the income derived from the transfer of shares or units or of the reimbursement of these, without it being possible for them to apply the exemption provided for in Article 21 of the Law, nor deductions to avoid double international taxation as provided for in Articles 31 and 32 of this Law.

2. The scheme provided for in this Article shall apply to the partners or members of collective investment institutions governed by Directive 2009 /65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities, other than those provided for in Article 54 of this Law, incorporated and domiciled in a Member State of the Union European and registered in the special register of the National Securities Market Commission, for the purposes of marketing by entities resident in Spain.

Article 54. Taxation of the partners or members of the Collective Investment Institutions incorporated in countries or territories qualified as tax havens.

1. The taxpayers of this Tax and the Income Tax of non-residents who obtain their income by permanent establishment in Spanish territory, participating in Collective Investment Institutions incorporated in countries or territories which are regulated as tax havens, shall integrate in the tax base the positive difference between the liquidative value of the holding on the day of the closing of the tax period and its acquisition value.

The amount integrated into the rateable value will be considered as higher acquisition value.

2. The benefits distributed by the Collective Investment Institution will not be integrated into the tax base and will be the value of the acquisition of the stake.

3. The difference referred to in paragraph 1 shall be presumed to be 15% of the acquisition value of the share or share.

CHAPTER VI

Fiscal Consolidation Regime

Article 55. Definition.

1. Tax groups may opt for the tax arrangements provided for in this Chapter. In this case, the entities that are integrated into them will not be taxed on an individual basis.

2. An individual tax system shall mean the one that would correspond to each entity in the event that the tax consolidation regime does not apply.

Article 56. Taxpayer.

1. The tax group will have the consideration of a taxpayer.

2. The entity representing the tax group shall be subject to compliance with the material and formal tax obligations arising from the tax consolidation regime. A representative of the tax group shall be considered to be the dominant entity where it is resident in Spanish territory, or that entity of the tax group that it designates when there is no resident entity in Spanish territory that meets the requirements to have the dominant status.

3. The entities that integrate the tax group shall also be subject to the tax obligations arising from the individual tax regime, with the exception of the payment of the tax liability.

4. The administrative checks or investigations carried out against any entity of the tax group, with the formal knowledge of the entity representing it, shall interrupt the limitation period of the Company Tax. which affects the tax group.

Article 57. Tax liabilities arising from the application of the tax consolidation regime.

The fiscal group entities will respond jointly and severally to the payment of the tax liability, excluding penalties.

Article 58. Definition of the tax group. Dominant entity. Dependent entities.

1. Tax group shall mean the set of entities resident in Spanish territory which comply with the requirements set out in this Article and have the form of a limited liability company, limited liability and shares, as well as the banking foundations referred to in paragraph 3 of this Article.

When an entity does not reside in a Spanish territory or resident in a country or territory qualified as a tax haven, with legal personality and subject to and not exempt from an identical or analogous Tax on Corporate Tax The tax group shall be constituted by all dependent entities that meet the requirements set out in paragraph 3 of this

.

For the purposes of applying the fiscal consolidation regime, permanent establishments of non-resident entities shall be considered to be resident entities participating in 100 percent of the capital and voting rights. those non-resident entities.

2. A dominant entity shall be understood to meet the following requirements:

(a) Having legal personality and being subject to and not exempt from the Company Tax or an identical or similar tax to the Spanish Company Tax, provided that it is not resident in a country or territory qualified as tax haven. Permanent establishments of non-resident entities located in Spanish territory which do not reside in a country or territory qualified as a tax haven may be considered as dominant entities in respect of entities whose holdings are affected to it.

(b) Having a direct or indirect participation of at least 75% of the share capital and holding the majority of the voting rights of another or other entities having the consideration of dependents on the first day of the tax period in which this tax regime is applicable.

The above percentage will be at least 70 percent of the share capital, if they are entities whose shares are admitted to trading on a regulated market. This last percentage shall also apply where indirect holdings are held in other entities provided that such percentage is reached through participating entities whose shares are admitted to trading on a market regulated.

c) That such participation and those voting rights are maintained throughout the tax period.

The requirement to maintain participation and voting rights throughout the tax period shall not be required in the event of dissolution of the participating entity.

d) That is not dependent, directly or indirectly, on any other that meets the requirements to be considered as dominant.

(e) Not subject to the special arrangements of economic, Spanish and European interest groups, temporary unions of undertakings or similar schemes to both.

(f) That, in the case of permanent establishments of non-resident entities on Spanish territory, such entities are not, directly or indirectly, dependent on any other entity that meets the requirements to be considered as dominant and do not reside in a country or territory qualified as a tax haven.

3. A dependent entity shall mean a resident in Spanish territory on which the dominant entity holds a holding meeting the requirements set out in points (b) and (c) of the previous paragraph, as well as the establishments permanent non-resident entities in Spanish territory for which an institution complies with the requirements set out in the previous paragraph.

The same consideration will also be given to credit institutions integrated into an institutional protection system as referred to in Article 8 (3) (d) of Law 13/1985 of 25 May 1985 on the investment, own resources and reporting obligations of financial intermediaries, provided that the central bank of the system is part of the tax group and 100% is the pooling of the results of the participating entities of the system and that the mutual commitment of solvency and liquidity between such entities reaches 100 percent One hundred of the own resources of each of them. Bank foundations as referred to in Article 43.1 of Law 26/2013 of 27 December of savings banks and bank foundations shall also be considered as dependent entities provided that they do not have the status of a dominant entity of the tax group, as well as any entity wholly owned by those through which the holding in the credit institution is held.

4. The entities in which one of the following circumstances concur shall not be part of the tax groups:

a) That they are not resident in Spanish territory.

b) That they are exempt from this Tax.

(c) That the closing of the tax period has been declared in a competitive position and during the tax periods in which such a declaration takes effect.

d) That at the end of the tax period be found in the estate situation provided for in Article 363.1.e) of the Recast Text of the Law of Capital Societies, approved by the Royal Legislative Decree 1/2010, of July 2, according to their annual accounts, even if they were not in the form of public limited liability companies, unless at the end of the year in which the annual accounts were approved the latter situation would have been exceeded.

(e) Dependent entities that are subject to the Company Tax at a different rate than that of the entity representing the tax group, except for the assumption provided for in the following paragraph.

(f) Dependent entities whose social exercise, determined by legal imperative, cannot be adapted to that of the representative entity.

5. By way of derogation from point (e) of the preceding paragraph, in the event that the other requirements set out in this Article are met for the configuration of a tax group in which at least one credit institution is integrated, either as a a dominant entity or as a subsidiary entity, with other entities subject to the general rate of charge, may be eligible for the inclusion of those credit institutions within the tax group, with application to the said group of the scheme provided for in this chapter. The inclusion will require the adoption of the corresponding agreement by the credit institution and, where appropriate, by the dominant entity the tax group and will be communicated to the tax administration in the terms provided for in the article. 61 of this Act.

6. The tax group shall be extinguished when the dominant entity loses that character. However, the tax group shall not be extinguished when the dominant entity loses such a condition and is not resident in Spanish territory, provided that the conditions are met for all dependent entities to continue to be a group of fiscal consolidation, unless they are incorporated into another tax group.

7. Where a banking foundation loses the status of a dominant entity of a tax group in a tax period, the credit institution shall be subrogated in that condition from the start of the tax group, without the effects of the extinction of the tax group referred to in Article 74 of this Law, except for those entities that cease to be part of the group because they are not dependent on the terms set out in paragraph 3 of this Article.

8. Companies for the management of assets, incorporated in accordance with the provisions of Law 8/2012 of 30 October on the consolidation and sale of real estate assets in the financial sector, will be included in the same fiscal group of entities. of credit, provided that the requirements laid down in points (b) and (c) of paragraph 2 of this Article are met.

Article 59. Inclusion or exclusion of entities in the tax group.

1. Institutions in respect of which a holding, direct or indirect, as defined in point (b) of paragraph 2 of the previous Article is acquired, and the other requirements referred to in that paragraph, shall be included in the tax group with effect from the following tax period.

In the case of new constitution entities, the integration will take place from that time, provided that the remaining requirements are met to be part of the fiscal group.

2. Dependent entities that lose such a condition will be excluded from the tax group with effect from the tax period itself in which such a circumstance occurs.

Article 60. Determination of the domain and voting rights in the indirect participations.

1. Where an entity participates in another entity, and is second in a third party, and so on, to calculate the indirect participation of the first entity over the other entities, the percentage shares in the capital shall be multiplied, respectively. (a) the result of such products must be at least 75% or, at least, 70% of the share capital, in the case of entities whose shares are admitted to trading on a regulated market or entities engaged, directly or indirectly, by the latter.

2. If, in a tax group, direct and indirect participation relationships are co-exist to calculate the total participation of one entity in another, directly and indirectly controlled by the first entity, the percentages of direct and indirect participation shall be added indirect. In order for the participating entity to be integrated into the corporate tax group, that sum shall be at least 75% or, at least, 70% of the share capital, in the case of entities whose shares are admitted to trading on a regulated market or of entities involved, directly or indirectly, for the latter provided that such percentage is achieved through them.

3. If there is a relationship of reciprocal, circular or complex participation, the participation of at least 75% of the share capital, or at least 70% of the share capital, should be proved with objective data, if appropriate, if it is a good of entities whose shares are admitted to trading on a regulated market or of entities involved, directly or indirectly, for the latter provided that such percentage is achieved through them.

4. In order to determine voting rights, the provisions of Article 3 of the Rules for the Form of Consolidated Annual Accounts, approved by Royal Decree 1159/2010 of 17 September 2010, shall apply.

Article 61. Implementation of the tax consolidation regime.

1. The tax consolidation regime shall apply where all entities to be integrated by the tax group agree to do so.

2. The agreements referred to in the preceding paragraph shall be adopted by the Management Board or equivalent body at any date of the immediate tax period preceding the application of the tax consolidation regime.

3. Institutions which are subsequently incorporated in the tax group shall comply with the obligations referred to in the preceding paragraphs within a time limit which shall end on the day of the end of the first tax period in which they are to be taxed. the tax consolidation regime.

4. The absence of the agreements referred to in paragraphs 1 and 2 of this Article shall determine the impossibility of applying the system of fiscal consolidation.

The absence of the agreements corresponding to the entities that are to be incorporated in the tax group will constitute a serious tax violation of the representative entity. The penalty will consist of a fixed pecuniary fine of EUR 20,000 for the first tax period in which the scheme has been applied without complying with this requirement and EUR 50,000 for the second and subsequent years, and will not prevent the effective integration into the group. of the affected entities.

The penalty imposed in accordance with this paragraph shall be reduced in accordance with the provisions of Article 188 (3) of Law 58/2003 of 17 December, General Tax.

5. If the option is exercised, the tax group will be bound to this scheme indefinitely during the following tax periods, as long as the requirements of Article 58 are met and as long as its application is not waived through the corresponding census declaration, which shall be exercised, where appropriate, within 2 months of the end of the last tax period of its application.

6. The entity representing the tax group shall communicate the agreements referred to in paragraph 1 of this Article to the tax administration prior to the start of the tax period in which this scheme applies.

In the case of a tax group constituted under the terms set out in the second subparagraph of Article 58 (1) of this Law, the representative entity shall communicate, on the same terms as provided for in the preceding paragraph, the agreement adopted by the non-resident dominant entity on Spanish territory, whereby the entity representing the tax group is appointed. The lack of communication of this agreement shall have the effects set out in paragraph 4 of this Article.

Also, when changes in the composition of the fiscal group occur, the representative entity will communicate it to the tax administration, identifying the entities that have been integrated into it and those that have been excluded. Such communication shall be made in the declaration of the first split payment to which the new composition is concerned.

Article 62. Determination of the tax group's tax base.

1. The tax group's tax base will be determined by adding:

(a) The individual taxable bases for each and every entity belonging to the tax group, taking into account the specialties contained in Article 63 of this Law. However, the requirements or qualifications laid down in the accounting rules for the determination of the accounting result and in this Law for the application of any kind of adjustment to that law, in accordance with the terms set out in paragraph 3 Article 10 of this Law will refer to the tax group.

b) Deletions.

(c) The additions of the eliminations practiced in previous tax periods, where appropriate in accordance with Article 65 of this Law.

(d) The amounts corresponding to the capitalization reserve provided for in Article 25 of this Law, which shall relate to the tax group. However, the reserve envelope will be made by any of the entities in the group.

e) The allocations referred to in Article 11 (12) of this Law, referred to the tax group, with the limit of 70 percent of the positive amount of the aggregation of the concepts outlined in the preceding letters.

(f) Compensation of the tax group's negative tax bases, where the amount of the sum of the preceding paragraphs is positive, as well as the negative tax bases referred to in Article 67 (e) of the this Act.

The amounts corresponding to the levelling reserve provided for in Article 105 of this Law shall, as appropriate, increase or increase the tax base of the tax group. The reserve may be made by any entity of the tax group.

2. The amount of negative income arising from the transmission of the participation of an entity of the tax group that ceases to be a part of it shall be reduced by the share of that entity corresponding to negative taxable bases generated within the tax group by the entity transmitted and which have been compensated in the same.

Article 63. Special rules applicable to the determination of the individual taxable bases of the entities in the tax group.

The individual taxable bases for the entities belonging to the tax group, as referred to in point (a) of paragraph 1 of the previous Article, shall be determined in accordance with the general rules laid down therein. Law, with the following specialties:

(a) The limit laid down in Article 16 of this Law in relation to the deductibility of financial expenses shall relate to the tax group. This limit shall not apply to the entity's extinction scenarios, unless the extinction is carried out within the tax group and the extinguishing entity has financial expenses to be deducted at the time of its integration into the entity. same.

However, in the case of credit institutions or insurers that are taxed in the tax consolidation regime together with other entities that do not have this consideration, the limit set out in Article 16 of this Law shall be calculated taking into account the operating profit and net financial expenses of the latter entities, as well as the removals and additions that correspond to the whole group.

(b) The capitalization reserve referred to in Article 25 of this Law shall not be included in the individual taxable bases.

(c) The appropriations referred to in Article 11 (12) of this Law shall not be included in the individual taxable bases.

(d) The compensation of negative taxable bases that would have been allocated to the entity under individual conditions shall not be included in the individual taxable bases.

(e) The level reserve referred to in Article 105 of this Law shall not be included in the individual taxable bases.

Article 64. Removals.

The eliminations will be performed in accordance with the criteria set out in the Regulations for the Form of Consolidated Annual Accounts, approved by Royal Decree 1159/2010 of 17 September, provided that they affect the Individual taxable persons and with the specificities provided for in this Law.

Article 65. Additions.

1. The eliminated results will be incorporated into the tax base of the tax group when it is established in the Regulations for the Forwarding of Consolidated Annual Accounts, approved by Royal Decree 1159/2010 of 17 September.

However, the eliminated results will be incorporated into the individual tax base of the entity that would have generated those results and no longer be part of the tax group, in the tax period in which such results occur. exclusion.

2. Revenue, expenditure or results relating to the reduction provided for in Article 23 of this Act shall be incorporated in the tax base of the tax group in the tax period where those are understood to be incurred in respect of third parties and, in that case, the the transfer of the assets referred to shall be subject to the documentation obligations referred to in Article 18 (3) of this Law.

Article 66. Compensation of negative taxable bases.

If, under the applicable rules for determining the tax group's tax base, this is a negative result, the amount of the tax base may be offset against the tax group's positive tax bases in accordance with the terms of the Article 26 of this Law.

Article 67. Special rules for the incorporation of entities into the tax group.

In the event that an entity is incorporated into a tax group, in determining the tax group's tax base, the following rules apply:

(a) The net financial expenses to be deducted at the time of their integration into the tax group referred to in Article 16 of this Law shall be deducted with the limit of 30 percent of the operating profit of the tax group. entity, taking into account the eliminations and additions that correspond to that entity, in accordance with the provisions of Articles 64 and 65 of this Law. These financial expenses shall also be taken into account in the limit referred to in Article 16 (1

.

Also, the difference established in Article 16 (2) of this Law generated by an entity prior to its integration into the tax group will be applicable in relation to the financial expenses generated by the entity.

(b) For the purposes of Article 16 of this Law, the financial expenses arising from debts intended for the acquisition of equity or capital equity of any type of entity that is incorporated into the a fiscal consolidation group shall be deducted with the additional 30 percent of the operating profit of the acquiring fiscal group or entity, taking into account the corresponding removals and additions, as provided for in the Articles 64 and 65 of this Law, not including in that operating profit the corresponding to the the acquired entity or any other entity that is incorporated into the tax group in the tax periods starting in the 4 years after that acquisition. These financial expenses shall also be taken into account in the limit referred to in Article 16 (1

.

Non-deductible financial expenses resulting from the application of the provisions of this letter shall be deductible in the following tax periods with the limit laid down in this letter and in Article 16 (1) of this Law.

The limit provided for in this letter shall not apply in the tax period in which the equity or equity holdings of institutions are acquired if the acquisition is financed by debt, at most, by 70%. one hundred of the purchase price. Also, this limit shall not apply in the following tax periods provided that the amount of that debt is mined, from the time of the acquisition, at least in the proportional share corresponding to each of the following 8 years, up to the debt reaches 30 percent of the purchase price.

c) The amounts corresponding to the capitalisation reserve provided for in Article 25 of this Act to be applied shall be applied in the tax base of the tax group, with the limit of 10% of the tax base (a) to the extent to which it is necessary to ensure that the provisions of Article 11 of this Law and the compensation of negative tax bases are taken into account, taking into account the elimination of the appropriations referred to in Article 11 (12); additions corresponding to that entity in accordance with the provisions of Articles 64 and 65 of the Law.

d) The appropriations referred to in Article 11 (12) of this Act to be incorporated into the tax base shall be integrated into the tax base of the tax group, with the limit of 70% of the tax base the individual's own positive contribution to the integration of the envelopes of that nature and to the compensation of negative taxable bases, taking into account the eliminations and additions that correspond to that entity, agreement with the provisions of Articles 64 and 65 of this Law.

e) The negative tax bases of any entity that are pending to compensate at the time of their integration into the tax group may be compensated in the tax base of the tax group, with the limit of 70 percent of the tax base. individual entity, taking into account the eliminations and additions that correspond to that entity, in accordance with the provisions of Articles 64 and 65 of this Law.

f) The amounts corresponding to the reserve for the level of taxable bases provided for in Article 105 of this Law to be added at the time of their integration into the tax group shall be added to the tax base of the this.

Article 68. Tax period.

1. The tax period of the tax group shall coincide with that of the entity's representative entity.

2. Where one of the dependent entities concludes a tax period in accordance with the rules of taxation on an individual basis, that conclusion shall not determine that of the tax group.

Article 69. Tax rate of the tax group.

The tax group's tax rate will be that of the entity's representative entity.

However, in the case of a fiscal consolidation group in which at least one credit institution is integrated into the terms set out in Article 58 (5) of this Act, the rate of charge shall be 30 per percent.

Article 70. Full membership of the tax group.

The full amount of the tax group shall be understood as the amount resulting from the application of the tax rate corresponding to the tax base of the tax group in accordance with the previous article.

In the case of a tax group applying the provisions of Article 105 of this Law, the full quota will be determined by the result of applying the tax rate to the taxable or increased tax base, according to corresponds, for the quantities referred to in Article 105.

Article 71. Deductions and bonuses from the tax group's full quota.

1. The full share of the tax group shall be reduced by the amount of the deductions and allowances provided for in Chapters II, III and IV of Title VI of this Law, as well as any other deductions that may result from application.

The requirements set for the application of the above deductions and bonuses will refer to the tax group.

2. The deductions of any entity pending application at the time of its inclusion in the tax group may be deducted in the full share of the tax group with the limit which the tax group has corresponded to in the individual scheme of taxation, taking into account the eliminations and additions that correspond to that entity, in accordance with Articles 64 and 65 of this Law.

Article 72. Reporting obligations.

1. The entity representing the tax group shall, for tax purposes, the balance sheet, the profit and loss account, a state that reflects changes in the net worth of the financial year and a statement of consolidated cash flows, applying the method of global integration to all entities that make up the tax group.

2. The consolidated statements shall relate to the same closing date and period as the annual accounts of the entity representing the tax group, with the remaining entities forming part of the fiscal group closing their social year on the date of to do so that entity.

3. The documents referred to in paragraph 1 shall be accompanied by the following information

a) Eliminations practiced in previous tax periods pending incorporation.

(b) The eliminations practiced in the tax period duly justified in their origin and value.

(c) The additions made in the tax period, equally justified in their origin and value.

(d) The differences, duly explained, which may exist between the eliminations and additions made for the purposes of determining the tax base of the tax group and those made for the purposes of the production of the documents referred to in paragraph 1.

Article 73. Causes determining the loss of the fiscal consolidation regime.

1. The tax consolidation regime will be lost for the following reasons:

a) The concurrence in some or some of the entities belonging to the tax group of some of the circumstances that according to the law of the 58/2003, of December 17, General Tax determine the application of the indirect estimation method.

(b) Failure to comply with the reporting obligations referred to in paragraph 1 of the previous Article.

2. The loss of the fiscal consolidation regime will occur with the effects of the tax period in which some or some of the causes referred to in the previous paragraph are present, and the entities belonging to the tax group will be taxed by the individual regime in that period.

Article 74. Effects of the loss of the fiscal consolidation regime or the extinction of the tax group.

1. In the case of loss of the fiscal consolidation or extinction regime of the tax group, the following shall be carried out:

(a) The pending removals of incorporation shall be integrated into the individual tax base of the entities that are part of the same, to the extent that they have generated the income to be disposed of.

(b) The entities that integrate the tax group in the tax period in which the loss or extinction of this scheme occurs shall take:

1. The net financial expenses to be deducted from the tax group, as referred to in Article 16 of this Law, in the proportion that they contributed to their training.

2. º The difference established in Article 16 (2) of this Law, in the proportion that they have contributed to their training.

3. º The amounts corresponding to the capitalization reserve set out in Article 25 of this Law, to the extent that they would have contributed to their generation.

4. The allocations referred to in Article 11 (12) of this Act to be incorporated into the tax base, in proportion to their contribution to their training.

5. The right to compensation from the tax group's negative tax bases to compensate, in the proportion that they have contributed to their training.

Compensation shall be made on the basis of positive tax bases that are determined on an individual basis of taxation in the following tax periods.

6. º The amounts corresponding to the reserve base level reserve provided for in Article 105 of this Law to be added to the tax base, in the proportion that would have contributed to their training.

7. The right to apply the deductions in the tax group fee to be applied, in the proportion that they have contributed to their training.

The application will be practiced in the full quotas to be determined in the tax periods that subtract until the completion of the deadline set in this Law for the outstanding deduction, counted from the next or following to the one or those in which the amounts to be deducted were determined.

8. º The right to deduct the fractional payments that the tax group would have made, in the proportion that they contributed to them.

2. The provisions of the preceding paragraph shall apply where some or some of the entities that make up the tax group cease to belong to the tax group.

3. However, where the dominant entity of a tax group acquires the status of a subsidiary, or is absorbed by any entity through a merger operation received under the special tax regime of Chapter VII of Title VII of this Law, which determine in both cases that all entities included in a tax group are integrated into another tax group, the following rules apply:

(a) The tax base shall not be integrated into the outstanding removals in relation to the entities that become part of another tax group. These additions will be made in the tax base of this tax group in the terms set out in Article 65 of this Act.

(b) Net financial expenses to be deducted which, in accordance with the provisions of paragraph 1 of this Article, assume the entities incorporated in the new tax group shall be deducted from the 30 percent limit of the the operational benefit of all of them, taking into account the eliminations and additions that correspond, in accordance with the provisions of Articles 64 and 65 of this Law.

Also, the difference set out in Article 16 (2) of this Act to be assumed by such entities shall be applicable in relation to the financial expenses incurred by such entities together.

c) The amounts corresponding to the capitalisation reserve set out in Article 25 of this Act to be applied by the entities incorporated in the new tax group shall be applied in the tax base of the (a), with the limit of the sum of the positive tax bases of the abovementioned entities prior to their application, the integration of the envelopes referred to in Article 11 (12) of this Law and the compensation of taxable bases. negative, taking into account the removals and additions to be made, according to the provisions of Articles 64 and 65 of this Law.

d) The appropriations referred to in Article 11 (12) of this Law, which are pending the incorporation into the tax base of the entities incorporated in the new tax group, will be integrated into the tax base of the new tax group, with the limit of the sum of the positive tax bases of those entities prior to the integration of the envelopes of that nature and the compensation of negative taxable bases, taking into account the eliminations and additions it is appropriate to carry out, in accordance with the provisions of Articles 64 and 65 of this Law.

(e) The negative taxable bases to be paid by the entities that are incorporated into the new tax group may be compensated by the new tax group with the limit of the sum of the taxable bases of the entities that are incorporate the new tax group, taking into account the eliminations and additions that correspond, in accordance with the provisions of Articles 64 and 65 of this Law.

(f) The amounts corresponding to the levelling reserve provided for in Article 105 of this Act to be added shall be added in accordance with the provisions of that Article to the tax base of the tax group.

g) Any outstanding deductions from the entities incorporated in the new tax group may be deducted in the full share of the tax group with the limit of the sum of the full shares of the entities that are incorporate the same.

Article 75. Statement and self-validation of the tax group.

1. The entity representing the tax group shall be obliged, at the time of filing the tax group's declaration, to settle the tax liability for the tax group and to enter it in the place, form and time limits to be determined by the tax group. Finance and Public Administrations. The entity representing the tax group shall comply with the same obligations in respect of split payments.

2. The tax group's declaration shall be submitted within the time limit for the individual taxation declaration of the entity representing the tax group.

CHAPTER VII

Special arrangements for mergers, divisions, contributions of assets, exchange of securities and change of registered office of a European Company or a European Cooperative Society of one Member State to another of the European Union

Article 76. Definitions.

1. The merger consideration will have the operation by which:

(a) One or more entities transmit en bloc to another existing entity, as a consequence and at the time of its dissolution without liquidation, their respective social assets, by entrustment to their securities representative of the social capital of the other entity and, where appropriate, of a compensation in money not exceeding 10% of the nominal value or, in the absence of a nominal value, of a value equivalent to the nominal value of those securities deducted from its accounting.

(b) Two or more entities transmit en bloc to another new entity, as a consequence and at the time of its dissolution without liquidation, the totality of its social assets, by entrustment to its partners of representative values of the the social capital of the new entity and, where applicable, a compensation in money not exceeding 10% of the nominal value or, in the absence of a nominal value, of a value equivalent to the nominal value of those securities deducted from its accounts.

(c) An entity transmits, as a consequence and at the time of its dissolution without liquidation, the set of its social assets to the entity that holds the totality of the securities representative of its share capital.

2. 1. The operation by which the operation shall be split shall be considered as:

(a) An entity divides in two or more parts the totality of its social patrimony and transmits them in block to two or more existing or new entities, as a result of its dissolution without liquidation, by entrustment to its partners, in accordance with a proportional rule, of securities representative of the share capital of the institutions acquiring the contribution and, where appropriate, of a compensation in money not exceeding 10% of the nominal value or, in the absence of a value nominal value, of a value equivalent to the nominal value of those securities deducted from their accounts.

(b) An entity segregates one or more parts of its social assets that form branches of activity and transmits them as a block to one or more newly created or existing entities, while maintaining at least one branch of its assets an activity in the transferring entity, or holdings in the capital of other entities entrusted to it by the majority of the share capital, receiving in return securities representing the share capital of the acquiring institution, which shall to be allocated to their partners in proportion to their respective shares, reducing social capital and reserves in the amount necessary, and, where appropriate, a compensation in money in the terms of the preceding letter.

(c) An entity segregates a portion of its social assets, consisting of shares in the capital of other entities that trust the majority of the share capital in these entities, and transmits them as a block to one or more entities of new creation or existing, maintaining in its patrimony, at least, participations of similar characteristics in the capital of another or other entities or a branch of activity, receiving in exchange values representative of the social capital of the latter, which shall be attributed to their partners in proportion to their respective shares, reducing the share capital and reserves in the amount necessary and, where appropriate, compensation in money under the terms of point (a) above.

2. In cases where there are two or more acquiring entities, the attribution to the partners of the entity that is spun off from securities representative of the capital of any of the acquiring entities in a different proportion to that which they have in which they are spun off will require that the assets acquired by those constitute branches of activity.

3. The transaction by which an entity contributes, without being dissolved, to another entity of new creation or already existing the whole or one or more branches of activity, shall have the consideration of non-cash contribution of branches of activity, receiving in return securities representative of the social capital of the acquiring institution.

4. A branch of activity shall mean the set of assets which are capable of constituting an autonomous economic unit determining an economic exploitation, that is to say, a set capable of operating by its own means. Debts incurred in the organisation or operation of the items that are transferred may be attributed to the acquiring institution.

5. An exchange of securities representative of the social capital shall be taken into account for the transaction by which an entity acquires a share in the capital of another entity which allows it to obtain the majority of the voting rights in it or, if it already has of that majority, to acquire greater participation, by entrustment to the partners, in exchange for their securities, of other representative of the social capital of the first entity and, where appropriate, of a compensation in money not exceeding 10 per of the nominal value or, in the absence of a nominal value, of a value equivalent to the nominal value of those securities deduced from his accounting.

6. The tax arrangements provided for in this Chapter shall also apply to transactions involving taxpayers of this tax which do not have the legal form of a commercial company, provided that they produce results equivalent to those of the derivatives of the operations referred to in the preceding paragraphs.

7. The tax arrangements provided for in this Chapter shall also apply to the operations of a European Company or a European Cooperative Company from one Member State to another of the European Union, in respect of goods and services, rights located in Spanish territory which are affected after a permanent establishment situated in that territory. For these purposes, the rules laid down in this special scheme for the purposes of the transfer of goods and rights shall apply to operations for the exchange of registered offices, even if they do not give rise to such transmissions.

Article 77. System of income derived from the transmission.

1. The following income derived from the operations referred to in the previous Article shall not be included in the taxable amount:

(a) Those that are evidenced as a result of transmissions made by entities resident in Spanish territory of goods and rights in the situated.

When the acquiring institution resides abroad, the income derived from the transfer of those items which are affected to a permanent establishment situated in the territory shall be excluded from the taxable base.

The transfer of these items outside the Spanish territory will determine the integration into the tax base of the permanent establishment, in the tax period in which the permanent establishment takes place, of the difference between the value of the market and the value referred to in the following article, which has been minorted, where applicable, in the amount of the write-downs and other value adjustments that are contably reflected in the tax deductible.

The payment of the tax liability resulting from the application of the provisions of the preceding paragraph, in the case of assets transferred to a Member State of the European Union, or of the European Economic Area with the that there is an effective exchange of tax information in the terms provided for in paragraph 3 of the Additional Provision of Law 36/2006 of 29 November, of measures for the prevention of tax fraud, will be deferred by the Tax administration at the request of the taxpayer until the date of transmission to third parties the assets affected, resulting from the application of the provisions of Law 58/2003 of 17 December, General Tax, and its implementing rules, as regards the accrual of interest for late payment and the provision of guarantees for such deferment.

(b) Those which are shown as a result of transmissions made by entities resident on Spanish territory, of permanent establishments situated in the territory of the Member States of the European Union, (a) of the institutions which reside in them, in one of the forms listed in Part A of Annex I to Council Directive 2009 /133/EC of 19 October on the common system of taxation applicable to mergers, divisions, divisions partial, asset and exchange of shares of shares held between companies of different Member States and the transfer of the registered office of an SE or an SCE from one Member State to another, and are subject to and not exempt from any of the taxes referred to in Part B of

I.

(c) Those which are shown as a result of transmissions by entities resident on Spanish territory, of permanent establishments situated in the territory of non-Union States European in favour of entities resident in Spanish territory.

(d) Those that are evidenced as a result of transmissions by non-resident entities on Spanish territory, of permanent establishments in the situated.

When the acquiring institution resides abroad, the income derived from the transfer of those items which are affected to a permanent establishment situated in the territory shall be excluded from the taxable base.

The transfer of these elements outside the Spanish territory shall determine the integration into the taxable base of the permanent establishment, in the year in which the permanent establishment takes place, of the difference between the market value and the value referred to in the following article, which has been minorted, where applicable, in the amount of the write-downs and other value adjustments that have been accounted for in a manner that have been tax deductible.

The payment of the tax liability resulting from the application of the provisions of the preceding paragraph, in the case of assets transferred to a Member State of the European Union, or of the European Economic Area with the that there is an effective exchange of tax information in the terms provided for in paragraph 3 of the Additional Provision of Law 36/2006 of 29 November, of measures for the prevention of tax fraud, will be deferred by the Tax administration at the request of the taxpayer until the date of transmission to third parties the assets affected, resulting from the application of the provisions of the General Tax Law, and its implementing rules, as regards the accrual of interest for late payment and the provision of guarantees for such deferral.

(e) Those that are disclosed as a result of transmissions made by non-resident entities in Spanish territory of shares in entities resident on Spanish territory, in favour of resident entities in the same country or territory, or in favour of entities resident in the European Union provided that, in the latter case, both the transferring entity and the acquirer are one of the forms listed in Part A of Annex I to the Directive 2009 /133/EC, and are subject to and not exempt from any of the taxes referred to in Part B of Annex I.

The income derived from transactions referred to in points (a), (c) and (d) above shall not be excluded from the tax base where the acquiring institution is exempted by this tax or subject to the allocation of rents.

The income derived from the transactions referred to in this paragraph shall be excluded from the tax base even if the acquiring institution enjoys the application of a special tax rate or tax rate. Where the acquiring institution enjoys the application of a tax rate or a special tax system other than the transfer, the income derived from the transfer of existing assets at the time of the transaction, carried out subsequently, it shall be understood to be generated in a linear manner, unless it proves otherwise during the time of holding the transmitted element. The part of such income generated up to the time of the operation shall be taxed by applying the rate of charge and the tax system which would have been paid to the transferring entity.

2. The arrangements laid down in the preceding paragraph may be waived by means of the integration into the taxable base of the income derived from the transfer of all or part of the assets.

3. In any event, the income derived from vessels or aircraft or movable property affected by their exploitation shall be integrated into the taxable base, which shall be made manifest in the international maritime and air navigation entities where the acquiring entity is not resident in Spanish territory.

Article 78. Tax assessment of purchased goods.

1. The goods and rights acquired by means of transmissions resulting from the operations to which the scheme provided for in the previous Article has been applied shall be valued for tax purposes by the same tax values as they had in the the transmitting entity before the transaction is performed, also remaining the date of acquisition of the transmitting entity.

2. In the event that the waiver option provided for in paragraph 2 of the previous article is exercised, the acquired goods and rights shall be valued in accordance with the rules laid down in Article 17 of this Law. In this case, the date of acquisition of such goods and rights shall be the date on which the acquisition has mercantile efficiency.

3. In cases where the scheme provided for in the previous Article is not applicable, the value to be applied in accordance with Article 17 of this Law shall be taken.

Article 79. Tax valuation of shares or shares received in consideration of the contribution.

The shares or shares received as a result of a contribution by branches of activity or property assets shall be valued for tax purposes for the same tax value as the branch of activity or the elements Assets contributed.

However, in the event that the waiver option provided for in Article 77 (2) of this Law is exercised, the shares or shares received shall be valued in accordance with the rules laid down in Article 17. of this Law.

Article 80. Tax regime for the exchange of securities.

1. No income shall be included in the taxable amount of this tax, the income tax of the physical persons or the income tax of non-residents, as long as they comply with the exchange of securities. Following requirements:

(a) That the trading partners of securities are resident in Spanish territory or in that of another Member State of the European Union or in that of any other State provided that, in the latter case, the securities received are representative of the social capital of an entity resident in Spain.

When the partner has the consideration of an entity in the allocation of income, it shall not be integrated into the taxable base of the persons or entities that are members, heirs, community members or members of that partner, the income generated on the occasion of the exchange of securities, provided that the tax regime laid down in this Chapter is applicable to the operation or is carried out under Council Directive 2009 /133/EC of 19 October on the common system of taxation applicable to mergers, divisions, partial divisions, transfers of assets and exchange of securities carried out between companies of different Member States and the transfer of the registered office of an SE or an SCE from one Member State to another, and the securities received by the partner retain the same tax valuation as those exchanged.

(b) the entity that acquires the securities is resident in Spanish territory or falls within the scope of Directive 2009 /133/EC.

2. The securities received by the entity carrying out the exchange of securities will be valued for tax purposes for the tax value they had on the assets of the partners making the contribution, according to the rules of this Tax, of the Tax on the Income of the Physical Persons or Income Tax of non-residents, also remaining the date of acquisition of the contributing partners.

However, in cases where the income generated in the partners is not subject to taxation in Spanish territory, the market value will be taken. In this case, the date of acquisition of the shares shall be that corresponding to the date of completion of the exchange of securities.

3. The securities received by the members shall be valued for tax purposes by the tax value of the delivered, determined in accordance with the rules of this Tax, the Income Tax of the Physical Persons or the Income Tax Residents, as appropriate. This assessment shall be increased or decreased by the amount of the additional compensation in money delivered or received.

The values received will retain the date of purchase of the delivered.

4. In the event that the partner loses the quality of resident in Spanish territory, it will be integrated into the tax base of the Income Tax of the Physical Persons or of this Tax of the last tax period to be declared by these taxes, the difference between the market value of the shares or units and the value referred to in the preceding paragraph, unless the shares or shares are affected by a permanent establishment situated in the territory of the territory of the

The payment of the tax liability resulting from the application of the provisions of the preceding paragraph, when the partner acquires residence in a Member State of the European Union, or of the European Economic Area with which there is a cash exchange of tax information in the terms provided for in paragraph 3 of the Additional Provision of Law 36/2006 of 29 November, of measures for the prevention of tax fraud, shall be deferred by the Administration tax at the request of the taxpayer until the date of the transfer to third parties of the shares or the interests involved, resulting from the application of the provisions of Law 58/2003 of 17 December, General Tax, and its implementing rules, in respect of the accrual of interest for late payment and the provision of guarantees for such deferment.

If the tax obligation is again acquired as a taxpayer of this Tax or the Income Tax of the Physical Persons without having transmitted the ownership of the shares or units, it may request the rectification of the reverse charge in order to obtain the return of the amounts entered in respect of the capital gains regulated in this article. The request for rectification may be submitted from the end of the period of the declaration for the first tax period in which a self-settlement of this Tax or the Income Tax is to be filed. Physical.

The return referred to in the preceding paragraph shall be governed by the provisions of Article 31 of Law 58/2003 of 17 December 2003, General Tax, except as regards the payment of interest on late payment, which shall be payable from the date on which the entry was made until the date on which the return was ordered.

5. The scheme provided for in this Article shall not apply in respect of transactions involving entities domiciled or established in countries or territories which are classified as tax havens or obtained through them.

Article 81. Taxation of partners in merger and division operations.

1. The income which is shown on the occasion of the allocation of the securities of the acquiring institution to the partners of the transferring entity shall not be integrated into the taxable base, provided that they are resident in Spanish territory or in the territory of another Member State of the European Union or in that of any other State provided that, in the latter case, the securities are representative of the share capital of an entity resident in Spanish territory.

When the partner has the consideration of an entity in the allocation of income, it shall not be integrated into the taxable base of the persons or entities that are members, heirs, community members or members of that partner, the income generated on the occasion of such an allocation of securities, provided that the tax regime laid down in this Chapter is applicable to the operation or is carried out under Council Directive 2009 /133/EC of 19 October on the tax regime common to mergers, divisions, partial divisions, transfers of assets and exchange of securities made between companies of different Member States and the transfer of the registered office of an SE or an SCE from one Member State to another, and the securities received by the partner retain the same tax valuation as the redeemed.

2. The securities received under merger and division operations are valued for tax purposes by the tax value of the delivered, determined in accordance with the rules of this Tax, the Income Tax of the Physical Persons or of the Non-Resident Income Tax, as applicable. This valuation shall be increased or reduced by the amount of the additional compensation in money delivered or received. The values received will retain the date of purchase of the delivered.

3. In the event that the partner loses the quality of resident in Spanish territory, it will be integrated into the tax base of the Income Tax of the Physical Persons or of this Tax of the last tax period to be declared by these taxes, the difference between the market value of the shares or units and the value referred to in the preceding paragraph, unless the shares or shares are affected by a permanent establishment situated in the territory of the territory of the

The payment of the tax liability resulting from the application of the provisions of the preceding paragraph, when the partner acquires residence in a Member State of the European Union, or of the European Economic Area with which there is a cash exchange of tax information in the terms provided for in paragraph 3 of the Additional Provision of Law 36/2006 of 29 November, of measures for the prevention of tax fraud, shall be deferred by the Administration tax at the request of the taxpayer until the date of the transfer to third parties of the shares or the interests involved, resulting from the application of the provisions of Law 58/2003 of 17 December, General Tax, and its implementing rules, in respect of the accrual of interest for late payment and the provision of guarantees for such deferment.

If the tax obligation is again acquired as a taxpayer of this Tax or the Income Tax of the Physical Persons without having transmitted the ownership of the shares or units, it may request the rectification of the reverse charge in order to obtain the return of the amounts entered in respect of the capital gains regulated in this article. The request for rectification may be submitted from the end of the period of the declaration for the first tax period in which a self-settlement of this Tax or the Income Tax is to be filed. Physical.

The return referred to in the preceding paragraph shall be governed by the provisions of Article 31 of Law 58/2003 of 17 December 2003, General Tax, except as regards the payment of interest on late payment, which shall be payable from the date on which the entry was made until the date on which the return was ordered.

4. They shall be integrated into the tax base of this Tax, the Income Tax of the Physical Persons or the Income Tax of Non-Residents, the income obtained in transactions involving entities domiciled or established in countries or territories qualified as tax havens or obtained through them.

Article 82. Shares in the capital of the transferring entity and the acquiring institution.

1. Where the acquiring institution participates in the capital or in the own funds of the transferring entity in at least 5%, the positive or negative income arising from the cancellation of the institution shall not be included in the taxable amount of that institution. participation. Nor shall such integration occur on the occasion of the transfer of the holding held by the transferring entity in the capital of the acquirer where it is at least 5% of the capital or the equity capital.

2. Where the acquiring institution participates in the capital of the transferring entity at a rate of less than 5%, the positive or negative income arising from the cancellation of the holding shall be included in the tax base of that entity. Such integration shall also take place on the occasion of the transfer of the holding held by the transferring entity in the capital of the acquirer where it is less than 5% of the capital or own funds.

Article 83. Limitation on the deduction of financial expenses for the acquisition of equity shares in the capital or in the own funds of institutions.

For the purposes of Article 16 of this Law, the financial expenses arising from debts intended for the acquisition of equity or equity of any kind of entity shall be deducted from the an additional limit of 30% of the operating profit of the institution itself which made that acquisition, not including in that operating profit the corresponding to any entity merging with that entity in the 4 years after that acquisition, where the merger applies this special tax regime. These financial expenses shall also be taken into account in the limit referred to in Article 16 (1

.

Non-deductible financial expenses resulting from the application of the provisions of this paragraph shall be deductible in the following tax periods with the limit laid down in this Article and in Article 16 (1) of this Article. Law.

The limit provided for in this paragraph shall not apply in the tax period in which holdings in the capital or equity of institutions are acquired if the acquisition is financed by debt at the latest by 70%. percent of the purchase price. Also, this limit shall not apply in the following tax periods provided that the amount of that debt is mined, from the time of the acquisition, at least in the proportional share corresponding to each of the following 8 years, up to the debt reaches 30 percent of the purchase price.

Article 84. Subrogation in tax rights and obligations.

1. Where the transactions referred to in Article 76 or 87 of this Law determine a succession on a universal basis, the acquiring institution shall be transmitted to the acquiring institution.

Where the succession is not a universal succession, the acquiring entity shall be transmitted the tax rights and obligations relating to the goods and rights transmitted.

The acquiring entity shall assume the fulfilment of the requirements necessary to continue to apply the tax benefits or to consolidate those applied by the transmitting entity.

2. The acquiring institution shall be transmitted to the acquiring entity the negative negative tax bases in the transmitting entity, provided that one of the following circumstances occurs:

a) Extinction of the transmitting entity.

(b) The transmission of an activity branch whose results have generated negative taxable bases outstanding in the transmitting entity. In this case, the negative taxable bases that are generated by the transmitted activity branch will be transmitted.

Where the acquiring institution participates in the capital of the transfer or both are part of a group of companies referred to in Article 42 of the Trade Code, irrespective of their residence and obligation in the form of consolidated annual accounts, the negative taxable amount liable for compensation shall be reduced by the amount of the positive difference between the value of the members ' contributions, made by any title, corresponding to the participation or shares held by the entities of the group on the institution transmit, and its tax value.

3. The subrogations shall comprise exclusively the rights and obligations arising under the Spanish laws.

Article 85. Losses of permanent establishments.

The income generated in the transmission of a permanent establishment shall apply the regime set out in Article 22 of this Law.

However, if the requirements laid down in Article 22 of this Law are not met, the amount of the positive income exceeding the net negative income obtained by the permanent establishment shall be integrated into the base the taxable person's taxable person, without prejudice to the fact that it is possible to deduct from the full quota the tax which, if not by the provisions of Directive 2009 /133/EC, of the Council of 19 October on the common system of taxation applicable to the mergers, divisions, partial divisions, transfers of assets and exchange of securities between companies of different Member States and the transfer of the registered office of an SE or an SCE from one Member State to another would have taxed that same income in the taxable amount in the Member State in which the said establishment is situated permanent, with the limit of the amount of the full quota corresponding to that integrated income in the tax base.

Article 86. Accounting obligations.

1. The acquiring institution shall include in the annual report the information which is then cited, unless the transmitting entity has exercised the power referred to in Article 77.2 of this Law in which case the information is to be completed only indicated in point (d):

(a) The tax period in which the transmitting entity acquired the goods transmitted.

b) Last balance closed by the transmitting entity.

(c) The relationship of acquired goods which have been incorporated in the books of accounts for a value other than that for which they were included in the accounts of the entity transmitting prior to the conduct of the transaction, both securities as well as the valuation corrections set out in the books of the two entities.

(d) Relation of tax benefits enjoyed by the transmitting entity, in respect of which the institution is required to assume compliance with certain requirements in accordance with Article 84 (1) of the Law.

For the purposes set out in this paragraph, the transmitting entity shall be obliged to report such data to the acquiring institution.

2. Legal entities shall mention in the annual report the following data:

a) Accounting and fiscal value of the delivered values.

b) The value for which the received values were counted.

3. The particulars set out in the preceding paragraphs shall be made as long as the assets or assets acquired or the requirements arising from the tax incentives enjoyed by the Member State are kept in the inventory. transmitting entity.

The acquiring institution may choose, with reference to the second and subsequent annual reports, to include the mere indication that these particulars are shown in the first annual report approved after the operation, which must be kept while the circumstance referred to in the preceding paragraph is present.

4. Failure to comply with the obligations set out in the preceding paragraphs shall be considered as a serious tax infringement. The penalty will consist of a fixed pecuniary fine of 1,000 euros for each data omitted, in each of the first 4 years in which the information is not included, and of 5,000 euros for each data omitted, in each of the following years, with the limit of 5 (a) a percentage of the value by which the acquiring institution has reflected the assets and rights transmitted in its accounts.

The penalty imposed in accordance with this paragraph shall be reduced in accordance with the provisions of Article 188 (3) of Law 58/2003 of 17 December, General Tax.

Article 87. Non-cash contributions.

1. The scheme provided for in this Chapter shall apply, at the option of the taxpayer of this Tax, to the Income Tax of the Physical Persons or the Income Tax of Non-Residents, to the non-cash contributions in which the following requirements are met:

(a) That the entity receiving the contribution is resident in Spanish territory or carries out activities in the Spanish territory by means of a permanent establishment to which the assets are affected.

b) That once the contribution has been made, the contributing taxpayer of this Tax, the Income Tax of the Physical Persons or the Income Tax of non-residents, participate in the own funds of the entity that receives the contribution in at least 5 percent.

c) That, in the case of contributions of shares or social contributions by taxpayers of the Income Tax of the Physical Persons or the Income Tax of non-residents without permanent establishment in territory In addition to the requirements set out in points (a) and (b), the following shall be met:

1. The special scheme of economic interest groups, Spanish or European, and temporary joint ventures, provided for in this Law, shall not apply to the institution whose social capital is representative. has as its principal activity the management of a property or property in the terms provided for in Article 4.ocho.two of Law 19/1991 of 6 June of the Tax on Heritage.

2. º That represent a participation of at least 5 percent of the entity's own funds.

3. º That are held uninterruptedly by the contributor during the year before the date of the public document in which the contribution is formalized.

d) That, in the case of contributions of assets other than those referred to in point (c) by taxpayers of the Income Tax of the Physical Persons or the Income Tax of non-residents who are resident in Member States of the European Union, those elements are affected by economic activities whose accounting is carried out in accordance with the provisions of the Trade Code or equivalent legislation.

2. The scheme provided for in this Chapter shall also apply to the contributions of branches of activity, made by the taxpayers of the Income Tax of the Physical Persons and the Income Tax of non-residents who are resident in Member States of the European Union, provided that they bear their accounts in accordance with the Trade Code or equivalent legislation.

Article 88. Rules to avoid double taxation.

1. For the purposes of avoiding double taxation which may arise by application of the valuation rules laid down in Articles 79, 80.2 and 87 of this Law, the profits distributed from income attributable to the assets provided shall be the right to the exemption to avoid double taxation of dividends, irrespective of the percentage of the partner's participation and its seniority. The same criterion shall apply in respect of the income generated in the transmission of the participation.

2. Where, in the manner in which the acquiring institution has been counted, it would not have been possible to avoid double taxation by application of the rules laid down in the preceding paragraph, that entity shall, at the time of its termination, make the adjustments to a sign contrary to those which he has practised pursuant to the rules of assessment laid down in Articles 79, 80.2 and 87 of this Law. The acquiring institution may practise such adjustments as a sign contrary to its extinction, provided that it proves that its participation has been transmitted by the partners and the amount of the amount which has been integrated into the base assessment of these on the occasion of such transmission.

Article 89. Implementation of the tax regime.

1. The operations covered by this Chapter shall be understood to apply the arrangements set out therein, unless expressly stated otherwise through the communication referred to in the following paragraph.

The conduct of the operations referred to in Articles 76 and 87 of this Law shall be the subject of communication to the tax administration by the acquiring institution of the transactions, unless the latter is not resident. in Spanish territory, in which case such communication shall be carried out by the transmitting entity. This communication shall indicate the type of operation being carried out and whether the special tax regime provided for in this Chapter is not applied.

In the case of transactions in which neither the acquiring institution nor the transferee are resident in Spanish territory, the communication referred to in the preceding paragraph must be submitted by the partners, which must indicate that the A tax regime similar to that established in this chapter has been accepted.

This communication shall be presented in the form and time limits to be determined by regulation. The lack of a timely submission of this communication constitutes a serious tax infringement. The penalty shall consist of a fixed pecuniary fine of EUR 10,000 for each operation for which information is to be supplied.

2. The scheme set out in this Chapter shall not apply where the main objective of the operation is fraud or tax evasion. In particular, the scheme shall not apply where the operation is not carried out for valid economic reasons, such as the restructuring or rationalisation of the activities of the entities involved in the operation, but with the sole purpose of to achieve a tax advantage.

The tax authorities ' verification actions which determine the total or partial implementation of the special tax system by application of the provisions of the preceding paragraph, shall exclusively eliminate the effects of the the tax advantage.

CHAPTER VIII

Mining Tax Regime

Article 90. Mining entities: freedom of amortisation.

1. Entities carrying out activities for the exploration, research and exploitation or the benefit of mineral deposits and other geological resources classified in Section C), paragraph 1, of the third article of Law 22/1973 of 21 July Mines, and in Section D) created by Law 54/1980 of 5 November, amending the Law of Mines, with special attention to the energy mineral resources, as well as those that are regulated in general between the (a) and (B) of the said Article, may, in respect of their investments, be eligible for in mining assets and with the amounts paid in respect of the area fee, the freedom to redeem for 10 years from the beginning of the first tax period on the basis of which the result of the tax is incorporated exploitation.

2. The activities referred to in the preceding paragraph shall not be considered as the mere provision of services for the performance or development of such activities.

Article 91. Exhaustion factor: scope and modes.

1. They may reduce the taxable amount, in the amount of the amounts allocated, by way of exhaustion factor, to the taxpayers who make, under Law 22/1973, of 21 July of Mines, the use of one or more of the following resources:

(a) Those included in Section C) of paragraph one of the third article of Law 22/1973, of 21 July, of Mines, and in Section D) created by Law 54/1980 of 5 November, amending the Law of Mines, with special attention to energy mineral resources.

(b) Those obtained from deposits of non-natural origin belonging to Section B) of paragraph 1 of this Article, provided that the products recovered or processed are classified in Section C) or in the Section D) created by Law 54/1980 of 5 November amending the Law of Mines.

2. The exhaustion factor shall not exceed 30% of the tax base portion corresponding to the use of the leverage referred to in the previous paragraph.

3. Entities carrying out the use of one or more of the mineral raw materials declared as priorities in Royal Decree 647/2002 of 5 July 2002 declaring mineral raw materials and related activities, As a priority for the purposes of Law 43/1995 of 27 December 1995, the Company Tax will be eligible for the activity concerning these resources, because the exhaustion factor will be up to 15 percent of the value of the of the minerals sold, also being considered to be consumed by the same companies for further processing or processing. In this case, the allocation for the exhaustion factor may not exceed the taxable amount corresponding to the processing, processing, marketing and sale of the substances obtained from the use of the said substances and the products incorporating such substances and other products derived therefrom.

4. In the event that several natural or legal persons have been associated with the conduct of mining activities without becoming an independent legal personality, each unit-holder may allocate, on a pro rata basis, their participation. in the common activity, the corresponding amount as a factor of exhaustion with the obligations laid down in the following Articles.

Article 92. Exhaustion factor: investment.

The amounts which have reduced the tax base as a factor for exhaustion can only be invested in expenditure, work and fixed assets directly related to the mining activities which are then indicate:

a) Exploration and research of new mineral deposits and other geological resources.

b) Research to improve the recovery or quality of the products obtained.

(c) Subscription or acquisition of securities representing the share capital of companies exclusively engaged in the activities referred to in points (a), (b) and (d) of this Article, as well as the exploitation of mineral deposits and other geological resources classified in Section C), paragraph one of the third article of Law 22/1973, of 21 July, of Mines, and in Section D) created by Law 54/1980, of 5 November, of amendment of the Law of Mines, with special attention to energy mineral resources, in the field of radioactive minerals, resources geothermal, bituminous rocks and any other mineral deposits or geological resources of energy interest which the Government agrees to include in this section, provided that in both cases the values are maintained uninterrupted in the the equity of the entity for a period of 10 years.

In the event that the companies from which the shares or units were subscribed, after the subscription, carry out activities other than those mentioned, the taxpayer shall carry out the liquidation to which it is refers to Article 94.1 of this Law, or to reinvest the amount corresponding to that subscription, in other investments that meet the requirements. If the new reinvestment is made in respect of the values referred to in the first subparagraph, they shall be maintained for the period remaining to complete the 10-year period.

d) Research to obtain a better understanding of the reserve of the field in operation.

e) Laboratories and research teams applicable to the mining activities of the company.

(f) Actuations included in the restoration plans provided for in Royal Decree 975/2009 of 12 June on the management of waste from the extractive industries and the protection and rehabilitation of the space affected by the mining activities.

Article 93. Exhaustion factor: requirements.

1. The amount to be reduced by the exhaustion factor in each tax period shall be reversed within 10 years from the date of its conclusion.

2. Investment shall be deemed to have been made when the expenditure or work referred to in the previous article or the fixed assets has been incurred.

3. In each tax period, the institution's reserve accounts shall be increased by the amount that reduced the tax base by way of exhaustion factor.

4. The taxpayer shall collect in the memory of the 10 financial years following that in which the corresponding reduction was made, the amount of the amount, the investments made from the taxpayer and the write-downs made, as well as any reduction in the reserve accounts which were increased as a result of the provisions of the previous paragraph and the fate of the former. These facts may be checked during the same period.

5. Reserves constituted in accordance with paragraph 3 may only be freely available, in so far as investments are amortised, or after 10 years after the date of the signing of the corresponding reserves. actions or participations financed from such funds.

6. Investments financed by application of the exhaustion factor shall not be eligible for the deductions provided for in Chapter IV of Title VI.

Article 94. Exhaustion factor: non-compliance with requirements.

1. After the period of 10 years without having invested or having inadequately invested the corresponding amount, it shall be integrated into the tax base of the tax period ending the expiry of that period or of the financial year in which the (a) the inadequate provision should be made, the corresponding interest on late payment should be settled from the date of the end of the period of voluntary payment of the debt corresponding to the tax period in which the payment was made; correlative reduction.

2. In the case of liquidation of the institution, the amount to be applied to the exhaustion factor shall be integrated into the tax base in the form and with the effects provided for in the previous paragraph.

3. In the same way, the cases of the transfer or the total or partial disposal of the mining operation and those of merger or transformation of entities shall be carried out, unless the resulting entity, which continues the mining activity, assumes compliance with the requirements necessary to consolidate the benefit enjoyed by the transmitting or transformed entity, on the same terms as it was in the previous entity.

CHAPTER IX

Tax regime for the investigation and exploitation of hydrocarbons

Article 95. Exploration, research and exploitation of hydrocarbons: depletion factor.

Companies whose social object is exclusively the exploration, investigation and exploitation of deposits and underground storage of natural, liquid or gaseous hydrocarbons, existing in the Spanish territory and in the subsoil of the territorial sea and of the seabed which are under the sovereignty of the Kingdom of Spain, in the terms of Law 34/1998 of 7 October, of the hydrocarbon sector, and with a complementary nature, those of transport, storage, purification and sale of the extracted products, will be entitled to a reduction in their taxable base, as a factor of exhaustion, which may be, at the choice of the entity, any of the following two:

(a) 25 percent of the amount of consideration for the sale of hydrocarbons and the provision of storage services, with the limit of 50 percent of the tax base prior to this reduction.

b) 40 percent of the amount of the tax base prior to this reduction.

Article 96. Exhaustion factor: requirements.

1. The quantities which have reduced the tax base by way of exhaustion must be invested by the concessionaire in the activities of exploration, research and exploitation of deposits or underground storage of hydrocarbons. to develop in the Spanish territory and in the subsoil of the territorial sea and the seabed that are under the sovereignty of the Kingdom of Spain, as well as in the abandonment of fields and in the dismantling of marine platforms, within 10 years from the conclusion of the tax period in which the tax base is reduced in concept of exhaustion. The same consideration shall be given to the exploration, research and exploitation activities carried out in the 4 years preceding the first tax period in which the tax base is reduced as a result of exhaustion.

For these purposes, preliminary studies of geological, geophysical or seismic nature, as well as all costs incurred in the area of a permit for exploration or research, shall be understood by exploration or research. such as exploration surveys, as well as evaluation and development surveys, if they are negative, the costs of works for access and preparation of the land and the location of such surveys. Exploration or research expenditure shall also be considered to be incurred in a concession and which relate to work for the location and drilling of a structure capable of containing or storing hydrocarbons, other than that contained in the the field of production that gave rise to the granting of the holding. Abandonment of fields and the dismantling of offshore platforms shall mean the work necessary to dismantle the terrestrial production facilities or the offshore platforms, leaving the ground or the marine space free and expeditious. occupied in the form set by the grant decree.

For these purposes, it is understood by investments in exploitation that are carried out in the area of a concession of exploitation, such as the design, drilling and construction of the wells, the operating facilities, and any other investment, tangible or intangible, which is necessary in order to be able to carry out the operations, provided that they do not correspond to investments made by the concessionaire in the exploration or research activities referred to above. previously.

To be included as exploitation, for these purposes, the assessment and development surveys that are positive.

2. In each tax period, the reserve accounts of the institution shall be increased by the amount that reduced the tax base by way of exhaustion.

3. Only reserves set up pursuant to the previous paragraph may be freely available, in so far as the assets financed by those funds are amortised.

4. The taxpayer shall collect in the memory of the 10 financial years following that in which the corresponding reduction was made, the amount of the amount, the investments made from the taxpayer and the write-downs made, as well as any decrease in the reserve accounts which were increased as a result of the provisions of paragraph 2 and the destination of the reserve.

These facts may be checked during the same period, for which the taxpayer will have to provide the accounting and the appropriate documentary supports that demonstrate compliance with the requirements of the exhaustion factor.

5. Investments financed by application of the exhaustion factor shall not be eligible for the deductions provided for in Chapter IV of Title VI.

Article 97. Exhaustion factor: non-compliance with requirements.

1. After the period of 10 years without having invested or having inadequately invested the corresponding amount, it shall be integrated into the tax base of the tax period ending the expiry of that period or of the financial year in which the (a) the inadequate provision should be made, the corresponding interest on late payment should be settled from the date of the end of the period of voluntary payment of the debt corresponding to the tax period in which the payment was made; correlative reduction.

2. In the case of the liquidation of the entity or the change of its social object, the amount outstanding for the application of the exhaustion factor shall be integrated into the tax base in the form and with the effects provided for in the preceding paragraph.

3. In the same way, the cases of transfer or full or partial disposal, merger or transformation of the entity shall be carried out, unless the resulting entity continues to have as a social object, exclusively, that established in the article 95 of this Law and assume the fulfilment of the necessary requirements to consolidate the benefit enjoyed by the transmitting or transformed entity, in the same terms as it was appearing in the previous entity.

Article 98. Shared ownership.

In the event that a number of companies have the shared ownership of a research permit or an operating concession, each of the participating entities shall be assigned revenue, expenditure, income derived from the transfer of assets and investments, which are attributable to them, in accordance with their degree of participation.

Article 99. Amortization of intangible investments and research expenditure. Compensation of negative taxable bases.

1. Intangible assets and expenses of a research nature carried out in existing permits and concessions, expired or extinguished, shall be considered as intangible assets, from the time of their realization, and may be amortised with an annual fee 50 percent maximum. This concept will include geological, geophysical and seismic work, and land access and preparation works as well as exploration, evaluation and development surveys, and well-fitting operations. conservation of fields.

There will be no maximum repayment period for intangible assets and research expenditure.

2. The tangible assets of the asset may be amortised, in accordance with the "production unit" criterion, in accordance with a plan accepted by the Administration in accordance with Article 12 (1) (d) of this Law.

3. The entities referred to in Article 95 of this Law shall compensate for the negative tax bases by means of the procedure of reducing the taxable bases for the following financial years at a maximum annual amount of 50% of each of the following financial years. those.

This negative tax base compensation procedure replaces the one set out in Article 26 of this Act.

CHAPTER X

International tax transparency

Article 100. Imputation of positive income obtained by non-resident entities.

1. Taxpayers shall, in their taxable amount, charge the positive income referred to in paragraphs 2 or 3 of this Article where the following conditions are met:

(a) That alone or jointly with persons or entities linked within the meaning of Article 18 of this Law have a share of 50% or more in the capital, own funds, results or voting rights of the non-resident entity in Spanish territory, on the date of the closure of the latter's social year.

The amount of the positive income to be imputed shall be determined in proportion to the participation in the results and, failing that, in proportion to the share in the capital, own funds or voting rights.

(b) The amount satisfied by the entity not resident in Spanish territory, attributable to any of the income classes provided for in paragraph 2 or 3 of this Article by reason of a charge of an identical or similar nature to that Tax, be less than 75% of the one that would have been in accordance with the rules of that.

2. The taxpayer shall charge the total income obtained by the non-resident entity in Spanish territory, where the entity does not have the corresponding organization of material and personal means for its realization, even if the transactions have recurring character. However, in the case of dividends, shares in profits or income arising from the transfer of shares, the provisions of paragraph 4 of this Article shall in any case be dealt with.

Total income shall mean the amount of the tax base that results from applying the criteria and principles set out in this Law and the other provisions relating to this Tax for the determination of that tax.

This paragraph will not apply when the taxpayer credits that the said transactions are carried out with the material and personal means existing in a non-resident entity in Spanish territory belonging to the the same group, within the meaning of Article 42 of the Trade Code, irrespective of residence and the obligation to draw up consolidated annual accounts, or that its constitution and operation are valid for economic reasons.

The application of the first paragraph of this section will prevail over the next paragraph.

3. In the case of failure to apply the above paragraph, only the positive income from each of the following sources shall be charged:

(a) Entitlement to rustic and urban real estate or real rights that fall upon them, except that they are affected by economic activity, or transferred to non-resident entities belonging to the same group of companies of the holder within the meaning of Article 42 of the Code of Commerce, irrespective of their residence and the obligation to make consolidated annual accounts, and are also affected by economic activity.

(b) Participation in own funds of any kind of entity and transfer to third parties of own capital, as provided for in Article 25 (1) and (2) of Law 35/2006 of 28 November of the Tax on the Income of the Physical Persons and partial modification of the laws of the Taxes on Societies, on the Income of Non-Residents and on the Heritage. The positive income from the following financial assets is not included in this letter:

1. The tinted to comply with statutory and regulatory obligations arising from the exercise of economic activities.

2. º Those incorporating credit rights born from contractual relations established as a result of the development of economic activities.

3. The held as a result of the exercise of intermediation activities in official stock markets.

4. THOSE HELD BY CREDIT INSTITUTIONS AND INSURERS AS A RESULT OF THE EXERCISE OF THEIR ACTIVITIES, WITHOUT PREJUDICE TO POINT (G) ABOVE.

The positive income derived from the transfer to third parties of own capital shall be understood as coming from the carrying out of credit and financial activities referred to in point (g), where the transferor and the transferee belong a group of companies within the meaning of Article 42 of the Code of Commerce, irrespective of residence and the obligation to draw up consolidated annual accounts, and the revenue of the transferee shall be at least 85% of the exercise of economic activities.

c) Capitalization and insurance operations, which have the benefit of the entity itself.

(d) Industrial and intellectual property, technical assistance, movable property, image and lease rights or subleasing of business or mines, in the terms set out in Article 25 (4) of Law 35/2006.

e) Transmission of the goods and rights referred to in points (a), (b), (c) and (d) above which generates income.

(f) derivative financial instruments, except those designated to cover a specifically identified risk arising from the performance of economic activities.

g) Credit, financial, insurance and service activities carried out, directly or indirectly, with persons or entities resident in Spanish territory and linked within the meaning of Article 18 of this Law, as soon as they determine tax deductible expenses on such resident entities.

The positive income provided for in this letter shall not be included where more than 50% of the income derived from the credit, financial, insurance or service activities carried out by the institution is not included. a resident comes from operations carried out with persons or entities not related within the meaning of Article 18 of this Law.

4. The income provided for in points (b) and (e) above shall not be attributed to the value of any securities arising from the participation in the capital or in the own funds of institutions which grant at least 5 per cent of the capital of an institution and held for at least one year, for the purpose of directing and managing participation, provided that it has the appropriate material and personal media organisation, and the participating entity does not meet the established requirements in Article 5 (2) of this Law.

In the case of entities forming part of the same group of companies according to the criteria set out in Article 42 of the Trade Code, regardless of residence and the obligation to make annual accounts consolidated, the requirements relating to the percentage of participation as well as the existence of a management and management of the participation shall be determined taking into account all those who are part of the participation.

5. The income provided for in paragraph 3 of this Article shall not be charged where the sum of the amounts of the income is less than 15% of the total income obtained by the non-resident entity, except for the income referred to in point (g) of that paragraph, which shall be charged in full.

6. The income referred to in paragraph 3 of this Article shall not be charged, where it corresponds to the tax expense of non-deductible entities resident in Spanish territory.

7. Entities resident in Spanish territory within the meaning of paragraph 1 (a) who are directly involved in the non-resident entity or indirectly through another or other entities shall be obliged to the imputation provided for in this Article. non-resident entities. In the latter case the amount of the positive income shall be that corresponding to the indirect participation.

8. The allocation shall be made in the tax period covering the day on which the non-resident entity in Spanish territory has concluded its social exercise which, for these purposes, cannot be understood as longer than 12 months.

9. The amount of the positive income to be charged shall be calculated in accordance with the principles and criteria laid down in this Law and in the other provisions relating to this Tax for the determination of the tax base.

For these purposes, the exchange rate in force at the close of the social exercise of the non-resident entity in Spanish territory shall be used.

In no case will an amount exceed the total income of the non-resident entity.

10. Dividends or shares in profits in the part corresponding to the positive income that has been included in the tax base shall not be included in the tax base. The same treatment will apply to dividends on account.

In the case of distribution of reserves, the designation contained in the social agreement shall be considered, the last amounts paid to those reserves being applied.

A single positive income may only be imputed for one time, whatever the form and entity in which it manifests.

11. The following concepts will be included in the full quota:

(a) Taxes or taxes of a nature identical or similar to this Tax, effectively satisfied, in the part corresponding to the positive income attributed to the tax base.

They shall be considered as effectively satisfied taxes, paid by both the non-resident entity and its investees, provided that it has the percentage of participation established in Article 32.3 of the this Act.

(b) The tax or levy actually paid abroad by reason of the distribution of dividends or shares in profits is in accordance with an agreement to avoid double taxation or in accordance with the domestic legislation of the country or territory concerned, in the part corresponding to the positive income previously imposed on the tax base.

Where the participation in the non-resident entity is indirect through another or other non-resident entities, the tax or charge of an identical or similar nature to this tax effectively satisfied shall be deducted. that or those in the part corresponding to the positive income previously imposed on the tax base.

These deductions will be practiced even if the taxes correspond to tax periods other than that in which the imputation was made.

In no case will the satisfied taxes be deducted in countries or territories qualified as tax havens.

The sum of the deductions in points (a) and (b) of this paragraph may not exceed the full quota that in Spain is payable for the positive income included in the tax base.

12. In order to calculate the income derived from the direct or indirect transmission of the participation, the acquisition value shall be increased by the amount of the social benefits which, without effective distribution, correspond to income that would have been charged to members as income from their shares or units in the period of time between their acquisition and transfer.

In the case of entities that have the consideration of an equity entity in the terms set out in Article 5 (2) of this Law, the value of transmission to be computed shall be at least the value of the net worth that corresponds to the transmitted values resulting from the last closed balance sheet, after the accounting value of the assets for the value that they would have for the purposes of the Heritage Tax or the market value has been replaced if this is lower.

13. The taxpayers to whom the provisions of this Article are applicable shall submit jointly with the declaration for this Tax the following data relating to the non-resident entity in Spanish territory:

a) Social name or reason and place of the registered office.

b) Relationship of administrators and place of their tax domicile.

c) The balance sheet, profit and loss account, and memory.

(d) Amount of the positive income to be charged in the tax base.

e) Justification of the satisfied tax in respect of the positive income to be imputed in the tax base.

14. Where the participating entity resides in a country or territory qualified as a tax haven or in a country or territory of zero taxation, it shall be presumed that:

(a) The circumstance referred to in paragraph 1 (b) is fulfilled.

(b) The income of the participating entity meets the characteristics of paragraph 3 of this Article.

c) The income obtained by the participating entity is 15 percent of the acquisition value of the holding.

The presumptions contained in the preceding paragraphs will be proof to the contrary.

15. For the purposes of this Article, the group of companies referred to in Article 42 of the Trade Code shall be understood to include multi-group and associated entities in the terms of the commercial law.

16. This Article shall not apply where the non-resident entity in Spanish territory is resident in another Member State of the European Union, provided that the taxpayer proves that his or her constitution and operation are in accordance with the (a) a valid economic activity or an institution of collective investment regulated by Directive 2009 /65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of the provisions of Directive 2009 /65/EC of the European Parliament and of the Council laws, regulations and administrative provisions on certain undertakings for collective investment in transferable securities, other than those provided for in Article 54 of this Law, established and domiciled in a Member State of the European Union.

CHAPTER XI

Tax Incentives for Small-Dimension Entities

Article 101. Scope of application. Business figure.

1. The tax incentives provided for in this Chapter shall apply provided that the net amount of the turnover in the previous immediate tax period is less than EUR 10 million.

However, such incentives will not be applicable when the entity has the consideration of an equity entity in the terms set out in Article 5 (2) of this Act.

2. Where the entity is newly established, the amount of the turnover shall relate to the first tax period in which the activity actually takes place. If the previous immediate tax period has been shorter than the year, or the activity has been carried out for a period also lower, the net amount of the turnover shall be raised per year.

3. Where the institution is part of a group of companies within the meaning of Article 42 of the Trade Code, irrespective of the residence and the obligation to draw up consolidated annual accounts, the net amount of the turnover shall be refer to all the entities belonging to that group, taking into account the eliminations and additions corresponding to the application of the accounting rules. This criterion shall also apply where a natural person alone or jointly with the spouse or other natural persons joined by direct or collateral, consanguine or affinity links, to the second degree they are, even, in relation to other entities of which they are partners in one of the situations referred to in Article 42 of the Trade Code, irrespective of the residence of the entities and the obligation to make accounts consolidated annual accounts.

4. The tax incentives provided for in this Chapter shall also apply in the 3 immediate tax periods following that tax period in which the entity or set of entities referred to in the preceding paragraph reaches the said business figure of 10 million euros, determined in accordance with this article, provided that the same have fulfilled the conditions to be considered as having a reduced dimension both in that period and in the 2 tax periods prior to the latter.

The provisions of the preceding paragraph shall also apply where such turnover is reached as a result of the operation being received under the tax arrangements laid down in Chapter VII of Title VII of this Law, provided that the entities that have performed such an operation meet the conditions to be considered as having a reduced dimension both in the tax period in which the operation is carried out and in the 2 tax periods prior to the latter.

Article 102. Freedom of amortisation.

1. The new elements of tangible fixed assets and real estate investments, which are affected by economic activities, made available to the taxpayer in the tax period in which the conditions of the previous Article are met, may be (a) in the case of a non-profit or loss-making capital, the total amount of the total amount of the undertaking shall be increased from the average of the total amount of the total amount of the undertaking to the total of the following: the previous 12 months, and such increase is maintained for an additional period of other 24 months.

The amount of the investment that will be eligible for the redemption regime will be that of multiplying the figure of 120,000 euros for the reported increase calculated with two decimal places.

For the calculation of the total average company template and its increase will be taken by the employed persons, in the terms that the labor legislation has, taking into account the day contracted in relation to the working day complete.

The freedom of redemption shall be applicable from the entry into operation of the items eligible for it.

2. The scheme provided for in the preceding paragraph shall also apply to the elements entrusted under a contract for the execution of works subscribed to in the tax period, provided that they are made available within 12 months of the their conclusion.

3. The provisions of the two preceding paragraphs shall also apply to the elements of tangible fixed assets and real estate investments built by the company itself.

4. In the event that the obligation to increase or maintain the template is breached, the full quota which has been allocated to the amount deducted in excess of the corresponding interest on arrears shall be entered into the template.

The entry of the full quota and the interest on late payment shall be made in conjunction with the self-settlement for the tax period in which one or another obligation has been breached.

5. The provisions of this Article shall also apply to new elements of tangible fixed assets and real estate investments which are the subject of a leasing contract, provided that the option to purchase is exercised.

Article 103. Depreciation of new elements of tangible fixed assets and real estate investments and intangible fixed assets.

1. The new elements of tangible fixed assets and real estate investments, as well as the elements of intangible fixed assets, in both cases to economic activities, made available to the taxpayer in the tax period the conditions of Article 101 of this Law are fulfilled, they may be amortised on the basis of the coefficient resulting from multiplying by 2 the maximum linear depreciation coefficient provided for in the officially approved depreciation tables.

2. The scheme provided for in the preceding paragraph shall also apply to the elements entrusted under a contract for the execution of works subscribed to in the tax period, provided that they are made available within 12 months of the their conclusion.

3. The provisions of the two preceding paragraphs shall also apply to the elements of tangible, intangible fixed assets and real estate investments constructed or produced by the company itself.

4. The amortisation scheme provided for in this Article shall be compatible with any tax benefit which may be carried out by reason of the assets subject to it.

5. The elements of intangible fixed assets referred to in Article 13 (3) of this Law, acquired in the tax period in which the conditions of Article 101 of this Law are fulfilled, may be deducted by 150% of the amount This is the result of applying that section.

Article 104. Impairment losses on claims for possible insolvencies of debtors.

1. In the tax period in which the conditions of Article 101 of this Law are met, the impairment loss of the credit for the coverage of the risk arising from the possible insolvencies up to the limit of 1 per cent shall be deductible. the existing debtors at the end of the tax period.

2. Debtors in respect of which the impairment of claims for insolvencies laid down in Article 13.1 of this Law and those whose impairment losses do not have the character of deductibles as provided for in this Act have been recognised. in that Article, they shall not be included among the debtors referred to in the previous paragraph.

3. The balance of the impairment loss made in accordance with paragraph 1 shall not exceed the limit referred to in that paragraph.

4. Losses due to impairment of the credit for hedging the risk arising from the possible insolvencies of the debtors, carried out in the tax periods in which the conditions of Article 101 of this Law are no longer fulfilled, shall be deductible up to the amount of the balance of the impairment loss referred to in paragraph 1.

Article 105. Reserve of levelling of taxable bases.

1. Institutions which fulfil the conditions laid down in Article 101 of this Law in the tax period and apply the rate of charge provided for in the first subparagraph of Article 29 (1) of this Law may undermine their tax base. positive up to 10 percent of their amount.

In any case, the minoron will not be able to exceed the amount of 1 million euros. If the tax period has a duration of less than one year, the amount of the sentence shall not exceed the result of multiplying EUR 1 million by the ratio between the duration of the tax period for the year.

2. The quantities referred to in the preceding paragraph shall be added to the tax base of the tax periods ending in the immediate 5 years and following the end of the tax period in which the said sentence is made, the taxpayer has a negative tax base, and up to the amount of the negative tax base.

The remaining amount shall be added to the tax base of the tax period corresponding to the date of conclusion of the term.

3. The taxpayer shall provide a reserve for the amount of the sentence referred to in paragraph 1 of this Article, which shall be unavailable until the tax period in which the addition to the taxable amount of the entity of the amounts is produced. referred to in the previous paragraph.

The reserve must be provided with the positive results of the exercise in which the minoring is carried out on the basis of assessment. In the event that this reservation cannot be provided, the minoration shall be conditional on the fact that the minoron shall be equipped with the first positive results of the following exercises in respect of which it is possible to carry out this allocation.

For these purposes, it will not be understood that this reservation has been made, in the following cases:

a) When the shareholder or shareholder exercises its right to separate from the entity.

b) When the reservation is eliminated, in whole or in part, as a result of operations to which the special tax regime established in Chapter VII of Title VII of this Law applies.

(c) Where the institution is required to apply the reserve under a legal obligation.

4. The sentence provided for in this Article shall be taken into account for the purposes of determining the split payments referred to in Article 40 (3) of this Law.

5. The amounts allocated to the reserve provided for in this Article may not be applied simultaneously to the fulfilment of the capitalisation reserve provided for in Article 25 of this Law or the Reserve for Investments in the Canary Islands. provided for in Article 27 of Law 19/1994 of 6 July, amending the Economic and Fiscal Regime of the Canary Islands.

6. Failure to comply with the provisions of this Article shall determine the integration into the full quota of the tax period in which the non-compliance takes place, the full quota corresponding to the quantities which have been the subject of increased by 5 percent, in addition to interest on late payment.

CHAPTER XII

Fiscal regime for certain finance lease contracts

Article 106. Leasing contracts.

1. The provisions of this Article shall apply to leasing contracts where the lessor is a credit institution or a credit institution.

2. The contracts referred to in the preceding paragraph shall be of minimum duration of 2 years where they are for movable property and for 10 years where they are for the purpose of immovable property or industrial establishments. However, in order to avoid abusive practices, other minimum periods of time may be laid down according to the characteristics of the various goods which may constitute their object.

3. The leasing fees shall be expressed in the respective contracts by differentiating the part corresponding to the recovery of the cost of the good by the leasing entity, excluding the value of the purchase option and the charge This is without prejudice to the application of the indirect tax applicable to it.

4. The annual amount of the part of the leasing fees corresponding to the recovery of the cost of the good must remain the same or be increased throughout the contractual period.

5. It shall in any event have the consideration of fiscally deductible expenditure on the financial burden to the leasing entity.

6. The same consideration shall be given to the part of the financial leasing fees paid in respect of the recovery of the cost of the good, except where the contract is for land, solar and other non-depreciable assets. In the event that such a condition exists only in part of the object of the transaction, only the proportion corresponding to the items eligible for depreciation may be deducted, which must be expressed in a differentiated manner in the respective contract.

The amount of the amount deductible in accordance with the provisions of the preceding paragraph may not exceed the result of applying to the cost of the good the double of the linear depreciation coefficient according to depreciation tables officially approved corresponding to the said good. The excess will be deductible in the successive tax periods, respecting the same limit. For the purposes of calculating the above limit, account shall be taken of the time when the goods are put into operation. In the case of taxpayers referred to in Chapter XI of Title VII of this Law, the double coefficient of linear amortisation shall be taken according to officially approved amortisation tables multiplied by 1,5.

7. The deduction of the amounts referred to in the preceding paragraph shall not be conditional upon their accounting imputation on the profit and loss account.

8. The tenant institutions may, by means of a communication to the Ministry of Finance and Public Administrations, decide to establish that the temporary time referred to in paragraph 6 shall be established by means of a communication to the Ministry of Finance and Public Administration. corresponds to the time of effective start of the construction of the asset, taking into account the simultaneous fulfilment of the following requirements:

(a) In the case of assets which have the consideration of elements of the fixed assets which are the subject of a leasing contract, in which the shares in the contract are significantly met before the completion of the asset build.

b) That the construction of these assets involves a minimum period of 12 months.

c) For assets that meet unique technical and design requirements and do not correspond to serial productions.

In the cases of loss or final use of the good for reasons not attributable to the taxpayer and duly justified, the positive difference between the amount of the amount shall not be included in the taxable base of the lessee deducted as a recovery from the cost of the asset and its accounting depreciation.

CHAPTER XIII

Foreign Securities Holding Entities ' Regime

Article 107. Foreign securities holding entities.

1. Institutions whose social object includes the management and administration of securities representative of the own funds of non-resident entities on Spanish territory may be eligible under the scheme provided for in this Chapter. corresponding organization of material and personal means.

The securities or shares representative of the holding in the capital of the holding of foreign securities shall be nominative.

Entities subject to the special schemes of economic, Spanish and European interest groups and temporary joint ventures shall not be eligible for the scheme of this Chapter.

Entities that have the consideration of an estate entity in the terms set out in Article 5 (2) of this Law shall not be eligible.

2. The option for the regime of foreign securities holding entities shall be communicated to the Ministry of Finance and Public Administration. The scheme shall apply to the tax period ending after that communication and to the subsequent subsequent tax period before the Ministry of Finance and Public Administrations are notified of the waiver of the scheme.

The requirements of the communication and the content of the information to be supplied with it may be established.

Article 108. Profit distribution. Transmission of participation.

1. The profits or shares in profits distributed to the partners in charge of the exempt income referred to in Article 21 of this Law which come from non-resident entities on Spanish territory or from the exempt income referred to in the Article 22 of this Law obtained abroad through a permanent establishment will receive the following treatment:

a) When the recipient is a taxpayer of this Tax or Income Tax of non-residents with permanent establishment, the benefits received will have the treatment that corresponds to this Law.

(b) When the recipient is a taxpayer of the Income Tax of the Physical Persons, the distributed profit shall be considered as income from the savings.

(c) Where the recipient is a non-resident entity or natural person in Spanish territory without permanent establishment, the distributed benefit shall not be understood to be obtained on Spanish territory.

The distribution of the issue premium will have the treatment provided for in this section for profit distribution. For these purposes, the first distributed profit shall be deemed to be from exempt income.

2. The income obtained in the transfer of the holding in the securities holding entity or in the case of separation of the partner or liquidation of the entity shall be treated as follows:

(a) When the recipient is a taxpayer of this Tax or the Income Tax of non-residents with permanent establishment in Spanish territory, and meets the requirement of participation in the holding entity foreign securities as provided for in Article 21 (1) of this Act, may apply the exemption scheme in accordance with the terms laid down in that Article.

(b) Where the recipient is an entity or a natural person not resident in Spanish territory, the income corresponding to the reserves provided by the exempt income or with the income shall not be understood in Spanish territory. value differences, which are attributable in both cases to units in non-resident entities that meet the requirements laid down in Article 21 of this Law or to permanent establishments that meet the requirements set out in the Article 22 of this Act.

3. The securities holding entity shall mention in the memory the amount of the exempt income and the taxes paid abroad corresponding to them, as well as to provide its partners with the information necessary to enable them to comply with the provided for in the preceding paragraphs.

4. The provisions of paragraph 1 (c) and point (b) of paragraph 2 of this Article shall not apply where the recipient of the income resides in a country or territory qualified as a tax haven.

CHAPTER XIV

Partially Exempt Entities Scheme

Article 109. Scope of application.

This scheme shall apply to the entities referred to in Article 9 (3) of this Law.

Article 110. Exempt income.

1. The following income obtained by the entities referred to in the previous Article shall be exempt:

(a) Those that come from carrying out activities that constitute their specific object or purpose, provided that they do not have the consideration of economic activities. In particular, the fees paid by associates, collaborators or benefactors shall be exempt, provided that they do not correspond to the right to receive a benefit derived from an economic activity.

For the purposes of the application of this regime to the Entity of Public Law Ports of the State and to the Harbour Authorities will be considered not to come from the realization of economic activities the revenues of nature the tax and those from the exercise of the sanctioning power and the administrative activity carried out by the Harbour Authorities, as well as those from the activity of coordination and efficiency control of the harbour system conducted by the Ente Público Ports of the State.

(b) Derivatives of acquisitions and transfers for a profit, provided that some and other are obtained or performed in compliance with their specific object or purpose.

(c) Those which are shown in the onerous transmission of goods affected by the specific purpose or purpose when the total product obtained is intended for new investments in fixed assets related to that specific object or purpose.

The new investments must be made within the period from the year before the date of the delivery or making available to the patrimonial element and the subsequent 3 years and to remain in the assets of the For 7 years, except that its life is useful in accordance with the method of depreciation, of those admitted in Article 12.1 of this Law, which is applied in any case below.

If the investment is not made within the time limit, the part of the full share corresponding to the income obtained will be entered, in addition to the interest on the delay, together with the quota corresponding to the period the tax on which he won.

The transmission of such items before the end of the term of office shall determine the integration into the taxable amount of the non-taxed part of the income, unless the amount obtained is the subject of a new reinvestment.

2. The exemption referred to in the preceding paragraph shall not cover income from economic activities, income derived from the assets, or income obtained from transmissions other than those mentioned in it.

Article 111. Determination of the tax base.

1. The tax base will be determined by applying the rules provided for in Title IV of this Law.

2. They shall not have the consideration of fiscally deductible expenses, in addition to those laid down in Article 15 of this Law, the following:

(a) Expenses attributable exclusively to exempt income. Expenditure in part attributable to non-exempt income shall be deductible in the percentage representing the income earned in the exercise of economic activities in respect of the total income of the institution.

(b) the amounts which are the result of the application of the results and, in particular, those which are intended to support the exempt activities referred to in paragraph 1 (a) of the previous Article.

CHAPTER XV

Communities scheme of common hand neighborhood mountain holders

Article 112. Regime of communities with common hand-held neighborhood mounts.

1. The taxable base for the communities holding common hand-side neighbourhood mounts shall be reduced by the amount of the profit for the financial year applied to:

(a) Investments for the conservation, improvement, protection, access and services intended for the social use to which the mount is intended.

b) Conservation and maintenance expenses for the mountain.

c) Financing of infrastructure and public services, of social interest.

The application of the benefit to the indicated purposes must be made in the tax period itself or in the following 4. If the investments or expenses are not made within the time limit, the part of the full quota corresponding to the benefits not effectively applied to the investments and expenses described, together with the interest of late payment, shall be entered together with the quota corresponding to the tax period in which that period expired.

The tax administration, in the verification of the destination of the expenses and investments indicated, may request the necessary reports from the competent regional and local administrations.

This reduction is incompatible with the capitalization reserve provided for in Article 25 of this Law and with the reserve of leveling of taxable bases provided for in Article 105 of this Law.

2. The benefits may be applied within a period exceeding that laid down in the previous paragraph, provided that a special investment and expenditure plan is formulated within that period by the taxpayer and is accepted by the tax administration in the Member States. terms to be regulated.

3. Community holders of common hand-side mounds shall be taxed at the general rate of charge.

4. Community holders of common hand-held communities shall not be required to submit a declaration for this tax in those tax periods in which they do not obtain any income under this tax, or incur any expenditure, or make the investments and expenditure referred to in paragraph 1.

5. The members or members of the communities who hold common hand-held neighborhood mountains shall integrate into the base of the Income Tax of the Physical Persons the amounts that are effectively distributed to them by the community. Such income shall be treated as intended for the benefit of any kind of entity, as referred to in Article 25 (1) (a) of Law 35/2006 of 28 November of the Income Tax Natural Persons and partial modification of the laws of the Taxes on Societies, on the Income of Non-Residents and on the Heritage.

CHAPTER XVI

Shipping entities ' regime based on tonnage

Article 113. Scope of application.

1. They may benefit from the special scheme provided for in this Chapter:

(a) The entities registered in one of the registers of shipping companies referred to in the recast text of the Law of Ports of the State and of the Merchant Navy, approved by the Royal Legislative Decree 2/2011, of 5 September, whose activity includes the exploitation of own or leased vessels.

(b) entities which carry out, in their entirety, the technical and crew management of vessels referred to in the following paragraph. For this purpose, it is understood by technical and crew management the assumption of complete responsibility for the nautical exploitation of the ship, as well as all the duties and responsibilities imposed by the International Code of Management for the Safety of the Exploitation of Ships and the Prevention of Pollution adopted by the International Maritime Organization by Resolution A 741.

2. Vessels whose exploitation makes it possible to apply the scheme must meet the following requirements:

(a) Be strategically and commercially managed from Spain or from the rest of the European Union or the European Economic Area. For these purposes, it is understood by strategic and commercial management that ownership by the owner of the vessel or by the lessee, control and risk of maritime activity or work at sea is taken.

(b) being suitable for maritime navigation and intended exclusively for the transport of goods, passengers, rescue and other services necessarily provided at sea, without prejudice to the provisions of the following point (c).

(c) In the case of vessels intended for towing activity, it will be necessary to ensure that less than 50% of the revenue from the tax period comes from activities carried out at ports and in the provision of aid to a self-propelled vessel to reach port. In the case of vessels with dredging activity, it will be necessary for more than 50% of the revenue of the tax period to come from the transport and deposit activity at the bottom of the sea of extracted materials, reaching this scheme. exclusively to this part of your activity.

With regard to the entities that cede the use of these vessels, this requirement shall be understood to be fulfilled when they justify that the income of the entity that develops the activity of towing or dredging meets those percentages in each one of the tax periods in which this scheme applies to those entities.

Ships intended for towing and dredging activities shall be registered in Spain or in another Member State of the European Union or the European Economic Area.

3. Where the scheme is applicable to taxpayers with vessels not registered in Spain or in another Member State of the European Union or the European Economic Area, the increase in the percentage of the net tonnage of those vessels in respect of the total of the fleet of the host entity to the special scheme, whatever its cause, shall not prevent the application of that scheme provided that the average net tonnage percentage of vessels registered in Spain or another Member State of the Union The total net tonnage referred to in the year preceding the year in which the said tonnage is produced increase, be maintained for the period of the subsequent 3 years.

This condition shall not apply where the percentage of the net tonnage of vessels registered in Spain or another Member State of the European Union is at least 60%.

4. This scheme may not apply where all vessels are not registered in Spain or in another Member State of the European Union. Vessels intended for fishing or sport or for recreational activities shall also not be eligible for this scheme.

5. This scheme shall not apply during the tax periods in which the following circumstances apply simultaneously:

(a) That the entity has the status of medium or large enterprise in accordance with the provisions of Recommendation 2003 /361/EC of the European Commission.

(b) To receive a restructuring aid granted under the terms of the European Commission's Communication 2004/C244/02.

(c) The European Commission would not have taken into account the tax benefits arising from the application of this scheme when it took the decision on restructuring aid.

Article 114. Determination of the tax base by the objective estimation method.

1. The entities covered by this scheme shall determine the taxable amount corresponding to the operation, ownership or technical and crew management of the vessels meeting the requirements of the previous Article, applying to tonnes the net registration of each of these vessels the following scale:

	Record Tons	Daily amount per 100 tons - Euros
Between 0 and up to 1,000
1,001 and up to 10,000
10.001 and up to 25,000
25.001	0.20

For the implementation of the scale, the days of the tax period shall be taken when the vessels are at the disposal of the taxpayer or in which the technical and crew management has been carried out, excluding the days in which the are not operational as a result of ordinary or extraordinary repairs.

The taxable amount thus determined includes the income derived from the services of pilotage, towing, mooring and untying, provided to the vessel under this scheme, when the vessel is used by the entity itself, as the cargo, unloading, stowage and esestiba services related to the cargo of the ship carried on it, provided that the transport user is invoiced and is provided by the entity itself or by a third party not related to it.

The application of this scheme shall cover the whole of the applicant's vessels which comply with the requirements of the applicant, and the vessels that are acquired, leased or managed after authorisation, provided that comply with those requirements, and may be eligible for the vessels taken in chartering, provided that the sum of their net tonnage does not exceed 75% of the total fleet of the entity or, where applicable, of the tax group subject to the scheme. In the case of entities that are taxed in the tax consolidation regime, the application shall be related to all entities in the tax group that comply with the requirements of Article 113 of this Law.

2. The positive or negative income which, if any, becomes apparent as a result of the transmission of a vessel affected this scheme, shall be considered as an integrated basis in the tax base calculated in accordance with the previous paragraph.

Notwithstanding the provisions of the preceding paragraph, in the case of vessels whose ownership was already held when this special scheme was granted, or of used vessels acquired after its implementation, the next mode:

In the first financial year in which the scheme is applied, or where the vessels used have been acquired, an unavailable reserve shall be provided for an amount equal to the positive difference between the normal value of the the market and the net accounting value of each of the vessels affected by this rule, or the difference shall be specified separately for each of the vessels and for all the financial years in which the vessel's ownership is maintained; the memory of their annual accounts. In the case of vessels acquired through an operation to which the special scheme of Chapter VII of Title VII of this Law has been applied, the net book value shall be determined on the basis of the acquisition value for which it appears in the accounting of the transmitting entity.

Failure to comply with the obligation to make the reservation or the obligation to mention in the memory will constitute a serious tax violation, with a penalty of five per cent of the financial penalty. amount of the said difference.

The penalty imposed in accordance with this paragraph shall be reduced in accordance with the provisions of Article 188 (3) of Law 58/2003 of 17 December, General Tax.

The amount of the said positive reserve, together with the positive difference on the date of the transfer between the tax and accounting amortisation of the vessel, shall be added to the tax base referred to in paragraph 1. 1 of this Article when the said transmission has occurred. The same shall apply if the vessel is transmitted, directly or indirectly, on the occasion of an operation to which the special scheme of Chapter VII of Title VII of this Law applies.

3. The taxable amount determined in accordance with paragraph 1 of this Article shall not be compensated by negative tax bases resulting from the other activities of the shipping entity, or from the current or previous financial year, or with the taxable bases to be compensated at the time of application of this scheme.

4. The determination of the part of the taxable amount corresponding to the other activities of the taxpayer shall be determined by applying the general system of the tax, taking into account only the income from them. In the case of dredging activity, that part of the taxable amount shall include the income of that activity which is not covered by this special scheme.

This part of the taxable amount shall be made up of all revenue which does not come from activities covered by the scheme and by the costs directly related to the procurement of those, as well as by the part of the expenditure administration generals that proportionally correspond to the business figure generated by these activities.

For the purposes of compliance with this scheme, the entity must have the necessary accounting records in order to determine the direct or indirect revenue and expenditure corresponding to the activities covered by the scheme, as well as the assets affected to them.

Article 115. Type of levy and fee.

1. In any event, the general rate of charge provided for in the first subparagraph of Article 29 (1) of this Law shall apply.

2. The part of the full quota attributable to the part of the taxable amount determined in accordance with Article 114 (1) of this Law may not be reduced by the application of any deduction or bonus. Furthermore, the acquisition of vessels which are affected by this scheme shall not entail the application of any tax incentive or deduction.

The full share of the taxable amount that comes from the rest of the tax base cannot be reduced by the application of deductions generated by the acquisition of the ships referred to prior to their affectation to the regulated regime in this chapter.

Article 116. Split payments.

The taxpayers who are benefiting from this scheme will be required to make instalments in accordance with the modality laid down in Article 40 (3) of this Law on the taxable amount calculated on the basis of the rules laid down in Article 114 of this Law and applying the percentage referred to in Article 115 of this Law, without taking into account any deduction of the share of the share of the taxable amount determined in accordance with the provisions of the Article 114 (1) of this Law.

Article 117. Application of the scheme.

1. The tax regime provided for in this Chapter shall apply as follows:

(a) Your application will be subject to authorization by the Ministry of Finance and Public Administration, upon request of the taxpayer. This authorisation shall be granted for a period of 10 years from the date of the authorisation, and may be extended for additional periods of another 10 years.

(b) The application shall specify the tax period from which it is to take effect and shall be submitted prior to the commencement of the application.

(c) The application must be resolved within a maximum of 3 months, after which it may be deemed to be dismissed.

For the granting of the scheme, the Ministry of Finance and Public Administrations will take into account the existence of an effective contribution to the objectives of the Community maritime transport policy, especially in the on the technological level of ships guaranteeing safety in the navigation and prevention of pollution of the environment and the maintenance of Community employment both on board and in ancillary tasks to maritime transport. For this purpose, it may obtain prior information from the competent bodies.

(d) Failure to comply with the conditions of the scheme or the waiver of its application shall prevent a further application from being made until a minimum of 5 years has elapsed.

e) The tax administration may verify the correct application of the scheme and the concurrency in each exercise of the requirements required for its application.

2. Failure to comply with the requirements laid down in this scheme shall entail the cessation of the effects of the authorization concerned and the loss of all the tax benefits derived therefrom, and shall, together with the the tax period in which the non-compliance occurred, the full amounts corresponding to the amounts which would have been due to be paid in the general scheme of this tax, in the whole of the periods to which it was applied the authorisation, without prejudice to the interests of delay, surcharges and penalties which, where appropriate, results from.

Failure to comply with the condition laid down in Article 113 (3) of this Law will entail the loss of the scheme for those additional vessels which have led to the increase referred to in that paragraph, regularisation as set out in the preceding paragraph, which corresponds exclusively to such vessels.

Where such an increase is motivated by the absence of vessels registered in Spain or another Member State of the European Union, the regularisation shall be the responsibility of those vessels for all the tax periods in which they are have been included in this scheme.

3. The application of the tax regime provided for in this Chapter shall be incompatible with the application of the fourth additional provision of this Law for the same vessel.

TITLE VIII

Tax Management

CHAPTER I

The Entity Index

Article 118. Index of entities.

1. Each Delegation of the State Tax Administration Agency shall be responsible for an index of entities in which they shall be registered as having their registered office within their territorial scope, except for the entities referred to in paragraph 1 of this Article. Article 9 of this Law.

2. The procedures for high, enrollment and low in the index of entities will be established.

Article 119. Low in the entity index.

1. The State Tax Administration Agency shall, after hearing the parties concerned, make a provisional discharge in the following cases:

(a) When the tax debts of the entity to the public treasury of the State are declared failed in accordance with the provisions of the General Rules of Collection, approved by Royal Decree 939/2005, of 29 of July.

b) When the entity has not filed the declaration for this tax for 3 consecutive tax periods.

2. The interim discharge agreement shall be notified to the relevant public register, which shall extend the open sheet to the institution concerned a marginal note in which it shall be stated that no such statement may be made. registration as to that concern without presentation of certification of high in the index of entities.

3. The interim low agreement does not exempt the affected entity from any of the tax obligations that may be incumbent upon it.

CHAPTER II

Accounting obligations. Goods and rights not accounted for. Voluntary revaluations. Estimate of rents in the indirect estimation method

Article 120. Accounting obligations. Powers of the Tax Administration.

1. The taxpayers of this tax will be required to keep their accounts in accordance with the provisions of the Trade Code or with the rules governing them.

In any event, the taxpayers referred to in Chapter XIV of Title VII of this Law shall keep their accounts in such a way as to permit the identification of income and expenses corresponding to exempt and non-exempt income.

2. The tax administration may carry out the verification and investigation by examining the accounts, books, correspondence, documentation and supporting documents concerning the taxpayer's business, including the accounting and magnetic files and supports. The tax authorities may directly analyse the documentation and the other elements referred to in the preceding paragraph, and may take note of their agents from the accounting notes which are estimated to be accurate and obtain copies of them. charge, including on magnetic media, of any of the data or documents referred to in this paragraph.

The tax administration may verify and investigate the facts, acts, elements, activities, holdings, securities and other circumstances determining the tax liability. In this respect, the amounts corresponding to those items which are incorporated in the tax base in the tax periods to be checked may be regularised, even if the same results from transactions carried out during tax periods prescribed.

3. The dominant entities of the companies ' groups in Article 42 of the Code of Commerce shall be obliged, at the request of the Inspectorate of the Taxation in the course of the verification procedure, to provide the account of losses and earnings, the balance sheet, the state that reflects the changes in the net worth of the financial year and the statement of cash flows of the entities belonging to the group that are not resident in Spanish territory. They shall also provide supporting documents and other records relating to such accounting documentation where they may be relevant to this tax.

Article 121. Goods and rights not accounted for or not declared: presumption of obtaining income.

1. It shall be presumed that they have been acquired from non-declared income the property assets of which the taxpayer is entitled and are not registered in their books of accounts.

The presumption will also proceed in the case of partial concealment of the acquisition value.

2. It shall be presumed that the non-recorded assets in the accounts are the property of the taxpayer when the taxpayer is holding them.

3. The amount of the non-declared income shall be presumed to be the value of the acquisition of the goods or rights not recorded in books of accounts, which are mined in the amount of the actual debts incurred to finance such acquisition, accounts. In no case shall the net amount be negative.

The amount of the acquisition value shall be proved through the supporting documents of this or, if not possible, by applying the valuation rules set out in Law 58/2003 of 17 December, General Tax.

4. The existence of undeclared income shall be presumed when the non-existent debts have been recorded in the accounts of the taxpayer.

5. The amount of income resulting from the assumptions contained in the preceding paragraphs shall be charged to the oldest tax period of the non-prescribed, except that the taxpayer proves that it corresponds to another or other taxpayer.

6. In any event, it shall be understood that they have been acquired from an unstated income which shall be charged to the oldest tax period among the non-prescribed persons liable to regularisation, the goods and rights in respect of which the taxpayer does not has complied within the deadline set for the purpose of the reporting obligation referred to in the additional 18th of the Tax General Act.

However, the provisions of this paragraph shall not apply where the taxpayer establishes that the goods and rights the property of which he is entitled have been acquired from declared income or from income. obtained in tax periods in respect of which they did not have the status of a taxpayer of this tax.

7. The value of the assets referred to in paragraphs 1 and 6, as soon as it has been incorporated into the tax base, shall be valid for all tax purposes.

Article 122. Voluntary accounting revaluations.

1. Taxpayers who have made accounting revaluations the amount of which would not have been included in the tax base shall mention in the memory the amount of those items, the items concerned and the period or tax periods in which they are practiced.

The above mentioned particulars must be made in each and every one of the memories corresponding to the exercises in which the revalorized elements are found in the estate of the taxpayer.

2. A gross tax breach shall be a breach of the obligation laid down in the previous paragraph.

Such an infringement will be sanctioned, for one time, with a proportional pecuniary fine of 5% of the amount of the revaluation, the payment of which will not determine that the amount is incorporated, for tax purposes, at the value of the asset item of the revaluation.

The penalty imposed in accordance with this paragraph shall be reduced in accordance with the provisions of Article 188 (3) of Law 58/2003 of 17 December, General Tax.

Article 123. Estimate of rents in the indirect estimation method.

Where the tax base is determined by means of the method of indirect estimation, the disposals of goods and rights and the provision of services, in their different modalities, shall be presumed to be paid for their market value.

CHAPTER III

Statement, Autoliquidation and Interim Settlement

Article 124. Statements.

1. Taxpayers shall be required to submit a declaration for this Tax on the place and form to be determined by the Minister of Finance and Public Administrations.

The declaration shall be filed within 25 calendar days following the 6 months after the end of the tax period.

If, at the beginning of the indicated period, the Minister of Finance and Public Administration had not determined how to present the declaration of that tax period, the declaration will be presented within 25 days. natural following the date of entry into force of the rule determining that form of filing. However, in such cases the taxpayer may choose to make the declaration within the time limit referred to in the preceding paragraph, in compliance with the formal requirements laid down for the tax period declaration. precedent.

2. Exempt taxpayers as referred to in Article 9 (1) of this Law shall not be required to declare.

3. The taxpayers referred to in Article 9 (2), (3) and (4) of this Law shall be obliged to declare all their income, exempt and not exempt.

Article 125. Self-validation and income of the tax liability.

1. The taxpayers shall, at the time of filing their declaration, determine the corresponding debt and enter it in the place and in the form determined by the Minister of Finance and Public Administrations.

2. The payment of the tax liability may be made by the delivery of goods belonging to the Spanish Historical Heritage that are registered in the General Inventory of movable property or in the General Register of goods of cultural interest, according to the provisions of Article seventy and three of Law 16/1985 of 25 June of the Spanish Historical Heritage.

3. The right to the application of exemptions, deductions or any tax incentive in the tax base or in the full quota shall be subject to compliance with the requirements laid down in the applicable rules.

Unless otherwise specified, when after the application of the exemption, deduction or tax incentive occurs the loss of the right to enjoy it, the taxpayer will have to enter together with the share of the tax period in which the non-compliance with the requirements or conditions takes place the full quota or amount deducted corresponding to the exemption, deduction or incentive applied in previous periods, in addition to the interest of delay.

Article 126. Provisional settlement.

The tax management bodies may be able to turn the provisional settlement as appropriate in accordance with the provisions of Articles 133 and 139 of Law 58/2003 of 17 December, General Tax, without prejudice to the subsequent checking and investigation that the Tax Inspectorate can carry out.

CHAPTER IV

Return

Article 127. Return.

1. Where the sum of the deductions, revenue to account and broken payments of this tax is higher than the amount of the quota resulting from the autoliquidation, the tax administration shall, where appropriate, practice provisional liquidation within 6 months. months following the end of the time limit set for the submission of the declaration.

When the declaration has been filed out of time, the 6 months referred to in the preceding paragraph shall be computed from the date of its filing.

2. Where the quota resulting from the reverse charge or, where applicable, the provisional liquidation is less than the sum of the amounts actually withheld on account of this tax, the revenue to be taken into account and the instalments of this tax The tax administration shall, without prejudice to the practice of subsequent settlements, provisional or definitive, return the excess over the said quota.

3. If the provisional liquidation has not been carried out within the period laid down in paragraph 1 above, the tax administration shall, without prejudice to the practice of the tax administration, return the excess over the autoliquid quota. provisional or final final settlements which may result.

4. After the period laid down in paragraph 1 of this Article without the payment of the refund for reasons not attributable to the taxpayer being ordered, the amount and form of the interest for the delay shall be applied to the amount outstanding. provided for in Articles 26.6 and 31 of Law 58/2003 of 17 December 2003, General Tax.

5. The refund procedure shall be that provided for in Articles 124 to 127, inclusive of the General Tax Law, and in its implementing legislation.

CHAPTER V

Obligation to retain and enter into account

Article 128. Withholding and income on account.

1. Institutions, including the communities of property and owners, who satisfy or pay income under this tax, shall be obliged to retain or to make income on account, as a payment on account, the amount to be applied the rates of retention referred to in paragraph 6 of this Article to the statutory withholding tax, and to enter the amount in the Treasury in the cases and forms to be established.

They shall also be required to retain and enter natural persons in respect of income that they satisfy or pay in the exercise of their economic activities, as well as natural persons, legal persons and other non-resident entities. in Spanish territory which operate in the through permanent establishment.

You shall also be required to apply withholding or income to the designated representative in accordance with the provisions of Article 86.1 of the Recast Text of the Law on the Management and Supervision of Private Insurance, by Royal Decree-Law 6/2004 of 29 October, acting on behalf of the insurance undertaking operating under the freedom to provide services, in relation to operations carried out in Spain.

2. The subject obliged to retain must submit within the time-limits, form and places to be laid down in the rules of procedure a declaration of the quantities withheld or negative declaration where the practice of such quantities has not been produced. It shall also present an annual summary of retentions with the content to be determined regulatively.

The corresponding reporting models will be approved by the Minister of Finance and Public Administrations.

3. The subject obliged to retain shall be obliged to issue, under the conditions laid down in regulation, certification of the withholding tax or other payments made to the accounts.

4. The assumptions in which there will be no retention shall be laid down. In particular, no retention shall be performed on:

(a) The income obtained by the entities referred to in Article 9.1 of this Law.

(b) dividends or shares in profits distributed by economic, Spanish and European interest groups, and by temporary unions of undertakings which correspond to partners which are to bear the allocation of the base taxable persons who have been taxed during which the entity has been taxed in accordance with the special provisions of Chapter II of Title VII of this Law.

(c) dividends or shares in profits, interest and other income that are satisfied between companies that are part of a group that is taxed in the tax consolidation regime.

(d) The dividends or holdings in profits referred to in Article 21 (1) of this Act.

e) 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.

(f) the lottery and betting awards which, by their amount, are exempt from the special charge referred to in the additional 30th of the third of the Law 35/2006 of 28 November of the Income Tax Natural Persons and partial modification of the laws of the Taxes on Societies, on the Income of Non-Residents and on the Heritage.

5. Where, by virtue of a judicial or administrative decision, an income subject to withholding tax or withholding tax is to be met, the payer must practise it on the full amount which he must satisfy and must enter his/her income. amount in the Treasury, as provided for in this Article.

6. The percentage of retention or income on account will be as follows:

a) With a general character, 19 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 or operating in those territories, establishment or branch, this percentage being 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 authorisation for its use, 24%.

c) In the case of lottery and betting awards, which, by their amount, are subject to and not exempt from the special charge of certain lotteries and bets as referred to in the additional 30th of the Law 35/2006, of November 28, 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, 20 percent. In this case, the withholding tax shall be applied on the amount of the award subject and not exempt, in accordance with that provision.

Reglamentarily the retention and entry-to-account percentages provided for in this paragraph may be modified.

Article 129. Rules on retention, transmission and formal obligations relating to financial assets and other transferable securities.

1. In the case of transfers or repayments of shares or units representing the capital or assets of the collective investment institutions, they shall be obliged to carry out withholding tax or income tax, in cases and in the form to be established, the managing, managing, depository, marketing or other entities in charge of the operations referred to above, as well as the representative appointed in accordance with the provisions of Article 55.7; and The additional provision of Law 35/2003, of 4 November, of institutions of collective investment, acting on behalf of the manager operating under the freedom to provide services.

The obligation to make payments on account of the transfer of shares and units of collective investment institutions may be established, with the limit of 20 percent of the income obtained in the Such transmissions.

2. For the purposes of the obligation to retain on the implied returns of capital, account of this Tax, this withholding shall be made by the following persons or entities:

(a) In the returns obtained in the transmission or redemption of the financial assets on which the obligation to retain was established, the holding shall be the issuing institution or the institutions. financial management of the operation.

(b) In returns obtained in transmissions relating to transactions that are not documented in securities, as well as in the transmissions entrusted to a financial institution, the retainer shall be the Bank, Caja or entity acting by Account of the transmittent.

(c) In cases not listed in the preceding paragraphs, the intervention of the public purse shall be compulsory for the relevant retention.

3. In order to transfer or obtain the repayment of securities or assets with implied returns to be withheld, their prior acquisition shall be credited with the intervention of the financial institutions or financial institutions. mentioned in the previous section, as well as the price at which the operation was performed.

The issuer or financial institutions in charge of the transaction which, in accordance with the preceding paragraph, are not required to repay the holder of the title or asset, shall constitute such a deposit at the disposal of the judicial authority.

4. The public authorities involved in the issuance, subscription, transmission, exchange, conversion, cancellation and redemption of public effects, securities or any other securities and financial assets, as well as in transactions relating to (a) the right to communicate such transactions to the tax authorities by submitting a nominal relationship of the interveners with an indication of their domicile and the number of tax identification, class and number of the public effects, securities, securities and assets, as well as the price and date of the transaction, the time limits and in accordance with the model determined by the Minister of Finance and Public Administrations.

The same obligation shall be on credit institutions and financial institutions, securities companies and agencies, other financial intermediaries and any natural or legal person who is engaged in habituality. to the intermediation and placement of public effects, securities or any other securities of financial assets, indices, futures and options on them; including documents by means of account, in respect of transactions involving, directly or indirectly, the acquisition or placement of resources through any class of values or effects.

The management companies of collective investment institutions and the trading entities in respect of shares and units in such institutions shall also be subject to this reporting obligation. in their shareholders 'or unit-holders' records.

The reporting obligations set out in this paragraph shall be understood to be fulfilled in respect of the transactions subject to the withholding tax referred to in this paragraph, with the presentation of the recipients ' ratio, adjusted to the official model. of the corresponding annual withholding summary.

5. The issuing of certificates, certificates or documents representing the acquisition of precious metals or precious objects, philatelic value stamps or pieces of numismatic value, by natural persons or by natural persons, shall be communicated to the tax authorities. legal entities that are used to promote investment in such securities.

6. The provisions of paragraphs 2 and 3 above shall be applicable in relation to the obligation to retain or to enter into account to be established in a regulated manner with respect to the transmission of financial assets for explicit performance.

CHAPTER VI

Conversion of deferred tax assets into chargeable credit against the tax administration

Article 130. Conversion of deferred tax assets into chargeable credit against the tax administration.

1. Deferred tax assets corresponding to impairment of loans or other assets arising from the possible insolvencies of debtors not linked to the taxpayer, not due to public law entities and whose deductibility does not occur pursuant to Article 13.1.a) of this Law, as well as those arising from the application of Article 14 (1) and (2) of this Law, corresponding to allocations or contributions to systems of (a) social security and, where appropriate, pre-retirement, shall be converted into an enforceable claim against the Tax administration, when any of the following circumstances apply:

(a) That the taxpayer records accounting losses in its annual accounts, audited and approved by the relevant body.

In this case, the amount of the deferred tax assets to be converted will be determined by the result of applying on the total of the same, the percentage representing the accounting losses of the year with respect to the sum of capital and reserves.

b) That the entity is subject to a judicially declared liquidation or insolvency.

Also, deferred tax assets for the right to compensate in subsequent financial years negative taxable bases will become an enforceable credit against the tax administration when they are a consequence of integrating into the tax base the impairment of appropriations or other assets arising from the possible insolvencies of the debtors, as well as the allocations or contributions to social security systems and, where appropriate, preretirement, which generated the deferred tax assets referred to in the first paragraph of this paragraph.

2. The conversion of the deferred tax assets referred to in the preceding paragraph into an enforceable claim against the tax administration shall be made at the time of the filing of the reverse company tax. corresponding to the tax period in which the circumstances described in the previous paragraph have occurred.

3. The conversion of deferred tax assets into an enforceable claim against the tax administration referred to in paragraph 1 of this Article shall determine that the taxpayer may choose to apply for payment to the Administration. (a) tax or to compensate for such claims with other debts of a state nature which the taxpayer himself generates from the moment of conversion. The procedure and the time limit for compensation or payment shall be laid down in a regulatory manner.

4. The deferred tax assets referred to in paragraph 1 above may be exchanged for securities of public debt, after the expiry of the 18-year period, calculated from the last day of the tax period in which the registration occurs. accounting for such assets. In the case of assets registered prior to the entry into force of this rule, this period shall be counted from that entry into force. The procedure and the time limit for the exchange shall be established in a regulatory manner.

CHAPTER VII

Powers of Administration to determine the tax base

Article 131. Powers of the Administration to determine the tax base.

For the purposes of determining the tax base, the tax administration shall apply the rules referred to in Article 10.3 of this Law.

TITLE IX

Jurisdictional Order

Article 132. Competent jurisdiction.

The judicial-administrative jurisdiction, prior to exhaustion of the economic-administrative path, will be the only competent authority to settle disputes in fact and law that arise between the tax administration and the taxpayers in relation to any of the issues referred to in this Law.

Additional disposition first. Restrictions on the double taxation of dividends.

They shall not be entitled to the exemption provided for in Article 21 of this Law:

(a) The profits distributed from the reserves constituted with the results corresponding to the increases in the assets referred to in Article 3 (1) of Law 15/1992, of 5 June, on measures urgent for the progressive adaptation of the oil sector to the Community framework.

(b) dividends distributed from profits corresponding to subsidised income in accordance with the provisions of Article 2 of Law 22/1993 of 29 December 1993 on tax measures for the reform of the legal system of the civil service and of the unemployment protection, and of income from the companies benefiting from the allowance provided for in Article 19 of the Law of 15 November 1993, and in the fifth additional provision of the Law 19/1994 of 6 July, amending the Economic and Fiscal Regime of the Canary Islands, or of entities to which the exemption provided for in the rules forales 5/1993, 24 June, Vizcaya, 11/1993, 26 June, Guipúzcoa, and 18/1993, of 5 July, of Alava is applicable.

In the case of distribution of reserves, the designation contained in the social agreement shall be considered, and in the absence thereof, the last amounts paid to those reserves shall be considered to be applied.

Additional provision second. Regime of the Tax on the Increase in the Value of Urban Nature's Land in Business Restructuring Operations.

The Tax on the Increase in the Value of Urban Nature's Land shall not be payable on the occasion of the transmissions of land of an urban nature resulting from operations to which the special regime applies. regulated in Chapter VII of Title VII of this Law, with the exception of those relating to land which is provided under the provisions of Article 87 of this Law where they are not integrated into a branch of activity.

In the subsequent transmission of the above grounds it is understood that the number of years along which the increase in value has been revealed has not been interrupted due to the transmission resulting from the operations provided for in Chapter VII of Title VII.

It will not be applicable as set out in article 9.2 of the Recast Text of the Local Government Law Regulatory Law, approved by the Royal Legislative Decree of March 5.

Additional provision third. Grants from the Community's agricultural and fisheries policy and public aid.

1. Positive income which is evidenced as a result of:

shall not be integrated into the tax base of the Corporate Tax.

(a) The perception of the following Community agricultural policy aid:

1. The definitive abandonment of vineyard cultivation.

2. Prima at the start of apple plantations.

3. First to start plataneras.

4. Definitive Abandonment of Dairy Production.

5. Definitive Abandonment of the cultivation of pears, peaches and nectarines.

6. St start of pears, peaches and nectarines plantations.

7. Definitive Abandonment of the cultivation of sugar beet and sugar cane.

(b) The perception of the following Community fisheries policy aid: for the permanent cessation of the fishing activity of a vessel and for its transmission for the formation of joint ventures in third countries, as for the definitive abandonment of the fishing activity.

(c) The collection of public aid to repair the destruction, fire, flood or collapse of property assets affected by the exercise of economic activities.

(d) The perception of aid to the abandonment of road transport activity satisfied by the Ministry of Public Works to carriers meeting the requirements laid down in the regulatory framework for the granting of such aid.

e) The perception of public compensation, due to the compulsory slaughter of the livestock population, in the framework of actions aimed at the eradication of epidemics or diseases. This provision shall only affect animals intended for reproduction.

2. In order to calculate the income which will not be included in the tax base, account shall be taken of both the amount of aid received and the property losses which, where appropriate, are incurred in the elements affected by the activities. Where the amount of such aid is less than that of the losses incurred in the abovementioned elements, the negative difference may be incorporated in the tax base. Where there are no losses, only the amount of the aid shall be excluded.

Additional provision fourth. Tax incentives for the renewal of the merchant fleet.

1. Vessels, vessels and naval vessels, which meet the following requirements, may be rapidly amortised:

(a) in the case of new vessels, vessels or naval vessels which have been made available to the acquirer between 1 January 1999 and 31 December 2003 or which have been commissioned by virtue of a a contract of construction concluded within that period, provided that its making available to the acquirer is prior to 31 December 2006, or in the case of used vessels acquired after 1 January 1999 which have been improvements, the amount of which is greater than 25% of its acquisition value and which have been made before the December 31, 2003.

(b) the ship, vessel or ship is to be entered in the first, second or fifth lists of Article 4.1 of Royal Decree 1027/1989 of 28 July on the flag, registration of ships and maritime registration.

(c) The acquiring taxpayer shall exploit the vessel, vessel or ship by means of its affectation to its own activity, or by leasing it to the bare hull, provided that in the latter case the leasing entity is a Spanish or European grouping of economic interest and the following requirements are met:

1. º that the tenant is a natural or legal person who has as usual activity the exploitation of ships, vessels or naval artifacts and that affects the element to such activity.

2. º That at least 75 percent of the tax advantage obtained is transferred by the lessor to the user.

For these purposes, the tax advantage will be assessed in the update, at the rate determined by the Ministry of Finance and Public Administrations, of the differences in tax revenues that would occur with and without the application of this scheme.

3. The partners of the leasing entity shall maintain participation in the leasing entity for at least two thirds of the term of the lease.

4. º that the purchase price of the ship, vessel or naval device, the interest rate of the financing used and the amount of the rent, are the normal market between independent parties.

5. No that there is no linkage between the asset seller and the tenant of the asset.

6. º That at least 20 percent of the resources needed to finance the acquisition of the ship, vessel or naval device comes from the pool's own funds.

d) To be requested and obtain the concession of the benefit of the Ministry of Finance and Public Administrations prior to the construction or improvement of the element. In order to grant the benefit, the Ministry of Finance and Public Administrations shall take into account, from the point of view of the general interest, that the project presents a significant economic and social interest, in particular as regards employment. To this end, the previous report of the Ministries of Economy and Competitiveness and of Development will be necessary, depending on new or used elements, respectively; the request must be resolved within the maximum period of 3 months, after which may be deemed to be dismissed.

2. Depreciation shall be performed in accordance with the following rules:

(a) The annual tax deductible deductible shall be as limited as 35 percent of the purchase price of the vessel or the value of the improvement.

(b) Depreciation may be made prior to the entry of the vessel, vessel or ship, under operating conditions or at the start of the improvement, with the limit of the amounts paid.

(c) Deduction of amounts exceeding the amount of effective depreciation shall not be conditional upon the accounting imputation to the profit and loss account. These amounts will increase the tax base on the occasion of the depreciation or transmission of the item enjoyed by the item.

3. Vessels, vessels or naval vessels acquired under the leasing arrangements may, alternatively, benefit from the special depreciation provided for in this Standard or to the provisions of Article 106 of this Law.

4. If the requirements are subsequently met, the taxpayer will lose the benefit of the accelerated depreciation and will have to enter the amount of the shares corresponding to the exercises during which he would have enjoyed this tax incentive, together with the penalties, surcharges and interest for late payment.

Additional provision fifth. Impact of the reserve for investments in the Canary Islands in the calculation of the instalments.

For the purposes of Article 40 (3) of this Law, the amount of the reserve for investments in the Canary Islands, as provided for in Article 27 of Law 19/1994 of 6 July 1994, may be reduced from the taxable amount. Amendment of the Canary Islands ' Economic and Fiscal Regime, which is expected to be carried out, pro rata in each of the periods of the 3, 9 or 11 first months of the tax period and with the ceiling of 90% of the tax base of each of the them.

If the amount of the reserve that is actually provided is less than 20% of the amount of the reduction in the tax base made to calculate the amount of each of the instalments raised per year, the institution shall be required to regularise such payments on the basis of the difference between the initial forecast and the actual allocation, without prejudice to the liquidation of interest and surcharges which, where appropriate, result.

Additional provision sixth. Exemption from income derived from the transmission of certain buildings.

The positive income derived from the transmission of real estate of an urban nature that has the status of non-current asset or that has been classified as non-current assets shall be exempt by 50 percent. held for sale and which would have been acquired for consideration on the basis of the entry into force of Royal Decree-Law 18/2012 of 11 May on the reorganisation and sale of real estate assets in the financial sector, and until 31 December 2012.

The amount of impairment losses relating to the real estate, or the amounts corresponding to the reversal of the excess depreciation that has been fiscally, shall not be part of the income. deductible in relation to the amortisation accounted for.

This provision shall not apply where the immovable property has been acquired or transmitted to a person or entity in respect of which one of the circumstances laid down in Article 42 of the Code of Trade, irrespective of residence and the obligation to make consolidated annual accounts, or to the spouse of the person previously indicated or to any person attached to it by parentage, in a straight or collateral manner, by consanguinity or affinity, up to the second degree included.

Additional provision seventh. Sports entities.

The tax regime provided for in Chapter VII of Title VII of this Law will result in the assumption that a professional team will be attached to a newly created Sports Company, provided it is adjusted. in full to the rules laid down in Law 10/1990 of 15 October of the Sport and the Royal Decrees 1084/1991 of 5 July and 1251/1999 of 16 July 1999 on Sports Anonymous Societies.

Additional disposition octave. Special tax regime applicable to the restructuring and resolution of credit institutions.

1. The tax arrangements laid down in Chapter VII of Title VII of this Law for the operations referred to in Article 76 thereof, including their effects on other taxes, shall apply to transfers of the business or assets or liabilities. made by credit institutions in favour of another credit institution under the banking restructuring rules, even if they do not correspond to the transactions referred to in Articles 76 and 87 of this Law.

2. Credit institutions participating in such operations may call on the Banco de España or the Fund for Orderly Restructuring, to request a report from the Directorate-General for Taxation of the Ministry of Finance and Administrations. Public, on the tax consequences arising therefrom.

The report will be issued within a maximum of one month, and will have binding effects on the tax administration bodies and entities charged with the application of the taxes.

Additional provision ninth. Preferred shares.

The system of information provided for in Article 44 of the General Rules of Procedure and the procedures for the management and tax inspection and the development of the common rules of procedures for the application of Taxes, approved by Royal Decree 1065/2007 of 27 July 2007, will result from the application of the remuneration resulting from the preference shares which satisfy the requirements laid down in the Additional Provision of Law 10/2014 of 26 of June, of management, supervision and solvency of credit institutions, whichever the accounting qualification.

Additional provision 10th. Powers of verification of the tax administration.

The provisions of Article 26 (5), Article 31 (7), Article 32 (6), Article 39 (6) and Article 120 (2) of this Law shall apply to the verification and investigation procedures which have already been initiated by the Commission. the entry into force of the entry into force on which no settlement proposal has been formalised on that date.

Additional provision eleventh. Regulatory referrals.

The normative references made in other provisions to the Recast Text of the Companies Tax Law, approved by the Royal Legislative Decree 4/2004 of 5 March 2004, will be understood as corresponding to this Act.

Additional disposition twelfth. Tax groups with a dominant entity subject to the rules of the Autonomous Community of the Basque Country.

For the purposes of the fiscal consolidation regime established in Chapter VI of Title VII of this Law, the tax groups in which the dominant entity is a resident entity in Spanish territory and subject to the foral regulations in the Company Tax in accordance with the Economic Concert with the Autonomous Community of the Basque Country, shall be equated in their tax treatment to the tax groups in which the dominant entity is not resident in Spanish territory.

First transient disposition. Regularisation of extra-accounting adjustments.

The non-accounting, positive and negative adjustments, practiced to determine the tax bases of the Company Tax corresponding to tax periods initiated prior to the entry into force of this Law take into account the effects of the determination of the tax bases corresponding to the tax periods in which this Law applies, in accordance with the provisions laid down in the rules governing them.

In no case shall it be permissible for the same income not to be taken into consideration or twice for the purposes of determining the tax base for the Company Tax.

In the case of a delayed or deferred price transaction made in tax periods initiated prior to 1 January 2015, the income to be included in tax periods started from that date, be integrated into the tax base in accordance with the tax regime which will be applicable at the time the transactions were carried out, even if the integration takes place in tax periods initiated after 1 January 2015.

Second transient disposition. Tax regime for the investigation and exploitation of hydrocarbons and for the promotion of mining.

1. The provisions laid down in this Law for the activities of research and exploitation of hydrocarbons shall apply to entities with research permits and operating concessions which continue to be governed by Law 21/1974, of 27 June on the Research and Exploitation of Hydrocarbons.

2. The assets which, at the entry into force of Law 43/1995 of 27 December 1995, of the Company Tax were being depreciated in accordance with the maximum depreciation coefficients set out in Article 47 (1) of the Royal Decree Decree No 2362/1976 of 30 July 1976 approving the Regulation of 27 June 1974 on the Law on the Investigation and Exploitation of Hydrocarbons, which may be amortized by applying the said coefficients, and must be fully amortised within the maximum period of 20 years, to be counted from the date of entry into force.

3. The outstanding amounts of investment for taxable persons which, in accordance with paragraph 4 of the second transitional provision of the recast of the Company Tax Act, approved by Royal Decree-Law 4/2004, by 5 March, in accordance with the wording in force for tax periods initiated before 1 January 2015, the choice of the tax system for the investigation and exploitation of hydrocarbons laid down in Chapter X of Title VIII of Law 43/1995, in accordance with the wording in force on 31 December 2002, will apply in the form of established in Article 96 of this Law.

The period referred to in Article 96 of this Law shall not apply where the quantities are intended for the abandonment of fields or the dismantling of offshore platforms provided that they correspond to existing holdings of the The entry into force of Law 53/2002, of December 30, of Fiscal, Administrative and Social Order Measures.

Transitional provision third. Tax benefits of reconversion and reindustrialisation.

The taxpayers affected by the Reconversion Royal Decrees will enjoy the tax benefits established by Law 27/1984 of 26 July on reconversion and reindustrialisation, in terms of those benefits. previews.

Transitional disposition fourth. Leasing contracts concluded prior to the entry into force of Law 43/1995 of 27 December of the Company Tax.

They will be governed until their full compliance with the rules laid down in the Additional Disposition seventh of Law 26/1988 of July 29, on Discipline and Intervention of Credit Entities, lease agreements (a) financial aid concluded prior to the entry into force of Law 43/1995 of 27 December 1995 of the Corporate Tax, covering goods the delivery of which had also been carried out prior to its entry into force; or on immovable property the delivery of which has taken place within the period of two years after that date of entry into force.

Transient disposition fifth. Balances of the provision for insolvencies covered by Article 82 of the Company Tax Regulation, approved by Royal Decree 2631/1982 of 15 October 1982.

Taxpayers who, at the entry into force of Law 43/1995, of 27 December, of the Company Tax, had constituted a fund for the provision of insolvencies by means of the system governed by Article 6 (6) 82 of the Companies Tax Regulation, approved by Royal Decree 2631/1982 of 15 October 1982, will apply the balance to cover the debts of doubtful recovery existing at that date and the excess, if any, to those which are produced after the end of their total extinction.

In the meantime, the allocations to be made for the coverage of these credits will not be deductible.

Transitional disposition sixth. Transitional arrangements for financial operations benefits.

The concessionary companies of toll motorways having recognised profits in this tax on 1 January 1979 for financing and refinancing operations in the light of their specific legislation and of the Under the third paragraph of Article 3 (2) of Law 61/1978 of 27 December 1978, the company tax and its implementing rules will retain that right acquired in its present terms. Also, the taxpayers who at the date of entry into force of Law 43/1995, of December 27, of the Tax on Societies enjoy the bonus to which they refer: article 25.c) of Law 61/1978; article 1 of the Royal Decree-Law 5/1980, of 19 May, on the subsidy of the shares in the company tax, corresponding to the interest to be provided by the local authorities, the Autonomous Communities and the State, on the basis of certain loans or borrowings; Articles 6.5 and 20 of Law 12/1988 of 25 May 1988 on Tax Benefits relating to the Universal exhibition Seville 1992, to the commemorative events of the V Centenary of the Discovery of America and to the Olympic Games of Barcelona 1992 and article 6.5 of Law 30/1990, of December 27, of Tax Benefits relating to Madrid European Capital of Culture 1992, under resolution agreed by the Ministry of Economy and Finance, will continue to apply it in the terms set out in the respective rules.

Transitional disposition seventh. Tax value of the units of collective investment institutions.

For the purposes of calculating the excess of the liquidative value referred to in Article 54 of this Law, the value of the acquisition shall be taken as the value of the acquisition on the first day of the first tax period to which it has been Law 43/1995 of 27 December 1995 of the Tax on Societies, in respect of the shares and shares held by the taxpayer. The difference between that value and the effective acquisition value shall not be taken as the acquisition value for the purposes of determining the income derived from the transmission or redemption of the shares or units.

Dividends and participations in profits distributed by collective investment institutions that derive from profits made prior to the entry into force of Law 43/1995, will be integrated into the tax base of the partners or members thereof. For these purposes, the first distributed reserves shall be understood to have been endowed with the first benefits gained.

Transient disposition octave. Tax regime for the transmissions of assets made in compliance with provisions with the range of law of the competition law.

The transmissions of assets that have been carried out in the terms established in the Additional Disposition 4 of the Recast Text of the Companies Tax Law, approved by the Royal Legislative Decree 4/2004, of 5 March, in accordance with the wording in force for tax periods initiated before 1 January 2015, shall be governed by the provisions laid down therein, even if the reinvestment and other requirements occur in tax periods initiated by from that date.

transient disposition ninth. Tax regime for holdings in entities that have applied the special tax transparency tax regime, as set out in Law 43/1995 of 27 December of the Corporate Tax.

1. Dividends and shares in profits of entities that come from tax periods during which the entity that distributes them would have been subject to the tax transparency regime established in Law 43/1995, of December 27, Tax on Companies, will not be taxed in the Income Tax of the Physical Persons nor in the Tax on Societies. The amount of these dividends or shares in profits shall not be included in the value of the shares or shares of the partners to whom they were charged.

Dealing with the partners who acquired the shares or units after the imputation, the acquisition value of those shares shall be reduced.

2. They shall not be subject to withholding or income from dividends or shares in profits as referred to in the previous paragraph.

3. In the transfer of shares and shares in the capital of entities that have been subject to the tax transparency regime in previous tax periods, the acquisition value shall be increased by the amount of the social benefits obtained in such periods which, without effective distribution, would have been imputed to the partners as income from their shares or units in the period of time between their acquisition and transfer in which the institutions had been taxed under the said regime.

Transient disposition tenth. Tax regime for shares in entities that have applied the special regime of property companies established in the recast text of the Companies Tax Law, approved by the Royal Decree of Law 4/2004, of 5 March.

1. The distribution of profits obtained in exercises in which the special regime of the property companies established in the recast of the Law on Corporate Tax, approved by the Royal Decree, has been applied Legislative 4/2004, of 5 March, will receive the following treatment:

(a) Where the recipient is a taxpayer of the Income Tax of the Physical Persons, the dividends and the interest in profits referred to in points (a) and (b) of Article 25 (1) 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 not be integrated into the income of the tax period of the Tax. The dividend distribution will not be subject to withholding or income on account.

(b) Where the recipient is a taxpayer of the Corporate Tax or the Income Tax of non-residents with permanent establishment, the perceived benefits shall be entitled to the exemption of 50% of his/her amount.

(c) Where the recipient is a non-resident Income Tax taxpayer without permanent establishment, the received benefits shall be treated as appropriate in accordance with the provisions of the Text Recast of the Non-Resident Income Tax Act, approved by the Royal Legislative Decree 5/2004, of March 5, for these taxpayers.

2. The income obtained in the transfer of the participation in institutions corresponding to reserves from profits earned in financial years in which the regime of the property companies has been applied shall receive the next treatment:

(a) Where the transmitte is a taxpayer of the Income Tax of the Physical Persons, for the purposes of determining the profit or loss, the provisions of Article 35.1.c) of the recast shall apply. of the Law on the Income Tax of the Physical Persons, approved by Royal Legislative Decree 3/2004, of 5 March, according to the wording in force at December 31, 2006.

(b) Where the transmitte is a taxpayer of the Company Tax, or the Income Tax of non-residents with permanent establishment, in no case shall it be able to apply the exemption regime provided for in this Law.

In the determination of these rents, the transmission value to be computed shall be at least the value of the net worth corresponding to the transmitted values resulting from the last closed balance sheet, after the value is replaced. the accounting officer of the assets not affected by the value they would have for the purposes of the Heritage Tax, or the market value if it is lower.

The provisions of the first paragraph shall also apply in the case of the institution's dissolution, the separation of the partner, the merger, the total or partial division or the overall disposal of assets and liabilities.

(c) When the transferor is a non-resident Income Tax taxpayer without permanent establishment, he/she shall have the appropriate treatment in accordance with the provisions laid down for these contributors in the Text Recast of the Non-Resident Income Tax Act.

3. The entities that have been taxed in the special regime of heritage companies must continue to comply with the reporting obligations under the terms of Article 47 of the Company Tax Regulation, approved by the Royal Decree 1777/2004, of July 30.

Transient disposition eleventh. Tax value of the assets awarded to the partners on the occasion of the dissolution of transparent companies and of property companies.

In the case of transparent companies that have been the object of dissolution and liquidation in the terms established in the transitional provision sixteenth of the recast of the Law on Corporate Tax, adopted By Royal Decree-Law 4/2004 of 5 March, the elements acquired by the partners will have the value and date of acquisition that were established in the aforementioned Transitional Disposition.

In the case of property companies that have been the subject of dissolution and liquidation in the terms established in the Transitory Disposition twenty-fourth of the recast of the Law on Corporate Tax, the items purchased by the partners will have the value and date of acquisition that were set out in that transitional provision.

Transient Disposition twelfth. Tax regime for accounting adjustments for the first implementation of the General Accounting Plan, approved by Royal Decree 1514/2007 of 16 November, of the General Plan for the Accounting of Small and Medium-sized Enterprises and the accounting criteria specific to micro-enterprises, approved by Royal Decree 1515/2007 of 16 November or the Accounting Plan of the insurance institutions, approved by Royal Decree 1317/2008 of 24 July.

Charges and credits to items of reserves that correspond to expenses or income that, in accordance with the third subparagraph of paragraph 1 of the Transitional Disposition twenty-sixth of the Recast Text of the Law of the Corporation Tax, approved by Royal Decree-Law 4/2004 of 5 March, was not subject to integration into the tax base on the occasion of the first implementation of the General Accounting Plan approved by Royal Decree 1514/2007, of 16 November, or of the General Plan for the Accounting of Small and Medium-sized Enterprises and the Criteria Specific accounting for micro-enterprises, approved by Royal Decree 1515/2007 of 16 November, will also not be subject to integration on the occasion of their accounting accrual again on the basis of the accounting criteria laid down in these rules.

The provisions of the preceding paragraph shall also be applied on the occasion of the charges and credits to reserves which it would have been necessary to carry out on the occasion of the first application of the accounting plan of the institutions. insurers, approved by Royal Decree 1317/2008, of July 24.

transient disposition thirteenth. Application of the depreciation table provided for in this Law on previously acquired assets. Freedom of amortization to be applied.

1. The assets for which, in tax periods initiated prior to 1 January 2015, a depreciation coefficient other than the one corresponding to them by application of the amortisation table was applied provided for in Article 12.1 of this Law, they shall be amortised during the tax periods to the extent of their new shelf life, in accordance with that table, on the net fiscal value of the good at the beginning of the first period Tax that starts from January 1, 2015.

Also, those taxpayers who were applying a method of amortisation other than the one resulting from the application of the linear amortisation ratios in tax periods initiated prior to 1 January 2015 and, In application of the depreciation table provided for in this Law, a different repayment period may be applied to them, they may choose to apply the method of linear amortisation in the period until the end of their new useful life, on the net value This is the case at the beginning of the first tax period beginning on 1 January 2015.

The acquisitions of new assets between 1 January 2003 and 31 December 2004 will apply the maximum linear depreciation coefficients provided for in this Act, multiplied by 1,1.

Changes in the amortisation coefficients applied by taxpayers, which may arise as a result of the entry into force of this Law, shall be counted as an accounting change.

2. The taxpayers who had made investments until the entry into force of Royal Decree-Law 12/2012 of 30 March, to which the additional Disposition of the Recast Text of the Tax Law on the Law on the Companies, as amended by Royal Decree-Law 6/2010 of 9 April 2010, of measures for the promotion of economic recovery and employment, and by Royal Decree-Law 13/2010 of 3 December 2010, of actions in the field of taxation, employment and liberalising to encourage investment and job creation, and have outstanding amounts to be applied, corresponding to the freedom of amortisation, may apply those amounts under the conditions laid down therein.

Transitional disposition fourteenth. Financial goodwill fund.

The deduction provided for in Article 12 (5) of the Recast Text of the Company Tax Law, approved by the Royal Legislative Decree 4/2004, of 5 March, according to the wording in force for the periods (a) a tax on the acquisition of securities issued by a non-resident entity on the basis of the terms and conditions set out in Article 3 (1) of Regulation (EU) No 71/2014; Spanish territory, made up to 21 December 2007, as well as those made with an obligation irrevocably agreed until 21 December 2007, in accordance with the provisions of Article 1 (3) of the Decision of the European Commission of 28 October 2009 and Article 1 (3) of the Decision of the European Commission of 12 December 2007, January 2011.

Also, in the case of acquisition of securities conferring the majority of the participation in the own funds of entities resident in another non-member State of the European Union, made between 21 December 2007 and the On 21 May 2011, the deduction provided for in Article 12 (5) may be applied where the existence of explicit legal obstacles to cross-border business combinations is demonstrated in the terms set out in the Article 1 (4) and (5) of the said Commission Decision of 12 January 2011.

15th transient disposition. Impairment losses on tangible fixed assets, real estate investments, intangible fixed assets and debt securities.

The reversal of impairment losses on tangible fixed assets, real estate investments, intangible fixed assets and debt securities that would have been tax deductible on an initiated tax period before 1 January 2015, they shall be integrated into the tax base of the corporate tax on the tax period in which the recovery of their value in the accounting field occurs.

In the case of intangible fixed-life fixed assets, the reversion shall be integrated into the tax base with the limit of the tax value of the intangible asset taking into account the provisions of Article 13 (3). of this Law.

Transient disposition sixteenth. Transitional arrangements applicable to losses due to the deterioration of the securities representing the equity or the equity of institutions, and to the negative income obtained abroad through an establishment permanent, generated in tax periods initiated prior to 1 January 2013.

1. The reversal of losses due to impairment of the securities representative of the share in the capital or in the own funds of entities that have been fiscally deductible from the tax base of the Company Tax in accordance with Article 12 (3) of the recast text of the Law on Corporate Tax, approved by Royal Decree-Law 4/2004 of 5 March 2004, in tax periods initiated before 1 January 2013, with independence from their accounting imputation in the profit and loss account, shall be integrated into the base the taxable amount of the period in which the value of the own funds at the end of the financial year exceeds that of the start, in proportion to their participation, the contributions or returns of contributions made to it, with the limit of that excess. For these purposes, the positive difference between the value of the own funds at the close and at the beginning of the financial year, in the terms set out in this paragraph, shall be understood to correspond, first, to impairment losses that have resulted fiscally deductible.

Similarly, the reported impairment losses shall be subject to integration into the tax base by the amount of dividends or shares in the received profits of the participating entities, except that distribution does not have the status of accounting income.

The provisions of this paragraph shall not apply in respect of those losses due to impairment of the share that are determined by the distribution of dividends or shares in profits and which do not resulted in the application of the internal double taxation deduction or that the said losses have not been fiscally deductible in the area of the international double taxation deduction.

2. The reversal of losses due to impairment of the securities representative of the share in the capital or in the own funds of entities that are listed on a regulated market to which Article 12 (3) has not been applied of the recast of the Companies Tax Act, in tax periods initiated before 1 January 2013, will be incorporated into the tax base of the corporate tax on the tax period in which the tax is produced recovery of its value in the accounting field.

3. In the event that a permanent establishment would have obtained net negative income which would have been integrated into the entity's tax base during tax periods initiated before 1 January 2013, the exemption provided for in the Article 22 of this Law or the deduction referred to in Article 31 of this Law shall apply only to positive income obtained after the time when they exceed the amount of such negative income.

4. If the transfer of a permanent establishment occurs and the arrangements provided for in Article 77 (1) (b) of this Law apply, the taxable amount of the transferring entity resident in Spanish territory shall be increased. in the amount of the excess of the negative income on the positive income attributed to the permanent establishment in tax periods started before 1 January 2013, with the limit of the positive income derived from the transfer of the same.

5. In the case of a temporary union of undertakings which, having received the exemption scheme provided for in Article 50 of the recast of the Companies Tax Act, is in force for tax periods initiated by the By 1 January 2015, it would have obtained net negative income abroad which would have been integrated into the tax base of the Member Entities in tax periods started before 1 January 2013, when in Successive exercises the temporary union obtains positive income, the member companies will integrate in their base taxable, on a positive basis, the negative income previously charged, with the limit of the amount of such positive income.

The same rule will apply in the case of entities participating in works, services or supplies abroad by means of collaboration formulas analogous to the temporary unions of companies that would have been (a) to the exemption scheme indicated.

6. In the case of restructuring operations under the special tax regime laid down in Chapter VII of Title VII of this Law:

(a) If the partner loses the quality of the resident on Spanish territory, the difference referred to in Article 80 (4) and Article 81 (3) of this Law shall be corrected, if any, in the amount of the losses for impairment of the value that have been fiscally deductible in tax periods initiated prior to 1 January 2013.

(b) For the purposes of Article 84 (2) of this Law, in no case shall the negative taxable bases corresponding to losses incurred by the transmitting entity which have motivated the depreciation of the holding of the acquiring institution in the capital of the transfer, or the depreciation of the holding of another entity in the transfer capital when all of them are part of a group of companies referred to in Article 42 of the Trade Code, irrespective of residence and the obligation to make annual accounts consolidated, where any of the reported depreciations have occurred during tax periods initiated prior to 1 January 2013.

7. The limit laid down in the first subparagraph of Article 26 (1) of this Law shall not apply to the amount of the income corresponding to the reversal of the impairment losses which are included in the taxable amount. application of the provisions of the preceding paragraphs of this transitional provision provided that the impairment losses deducted during the tax period in which the negative tax bases intended to be offset were generated at least 90% of the deductible costs of that period. In the event that the entity has negative taxable bases generated in several periods initiated prior to 1 January 2013, this requirement may be met by the aggregate calculation of the set of the deductible expenses of those periods. tax periods.

transient disposition seventeenth. Regime applicable to certain financial instruments issued or granted before 20 June 2014.

The provisions of Article 15 (a) and Article 21 (2) of this Law shall not apply to participative loans granted before 20 June 2014.

The securities lending operations conducted prior to 1 January 2015 shall be governed by the tax regime established in the additional 18th of Law 62/2003 of 30 December of fiscal measures, administrative and social order, in accordance with the wording in force for tax periods initiated before 1 January 2015.

18th transient disposition. Debt for the acquisition of shares in the capital or in the own funds of institutions.

1. The provisions of Article 67 (b) of this Law shall not apply to entities which have been incorporated into a tax group for tax periods started before 20 June 2014.

2. The provisions of Article 16 (5) and Article 83 of this Law shall not apply to the restructuring operations carried out before 20 June 2014. The provisions of those provisions in relation to those restructuring operations carried out from 20 June 2014 between entities belonging to the same fiscal consolidation group in periods shall also not apply. tax started prior to that date.

Nineteenth transient disposition. Income derived from the transfer of shares.

1. In the case of the transfer of shares in the capital or in the own funds of institutions, in respect of which the taxpayer has made any value correction which has been fiscally deductible, the value correction shall be integrate, in any case, the taxpayer's tax base, for the purposes of determining the exemption referred to in Article 21 of this Law.

2. The amount of negative income arising from the transmission of the participation in a resident entity shall be reduced by the amount of the dividends or shares in profits received from the participating entity from the periods of time. (a) tax which has been initiated in the year 2009 up to those tax periods which have been initiated prior to 1 January 2015, provided that those dividends or shares in profits have not undermined the value of the acquisition of the same and have been entitled to the application of the internal double taxation deduction provided for in the Article 30 (2) of the recast text of the Companies Tax Act, approved by Royal Decree-Law 4/2004 of 5 March 2004.

Transient Disposition 20th. Transitional arrangements for the reduction of income from certain intangible assets.

The disposals of the right of use or exploitation of intangible assets that have been carried out prior to the entry into force of Law 14/2013 of 27 September, supporting entrepreneurs and their internationalisation, regulate by the provisions of Article 23 of the recast of the Law on Corporate Tax, approved by the Royal Legislative Decree 4/2004 of 5 March, as amended by the Additional Disposition octava.1.eight of the Law 16/2007, of 4 July, of reform and adaptation of commercial law in accounting matters for its international harmonisation on the basis of European Union legislation.

Transient disposition twenty-first. Negative taxable bases to be offset in the Company Tax.

The negative tax bases to be cleared at the beginning of the first tax period starting from 1 January 2015 may be offset in the following tax periods.

Transient disposition twenty-second. Newly created entities. Reduced rate of charge for maintenance or job creation.

1. The newly created entities constituted between 1 January 2013 and 31 December 2014, which carry out economic activities, shall be taxed in accordance with the provisions of the Additional Disposition of the recast text of the Law of the Corporation Tax, approved by the Royal Legislative Decree 4/2004 of 5 March 2004.

2. The entities covered by the Additional Disposition twelfth of the recast of the Company Tax Act, in accordance with the wording in force in tax periods initiated before 1 January 2015, shall be regulated by the in that case, even if the required requirements are in the case of tax periods initiated as from 1 January 2015.

Transient disposition twenty-third. Transitional regime in the Tax on Deductions Societies to avoid double taxation.

1. In the case of acquisition of holdings which would have occurred during tax periods initiated, on the transfer, before 1 January 2015, the dividends or shares in profits corresponding to securities representative of the capital or of the own funds of entities resident in Spanish territory which comply with the requirements laid down in Article 21 of this Law, shall be entitled to the exemption provided for in that Article.

Notwithstanding, however, the above requirements, the distribution of dividends or equity interests that correspond to a positive difference between the acquisition price of the holding and the value of the contributions from the partners made by any title will not have the consideration of income and will lower the tax value of the participation. Additionally, the taxpayer will be entitled to a 100 percent deduction of the full share that would have corresponded to those dividends or equity interests when:

(a) The taxpayer proves that an amount equivalent to the dividend or profit share has been integrated into the tax base of the Company Tax on any of the tax rates provided for in the Article 28 (1), (2) and (7) or Article 114 of the Recast Text of the Companies Tax Act, approved by Royal Decree-Law 4/2004 of 5 March 2004, in respect of income obtained by successive entities owning participation on the occasion of their transfer, and that such income would not have been entitled to the deduction by double taxation of capital gains provided for in that recast text.

In this case, where the above entities owning the holding have applied to the income for them obtained on the occasion of their transmission the deduction for reinvestment of extraordinary profits established In Article 42 of the recast of the Companies Tax Act, the deduction shall be 18% of the amount of the dividend or the share of the profit.

b) The taxpayer proves that an amount equivalent to the dividend or profit share has been integrated into the taxable income tax base of the Physical Persons, prior to 1 January 2015, in the concept of income obtained by successive natural persons who own the holding, on the occasion of their transmission.

In this case, the deduction may not exceed the amount resulting from applying to the dividend or the profit share the rate of tax on the Income Tax of the Physical Persons the assets integrated in the special part of the tax base or in the case of savings, in the case of transmissions made as from 1 January 2007.

The deduction provided for in this paragraph shall also apply where the distribution of dividends or the profit share does not determine the income integration in the tax base for not having the consideration of income.

This deduction will be partially practiced when the test referred to in this paragraph is partial.

2. In the case of acquisition of holdings which would have occurred during tax periods initiated, on the transfer, before 1 January 2015, the dividends or shares in profits corresponding to securities representative of the capital or of the own funds of non-resident entities in Spanish territory which comply with the requirements laid down in Article 32 of this Law, and which correspond to the positive difference between the purchase price of the participation and equity of the entity involved at the time of the acquisition shall not have the (a) the tax value of the holding, provided that the taxpayer proves that an amount equivalent to the dividend or profit share has been taxed in Spain through any transfer of the stake. In addition, the taxpayer may apply the deduction provided for in Article 32 of this Law, taking into account that the limit referred to in paragraph 4 of this Law shall be calculated on the basis of the full quota which would be included in the tax base for the purposes of dividends or shares in profits.

The same rule will result in the assumption that dividends or stakes in profits do not determine the income integration in the tax base for not having the income consideration.

3. In the case of dividends and participations in profits from securities representative of the capital or own funds of entities resident in Spanish territory, acquired before the entry into force of Royal Decree-Law 8/1996, of 7 of In June, urgent fiscal measures on the correction of double taxation and on incentives for the internationalisation of companies will not result in the provisions of paragraph 1 of this provision being applied. In this case, the restrictions contained in Article 28 of Law 43/1995 of 27 December of the Company Tax, in its original wording, prior to the entry into force of Royal Decree-Law 8/1996, shall apply.

4. The double taxation deductions laid down in Articles 30, 31 and 32 of the recast of the Companies Tax Act, in accordance with the wording of the tax periods initiated before 1 January 2015, pending to apply to the entry into force of this Law, as well as those deductions generated by application of this Disposition not deducted for full quota insufficiency, may be deducted in the following tax periods.

The amount of the deductions set out in this Transitional Disposition and in Articles 30, 31.1.b) and 32.3 of the Recast Text shall be determined taking into account the rate of charge in the tax period in which the it is applied.

5. In the case of restructuring operations which have been covered by the provisions of Chapter VIII of Title VII of the recast of the Company Tax Act, as in force in the tax periods initiated by the Before 1 January 2015, for the purposes of avoiding double taxation which may arise by application of the valuation rules laid down in Articles 86, 87 (2) and 94 of the said recast, the benefits distributed under the terms of the income attributable to the assets contributed will entitle the exemption to avoid double taxation dividends, whatever the percentage of the partner's participation and its seniority. The same criterion shall apply in respect of the income generated in the transmission of the participation.

When in the manner in which the acquiring institution counted it would not have been possible to avoid double taxation by application of the rules laid down in the preceding paragraph, that entity shall, at the time of its (a) the adjustment of a sign contrary to that which has been applied for the purposes of the valuation rules laid down in Articles 86, 87.2 and 94 of the recast of the Law on Corporate Tax. The acquiring institution may practise such adjustments as a sign contrary to its extinction, provided that it proves that its participation has been transmitted by the partners and the amount of the amount which has been integrated into the base assessment of these on the occasion of such transmission.

Twenty-fourth transient disposition. Deductions to incentivise the performance of certain activities to be carried out in the Company Tax.

1. Deductions for investments in fixed assets new materials generated in accordance with Article 26 of Law 61/1978 of 27 December of the Company Tax, in respect of which the taxpayer would have chosen to apply them in the tax periods in which payments are made in accordance with Article 218.3 of the Company Tax Regulation, approved by Royal Decree 2631/1982 of 15 October 1982, will continue to be applied in the settlement of the tax periods in which the payments are made, under the conditions and requirements provided for in that standard.

The deductions referred to in the preceding paragraph shall be deducted in compliance with the limit on the liquid quota provided for in the said Act and the corresponding General Budget Laws of the State.

For these purposes, the resulting liquid quota is the result of minoring the full quota in the deductions and allowances provided for in Chapters II and III of Title VI of this Law.

Deductions from different modalities or tax periods of Article 26 of Law 61/1978, of December 27, will not be able to exceed a set limit of 35 percent of the liquid quota.

The deductions referred to in the preceding paragraphs shall be applied once the deductions and allowances provided for in Chapters II and III of Title VI of this Law are made, and then the deductions laid down in Chapter IV of Title VI, the limit of which shall be calculated independently of the limit laid down in the preceding paragraph.

2. The deductions in the full quota set out in article 69.2 of the recast of the Law on the Income Tax of the Physical Persons, approved by the Royal Legislative Decree 3/2004 of 5 March, generated in tax periods in that the arrangements for the property companies, which are pending application at the beginning of the first tax period starting from 1 January 2015, have been applied, may be deducted from that tax period, with the limits and conditions set out in this Act.

3. The deductions provided for in Chapter IV of Title VI of Law 43/1995, of 27 December, of the Tax on Societies, and Chapter IV of Title VI of the recast of the Law on Corporate Tax, approved by the Royal Decree Legislative 4/2004, of 5 March, which were pending to be applied at the beginning of the first tax period starting from 1 January 2015, may be deducted from that tax period, with the requirements laid down in the (a) the rules of application prior to that date, within the time limit and with the conditions laid down in the Article 39 of this Law. The limit laid down in Article 39 shall also apply to the deduction for reinvestment of extraordinary profits as provided for in Article 42 of the recast of the Companies Tax Act, in accordance with the wording of the tax periods started before 1 January 2015, with the calculation of that deduction for the purposes of the calculation of the above limit.

4. In the case of entities having double taxation deductions to be applied from the application of Article 30 of the recast of the Companies Tax Act, in accordance with the wording in force in periods (a) the amount of the tax paid by the Member State in respect of which the amount of the tax is paid, in accordance with the provisions of Article 39 (1) of this Law, shall be subject to the conditions laid down in the first subparagraph of Article 39 (1) of this Law; and the bonuses applied.

5. The income received from the profit-making deduction provided for in Article 37 of the recast of the Company Tax Act, in accordance with the wording in force for tax periods initiated before 1 January 2015, is shall be governed by the provisions laid down and in their implementing rules, even if the investment and other requirements are in tax periods initiated as from 1 January 2015.

6. The income received from the reinvestment of extraordinary profits provided for in Article 21 of Law 43/1995 of 27 December of the Company Tax, in accordance with the wording in force until 1 January 2002, which did not apply the deduction Article 36b of Law 43/1995, pursuant to paragraph two of the third paragraph of Law 24/2001, of 27 December, of Fiscal, Administrative and Social Order Measures, shall be governed by the provisions of the referred to in Article 21 and in its implementing rules.

7. The income received from the deduction for reinvestment of extraordinary profits provided for in Article 42 of the recast of the Companies Tax Act, as applied in tax periods initiated before 1 January. In the case of reinvestment and other requirements, they shall be governed by the provisions of the established and in their implementing rules, even if the reinvestment and other requirements occur during tax periods started on or after 1 January 2015.

However, in the case of instalments or deferred price transactions, the deduction percentages of 12 and 17% as set out in paragraph 1 of that Article shall be, respectively, 10% and 15%, whichever is the same. the tax period in which the deduction is applied for the income from the tax base of the tax periods started in 2015. These percentages shall also be, respectively, 7% and 12% of the tax period in which the deduction for the income from the tax base of the tax periods started from 1 January is applied. January 2016.

Twenty-fifth transient disposition. Tax groups.

1. Entities that are applying the tax consolidation regime to the entry into force of this Act will continue to apply, in accordance with the rules contained in Chapter VI of Title VII of this Act.

2. Entities which, in accordance with the provisions of Article 58 of this Law, fulfil the conditions to be considered as dependent on a fiscal consolidation group, without being part of it prior to the entry into force of this Act. This Law for not fulfilling the necessary requirements for this will be integrated into the aforementioned group in the first tax period starting from January 1, 2015. The option and communication referred to in Article 61 of this Law shall be made within the said tax period.

The tax group shall not be extinguished when the parent entity of the tax group in tax periods started before 1 January 2015 becomes dependent on a non-resident entity in Spanish territory. application of the provisions of Article 58 of this Law in the first tax period starting from that date, unless the tax group is incorporated into another existing tax period. In the latter case, the effects provided for in Article 74 (3) of this Law shall apply, and the option and communication referred to in Article 61 (6) of this Law shall be carried out within the first tax period. to start in 2015.

3. Entities which, in accordance with the provisions of Article 58 of this Law, fulfil the conditions to form a fiscal consolidation group, without having to form part of it prior to the entry into force of this Law for not complying with the requirements for this purpose, may be eligible for the application of the tax consolidation scheme in the first tax period started from 1 January 2015, provided that the option and communication referred to in Article 61 of this Law be performed before the end of that tax period.

4. The effects provided for in Article 74 (3) of this Law will be applied in the case of tax groups in respect of which the dominant entity acquires the status of a subsidiary of an entity resident in Spain, by application of the provisions of Article 58 of this Law in the first tax period starting from 1 January 2015. In this case, the option and communication referred to in Article 61 of this Law shall be made within the said tax period.

5. In the event that two or more tax groups are to be integrated by application of the provisions of Article 58 of this Law, such integration and, where appropriate, the incorporation of other entities into the tax group in respect of which the institution the dominant position is fulfilled, it may be carried out in the first tax period starting from 1 January 2016. In this case, those may continue to apply the tax consolidation regime in the tax periods starting in 2015 with the same composition as it exists at 31 December 2014, without prejudice to any of the following: circumstances provided for in Article 67 of the recast of the Companies Tax Act, in accordance with the wording in force in the tax periods which had been initiated before 1 January 2015, determining the incorporation or the exclusion of any entity or the extinction of the group.

6. The eliminations practiced in a tax group in tax periods initiated prior to 1 January 2015 from the transfer of units in entities pending the entry into force of this Law, shall be incorporated in accordance with Article 65 and shall be subject to the provisions of Article 21 of this Law.

Transient disposition twenty-sixth. Tax consolidation regime for groups formed by credit institutions that are members of an institutional system for the protection of savings banks.

1. For the purposes of applying the system of fiscal consolidation laid down in Chapter VI of Title VII of this Law, in those groups whose dominant entity is the central entity of an institutional protection system referred to in point (b) (d) in Article 8 (3) of Law 13/1985 of 25 May 1985 on investment coefficients, own resources and information obligations of financial intermediaries, the following specialties shall be taken into account:

(a) Such a scheme may be applied from the beginning of the tax period in which the institutional protection system is established. The option and communication for the application of the scheme, as referred to in Article 61 of this Law, shall be made within the period ending on the day of the end of the said tax period.

Companies that meet the conditions set out in Article 58.2.a) of this Law, whose representative shares of their share capital would have contributed to the group, will be included in the group in the same tax period. central entity in compliance with the system integration plan and the institution maintains the participation until the conclusion of that tax period, through operations covered by the tax regime set out in Chapter VII of Title VII of this Law or the regime set out in Article 7.1 of Royal Decree-Law 11/2010 of 9 July 2010, of government bodies and other aspects of the legal regime of the savings banks, and had the consideration of companies that are dependent on the credit institution contributing, as a consequence of the latter being taxed in that scheme as a dominant entity.

(b) When credit institutions are integrated as entities dependent on the tax group whose parent is the central entity, they are taxed in the tax consolidation regime as dominant, even if they are extingan those groups shall not be incorporated in the eliminations referred to in Article 74 (1) (a) of this Law, which correspond to transactions made by entities that are integrated into that other tax group as dependent entities. The eliminated results will be incorporated into the tax base of that other tax group in the terms set out in Article 65 of this Act.

(c) Any negative tax bases which are not yet to be compensated by credit institutions which fulfil the conditions laid down in the second subparagraph of Article 58 (3) of this Law, which are integrated as companies dependent on the tax group whose parent is the central entity, may be compensated in the group's tax base, in the terms set out in Article 67,e) of this Law, with the limit of the individual tax base of the central bank or the banking institution to which the central institution has in turn contributed its entire financial business, provided that the savings banks and, where appropriate, the central institution, after the contribution, do not develop economic activities and their income is limited to the income from their assets or from the holdings in the capital of other entities in which they participate. Such treatment shall not be affected by the fact that the contribution of the financial business has not included certain assets and liabilities as a result of the existence of a condition that makes the contribution impossible.

This will apply even if the banking entity is excluded from the group in which the parent is the central entity, even in the event of its extinction.

(d) The deductions in the quota to be applied by credit institutions that meet the conditions set out in the second subparagraph of Article 58 (3) of this Law, which are integrated as companies dependent on the tax group whose parent is the central entity, may be deducted in the full share of that tax group with the limit that would have been in the individual tax regime to the central bank or to the bank which, in turn, the central bank has provided all its financial business, provided that the savings and, where appropriate, the central institution, after the contribution, do not carry out economic activities and their income is limited to income from their assets or from holdings in the capital of other entities in the participating. Such treatment shall not be affected by the fact that the contribution of the financial business has not included certain assets and liabilities as a result of the existence of a condition that makes the contribution impossible.

This will apply even if the banking entity is excluded from the group in which the parent is the central entity, even in the event of its extinction.

(e) When assets and liabilities are transmitted to the central entity by credit institutions as subsidiaries of the group whose parent is the central entity, as a result of the establishment and extension of the institutional protection system, having carried out such a transmission by means of operations under the tax regime laid down in Chapter VIII of Title VII of the recast of the Companies Tax Act or the established regime In Article 7.1 of Royal Decree-Law 11/2010, the income generated prior to that the transmission imputable to those assets and liabilities, shall be charged to the central entity in accordance with the provisions of the commercial rules.

As set out in points (c) and (d) above, it shall also apply in the event that after the establishment of the institutional protection system, the central entity becomes dependent on a subsidiary. of another group to be taxed in the tax consolidation regime.

2. For the purposes of the application of both the tax regime set out in Article 7.2 of Royal Decree-Law 11/2010, and of the tax regime laid down in Chapter VIII of Title VII of the recast of the Company Tax Act, the wording in force for tax periods initiated prior to 1 January 2015, to which transfers of assets and liabilities made between credit institutions have been received in compliance with the agreements of an institutional system of protection, the non-integration of income referred to in both tax systems shall include, where appropriate, the eliminations that would have to be incorporated in the tax base of the tax group as a result of those transmissions, in the event that those assets and liabilities are part of the assets of entities belonging to a group that were by tax consolidation scheme.

3. Where, in the case of the groups referred to in paragraph 1 above which were taxed in the tax consolidation scheme, the banking institution to which they had contributed their entire financial business, even in the case of the the cases of termination of the tax group referred to in point (a) of Article 74.1 of this Law shall apply with the following specialties:

(a) If the banking entity maintains holdings in entities that meet the conditions set out in Article 58.3 of this Law, that bank and its investees who meet the requirements for that purpose may apply the system of fiscal consolidation since the beginning of the tax period in which such exclusion takes place. The option and communication for the application of that scheme, as referred to in Article 61 of this Law, shall be made within the period ending on the day of the end of the said tax period. In such a case, the results eliminated shall be incorporated into the tax base of that other tax group in the terms laid down in Article 65 of this Law, provided that the entities involved in the transactions are integrated into that group. have generated such results.

(b) Where the provisions of point (a) above are met, but do not integrate into that group any of the entities that have intervened in the operations that have generated the results eliminated, such results shall be incorporated in the terms set out in Article 65 of this Law, in the tax base of the persistent group in which the income was generated which was, at the time, the object of the disposal, provided that the other entity which is not a party of the tax group to which the banking institution belongs, as the latter entity is part of the same group as refers to Article 42 of the Trade Code, irrespective of its residence and the obligation to make consolidated annual accounts, in which the parent is the central entity of an institutional protection system or the savings bank which, in both cases, have contributed their entire financial business to the banking institution.

Twenty-seventh transient disposition. Shares in the capital of the transferring entity and the acquiring institution.

1. By way of derogation from Article 78 of this Law, in the case of transactions under the special tax regime laid down in Chapter VII of Title VII of this Law, where the acquiring institution participates in the capital of the institution the amount of the difference between the tax value of the holding and the own funds corresponding to the percentage of participation acquired in a tax period which, in the transfer, is transmitted by at least 5%; have been initiated before 1 January 2015 shall be charged to the goods and rights acquired, applying the method of global integration laid down in Article 46 of the Trade Code and other implementing rules, and the part of that difference which has not been imputed shall be fiscally deductible from the tax base, with the maximum annual limit of the twenty-ninth part of its amount, provided that the following requirements are met:

(a) that the participation has not been acquired from persons or entities not resident in Spanish territory or to natural persons resident in Spanish territory, or to a related entity when the latter, in turn, acquired the participation to those persons or entities.

The requirement provided for in this letter (a) shall be understood as:

1. The Treaty of a participation acquired from persons or entities not resident in Spanish territory or to an entity linked to the acquiring entity which, in turn, acquired the participation of the aforementioned persons or entities, where the amount of the difference referred to in the preceding paragraph has been taxed in Spain through any transmission of the participation.

Likewise, the deduction of the indicated difference shall be deducted where the taxpayer proves that an amount equivalent to that amount has actually been taxed in another Member State of the European Union, for the benefit obtained by occasion of the transfer of the participation, bearing a charge equivalent to that which would have resulted from the application of this tax, provided that the transmission does not reside in a country or territory qualified as a tax haven.

2. The Treaty of a participation acquired from natural persons resident in Spanish territory or to a related entity where the latter, in turn, acquired the participation of the said natural persons, when it is proved that the wealth gain obtained by such natural persons has been integrated into the tax base of the Income Tax of the Physical Persons.

(b) the acquiring and transferring entity is not part of a group of companies, in accordance with the criteria laid down in Article 42 of the Trade Code, irrespective of residence and the obligation to make a statement consolidated annual accounts.

The requirement set out in point (b) shall not apply with respect to the purchase price of the share satisfied by the transmitting entity or entity where it has, in turn, acquired from persons or entities not related residents in Spanish territory.

Where the requirements (a) and (b) above are met, the valuation resulting from the part imputed to the assets of the fixed asset acquired shall have tax effects, being deductible from the tax base, in the case of goods amortisation, the accounting depreciation of that part imputed, in the terms provided for in Article 12 of this Law, the deduction provided for in Article 13 (3) of this Law being equally applicable.

The amount of the fiscally deductible difference referred to in this Disposition shall be reduced by the amount of the negative taxable bases outstanding in the transmitting entity that may be offset by the acquiring entity, in proportion to participation.

2. The arrangements provided for in the preceding paragraph shall also apply to the amount of the differences referred to in the first subparagraph, which are generated on the occasion of transactions carried out during tax periods initiated before 1 January. January 2015.

Transient disposition twenty-eighth. Depreciation of assets to be reinvested by small-scale enterprises.

The entities that were applying the provisions of Article 113 of the recast of the Law on Corporate Tax, approved by the Royal Legislative Decree 4/2004, of 5 March, according to the wording in force in periods Tax authorities initiated before 1 January 2015 may continue their application, with the conditions and conditions laid down in that application.

Twenty-ninth transient disposition. Tax regime for certain leasing contracts.

The assets in respect of which the corresponding administrative authorisation has been obtained pursuant to Article 115 (11) of the recast of the Law on the Tax on Companies, approved by Royal Decree-Law 4/2004 of 5 March, in a tax period initiated before 1 January 2013, shall be governed, for the purposes of the application of the provisions referred to in that Article and of the system of shipping entities on the basis of tonnage, by the rules in force at 31 December 2012.

Transient Disposition 30th. Application of the Decision of the European Commission of 17 July 2013 on the tax regime applicable to certain leasing agreements.

In accordance with Articles 1 and 3 of the Decision of the European Commission of 17 July 2013 on the tax arrangements applicable to certain leasing agreements, authorisations (a) administrative measures granted between 30 April 2007 and 29 June 2011, in conjunction with Article 115 (11) of the recast text of the Companies Tax Act, approved by Royal Decree-Law 4/2004 of 5 March 2011, in accordance with the wording in force at 31 December 2012, and with the special tax system of shipping entities on the basis of of the tonnage, in favour of groupings of economic interest, regulated by Law 12/1991, of April 29, of Economic Interest Groups, will have the following specialties:

(a) The provisions of Article 115 (11) of the recast of the Companies Tax Act, as in force at 31 December 2012, shall not apply to the extent to which it constitutes aid to State incompatible with the terms laid down in that Decision.

(b) The special tax system of shipping entities based on tonnage to economic interest groups shall not apply in so far as it constitutes State aid incompatible with the terms laid down by the Treaty. This Decision.

Transient disposition thirtieth first. Foreign securities holding entities.

The shares acquired by entities under the special tax regime of foreign securities holding entities provided for in Chapter XIV of Title VII of the recast of the Company Tax Act, in accordance with the wording in force for tax periods which had been initiated before 1 January 2015, which had an acquisition value of more than EUR 6 million without complying with the minimum participation requirement set out in point (a) Article 21 (1) of the said recast text may apply the tax system established in that Article and Chapter XIII of Title VII of this Law, in the tax periods beginning on or after 1 January 2015.

Transient disposition thirtieth. Civil societies subject to this Tax.

1. The provisions of this provision shall apply to civil societies and their partners to whom the income allocation scheme would have been applied, in accordance with the provisions of Section 2 of Title X of Law 35/2006, 28 In November, 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 Patrimony, in tax periods initiated before 1 of January 2016 and have the consideration of corporate tax payers from the said date.

2. The integration of income earned and not integrated into the tax base of the tax periods in which the tax entity in the income allocation scheme is to be made in the tax base of the corresponding corporate tax the first tax period starting from 1 January 2016. Income which has been integrated into the taxable amount of the taxpayer under the income allocation scheme shall not be included once again on the occasion of its accrual.

In any event, changes in the criteria for temporary imputation as a result of the consideration of civil societies as taxpayers of the Company Tax from 1 January 2016 will result in some expenditure or income is left without computing or is charged again in another tax period.

3. Where civil society has had an obligation to keep accounts in accordance with the provisions of the Trade Code in the financial years 2014 and 2015 in accordance with Article 68 of the Income Tax Regulation Individuals, approved by Royal Decree 439/2007 of 30 March, will apply the following rules:

(a) The distribution of profits earned in tax periods in which the income allocation scheme has been applied, whichever is the entity that deals with the profits made by civil society, the time at which the allocation is made and the special tax regime applicable to the entities at that time, shall receive the following treatment:

1. When the recipient is a taxpayer of the Income Tax of the Physical Persons, the benefits referred to in points (a) and (b) of Article 25 (1) 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 not be integrated in the tax base. The distribution of such benefits shall not be subject to withholding or entry into account.

2. º When the recipient is a taxpayer of the Corporate Tax or the Income Tax of non-residents with permanent establishment, the perceived benefits will not be integrated into the tax base. The distribution of such benefits shall not be subject to withholding or entry into account.

3. When the recipient is a non-resident Income Tax taxpayer without permanent establishment, the benefits received shall be treated in accordance with the provisions of the Text Recast of the Non-Resident Tax Act for these taxpayers.

(b) The income obtained in the transmission of the participation in civil societies which correspond to reserves from undistributed profits obtained in exercises in which the scheme has been applied for the allocation of income, irrespective of the entity whose units are transmitted, the time at which the transmission is carried out and the special tax regime applicable to the entities at that time, they shall receive the following treatment:

1. When the transmittal is a contributor to the Income Tax of the Physical Persons, it will be computed by the difference between the acquisition and ownership value and the transmission value of those.

To this effect, the acquisition and ownership value is estimated to be integrated:

First. For the price or amount disbursed for its acquisition.

Second. For the amount of the social benefits, which, without effective distribution, would have been obtained by the company during the tax periods in which the income allocation scheme was applied in the period of time between its acquisition and disposal.

Third. In the case of partners acquiring participation after obtaining the social benefits, the acquisition value shall be reduced in the amount of the profits from tax periods in which it has been applied. the income allocation scheme.

2. When the transmitte is a taxpayer of the Corporate Tax or the Income Tax of non-residents with permanent establishment, the provisions of this Law will apply.

3. When the transferor is a non-resident Income Tax taxpayer without permanent establishment, he/she will have the appropriate treatment according to what is established for these taxpayers in the Text Recast of the Non-Resident Income Tax Act.

4. In the case of civil societies other than those provided for in paragraph 3 above, it shall be understood that on 1 January 2016, for tax purposes, all of its own funds are made up of contributions from the partners, with the limit of the the difference between the value of tangible fixed assets and real estate investments, reflected in the relevant books, and the liabilities payable, unless the existence of other assets is proven.

The shares in civil society acquired prior to that date on 1 January 2016 shall have as their acquisition value the resulting from the provisions of the preceding paragraph.

Transient disposition thirtieth third. Conversion of deferred tax assets generated in tax periods initiated prior to 1 January 2015 in credit payable to the tax administration.

The scheme provided for in Article 130 of this Law will result from the application of deferred tax assets generated during tax periods started before 1 January 2015, corresponding to the amount of the deterioration of claims or other assets arising out of the possible insolvencies of debtors not linked to the taxpayer, not due to public law entities and whose deductibility does not occur pursuant to the provisions of the Article 13 (1) (a) of this Law, as well as those arising from the application of Articles 13.1.b) and 14.1.f) the recast text of the Companies Tax Act, in accordance with the wording in force in tax periods initiated before 1 January 2015, corresponding to allocations or contributions to social security systems and, where appropriate, preretirement.

In the case of assets registered prior to the first tax period which has been initiated as of 1 January 2014, the period referred to in Article 130 (4) of this Law shall be computed from the last the day of the said tax period.

Transient thirtieth disposition. Temporary measures applicable in the 2015 tax period.

With effects for tax periods beginning in 2015, the following specialties apply:

(a) Article 7 (1) (a) of this Law shall be worded as follows:

"(a) Legal persons, except civil societies."

b) Taxpayers who have made investments until the entry into force of Royal Decree-Law 12/2012 of 30 March introducing various tax and administrative measures aimed at reducing the public deficit, which has resulted from the application of the 11th additional provision of the recast text of the Companies Tax Act, approved by Royal Decree-Law 4/2004 of 5 March 2004, as amended by the Royal Decree of 5 March 2004, Decree-Law 6/2010 of 9 April 2010 of measures for the promotion of economic recovery and employment, and by the Royal Decree-Law 13/2010 of 3 December 2010 on actions in the field of taxation, labour and liberalisation to encourage investment and job creation, and have outstanding amounts to be applied, corresponding to the freedom of amortisation, may apply these quantities under the conditions laid down therein.

However, in the tax periods beginning in 2015, the taxpayers who have made investments until the entry into force of the Royal Decree-Law 12/2012, to which the Disposition is applicable In the case of the case-law of the State of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of Recast text, and have amounts to be applied, may apply the same to the the limit of 40% of the tax base prior to its application, the integration referred to in Article 11 (12) of this Law and the compensation of negative taxable bases.

In the tax periods beginning in 2015, the taxpayers who have made investments until the entry into force of the Royal Decree-Law 12/2012, to which the additional Disposition is applicable Eleventh of the recast of the Companies Tax Act, as amended by Royal Decree-Law 13/2010, in tax periods in which they have not complied with the requirements laid down in Article 108 (1) of the said Text Recast, and have outstanding amounts to be applied, they may apply the same with the limit of 20%. (a) a percentage of the tax base prior to its application, the integration referred to in Article 11 (12) of this Law and the compensation of negative taxable bases.

In the event that taxpayers have outstanding amounts to be applied in the terms outlined in the previous two paragraphs, they will apply the 40 percent limit until they exhaust the outstanding amounts generated with According to the provisions of Royal Decree-Law 6/2010, it is understood that they are applied in the first place. The amounts outstanding in accordance with the preceding subparagraph may be applied in the same tax period up to the amount of the difference between the limit laid down in that subparagraph and the quantities already applied in the same period. tax.

The limits provided for in the preceding three paragraphs shall also apply in respect of the taxpayers referred to in this letter and the investments in progress made until the entry into force of Royal Decree-Law 12/2012, which correspond to new elements in charge of contracts for the execution of works or investment projects whose implementation period, in both cases, requires a period of more than 2 years between the date of order or the start of the investment and the date of their making available or in operation, to which the provision has been applied The 11th additional of the recast text of the Companies Tax Act, as drafted by Royal Decree-Law 6/2010, and by Royal Decree-Law 13/2010.

(c) The deduction of the difference referred to in the Transitional Disposition of this Act is subject to the limit of one hundredth of its amount.

(d) The deductions for the goodwill referred to in Article 13.3 of this Law and the difference provided for in this Act's twenty-seventh transitional provision are subject to the maximum annual limit of the hundredth of your amount.

The provisions of this letter shall not apply to the taxpayers of the Income Tax of the Physical Persons who meet the requirements of Article 101 (1) of this Law.

(e) The deduction corresponding to intangible fixed life fixed assets which does not have the consideration of goodwill referred to in Article 13.3 of this Law is subject to the maximum annual ceiling of the fiftieth part of its amount.

The provisions of this letter shall not apply to the taxpayers of the Income Tax of the Physical Persons who meet the requirements of Article 101 (1) of this Law.

(f) In the current financial leasing contracts whose annual periods of duration are initiated within the year 2015, the requirement laid down in Article 106 (4) of this Law shall not be required for the amount of the part of the of the lease fees corresponding to the recovery of the cost of the good.

The annual amount of the share of those shares in that period may not exceed 50 percent of the cost of the good, the case of movable property, or 10 percent of that cost, in the case of real estate or industrial.

(g) The limit referred to in Article 26 (1) of this Law shall not apply.

However, the compensation of negative taxable bases of previous years, for taxpayers whose volume of transactions, calculated in accordance with the provisions of Article 121 of Law 37/1992 of 28 December 1992, of the Value Added Tax, has exceeded the amount of 6,010,121.04 euros during the 12 months prior to the date of the start of the tax periods within the year 2015, will have the following limits:

-The compensation of negative taxable bases is limited to 50% of the tax base prior to the application of the capitalization reserve set out in Article 25 of this Law and to such compensation, when in those 12 months the net amount of the business figure is at least 20 million euros but less than 60 million euros.

-The compensation of negative taxable bases is limited to 25% of the tax base prior to the application of the capitalization reserve set out in Article 25 of this Law and to such compensation, when in those 12 months the net amount of the business figure is at least 60 million euros.

The limitation to the compensation of negative taxable bases will not result from application in the amount of the income corresponding to the quitas and waits as a result of an agreement with the creditors not connected with the taxpayer.

(h) The impairment of appropriations or other assets arising from the possible insolvencies of debtors as well as those relating to endowments or contributions to social security systems and, where appropriate, pre-retirement, to Article 11 (12) of this Law shall be integrated into the tax base with the limit of the positive tax base prior to its integration and the compensation of negative taxable bases.

However, such integration shall be subject to the limits laid down in point (g) above, where the circumstances in question are established. These limits shall apply on the basis of a positive assessment prior to the integration of the said endowments and the compensation of negative taxable bases.

(i) The general rate of taxation laid down in the first subparagraph of Article 29 (1) of this Law shall be 28%.

However, they will be taxed at the rate of 25 percent:

1. General insurance mutuals, social security mutual societies and Social Security Partners who meet the requirements laid down by their regulatory regulations.

2. Mutual guarantee companies and reincorporation companies governed by Law 1/1994 of 11 March on the Legal Regime of Reciprocal Guarantee Societies, registered in the special register of the Bank of Spain.

3. The cooperative societies of credit and rural boxes, except as regards the extracooperative results, which will be taxed at the rate of 30 percent.

4. Professional colleges, business associations, official chambers and workers ' unions.

5. Non-profit entities to which the tax regime laid down in Law 49/2002 of 23 December of the tax regime of non-profit-making entities and tax incentives does not apply. patronage.

6. The employment promotion funds constituted under Article 22 of Law 27/1984 of 26 July on conversion and reindustrialisation.

7. The unions, federations and confederations of cooperatives.

8. The Public Law Entity Ports of the State and the Port Authorities.

The entities that are engaged in the exploration, investigation and exploitation of oil deposits and underground hydrocarbons in the terms established in Law 34/1998 of 7 October of the hydrocarbon sector, will be taxed at the rate of 33 percent.

9. The communities with common hand-held neighborhood mounts.

(j) Entities which comply with the requirements set out in Article 101 of this Act shall be taxed on the basis of the following scale, except if in accordance with Article 29 of this Law they are to be taxed at a rate different from the general:

1. º For the taxable amount between 0 and 300,000 euros, at the rate of 25 percent.

2. º For the remaining taxable amount, at the rate of 28 percent.

When the tax period is shorter than the year, the share of the tax base that will be taxed at the rate of 25% will be that of applying to 300,000 euros the proportion in which the number of days is found. of the tax period between 365 days, or the taxable amount of the tax period when it is lower.

(k) Entities whose net amount of the business figure given in the tax periods started in 2015 is less than EUR 5 million and the average template in those periods is less than 25 employees, shall be taxed at the rate of 25 percent lien.

When the tax period is shorter than the year, the net amount of the business figure will be raised per year.

For the purposes of the application of the tax rate provided for in this letter, it should be noted that:

1. The application of the tax rate provided for in this letter is conditional on the average template of the entity not being lower than the 12 months following the beginning of the tax periods beginning in 2015. in addition, it is also not lower than the average template of the 12 months prior to the start of the first tax period starting from 1 January 2009.

When the entity has been constituted within that previous 12-month period, the average template resulting from that period shall be taken.

For the calculation of the average template of the institution, the persons employed shall be taken, in the terms of the employment law, taking into account the working day in relation to the full day.

It shall be computed that the average template of the 12 months prior to the beginning of the first tax period starting from 1 January 2009 is zero when the entity has been established from that date.

2. For the purposes of determining the net amount of the turnover, the provisions of Article 101 (3) of this Law shall be taken into consideration.

When the entity is newly created or the tax period has a duration less than the year, or the activity would have developed during a also lower term, the net amount of the business figure will be raised to the year.

3. When the entity was established in 2015 and the average template within the 12 months following the beginning of the first tax period is greater than zero and below the unit, the rate of charge provided for in this letter shall apply in the tax period of the institution's constitution provided that in the 12 months after the end of that tax period the average template is not less than the unit.

4. When the conditions set out in this letter are not met, the taxpayer shall regularise its tax status in the terms set out in Article 125.3 of this Law.

(l) In the determination of the payments made in the form provided for in Article 40 (3) of this Law, it shall be integrated into the taxable amount of the period in respect of which the corresponding amount is calculated. (a) the amount of the dividend, the amount of the dividends and the income earned therein, corresponding to the equity or the equity of non-resident entities, to which Article 21 applies. of this Law. In addition, it shall be integrated into the corresponding split payment, 100% of the amount of the dividends and the income earned therein, which correspond to the shares in the capital or the own funds of resident entities, to Those resulting from the application of Article 21.

m) The amount to be entered for the fractional payments provided for in Article 40 (3) of this Law, for those taxpayers who are obliged to apply this modality and whose net amount of the Business in the 12 months preceding the date on which the tax periods are initiated within the year 2015 is at least 20 million euro, shall in no case be less than 12 per cent of the positive result of the loss account and earnings for the financial year of the 3, 9 or 11 first months of each calendar year or, for taxpayers whose tax period does not coincide with the calendar year, from the year after the beginning of the tax period until the day before the beginning of each period of income of the split payment, determined in accordance with the Trade Code and the other accounting rules for development, which are exclusively minorised in the previous split payments, corresponding to the same tax period. It shall be excluded from the positive result referred to, the amount of the same corresponding to income arising from the removal or withdrawal of a taxpayer's agreement from creditors, including that part of the its amount to be integrated into the tax base of the tax period.

However, the percentage set out in the preceding paragraph shall be 6% for those entities referred to therein, in which at least 85% of the income of the 3, 9 or 11 first months of each calendar year or, for taxpayers whose tax period does not coincide with the calendar year, from the year after the beginning of the tax period up to the day before the beginning of each period of income of the split payment, correspond to income for which the exemptions provided for in Articles 21 or 22 of this Law apply.

In the case of partially exempt entities to which the special tax regime established in Chapter XIV of Title VII of this Law applies, the corresponding positive result shall be the corresponding Non-exempt income. In the case of entities to which the allowance provided for in Article 34 of this Law applies, it shall be taken as a positive result exclusively for non-subsidised income.

The provisions of this paragraph shall not apply to the entities referred to in Article 29 (3), (4) and (5) of this Law or those referred to in Law 11/2009 of 26 October on the Anonymous Companies Listed for Investment in the Real Estate Market.

n) The percentage referred to in Article 40 (3) of this Law shall be:

1. The number of taxpayers whose net turnover has not exceeded the amount of EUR 6 million during the 12 months preceding the date of the start of the tax period in the year 2015, The result of multiplying by five septens the type of the default rounded charge.

2. The number of taxpayers whose net turnover has exceeded the amount of EUR 6 million during the 12 months preceding the date of the start of the tax period in 2015:

-The result of multiplying by five septs the type of tax rounded up by default, when in those 12 months the net amount of the business figure is less than 10 million euros.

-The result of multiplying by fifteen twenty-nine the type of tax rounded up by excess, when in those 12 months the net amount of the business figure is at least 10 million euros but less than 20 million euros.

-The result of multiplying by seventeen twenty-nine the type of tax rounded up by excess, when in those 12 months the net amount of the turnover is at least 20 million euros but less than 60 million euro.

-The result of multiplying by nineteen twenty-nine the type of tax rounded up by excess, when in those 12 months the net amount of the business figure is at least 60 million euros.

n) The percentage of withholding or income referred to in Article 128 (6) (a) of this Law is raised to 20 percent.

Transient disposition thirteenth. Tax regime applicable to intangible assets acquired prior to 1 January 2015.

The tax regime laid down in Articles 12.2 and 13.3 of this Law will not apply to intangible assets, including goodwill, acquired in tax periods initiated before 1 January of this year. 2015, to entities forming part of the acquirer of the same group of companies in accordance with the criteria laid down in Article 42 of the Trade Code, irrespective of residence and the obligation to make annual accounts consolidated.

Transient Disposition 30th. Limit on the compensation of negative taxable bases and deferred tax assets for the year 2016.

For the purposes of the tax periods to be initiated in 2016, the limits laid down in the first subparagraph of Article 26 (1), in Article 62 (1) (e) and in points (d) and (e) of the Article 67 of this Law shall be 70%, in the terms laid down, respectively, in the provisions cited above.

Transient disposition thirteenth. Deduction for reversion of temporary measures.

1. Taxpayers who are taxed at the rate provided for in Article 29 (1) of this Law and have applied to them the limitation of the amortisation provided for in Article 7 of Law 16/2012 of 27 December 2000 A number of tax measures are taken to consolidate public finances and boost economic activity. They will be entitled to a deduction in the full quota of 5% of the amounts which they form in the tax base. of the tax period in accordance with the third paragraph of that Article, write-downs not deducted in the tax periods that have been initiated in 2013 and 2014.

This deduction will be 2 percent for the tax periods to be initiated in 2015.

2. Taxpayers who are taxed at the rate provided for in Article 29 (1) of this Law which would have received the balance sheet update provided for in Article 9 of Law 16/2012 shall be entitled to a deduction in the quota 5% of the amounts that are included in the tax base of the tax period resulting from the depreciation corresponding to the net increase in value resulting from that update.

This deduction will be 2 percent for the tax periods to be initiated in 2015.

3. The deductions provided for in this provision shall apply after the other deductions and allowances resulting from this tax.

Amounts not deducted for full quota insufficiency may be deducted at subsequent tax periods.

Repeal provision.

1. Upon the entry into force of this Law, all the provisions that oppose the provisions of this Law will be repealed, and in particular, the Recast Text of the Law of the Tax on Societies, approved by the Royal Legislative Decree 4/2004, of 5 March.

In particular, they are repealed:

(a) Paragraph 2 of the additional 18th of Law 62/2003, of 30 December, of fiscal, administrative and social order measures as regards this Tax.

(b) Article 7 (1), (2), (4), (7) and (8) of Article 7 of Royal Decree-Law 11/2010 of 9 July 2010 of governing bodies and other aspects of the legal system of savings banks.

2. However, they shall retain their validity as regards this Tax:

(a) The legal provisions relating to the tax regime of the international bodies of which Spain is a party.

b) Law 20/1990 of 19 December on the Tax Regime of Cooperatives.

(c) Article 3.3 of Law 15/1992 of 5 June on urgent measures for the progressive adaptation of the oil sector to the Community framework.

(d) Article 12 of Royal Decree-Law 3/1993 of 26 February of urgent measures on budgetary, tax, financial and employment matters.

e) Articles 93 and 94 of Law 20/1991 of 7 June on the modification of the fiscal aspects of the Fiscal Economic Regime of the Canary Islands, and Law 19/1994 of 6 July, amending the Economic and Fiscal Regime of the Canary Islands Canary Islands.

(f) Royal Decree-Law 7/1994 of 20 June on freedom of depreciation for investment-generating investments.

g) The Royal Decree-Law 2/1995 of 17 February on freedom of depreciation for creative investment investments.

(h) Article 5 of Royal Decree-Law 7/1996 of 7 June 1996 on urgent measures of a fiscal nature and on the promotion and liberalisation of economic activity.

i) The additional eighth of Law 40/1994, of December 30, of ordination of the National Electrical System, and Law 54/1997, of 27 November, of the Electrical Sector.

(j) Article 14 and the Single Additional Provision of Law 5/1996 of 10 January of the creation of certain public law entities, as well as the additional provision of the third Royal Decree-Law 15/1997 of 5 September 1997, amending Law 5/1996 on the establishment of certain entities governed by public law.

k) The additional twenty-fifth of Law 66/1997, of December 30, of Fiscal, Administrative and Social Order Measures.

(l) Law 34/1998 of 7 October of the hydrocarbon sector.

m) Article 27 of Law 50/1998 of 30 December of Fiscal, Administrative and Social Order Measures.

n) The seventh additional provision of Law 27/1999, of July 16, of Cooperatives.

(n) Royal Decree 647/2002 of 5 July 2002 declaring mineral raw materials and related activities as a priority for the purposes of the provisions of Law 43/1995 of 27 December 1995. Corporation Tax.

or) The Recast Text of the Law on the Regulation of Pension Plans and Funds approved by the Royal Legislative Decree 1/2002 of 29 November.

p) Law 49/2002, of December 23, of tax regime of non-profit entities and of tax incentives to patronage.

q) Article 24 of the Legal Statute of the Insurance Compensation Consortium approved by the Royal Legislative Decree 7/2004 of 29 October.

r) The second additional Disposition and the third additional Disposition of Law 23/2005, of November 18, of reforms in tax matters for the boost to productivity.

s) The Organic Law 8/2007 of 4 July on the financing of political parties.

t) Law 55/2007, of December 28, of the Cinema.

u) Law 11/2009, of 26 October, on the regulation of Anonymous Listed Companies of Investment in the Real Estate Market.

v) The Additional Disposition 6 of the Recast Text of the Capital Companies Act, approved by Royal Legislative Decree 1/2010, of 2 July.

w) Article 41 of the Recast Text of the Law of Ports of the State and the Merchant Navy, approved by the Royal Legislative Decree 2/2011 of 5 September.

(x) Article 8 and the second transitional provision of Law 8/2012 of 30 October on the reorganisation and sale of property assets in the financial sector.

and) The Additional 17th Disposition and Twenty-First Additional Disposition of Law 9/2012, of November 14, of restructuring and resolution of credit institutions.

z) Articles 7 and 9 of Law 16/2012 of 27 December, adopting various tax measures aimed at the consolidation of public finances and the promotion of economic activity.

aa) Article 49 of Law 26/2013, of December 27, of savings banks and bank foundations.

3. The Companies Tax Regulation, approved by Royal Decree 1777/2004 of July 30, will continue to apply, as long as it does not oppose the provisions of this Law, until the entry into force of the regulatory standard that can be delivered of this Law.

4. The repeal of the provisions referred to in paragraph 1 shall not prejudice the rights of the public treasury in respect of obligations arising during its lifetime.

Final disposition first. Entities covered by Law 20/1990 of 19 December on the Tax Regime of Cooperatives.

1. Cooperatives will be taxed in accordance with the provisions of Law 20/1990 of 19 December on the Tax Regime of Cooperatives.

2. The groups of cooperative societies may be taxed on a consolidated basis in accordance with the provisions of Royal Decree 1345/1992 of 6 November 1992 laying down rules for the adaptation of the provisions governing the taxation on the consolidated profit to the groups of cooperative societies.

Final disposition second. Entities covered by Law 49/2002, of 23 December, of the tax regime of non-profit entities and of tax incentives for patronage.

The entities that meet the characteristics and meet the requirements of Title II of Law 49/2002 of 23 December of the tax regime of non-profit entities and of tax incentives for patronage, they shall have the tax regime set out therein.

Final disposition third. Entities covered by Law 11/2009, of 26 October, on the regulation of Anonymous Listed Companies for Investment in the Real Estate Market.

The entities that meet the characteristics and meet the requirements laid down in Law 11/2009, of 26 October, for which the Quoted Anonymous Companies of Investment in the Real Estate Market are regulated, will have the The fiscal that is set in it.

Final disposition fourth. Amendments to the Law 20/1990 of 19 December on the Tax Regime of Cooperatives.

First. With effect for the tax periods initiated from 1 January 2011, the following amendments are made to the Law 20/1990 of 19 December on the Tax Regime of Cooperatives:

One. A seventh Additional Disposition is added, which is worded as follows:

" Additional provision seventh. Special rules applicable to Cooperatives in relation to deferred tax assets.

In the case of cooperative societies to which this Law applies, the following specialties apply:

(a) The limit referred to in Article 19.13 of the Recast Text of the Company Tax Law, approved by the Royal Legislative Decree 4/2004 of 5 March 2004, will refer to the positive full quota without taking into account their integration and the compensation of negative quotas.

(b) The application of the tax consolidation regime by those tax groups integrated by cooperative societies to which Article 19.13 of the recast of the Company Tax Law is applied, have the following specialties:

1. To proceed to the algebraic sum of the integrated quotas of the cooperatives that are part of the fiscal group shall not include in the taxable bases of those entities the envelopes referred to in Article 19.13 of the Text Recast of the Corporate Tax Act. These allocations will be included in the full quota, depending on the type of tax applicable, after that amount, and with the limit of 60 percent of the group's positive share.

2. In the event that an entity is incorporated into a tax group, the envelopes referred to in Article 19.13 of the Recast Text of the Companies Tax Act to be integrated into the full quota, integrate into the group's full share, depending on the type of tax applicable, with the limit of 60% of the individual's individual positive share of the entity.

3. In the event of loss of the fiscal consolidation or extinction regime of the fiscal group, the entities that integrate it shall assume the allocations referred to in Article 19.13 of the Recast Text of the Tax Law. on Companies, to be included in the quota, in the proportion in which they contributed to their training. "

Two. A seventh transitional provision is added, which is worded as follows:

" Transient disposition seventh. Impairment allocations for certain assets.

In the tax periods initiated between 1 January 2011 and 31 December 2014, the envelopes referred to in Article 19.13 of the recast of the Companies Tax Act in the established terms in the numbers 1. and 2. of point (b) of the seventh additional provision of this Law, the group's full quota shall be included, depending on the type of charge concerned, with the limit of the group's or individual's positive full quota, respectively.

However, in the tax periods to be initiated in 2014, the allocations referred to in Article 19.13 of the recast of the Company Tax Act in the terms set out in the numbers 1. 2. (b) of the seventh additional provision of this Act made by taxpayers whose volume of transactions, calculated in accordance with the provisions of Article 121 of Law 37/1992 of 28 December 1992, of the value added tax, has exceeded the amount of EUR 6,010,121,04 during the 12 months preceding the date on which it is initiated the tax periods within the year 2015, shall have the following limits:

-The allocations will be limited to 50 percent of the full quota prior to their incorporation and the compensation of negative quotas, when in those 12 months the net amount of the turnover is at least 20 million. of euros but less than 60 million euros.

-The allocations will be limited to 25 percent of the full quota prior to their incorporation and the compensation of negative quotas, when in those 12 months the net amount of the turnover is at least 60 million pesos. euro. "

Second. For the purposes of the tax periods initiated as from 1 January 2014, point (c) is added to the additional provision, seventh, of Law 20/1990 of 19 December 1990 on the Tax Regime of Cooperatives, which is hereby amended as follows: next form:

" (c) The deferred tax assets referred to in the last subparagraph of paragraph 1 of the additional twenty-second Disposition of the Recast Text of the Company Tax Act shall be construed as referring to the corresponding to the right to compensate in subsequent years for negative contributions. "

Third. With effect for the tax periods starting from 1 January 2015, the following amendments are made to the Law 20/1990 of 19 December on the Tax Regime of Cooperatives:

One. Article 24 is amended, which is worded as follows:

" Article 24. Compensation of negative quotas.

1. If the algebraic sum referred to in the previous article is negative, the amount of the sum may be offset by the cooperative with the positive full contributions of the following tax periods, with the limit of 60% of the total quota prior to their compensation. In any event, they shall be compensable in the tax period for the total amount resulting from multiplying EUR 1 million at the average rate of charge of the institution.

The right of the Administration to verify or investigate the negative dues to be compensated will be prescribed at 10 years from the day following the end of the deadline set for the submission of the statement or self-settlement for the tax period in which the right to compensation was generated.

After that period, the taxpayer must prove that the negative contributions the compensation of which he claims are derived, as well as the amount thereof, by the display of the liquidation or self-settlement and the accounting, with accreditation of its deposit during the said term in the Mercantile Register.

2. This procedure replaces the compensation of negative taxable bases provided for in Article 26 of Law 27/2014 of 27 November 2014 on Corporate Tax which, as a result, will not apply to cooperatives. "

Two. The eighth transitional provision is added, which is worded as follows:

" Transient disposition octave. Compensation of negative contributions in 2015.

The limit referred to in Article 24 (1) of this Law shall not apply to the tax periods beginning in 2015.

However, the compensation of negative contributions from previous years, for taxpayers whose volume of transactions, calculated in accordance with the provisions of Article 121 of Law 37/1992 of 28 December 1992, of the tax on the Value Added, has exceeded the amount of 6,010,121.04 euros during the 12 months prior to the date of the start of the tax periods within the year 2015, will have the following limits:

-The compensation of negative contributions is limited to 50 percent of the total fee prior to such compensation, when in those 12 months the net amount of the turnover is at least 20 million euros but less to EUR 60 million.

-Negative quota compensation is limited to 25 percent of the full pre-compensation fee, when in those 12 months the net amount of the business figure is at least 60 million euros.

The limitation to the compensation of negative contributions will not result from application in the amount of the income corresponding to the quitas and waits as a result of an agreement with the creditors not connected with the taxpayer. "

Final disposition fifth. Amendments to Law 49/2002 of 23 December on the tax regime of non-profit entities and tax incentives for patronage.

First. With effect from 1 January 2015, the following amendments are introduced in Law 49/2002 of 23 December, of a tax regime for non-profit entities and tax incentives for patronage:

One. Article 19 is amended, which is worded as follows:

" Article 19. Deduction of the Income Tax quota of the Physical Persons.

1. The taxpayers of the Income Tax of the Physical Persons will have the right to deduct from the full quota the result of applying to the base of the deduction corresponding to the set of donations, donations and contributions entitled to deduction, as determined in accordance with Article 18 of this Law, the following scale:

to deduction base	Percentage of deduction
150 euros	75
base Rest	30

If, in the two previous immediate tax periods, donations, donations or contributions with the right to deduction were made in favour of the same entity for the same or higher amount, in each of them, to that of the previous financial year, the percentage of deduction applicable to the basis of the deduction in favour of the same entity exceeding EUR 150 shall be 35%.

2. The basis for this deduction shall be taken into account for the purposes of the limit laid down in Article 69 (1) of Law 35/2006 of 28 November of the Tax on the Income of the Physical Persons and the partial amendment of the laws of the Societies, on the Income of Non-Residents and on Heritage. "

Two. A fifth transitional provision is added, which is worded as follows:

" Transient Disposition fifth. Percentages of deduction in the income tax on the income of the physical persons and the corporation tax.

During the 2015 tax period the deduction percentage for deduction bases up to 150 euros referred to in Article 19 (1) of this Law will be 50 percent, and the applicable to the rest of the base of the deduction, 27.5 percent. Where the provisions of the last subparagraph of that paragraph apply, the percentage of deduction to be applied shall be 32,5%.

In the tax periods to be initiated in 2015, the percentage of deduction referred to in the second subparagraph of Article 20 (1) of this Law shall be 37.5 percent. "

Second. With effect for the tax periods starting from 1 January 2015, a paragraph is added to Article 20 (1) of Law 49/2002 of 23 December of the tax regime of non-profit-making entities and of incentives Tax on patronage, which is worded as follows:

" If in the previous two immediate tax periods donations, donations or contributions were made with the right of deduction in favour of the same entity for the same or higher amount, in each of them, to the The above tax period, the percentage of deduction applicable to the basis of the deduction in favour of the same entity shall be 40%. "

Final disposition sixth. Amendments to the Recast Text of the Corporate Tax Law, approved by the Royal Legislative Decree 4/2004 of 5 March 2004.

First. With effect for the tax periods starting from 1 January 2013, Article 67 (6) is amended, which is worded as follows:

" 6. If a savings bank or a bank foundation loses the dominant status of a tax group in a tax period, the credit institution shall be subrogated in that condition from the start of the tax period, without the effects of the extinction of the tax group referred to in Article 81 of this Law, except for those entities which cease to be part of the group because they are not dependent on the terms referred to in paragraph 3 of this Law. this article. "

Second. With effect for the tax periods starting from 1 January 2014, the following amendments are made to the recast of the Companies Tax Act:

One. Article 19 (13) is amended, which is worded as follows:

" 13. Appropriations for impairment of claims or other assets arising out of the possible insolvencies of debtors not linked to the taxpayer, not owed by entities governed by public law and whose deductibility does not occur by application of the Article 12 (2) (a) of this Law, as well as those arising from the application of Articles 13.1.b) and 14.1.f) of this Law, corresponding to allocations or contributions to social security systems and, where appropriate, pre-retirement, which have generated assets by deferred tax, will be integrated into the tax base according to the established in this Law, with the limit of the positive tax base prior to their integration and the compensation of negative taxable bases.

However, in the case of taxpayers whose volume of transactions, calculated in accordance with the provisions of Article 121 of Law 37/1992 of 28 December 1992, of the value added tax, has exceeded the EUR 6,010,121,04 during the 12 months preceding the date on which the tax periods are initiated in 2014, the integration into the tax base of the said envelopes shall be subject to the following limits:

-50% of the positive tax base prior to its integration and the compensation of negative taxable bases, when in those 12 months the net amount of the turnover is at least 20 million euros but less than EUR 60 million.

-25 percent of the positive tax base prior to its integration and the compensation of negative taxable bases, when in those 12 months the net amount of the turnover is at least 60 million euros.

Non-integrated amounts in a tax period will be subject to integration in the following tax periods with the same limit. For these purposes, the allocations for the oldest tax periods shall be integrated first. "

Two. Article 24 (3) and (4) are amended as follows:

" 3. They will not be integrated into the tax base:

(a) The maintenance costs of the benefit-social work carried out by the social fund, even if they exceed the allocations made, without prejudice to the consideration of future implementation assignments. However, such expenses shall be fiscally deductible when, in accordance with the applicable accounting rules, they are registered with the profit and loss account.

b) The income derived from the transmission of investments affected by the work-social work.

4. The allocation to the benefit-social work carried out by the banking foundations or, where appropriate, the maintenance costs of the benefit-social work which, in accordance with the applicable accounting rules, are recorded by the account of the losses and gains, may reduce the tax base of the credit institutions in which they participate, in the proportion that the dividends received from the institutions concerned represent the total income of the banking foundations, up to the ceiling of the above dividends. To this end, the banking foundation must inform the credit institution that it has paid the dividends the amount of the reduction calculated and the non-application of that amount as a fiscally deductible item in its declaration of this Tax.

In the case of non-application of the amount indicated for the purposes of its work-social, the banking foundation must communicate the non-compliance of the said purpose to the credit institution, in order to regulate the amounts unduly deducted in the terms set out in Article 137.3 of this Act. "

Final disposition seventh. Amendments to Law 11/2009 of 26 October on the regulation of Anonymous Listed Companies for Investment in the Real Estate Market.

One. For the purposes of the tax periods initiated as from 1 January 2014, Article 9 (4) of Law 11/2009 of 26 October 2009 on the Quoted Anonymous Companies for Investment in the Market is hereby amended. Real estate, which is worded as follows:

" 4. In any event, dividends or holdings in profits as referred to in Article 10 (1) (a) and (b) shall be subject to retention, except in the case of entities meeting the requirements for the application of this Law.

Likewise, dividends or participations in profits as referred to in Article 10 (1) (c) of this Law shall be subject to withholding, in accordance with the provisions of Article 31 of the recast of the Act. Non-Resident Income Tax Law, approved by the Royal Legislative Decree 5/2004 of 5 March, except those to which the provisions of the previous paragraph apply. "

Two. For the purposes of the tax periods initiated as from 1 January 2015, paragraphs 1 and 2 of Article 10 of Law 11/2009 of 26 October 2009 on the listed companies listed for investment in the market are amended. Real estate, which are worded as follows:

" 1. Dividends distributed from benefits or reserves in respect of which the special tax regime established in this Law has been applied, will receive the following treatment:

(a) Where the recipient is a taxpayer of the Corporate Tax or the Income Tax of non-residents with permanent establishment, the exemption provided for in Article 21 of the Law shall not apply. 27/2014 of 27 November of the Company Tax.

(b) Where the recipient is a taxpayer of the Income Tax of the Physical Persons, the provisions of Article 25.1.a) of Law 35/2006 of 28 November of the Income Tax of Persons shall apply. Physical and partial modification of the laws of the Taxes on Societies, on the Income of Non-Residents and on the Heritage.

(c) Where the recipient is a taxpayer of the Income Tax of non-residents without permanent establishment, the provisions of Article 24.1 of the recast of the Income Tax Act shall apply. Residents, approved by the Royal Legislative Decree 5/2004, of 5 March.

2. The income obtained in the transmission or reimbursement of the participation in the capital of the companies which have opted for the application of this scheme shall be treated as follows:

(a) Where the transferor or recipient is a taxpayer of the Corporate Tax or the Income Tax of non-residents with permanent establishment, the exemption provided for in Article 21 shall not apply. of Law 27/2014 of 27 November 2014 on Corporate Tax.

(b) Where the transferor or recipient is a taxpayer of the Income Tax of the Physical Persons, the wealth gain or loss shall be determined in accordance with the provisions of Article 37 (1) (a) of the 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.

(c) Where the transferor or recipient is a non-resident income tax payer without permanent establishment whose share in the entity's share capital is equal to or greater than 5 percent, it shall not be the exemption provided for in Article 14 (1) (i) of the recast text of the Non-Resident Income Tax Act. "

Final disposition octave. Amendments to Law 16/2013 of 29 October laying down certain measures in the field of environmental taxation and adopting other tax and financial measures.

For the purposes of the tax periods starting from 1 January 2014, the first subparagraph of Article 2 (2) of the Law 16/2013 of 29 October, laying down certain conditions, is hereby amended. measures in the field of environmental taxation and other tax and financial measures, which are worded as follows:

" Two. The amount to be entered for the fractional payments provided for in Article 45 (3) of the recast of the Companies Tax Act, for those taxable persons who are obliged to apply this modality and whose the net amount of the turnover within the year 2014 or 2015 is at least 20 million euro, shall in no case be less than 12 per cent of the positive profit and loss account of the financial year of the three, nine or the first 11 months of each calendar year or, for taxable persons whose tax period does not coincide with the year natural, from the year after the beginning of the tax period up to the day before the beginning of each period of payment of the split payment, determined in accordance with the Trade Code and other accounting standards for development, minorated exclusively in the previously made split payments, corresponding to the same tax period. It shall be excluded from the positive result referred to the amount of the same that corresponds to income derived from the removal or withdrawal of an agreement from the taxpayer's creditors, including that part of his/her income. amount to be integrated into the tax base of the tax period. '

Final disposition ninth. Ratings to the State General Budget Law.

1. The General Budget Law of the State may:

a) Modify the lien types.

b) Modify the quantitative limits, coefficients, and fixed percentages.

c) Modify the exemptions.

(d) to introduce and amend the precise rules in order to comply with the obligations arising from the Treaty on European Union and from the Treaty of European Union.

e) Modify the procedural and management aspects of the tribute.

f) Modify the submission deadlines for declarations.

2. The General Budget Law of the State shall establish the relevant tax incentives in respect of this Tax, where appropriate for the implementation of economic policy.

Final disposition tenth. Regulatory enablement.

The Government is empowered to dictate how many provisions are necessary for the development and implementation of this Act.

Final disposition eleventh. Competence title.

This Law is adopted pursuant to the provisions of Article 149.1.14. of the Constitution which attributes to the State the competence in the field of general finance.

Final disposition twelfth. Entry into force.

This Law shall enter into force on 1 January 2015 and shall apply to the tax periods starting from the date expressed, except for the final provisions fourth to seventh, which shall enter into force on the day of following the publication of this Law in the "Official Gazette of the State" and will be applicable in the terms of the Law.

Therefore,

I command all Spaniards, individuals and authorities, to keep and keep this law.

Madrid, 27 November 2014.

FELIPE R.

The President of the Government,

MARIANO RAJOY BREY