In use of the rating contained in article 101.5 of the then current Income Tax Regulation of the Physical Persons, approved by the sole article of Royal Decree 214/1999, of 5 February, (" Official Gazette of the State "of 9), Order HAC/2116/2003, of 22 July (" Official State Gazette " of the 26) approved the model 190 for the annual summary of withholding and income on account of the Income Tax of the Physical Persons on yields of the (i) work, certain economic activities, prizes and certain income taxes; as the physical and logical designs for the replacement of the inner sheets of the aforementioned model by means directly readable by computer. In addition, the general conditions and the procedure for the telematic presentation by the Internet of the abovementioned annual summary were established and the rules for the submission of certain models of annual declarations were amended.

Since the entry into force of the aforementioned Order, which affected, for the first time, the annual summary statements of withholding and income on account of the Income Tax of the Physical Persons adjusted to the Model 190 for the financial year 2003, there have been certain regulatory changes which should be reflected in the annual summary declaration, model 190, for the financial year 2004. The aforementioned regulatory changes are contained in Article 1 and in the 34th additional provision of Law 62/2003, of 30 December, of fiscal, administrative and social order measures ("Official State Gazette" of 31).

Article 1 of that Law has given new wording, with effect from 1 January 2004, to paragraphs (h), (i) and (j) of Article 7 of Law 40/1998 of 9 December 1998 on the Income Tax of the Physical Persons and other Tax Rules. Since this Law was repealed on 11 March 2004, the date of entry into force of the Royal Legislative Decree 3/2004 of 5 March, approving the recast of the Law on the Income Tax of Physical Persons (" Bulletin Official of the State " of the 10), these referrals are understood to the precepts corresponding to the same article and paragraphs of the recast text of the Law of the Tax on the Income of the Physical Persons.

According to the new wording, the exemption contained in paragraph (h) extends to public benefits by birth, multiple birth, adoption and dependent children, as well as to public maternity benefits received of the autonomous communities or local authorities. For its part, in paragraph (i) it is incorporated, within the exemption of the received amounts of public institutions, the perceived ones in reason of the reception of minors. Finally, in paragraph (j), public scholarships are declared exempt in order to pursue studies governed by all grades and levels of the educational system and those granted for the same purpose by non-profit-making entities to which it is application of the special scheme under Title II of Law 49/2002 of 23 December on the taxation of non-profit-making entities and of tax incentives for patronage ("Official State Gazette" of 24), as well as grants public and those granted by the non-profit-making entities mentioned above for research in the scope described by Royal Decree 1326/2003, of 24 October, approving the status of the research fellow, as well as those granted by those for the purpose of investigation to officials and other staff at the service of the Public administrations and the teaching and research staff of the universities.

On the other hand, the additional thirtieth provision of that Law 62/2003 of 30 December, has established a special tax regime applicable to natural persons who acquire the status of taxpayers by the Tax on the Income of the Physical Persons as a result of their displacement to Spanish territory on the occasion of the provision of services to the organizing entity or to the teams participating in the event "Copa America 2007". This special tax scheme is implemented in the course of the application of a reduction of 65 per 100 over the net amount of the income received from the organising body or the participating teams. event and to the extent that they are directly related to their participation in the event.

The incorporation of the commented new regulations has not demanded to alter the structure of the model 190 approved in Order HAC/2116/2003, of July 22, but only has been carried out, in the interest of not increasing the They must pay the costs of completing the model 190, to make the adaptation of certain literals of their inner sheets, as well as to make adjustments in some keys and subkeys of their instructions and logical designs without vary their previous content and structure. Thus, the new exemptions are set out in sub-keys 08, 09 and 10 of the L key, which is dedicated to exempt income and exempt allowances. For its part, in order to identify the returns to which the special "Copa America 2007" regime is applicable, a new key is created.

In another order of things, the experience in the management of the information provided to the tax administration through the model 190 has shown the need to make certain changes in the content of some of the keys used in the instructions and logical designs of the said model in order to achieve a better individualization of each declared perception, which will allow maximum effectiveness in the capture and processing of information. The adjustments to this effect are made both in the instructions and in the logical designs of the model 190 refer to the following subjects:

First, in the "contract or relationship" box corresponding to the additional data of each perception, a new key 4 is introduced to identify the sporadic relationships of the manual workers who perceive their remuneration for daily peonings or daily wages. Also, in key G, income from economic activities of a professional nature, a new sub-key 03 is introduced to identify the perceptions to which the reduced rate of retention of the 7 per 100 applicable to the taxpayers who initiate the exercise of professional activities during the commencement tax period and in the following two.

Finally, in key I, income from economic activities referred to in Article 73.2 (b) of the Tax Regulation, two new subkeys 01 and 02 are introduced: the first, to identify the perceptions satisfied by the tax obligation as a result of the transfer of the right to the exploitation of the right of image, the rate of which is 20 per 100 and the second, for the remaining returns included in the precept, whose retention rate is 15 per 100.

Regardless of the foregoing, together with the repeal of Law 40/1998, of December 9, of the Income Tax of the Physical Persons and other Tax Rules, to which was previously referred, from 5 August 2004, the date of entry into force of Royal Decree 1775/2004, of July 30, for which the Regulation of the Tax on the Income of the Physical Persons ("Official State Gazette" of August 4) is approved, has also been repealed Regulation of the aforementioned tax, approved by Royal Decree 214/1999 of 5 February. Consequently, all the normative references to the Law and the Regulation of the Income Tax of the Physical Persons that are carried out both in the instructions for the completion of the model 190 included in the Annex I of the Order HAC/2116/2003 of 22 July, as in the descriptions of the fields of the various types of registers listed in Annex II to that Order, must be carried out in the following to the corresponding precepts of the recast of the Law of the Tax on the Income of the Physical Persons and the new Regulation of the said Tax, respectively.

Finally, the evolution of the technology associated with the Internet has revealed the increasing use of this route in the relations between the tax authorities and the Tax Agency in the face of the use of other media such as magnetic media directly readable by computer. In addition, the management experience in the treatment of the aforementioned magnetic supports used for the presentation of the annual summary of deductions and income on account of the Income Tax of the Physical Persons, Model 190, has been The European Commission has been in the process of being a Therefore, it is considered that the right conditions are currently in place to enhance the use of the Internet as a means of making declarations and to restrict the use of magnetic media directly readable by computer only. for the annual summary statements of deductions and income on account of the Income Tax of the Physical Persons adjusted to the model 190 that contain more than 49,999 records of perceptions. In this regard, Article 98.4 of Law 58/2003, of 17 December, General Tax ("Official State Gazette" of 18), provides that in the field of State competences, the Minister of Finance will be able to determine the assumptions and conditions in which the tax authorities must present by means of telematic means their declarations, autoliquidations, communications, applications and any other document with a tax transcendence.

Consequently, and by virtue of the above, making use of the authorizations contained in article 106.5 of the Income Tax Regulation of the Physical Persons, as well as the remaining ones I have conferred, Available:

First. Amendment of the Third paragraph of Order HAC/2116/2003 of 22 July. -Amend the Third paragraph of Order HAC/2116/2003 of 22 July, which will be worded as follows:

" Third. Forms of presentation of model 190.

The annual summary statement of deductions and income on account of the Income Tax on Physical Persons adjusted to Model 190 shall be presented in accordance with the criteria specified below:

1. Statements containing up to 25 records of perceptions shall be submitted, at the choice of the tax obligation, through one of the following means:

(a) In print, whether the declaration has been completed on a form conforming to the model 190 approved in the first paragraph of this Order as if it is a form generated by the use exclusively of the printing module developed by the State Tax Administration Agency.

(b) By means of telematics through the Internet, in accordance with the general conditions and the procedure laid down, respectively, in the ninth and tenth paragraphs of this Order.

c) By telematic via tele-process, in accordance with the procedure referred to in paragraph 11 of this Order.

2. Statements containing more than 25 and up to 49,999 records of perceptions, as well as those that, without exceeding this last number of records of perceptions, correspond to tax obligations in respect of which the management functions are assigned to any of the Large Business Management Units under the Department of Financial Inspection and Tax Administration of the State Administration of Tax Administration, must be submitted via telematic via Internet in accordance with the general conditions and procedure laid down respectively in the ninth and tenth paragraphs of this Order, or by tele-process in accordance with the procedure referred to in paragraph 11 of this Order.

3. Statements containing more than 49,999 records of perceptions shall be submitted by telematic via tele-process in accordance with the procedure referred to in paragraph 11 of this Order, or on magnetic support directly Computer readable in accordance with the provisions of paragraph 7 of this Order, but such support shall consist exclusively of a magnetic cartridge. '

Second. Amendment to the last paragraph of section IV of Order HAC/2116/2003 of 22 July.-The last paragraph of section IV of Order HAC/2116/2003, of 22 July, will be worded as follows:

"All without prejudice to the provisions of the third paragraph number Three and the number two of the 11th paragraph of this Order."

Third. Amendment of the Eighth paragraph of Order HAC/2116/2003 of 22 July. -Amending paragraph Eighth of Order HAC/2116/2003 of 22 July, which will be worded as follows:

" Eighth. Scope of the Internet telematics presentation of model 190.

One. To carry out the telematic presentation via the Internet of the annual summary of withholding and revenue to account, model 190, the third paragraph of this Order will be the same.

Two. If the presenter is a person or entity authorized to file statements on behalf of third parties, he/she shall not be able to make the presentation in the collective support referred to in the second paragraph of this Order.

However, the person or entity authorised may make the submission of declarations in accordance with the Internet telematics procedure referred to in the 10th paragraph of this Order, on the basis of a file with a collective presentation format, using the batch presentation mode. "

Fourth. Adaptation of the content of certain literals of the inner sheets of the model 190.

One. The expression: 'Additional data (only in keys A, B. 01, B. 02, C and D)' which appears on the inner sheets of model 190 as approved in Annex I to Order HAC/2116/2003 of 22 July, is replaced by the following: ' Additional data (only in the case of: keys A, B. 01, B. 02, C, D and M) ".

Two. The literal 'Reductions (arts.17, 2 and 3 and 76a)' in the first box of the second line of the additional data on the inner sheets of the model 190 as approved in Annex I to Order HAC/2116/2003 of 22 July is replaced by the following: next: " Reductions (arts. 17.2 and 3 and 94) '.

Fifth. Adaptation of the literal content of the description of certain fields of the physical design of type 2 record, perception record, of model 190.

One. The common heading of the fields corresponding to positions 153 to 250, inclusive, of the physical design of the type 2 register, record of perception, approved in Annex II of Order HAC/2116/2003 of 22 July, the literal tenor of which is the next: "Additional data (only in keys A, B. 01, B. 02, C and D)" is replaced by the following "Additional data (keys A, B. 01, B. 02, C, D and M only)".

Two. The literal " Reductions (arts. 17.2 and 3 and 76a) ' which is entered in the field corresponding to positions 171 to 183, both inclusive, of the physical design of type 2 registration, recording of perception, approved in Annex II to Order HAC/2116/2003 of 22 July, replaced by the following: " Reductions (arts. 17.2 and 3 and 94) '.

Sixth. Modification of the instructions in the model 190.-The instructions for completion of the model 190 set out in Annex I to Order HAC/2116/2003 of 22 July are replaced by those reproduced in Annex I to this Order.

Seventh. Modification of the characteristics of the magnetic media and of the descriptions and specifications of the fields corresponding to the logical designs to which the directly readable support of the model 190 is to be adjusted. characteristics of the magnetic media and the descriptions and specifications of the fields corresponding to the logical designs to which the directly readable computer support of the model 190 as set out in Annex II of the Regulation is to be adjusted Order HAC/2116/2003, of 22 July, shall be replaced by those set out in Annex II to the Order.

Single repeal provision.

As of the entry into force of this Order, the following precepts of Order HAC/2116/2003 of 22 July, for which the model 190 is approved for the annual summary of withholding and income to account of the Tax on the Income of the Physical Persons on income from work, certain economic activities, prizes and certain income taxes, physical and logical designs for the replacement of the inner sheets of said model by means directly readable by computer, the general conditions and the the procedure for their telematic presentation via the Internet and the rules for the presentation of certain models of annual declaration are amended:

1) Paragraph (k) of the seventh paragraph number One.

2) Paragraph (k) of the second subparagraph of paragraph 7, by passing paragraphs (l) and (m) of the seventh paragraph, and (k) and (l), respectively.

3) The number One of the Ninth section, passing the numbers Two, Three and Four of that section to constitute the numbers One, Two, and Three, respectively.

Single end disposition.

This Order shall enter into force on the day following that of its publication in the "Official Gazette of the State" and shall for the first time affect the annual summary of withholding taxes and income on account of the Income Tax Physical Persons, Model 190, with respect to the information for the financial year 2004.

What I communicate to VV.II. for your knowledge and effects.

Madrid, 25 October 2004.

SOLBES MIRA

Ilmos. Mr Director General of the State Tax Administration Agency and Director General of Taxation.

ATTACHMENTS:

(SEE IMAGES, PAGE 35763 TO 35794)