I

The fourth additional provision of Law 46/2002, of December 18, of partial reform of the Income Tax of the Physical Persons and amending the Laws of the Taxes on Societies and on the Income of Residents, in the wording given by the 18th final provision of Law 62/2003, of December 30, of fiscal, administrative and social order measures, enabled the Government to produce the recast text of the Tax Law on the Income of the Physical Persons, approved by Royal Legislative Decree 3/2004, of March 5.

In relation to the recast text, the Council of State, in its opinions of 16 October 2003 and 26 February 2004, noted that all provisions should be recast in a single regulatory body. (i) existing regulations, taking advantage of the opportunity to make only adjustments relating to referrals and new numbering of articles.

Attending the observation of the High Advisory Body is elaborated this Royal Decree, which approves the Regulation of the Tax on the Income of the Physical Persons, in order to contribute to the necessary clarity of the norms the tax administration and, in particular, the tax authorities of the tax authorities.

II

Royal Decree 214/1999 of 5 February approving the Regulation of the Income Tax of the Physical Persons, which is now repealed, contained the regulatory provisions implementing Law 40/1998 of 9 of December, of the Tax on the Income of the Physical Persons and other Tax Rules.

This Royal Decree, since its entry into force, has undergone several modifications, including those introduced by the following rules:

Royal Decree 1968/1999 of 23 December 1999, which introduced amendments which basically affect the obligation to declare, withholding and income on account of income from work and certain obligations of provision of information.

Royal Decree 1088/2000 of 9 June, which amended the amount of withholding tax on certain income from real estate.

Royal Decree 1732/2000 of 20 October, which introduced changes in the subject of withholding taxes and income on account of income from work.

Royal Decree 579/2001 of 1 June to incorporate, in essence, the exclusion of the obligation to retain or to enter into account with respect to the returns on capital of furniture arising from the return of the premium of shares/units and of the reduction of capital with the return of contributions and other changes in the calculation of deductions or income on account of income from work.

Royal Decree 594/2002 of 28 June, which introduced changes in the matter of exemptions, income from work and capital, deductions, suspension of income from the tax liability, deductions and income from account of income from work.

Finally, the amendments incorporated by Royal Decree 27/2003, of 10 January, which developed the improvements introduced by Law 46/2002, is the norm that originated the most substantial reform in the text of Law 40/1998 since it entered into force.

Royal Decree 27/2003 developed the following subjects: reduction by geographical mobility, insured plans, maternity deduction, information supply obligations, regularisation of the delivery of stock options, special retention procedure for recipients of passive benefits and the procedure for determining the withholding tax on the income of the work for the change of residence, as well as the regulatory text to the legal text, giving new wording to the corresponding precepts.

III

In the Royal Decree that is now approved, new numbering is given to the articles of the Income Tax Regulation of the Physical Persons and technical modifications of references made in the previous text are introduced. due to the recent approval of certain rules, such as Law 22/2003, of 9 July, Insolvency, Law 58/2003, of 17 December, General Tax, Royal Decree 1496/2003 of 28 November 2003, approving the Regulation by which the obligations of invoicing are regulated, or Royal Decree 1041/2003, of 1 August, for which approves the Regulation governing certain tax censuses and amending other rules relating to the management of the tax on economic activities.

Furthermore, the new assumptions that determine the obligation to declare, under the conditions already laid down in regulation, that affect taxpayers who are entitled to deduction on account of savings-enterprise or to make contributions to protected assets of persons with disabilities or to insured pension schemes.

It is included in Article 46 of the Regulation approved by this Royal Decree the definition of ordinary or common discounts, which has been incorporated into the Law of Tax by Law 62/2003.

The obligations to retain and to enter into account of the representatives designated by the insurance companies and the management companies of collective investment institutions, operating in Spain under free regime are collected. provision of services, in accordance with the provisions of Article 86.1 and the additional 17th of Law 30/1995 of 8 November 1995 on the Management and Supervision of Private Insurance, and Article 55.7 and the Additional Provision Second of the Law 35/2003, of 4 November, of Institutions of Collective Investment, respectively.

Finally, the amounts that still figured in pesetas have been converted into euros.

IV

This Royal Decree is structured in an article, an additional provision, a transitional provision, a derogation provision and a final provision.

By virtue of your unique article, the Income Tax Regulation of the Physical Persons is approved.

The rules contained in this Regulation find enablement both in the specific referrals that the Law makes and in the general enablement contained in the second final provision of the Income Tax Act. Physical Persons.

The only additional provision is that the references to the Tax Regulation on the Income of Physical Persons, approved by Royal Decree 214/1999 of 5 February, which are contained in other rules, shall be construed as made to the articles corresponding to the Regulation adopted.

In the single transitional provision, it is established that until 1 September 2004, the date of entry into force of Law 22/2003, of July 9, Bankruptcy, will remain in force under Article 12.1.e of the Tax Regulation on The Income of the Physical Persons approved by Royal Decree 214/1999 of 5 February, taking into account the provisions of the first transitional provision of the Law.

The rules that are repealed by the Regulation on the Income Tax of the Physical Persons that are approved are included in the single repeal provision.

Finally, the only final provision regulates the entry into force of this Royal Decree.

The text adopted is composed of 110 articles, grouped into six titles, three additional provisions, five transitional provisions and one final provision. It also includes an index of its content, the purpose of which is to facilitate the use of the standard by its addressees by means of a rapid location and systematic location of its precepts.

Title I includes the development of certain exempt income and the temporary allocation of income from economic activities.

Title II regulates the determination of the economic capacity to be taxed, developing certain aspects of the income from work, real estate and furniture, economic activities and activities. capital gains and losses, in particular the conditions to be met by certain assumptions which do not constitute remuneration in kind, as well as the valuation rules, and the liquidable basis.

Title III is dedicated to the development of the deductions of the quota for investment in habitual housing and for income obtained in Ceuta and Melilla, as well as for the regularization in case of loss of the right to deduct.

Title IV regulates the procedure for the practice of the maternity deduction and its advance payment.

Title V is intended for the management of the tax, incorporating the new assumptions that determine the obligation to declare, which affect the holders of savings accounts and those who make contributions to assets protected from persons with disabilities and insured pension schemes.

Finally, Title VI regulates payments on account.

As additional provisions of the Regulation the following rules are incorporated:

The third additional provision of the Regulation on civil and insurance liability in the movement of motor vehicles, approved by Royal Decree 7/2001 of 12 January 2001, on the exemption from compensation for damages Personal property for the purpose of the movement of motor vehicles, which is incorporated as an additional first.

The second additional provision of the Income Tax Regulation of the Physical Persons, approved by Royal Decree 214/1999 of 5 February, which is included as an additional provision second.

The only additional provision of Royal Decree 27/2003, of January 10, on information obligations to the policyholders of the Secured Forecast Plans, which becomes the third additional provision.

As transitional provisions of the Regulation the following provisions are incorporated:

The third transitional provision of the Income Tax Regulation of the Physical Persons, approved by Royal Decree 214/1999 of 5 February, which is included as a transitional provision first.

The first transitional provision of Royal Decree 27/2003 of 10 January on reinvestment of extraordinary profits, which is included as a second transitional provision.

The only transitional provision of Royal Decree 594/2002 of 28 June 2002 on the regularisation of deductions for non-compliance with requirements, which is added as a transitional provision third.

The fourth transitional provision of Royal Decree 27/2003 of 10 January on dividends from transparent companies, which is incorporated as a fourth transitional provision.

Paragraphs 5 and 6 of the first transitional provision of Royal Decree 2717/1998 of 18 December 1998 governing the payments to be made in the Income Tax of the Physical Persons and the Income Tax Non-residents and changes to the Corporate Tax Regulation on withholding and income on account, which is included as a fifth transitional provision.

Finally, the single final provision authorizes the Minister of Economy and Finance to make the necessary provisions for the development of the Income Tax Regulation of the Physical Persons.

In its virtue, on the proposal of the Minister of Economy and Finance, in agreement with the Council of State and after deliberation of the Council of Ministers at its meeting of July 30, 2004,

D I S P O N G O:

Single item. Approval of the Income Tax Regulation of the Physical Persons.

The Income Tax Regulation of the Physical Persons, which is inserted below, is approved.

Single additional disposition. Regulatory referrals.

The normative references made in other provisions to the Regulation of the Tax on the Income of the Physical Persons, approved by Royal Decree 214/1999 of 5 February, will be understood to be made to the precepts corresponding to the Regulation approved by this Royal Decree.

Single transient arrangement. Law 22/2003, dated July 9, Insolvency.

Until September 1, 2004, the date of entry into force of Law 22/2003, of July 9, Bankruptcy, will retain its validity of articles 12.1.e) and 52.3 of the Rules of the Tax on the Income of the Physical Persons, approved by Royal Decree 214/1999 of 5 February. These provisions shall also apply to the procedures in which they are dealt with on that date.

Single repeal provision. Regulatory repeal.

Except as provided in the previous transitional provision, the entry into force of this Royal Decree will be repealed, in order to be incorporated into the Regulation which is approved by the Royal Decree, the following rules:

1. Royal Decree 214/1999 of 5 February, for which the Rules of the Tax on the Income of the Physical Persons are approved.

2. The third additional provision of the Regulation on civil and insurance liability in the movement of motor vehicles, approved by Royal Decree 7/2001 of 12 January 2001.

3. The single transitional provision of Royal Decree 594/2002 of 28 June 2002 amending the Rules of Procedure of the Income Tax of the Physical Persons, approved by Royal Decree 214/1999 of 5 February, concerning exemptions, income from work and capital, deductions, self-clearance and withholding.

4. The only additional provision and the first and fourth transitional provisions of Royal Decree 27/2003 of 10 January amending the Income Tax Regulation of the Physical Persons, approved by Royal Decree 214/1999, February 5.

Single end disposition. Entry into force.

This Royal Decree shall enter into force on the day following that of its publication in the \" Official Gazette of the State \ ", with the exception of Articles 12.1.e) and 54.3 of the Regulation which will do so on 1 September 2004, date of entry in force of Law 22/2003, of July 9, Bankruptcy.

Given in Palma de Mallorca, 30 July 2004.

JOHN CARLOS R.

The Second Vice President of the Government

and Minister of Economy and Finance,

PEDRO SOLBES MIRA

PHYSICAL PERSONS INCOME TAX REGULATION

INDEX

Title I. Subject to Tax: Material, Personal and Temporary Aspects.

Chapter I. Exempt.

Article 1. Compensation for dismissal or termination of the worker.

Article 2. Exemption from certain literary, artistic and scientific awards.

Article 3. Exemption from aid to high level sportsmen and women.

Article 4. Exemption from extraordinary rewards received for participation in peacekeeping or humanitarian missions.

Article 5. Exemption from income received from work carried out abroad.

Chapter II. Temporary imputation.

Article 6. Temporary imputation of yields.

Title II. Determination of the economic capacity to be taxed.

Chapter I. General Rules.

Article 7. Concept of homogeneous securities or units.

Chapter II. Definition and determination of taxable income.

Section 1. Res of Work.

Article 8. Allowances and allowances for locomotion expenses and normal living and subsistence expenses.

Article 9. Deductible expenses for fees paid to trade unions and professional colleges.

Article 10. Application of the 40% reduction to certain income from work.

Article 11. Reductions applicable to certain income from work.

Section 2. Res of capital.

Subsection 1. Th Returns on real estate capital.

Article 12. Deductible expenses on returns on real estate capital.

Article 13. Depreciation expense of returns on real estate capital.

Article 14. Income from real estate capital obtained in a notoriously irregular manner over time and income received in a fractionated manner.

Subsection 2. ª Returns of capital.

Article 15. Partial provision in insurance contracts.

Article 16. Taxation of the profitability obtained up to the time of the creation of deferred income.

Article 17. Requirements for certain insurance contracts with retirement and invalidity benefits received in the form of income.

Article 18. Deductible expenses on certain income from capital.

Article 19. Reductions applicable to capital returns arising from insurance contracts.

Article 20. Capital income obtained in a notoriously irregular manner in the time and income received in a split form.

Section 3. Res of economic activities.

Subsection 1. General Rules.

Article 21. Property assets affected by an activity.

Article 22. Values of affectation and disaffection.

Article 23. Allocation of income.

Article 24. Income from economic activities, which are notoriously irregular in time and income received in a split form.

Article 25. Methods of determining income from economic activities.

Subsection 2. A simplified direct estimate.

Article 26. Scope of the simplified direct estimation method.

Article 27. Waiver and exclusion to the simplified direct estimation method.

Article 28. Determination of net yield in the simplified direct estimation method.

Article 29. Entities under the allocation scheme.

Subsection 3. Objective Estimation.

Article 30. Scope of the objective estimation method.

Article 31. Waives the method of objective estimation.

Article 32. Exclusion of the objective estimation method.

Article 33. Incompatibility of objective estimation with direct estimation.

Article 34. Coordination of the objective estimation method with the Value Added Tax and the Indirect General Tax Canarian.

Article 35. Determination of net performance in the objective estimation method.

Article 36. Independent activities.

Article 37. Entities under the allocation scheme.

Section 4. Earnings and property losses.

Article 38. Determination of the acquisition value.

Article 39. Exemption from reinvestment in habitual housing.

Article 40. Reduction of capital gains for certain property assets.

Chapter III. Income in kind.

Article 41. Delivery of shares to workers.

Article 42. Study costs for the training or retraining of staff who do not constitute remuneration in kind.

Article 43. Expenditure by eaters of undertakings which do not constitute remuneration in kind.

Article 44. Expenditure on sickness insurance which does not constitute remuneration in kind.

Article 45. Rights of company founders.

Article 46. Price offered.

Chapter IV. Liquidable basis.

Article 47. Reduction by geographical mobility.

Article 48. Child care reduction.

Article 49. Insured forecast plans.

Article 50. Time limit for the submission of supplementary declarations in the provision of consolidated rights for social security contributions.

Article 51. Excess contributions to pension schemes, insured pension schemes and social welfare insurance schemes.

Article 52. Accreditation of the number of partners, equity and maximum percentage of participation in collective investment institutions.

Title III. Deductions from the quota.

Chapter I. Deduction for investment in habitual housing.

Article 53. Concept of habitual housing.

Article 54. Acquisition and rehabilitation of the usual dwelling.

Article 55. Conditions for the financing of the usual housing for the application of the increased percentages of deduction.

Article 56. Housing accounts.

Article 57. Works of adaptation of the habitual dwelling by the disabled.

Chapter II. Deduction for income obtained in Ceuta or Melilla.

Article 58. Income obtained in Ceuta or Melilla.

Chapter III. Loss of right to deduct.

Article 59. Loss of right to deduct.

Title IV. Maternity deduction.

Article 60. Procedure for the practice of the maternity deduction and its advance payment.

Title V. Tax Management.

Chapter I. Obligation to declare.

Article 61. Obligation to declare.

Article 62. Self-validation and admission.

Article 63. Fractionation in the case of death and loss of residence in Spain.

Article 64. Data communication by the taxpayer and return request.

Article 65. Trade returns.

Article 66. External collaboration in the presentation and management of declarations and communications.

Chapter II. Formal, accounting and registration obligations.

Article 67. Formal, accounting and registration obligations.

Article 68. Other formal reporting obligations.

Article 69. Reporting obligations of entities on the basis of income allocation.

Chapter III. Accreditation of the condition of disabled.

Article 70. Accreditation of the condition of disabled persons and the need for assistance from another person or the existence of mobility difficulties.

Chapter IV. Supplementary declarations.

Article 71. Time limit for submission of supplementary declarations.

Title VI. Payments on account.

Chapter I. Retentions and Income to Account. General rules.

Article 72. Obligation to practice deductions and income on account of the Income Tax of the Physical Persons.

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

Article 74. Required to retain or enter into account.

Article 75. Amount of the withholding or income to be taken into account.

Article 76. Birth of the obligation to retain or to enter into account.

Article 77. Temporary imputation of the withholding or income on account.

Chapter II. Calculation of retentions.

Section 1. Res of Work.

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

Article 79. Quantitative limit excluding the obligation to retain.

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

Article 81. Special procedure for determining the rate of retention applicable to taxpayers receiving passive benefits.

Article 82. Base to calculate the hold type.

Article 83. Retention fee.

Article 84. Type of retention.

Article 85. Regularisation of the type of retention.

Article 86. Communication of data from the income recipient of the work to its payer.

Article 87. Special procedure for determining withholding and income on account of income from work in the event of change of residence.

Section 2. Res of capital furniture.

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

Article 89. Concept and classification of financial assets.

Article 90. Tax requirements for the transmission, redemption and amortization of financial assets.

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

Article 92. Birth of the obligation to retain and to take into account the income of the capital.

Section 3. Activity Rendes

economic.

Article 93. Amount of withholding tax on income from economic activities.

Section 4.

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

Article 95. Basis of retention on the property gains arising from transfers or repayments of shares and units of collective investment institutions.

Article 96. Birth of the obligation to retain.

Article 97. Amount of holds on prizes.

Section 5. Other Income.

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

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

Chapter III. Income on account.

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

Article 101. Income on account of remuneration in kind of capital.

Article 102. Income on account of remuneration in kind of economic activities.

Article 103. Revenue to account for prizes.

Article 104. Income on account of other income.

Article 105. Income to account on image rights.

Chapter IV. Obligations of the retainer and the obligation to enter into account.

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

Chapter V. Fracked payments.

Article 107. Forced upon payment by fractionation.

Article 108. Amount of fractionation.

Article 109. Declaration and income.

Article 110. Entities on the basis of income allocation.

Additional provisions.

Additional disposition first. Exemption from compensation for personal injury.

Additional provision second. Prior agreements for the valuation of remuneration in kind of personal work for the purpose of determining the corresponding income from the Income Tax of the Physical Persons.

Additional provision third. Information to the policyholders of the insured Forecast Plans.

Transitional provisions.

First transient disposition. Transfers of property assets previously carried out before 1 January 1998.

Second transient disposition. Reinvestment of extraordinary profits.

Transitional provision third. Regularisation of deductions for non-compliance with requirements.

Transitional disposition fourth. Dividends from transparent companies.

Transient disposition fifth. Transitional arrangements for changes to the income of capital and capital gains made in respect of income from capital.

Final disposition.

Single end disposition. Authorisation to the Minister for Economic Affairs and Finance.

TITLE I

Subject to Tax: Material, Personal and Temporary Aspects

CHAPTER I

Exempt income

Article 1. Compensation for dismissal or termination of the worker.

The enjoyment of the exemption provided for in Article 7.e) of the Tax Law will be conditional on the actual effective disengagement of the employee with the company.

It shall be presumed, unless proof to the contrary, that such a disconnection is not given when, within three years of the dismissal or termination of the worker, the same undertaking or another undertaking is connected to the same undertaking in the Article 16 of the recast text of the Companies Tax Act, approved by Royal Decree-Law 4/2004, of 5 March, provided that in the case where the link is defined in relation to the relationship socio-society, participation is equal to or greater than 25 percent, or 5 percent if it is negotiated securities in official secondary markets of Spanish securities.

Article 2. Exemption from certain literary, artistic and scientific awards.

1. For the purposes of the exemption provided for in Article 7.l) of the Tax Act, it shall be considered as a prize.

relevant literary, artistic or scientific the granting of goods or rights to one or more persons, without consideration, in reward or recognition to the value of literary, artistic or scientific works, as well as to the merit of their activity or work, in general, in such matters.

2.1. The grantor of the prize will not be able to perform or be interested in the economic exploitation of the work or the awarded works.

In particular, the prize may not imply or require the assignment or limitation of property rights over those, including intellectual or industrial property derivatives.

This requirement shall not be considered to be in breach of the mere public disclosure of the work, for a non-profit purpose and for a period of not more than six months.

2. In any case, the prize must be awarded in respect of executed works or activities carried out prior to its convocation.

No award consideration shall be given to grants, grants and, in general, to amounts intended for the prior or simultaneous financing of works or works relating to the materials referred to in paragraph 1 above.

3. The Call must meet the following requirements:

a) Having a national or international character.

b) Not to establish any limitation on the contestants for reasons other than the very essence of the prize.

c) That their announcement be made public in the Official Gazette of the State or the Autonomous Community and in at least one newspaper of great national circulation.

Prizes that are awarded abroad or by International Organizations will only have to meet the requirement referred to in (b) above to access the exemption.

4. The exemption must be declared by the competent authority of the tax administration, in accordance with the procedure approved by the Minister of Economy and Finance.

The above statement will need to be requested, with input from the relevant documentation, by:

(a) The person or entity convenor of the prize, in general.

(b) The award-winning person, in the case of awards called abroad or by International Organizations.

The application must be made prior to the award of the prize or, in the case of point (b) above, before the start of the regulatory period for the declaration of the financial year in which it was obtained.

For the resolution of the file, a report from the competent ministerial department may be requested for the matter or, where appropriate, the corresponding organ of the Autonomous Communities.

The declaration shall be valid for successive calls, provided that the terms of the file that prompted the file are not changed.

3. Where the tax administration has declared the award exemption, the persons referred to in point (a) of the preceding paragraph shall be obliged to report to the tax administration within the month following that of the tax administration. grant, the date of the award, the prize awarded and the data identifying those who have benefited from them.

Article 3. Exemption from aid to high level sportsmen and women.

For the purposes of Article 7 (m) of the Tax Act, the following requirements shall be exempt, subject to the limit of EUR 30,050,61 per year, for economic training and technical technical

:

(a) That its beneficiaries have a recognized status as high level athletes, as provided for in Royal Decree 1467/1997 of 19 September on high level athletes.

(b) To be financed, directly or indirectly, by the High Council of Sports, by the Olympic Sports Association, by the Spanish Olympic Committee or by the Spanish Paralympic Committee.

Article 4. Exemption from extraordinary rewards received for participation in peacekeeping or humanitarian missions.

For the purposes of Article 7 (º) of the Tax Law, the amounts paid by the Spanish State to members of international peacekeeping or humanitarian missions shall be exempt for the following reasons:

(a) Extraordinary gratifications of any nature that respond to the performance of the international peacekeeping or humanitarian mission.

(b) The compensation or benefits paid for the personal injury suffered during the same period.

Article 5. Exemption from income received from work carried out abroad.

1. In accordance with Article 7 (p) of the Tax Law, income from work received by work actually carried out abroad shall be exempt from the tax when the following conditions are met:

1. No such works are carried out for a non-resident company or entity in Spain or a permanent establishment based abroad.

2. º that in the territory in which the works are carried out, a tax of a nature identical or analogous to that of this Tax is applied and is not a country or territory qualified as a tax haven.

2. The exemption will have a ceiling of EUR 60,101,21 per year.

3. This exemption shall be incompatible, for taxpayers abroad, with the system of excesses excluded from taxation provided for in Article 8 (3) (b) of this Regulation, irrespective of the amount. The taxpayer may opt for the application of the excess scheme to replace this exemption.

CHAPTER II

Temporary imputation

Article 6. Temporary imputation of yields.

1. Taxpayers who carry out economic activities shall apply to the income derived from such activities, exclusively, the criteria for temporary allocation provided for in the recast text of the Companies Tax Act and its rules of procedure. development, without prejudice to the provisions of the following paragraph.

Also, the provisions of Article 14 (3) and (4) of the Tax Law will be applicable in relation to the pending income of the tax on the assumptions provided for in the same.

2.1. TAXPAYERS WHO CARRY OUT ECONOMIC ACTIVITIES AND WHO ARE REQUIRED TO COMPLETE THEIR ACCOUNTING AND REGISTRATION OBLIGATIONS IN ACCORDANCE WITH ARTICLE 67 (3), (4), (5) AND (6) OF THIS REGULATION by the criteria of charges and payments to temporarily impute the income and expenses of all its economic activities.

This criterion is understood to be approved by the tax administration, for the purposes of Article 19 (2) of the recast of the Companies Tax Act, for the sole purpose of making it manifest in the declaration, and shall be maintained for a minimum period of three years.

2. The option for the criterion indicated in this section will lose its effectiveness if, after that option, the taxpayer should complete its accounting and registration obligations in accordance with the provisions of the Article 67 of this Regulation.

3. The provisions of this paragraph shall not apply if the taxpayer develops any economic activity for which it is required to complete its accounting and registration obligations in accordance with paragraph 2. of Article 67 of this Regulation or to keep accounts in accordance with the provisions of the Trade Code.

3. In the case of income arising from the transfer of the holding of copyright which is payable over a period of several years, the taxpayer may choose to impute the advance on account of the income as the result of the rights.

4. In any event, changes in the criterion of temporary imputation or of a method of determining net performance shall mean that some expenditure or revenue is not computed or that it is recharged in another financial year.

TITLE II

Determining economic capacity

taxed

CHAPTER I

General Rules

Article 7. Concept of homogeneous securities or units.

It shall be considered to be homogeneous securities or units which comply with the requirements set out in Article 4 of Royal Decree 291/1992 of 27 March on issues and public offers for the sale of securities.

CHAPTER II

Definition and determination of taxable income

SECTION 1. PERFORMANCE OF WORK

Article 8. Allowances and allowances for locomotion expenses and normal living and subsistence expenses.

A. General rules:

1. For the purposes of Article 16.1 (d) of the Tax Act, allowances shall be exempt from the charge for expenses for locomotion and for normal subsistence and subsistence expenses in catering establishments meeting the requirements and limits set out in this Article.

2. Appropriations for locomotion expenditure.-The amounts allocated by the undertaking to compensate for the costs of the employee or employee travelling outside the factory, workshop, office, or working centre are exempted from taxation. perform their work instead, under the following conditions and amounts:

(a) Where the employee or employee uses public means of transport, the amount of expenditure to be justified by invoice or equivalent document.

(b) In another case, the amount resulting from the calculation of EUR 0.17 per kilometre travelled, provided that the reality of the posting is justified, plus the toll and parking charges to be justified.

3. Allowances for subsistence and subsistence expenses.-The amounts intended by the company to compensate for normal subsistence and subsistence expenses in restaurants, hotels and other hospitality establishments, payable, are exempt from tax. expenditure in a municipality other than the place of the recipient's habitual work and of which he is resident.

Except in the cases provided for in point (b) below, in the case of displacement and permanence for a continuous period exceeding nine months, these allocations shall not be exempted from taxation. For these purposes, the time of holiday, sickness or other circumstances which do not involve alteration of the destination shall not be deducted.

(a) It shall be considered as allowances for normal subsistence and subsistence expenses in hotels, restaurants and other hospitality establishments, exclusively the following:

1. ° When the person has stayed overnight in a municipality other than the usual place of work and of the place of residence of the recipient, the following:

For expenses of stay, the amounts that are warranted.

For living expenses, 52.29 euros per day, if they correspond to displacement within the Spanish territory, or 91.35 euros per day, if they correspond to travel to foreign territory.

2. Where there is no overnight stay in the municipality other than the usual place of work and the place of residence of the recipient, the allowances for maintenance costs not exceeding EUR 26,14 or EUR 48,08 per day, as try to travel within the Spanish territory or abroad, respectively.

In the case of flight personnel of air carriers, amounts that do not exceed EUR 36,06 per day shall be considered as allowances for normal maintenance expenses if they correspond to displacement within the territory Spanish, or 66,11 euros per day if they correspond to travel to foreign territory.

If both circumstances occur on the same day, the applicable amount will be the one that corresponds according to the highest number of flights performed.

For the purposes set out in the preceding paragraphs, the payer shall credit the day and place of the posting, as well as his reason or motive.

(b) The following amounts shall be considered as an excepted diet:

1. The excess that Spanish public officials with a foreign destination receive on the total remuneration that they would obtain in the case of being employed in Spain, as a result of the application of the (a) modules and the collection of the compensation provided for in Articles 4, 5 and 6 of Royal Decree No 6/1995 of 13 January 1995 governing the remuneration scheme of officials employed abroad, and calculating that excess in the

the form provided for in that Royal Decree, and the compensation provided for in Article 25.1 and 2 of Royal Decree 462/2002 of 24 May 2002 on compensation for the service.

2. º The excess that the staff receives in the service of the State Administration with destination abroad on the total remuneration that it would obtain for salaries, trienes, supplements or incentives, in the case of being found destined in Spain. For these purposes, the competent authority in the field of remuneration shall agree on any remuneration which may correspond to such staff if it is intended in Spain.

3. The excess perceived by officials and staff at the service of other public administrations, in so far as they have the same purpose as those referred to in Articles 4, 5 and 6 of Royal Decree 6/1995, of 13 (a) January, by which the remuneration scheme of officials posted abroad is regulated or does not exceed the remuneration equivalent, respectively.

4. The excess that employees of companies, with a destination abroad, receive on the total remuneration they would obtain for wages, wages, seniority, extraordinary pay, even profit, family aid or any other concept, by reason of charge, employment, category or profession in the case of being employed in Spain.

This letter will be incompatible with the exemption provided for in Article 5 of this Regulation.

4. The arrangements provided for in the preceding paragraphs shall also apply to allocations for the costs of locomotion, maintenance and subsistence expenses incurred by workers hired specifically to provide their services in undertakings with centres of mobile or roaming work, provided that those allocations correspond to movements to a municipality other than that which constitutes the worker's habitual residence.

5. The tax-exempt amounts in this article will be subject to review by the Minister of Economy and Finance, in the proportion in which the daily allowances of civil servants are reviewed.

6. The allowances for the costs of locomotion, maintenance and stay exceeding the limits provided for in this article shall be subject to taxation.

B. Special rules:

1. When the costs of locomotion and

maintenance is not specifically compensated for by the companies to whom they provide their services, the taxpayers who obtain income from the work resulting from special employment relationships of a dependent character may reduce their income, in order to determine their net income, in the following quantities, provided they justify the reality of their movements:

a) For locomotion expenses:

Where public means of transport are used, the amount of expenditure to be justified by invoice or equivalent document.

In another case, the amount that results from computing 0.17 euros per kilometer traveled, plus the toll and parking expenses that are warranted.

b) For living expenses, the amounts of 26.14 or 48.08 euros per day, depending on the movement within the Spanish territory or abroad.

For these purposes, the costs of the stay must be in any case resented by the company and shall be governed by the provisions of paragraph 3 (a) of this article.

2. The amounts paid to the taxpayer on the occasion of the transfer of the job to a different municipality shall be exempt, provided that the transfer requires the change of residence and corresponds exclusively to expenditure incurred by the taxpayer. locomotion and maintenance of the taxpayer and his/her relatives during the transfer and the costs of moving their furniture and goods.

3. The amounts received by the candidates to the jury and the full and alternate juries shall be exempt from taxation as a result of the performance of their duties, in accordance with the provisions of Royal Decree 385/1996 of 1 March 1996. as received by the members of the Electoral Tables in accordance with the provisions of the Ministerial Order of 3 April 1991.

Article 9. Deductible expenses for fees paid to trade unions and professional colleges.

For the determination of net work performance, union-satisfied fees will be deductible. The fees paid to professional colleges will also be deductible, where the tuition is compulsory for the performance of the work, in the part corresponding to the essential purposes of these institutions, with the limit of 30,551. Annual euro.

Article 10. Application of the 40% reduction to certain income from work.

1. For the purposes of the application of the reduction provided for in Article 17 (2) of the Tax Act, income from work obtained in a manner which is notoriously irregular over time is considered to be exclusively the following, when charged in a Single tax period:

(a) The amounts paid by the company to the employees on the occasion of the transfer to another working centre exceeding the amounts provided for in Article 8 of this Regulation.

(b) Indemnities arising from public social security schemes or Passive Classes, as well as benefits paid by orphans ' colleges and similar institutions, in the case of non-invalidating injuries.

(c) Benefits satisfied by non-invalidating injuries or permanent incapacity, in any of their grades, by companies and by public entities.

(d) the death benefits, and the costs of burial or burial exceeding the limit exempted under Article 7 (r) of the Tax Act, of workers or officials, both those of a public nature and of the satisfied by schools of orphans and similar institutions, companies and public authorities.

e) The amounts paid in compensation or reparation for salary supplements, pensions or annuities of indefinite duration or for the modification of the working conditions.

(f) Amounts paid by the company to the employees for the resolution of mutual agreement of the employment relationship.

g) Literary, artistic or scientific awards that do not enjoy exemption in this Tax. For these purposes, no prizes are considered to be awarded for economic purposes arising from or replacing intellectual or industrial property rights.

2. Where yields of work with a period of more than two years are collected in a split manner, only the 40 per cent reduction provided for in Article 17.2. of the Law of the

Tax, in case the ratio resulting from dividing the number of years of generation, computed from date to date, between the number of tax periods of fractionation, is greater than two.

3. For the purposes of the reduction provided for in Article 17 (2) of the Tax Act, the performance of the work with a period of more than two years shall be considered to be the performance of the work, which is not obtained on a regular or recurring basis, the right of option to buy shares or shares in workers, where they can only be exercised more than two years after their granting, if, in addition, they are not granted annually.

4. The amount of the annual average salary of the set of tax declarants, as referred to in Article 17.2. of the Tax Act, shall be EUR 17,900.

Article 11. Reductions applicable to certain income from work.

1. The reductions provided for in Articles 17 (2) (b) and 94 of the Tax Act shall apply to benefits in the form of capital consisting of a single payment collection.

In the case of mixed benefits, which combine rents of any kind with a single charge in the form of capital, the reductions referred to are only applicable to the collection made in the form of capital. In particular, when the recovery of benefits in the form of income is recovered once the income is recovered in advance, the yield obtained shall be reduced by application of the percentages corresponding to the age which had each premium at the time of the constitution of the income.

2. For the purposes of the application of the 75% reduction provided for in Article 94.2.b) of the Tax Act, the premiums paid over the duration of the contract shall be deemed to be sufficiently regular and regular when, after more than eight years after the payment of the first premium, the average period of stay of the premiums has been more than four years.

The average period of stay of premiums will be the result of calculating the sum of premiums multiplied by their number of years of stay and dividing it between the total sum of the premiums paid.

3. The percentage reduction of 75 per cent, as laid down in Article 94.2.b) of the Tax Act, shall be applicable to the absolute and permanent invalidity allowance for all work and for the invalidity of both cases in the established by the regulatory regulation of pension plans and funds.

4. In the case of recovery of benefits in the form of capital arising from the life insurance contracts referred to in Article 16.2. (a) of the Tax Act, where they have periodic or extraordinary premiums, for the purposes of determining the part of the total yield obtained corresponding to each premium, this total yield shall be multiplied by the weighting coefficient resulting from the following ratio:

In the numerator, the result of multiplying the corresponding premium for the number of years since it was satisfied until the collection of the perception.

In the denominator, the sum of the products resulting from multiplying each premium for the number of years since it was satisfied until the collection of the perception.

5. For the purposes of Article 94 of the Tax Act, the insurance undertaking shall break down the proportion of the amounts paid in respect of each of the premiums paid.

SECTION 2. CAPITAL RETURNS

Subsection 1. Th Real Estate Capital Yields

Article 12. Deductible expenses on returns on real estate capital.

1. They shall have the consideration of deductible expenditure for the determination of the net return on real estate capital of all the costs necessary for obtaining them.

In particular, they shall be considered to be included among the expenses referred to in the preceding paragraph:

(a) The interests of the foreign capital invested in the acquisition or improvement of the good, right or right of use or enjoyment of the income, and other financing costs.

(b) Non-State taxes and surcharges, as well as state fees and surcharges, whatever their denomination, provided they have an impact on the income computed or on the goods or rights that are produced by them and not have a sanctioning character.

(c) The amounts accrued by third parties in direct or indirect consideration or as a result of personal services, such as administration, surveillance, goalkeeping or the like.

(d) Those caused by the formalization of the lease, sublease, transfer or constitution of rights and the legal rights relating to the goods, rights or yields.

e) The balances of doubtful recovery provided that this circumstance is sufficiently justified. This requirement shall be understood:

1. º When the debtor is in a competitive position.

2. When between the time of the first recovery management carried out by the taxpayer and the end of the tax period, more than six months had elapsed, and no credit renewal had occurred.

When a doubtful balance was charged

thereafter, to be deducted, it shall be computed as income in the year in which such recovery occurs.

f) The costs of conservation and repair. To these effects they will have this consideration:

Those made regularly for the purpose of maintaining the normal use of material goods, such as the painting, revoking or arrangement of installations.

Item replacement, such as heating, elevator, security doors, or other.

The amounts destined for enlargement or improvement will not be deductible for this concept.

g) The amount of insurance contract premiums, whether they are civil liability, fire, theft, crystal break or other similar nature, on the goods or rights producing the returns.

h) The quantities for services or supplies.

(i) The amounts for depreciation under the conditions set out in the following Article of this Regulation.

2. However, the maximum amount deductible for all expenditure may not exceed the amount of the total income.

Article 13. Depreciation expense of returns on real estate capital.

1. For the determination of the net return on real estate capital, they will have the consideration of expenditure

deductible the amounts intended for the depreciation of the property and the other assets transferred with it, provided that they respond to their effective depreciation.

2. Amortisation shall be deemed to meet the effectiveness requirement:

a) Dealing with real estate: when, in each year, they do not exceed the result of applying 3 percent over the greater of the following values: the cost of the acquisition satisfied or the cadastral value, not including in the calculation of the soil.

When the soil value is not known, the soil value shall be calculated by prorating the satisfied acquisition cost between the land and the construction of each year.

(b) Dealing with goods of a movable nature, which may be used for a period of more than one year and transferred jointly with the building: where, in each year, they do not exceed the result of applying to the costs of (a) the purchase of the capital of the European Union for the purposes of the first paragraph of Article 4 (1) of Regulation (EU) No 139/2014;

3. In the event that the income comes from the ownership of a right or right of use or enjoyment, it may be amortized, with the limit of the full income of each right, its cost of acquisition satisfied.

Amortization, in this case, will result from the following rules:

(a) When the right or right has a fixed term of duration, the one that results from dividing the cost of acquisition satisfied between the number of years of duration of the same.

b) When the right or faculty was for life, the result of applying to the acquisition cost satisfied the percentage of 3 percent

Article 14. Income from real estate capital obtained in a notoriously irregular manner over time and income received in a fractionated manner.

1. For the purposes of the application of the reduction provided for in Article 21.3 of the Tax Act, income from real estate capital, which is notoriously irregular over time, is considered to be exclusively the following: in a single tax period:

(a) Importes obtained by the transfer or transfer of the lease of business premises.

(b) Indemnities received from the lessee, subtenant or transferee for damages or damage to the property.

(c) Importes obtained by the constitution or transfer of rights of use or enjoyment of a life.

2. Where the income of the real estate capital with a period of generation of more than two years is collected in a fractionated manner, only the 40 per cent reduction provided for in Article 21.3 of the Tax Act shall apply if the quotient resulting from dividing the number of years corresponding to the generation period, computed from date to date, between the number of fractionation tax periods, is greater than two.

Subsection 2. Th Capital Returns

Article 15. Partial provision in insurance contracts.

In the case of a partial provision in insurance contracts, in order to calculate the return on capital, the amount recovered shall be deemed to correspond to the premiums paid in the first place including their corresponding profitability.

Article 16. Taxation of the profitability obtained up to the time of the creation of deferred income.

For the purposes of the first paragraph of Article 23.3.d) of the Tax Law, the profitability obtained up to the formation of deferred income shall be subject to taxation in accordance with the following rules:

1) Profitability will be determined by the difference between the current financial-actuarial value of the income that is constituted and the amount of premiums paid.

2) This profitability will be distributed linearly during the first ten years of the recovery of life income.

If this is a temporary income, it will be distributed linearly between the years of duration of the same with the maximum of ten years.

Article 17. Requirements for certain insurance contracts with retirement and invalidity benefits received in the form of income.

For the application of the provisions of the second paragraph of Article 23.3.d) of the Tax Law, the following requirements must be met:

1. The contingencies for which benefits may be collected are those provided for in Article 8.6 of the recast of the Law on the Regulation of Pension Plans and Funds, approved by the Royal Legislative Decree 1/2002, of November 29, in the terms established for these.

2. It is understood that there has been some kind of mobilisation of the provisions of the insurance contract when the limitations which, in relation to the exercise of the economic rights, establish the provision are infringed The first is the first of the recast text of the Law on the Regulation of Pension Plans and Funds, and its implementing legislation, with respect to collective insurance that implements corporate pension commitments.

Article 18. Deductible expenses on certain income from capital.

For the purposes of determining the net return on capital of furniture arising from the provision of technical assistance, leases of movable property, business or mines and sub-leases referred to in Article 24.1.b) of the Tax law shall be considered as deductible expenses as provided for in Articles 12 and 13 of this Regulation. However, the limit laid down in Article 12 (2) shall not apply.

Article 19. Reductions applicable to capital returns arising from insurance contracts.

1. The reductions provided for in Article 94.2 (a) and (b) of the Tax Act shall apply to benefits in the form of capital consisting of a single payment collection.

In particular, in the case of perceptions arising from the exercise of the partial redemption right of the policy, only the reductions indicated in the preceding paragraph shall be applicable to yields derived from the first of each Natural year. This reduction shall be compatible with the reduction resulting from the termination of the contract.

In the case of mixed perceptions, which combine rents of any kind with a single charge in the form of capital, the reductions referred to will only be deferred

cables to the charge made in the form of capital. In particular, when the recovery of benefits in the form of income is recovered once the income is recovered in advance, the yield obtained shall be reduced by application of the percentages corresponding to the age which had each premium at the time of the constitution of the income.

2. The premiums paid over the duration of the contract shall be deemed to be of sufficient frequency and regularity when, after more than eight years after the payment of the first premium, the average duration of the contract is premiums have been more than four years.

For these purposes, the average period of stay of premiums will be the result of calculating the sum of premiums multiplied by their number of years of stay and dividing it by the total sum of the premiums paid.

3. The percentage reduction of 75 per cent, as set out in Article 94.2.b) of the Tax Act, will be applicable to invalidity allowances received by those with a disability degree equal to or greater than 65 per cent.

4. In the case of recovery of benefits in the form of capital arising from life insurance contracts referred to in Article 23.3 of the Tax Act, where they have periodic or extraordinary premiums, for the purposes of determining the of the total yield obtained corresponding to each premium, this total yield shall be multiplied by the weighting coefficient resulting from the following ratio:

In the numerator, the result of multiplying the corresponding premium for the number of years since it was satisfied until the collection of the perception.

In the denominator, the sum of the products resulting from multiplying each premium for the number of years since it was satisfied until the collection of the perception.

5. For the purposes of Article 94.2 of the Tax Act, the insurance undertaking shall break down the proportion of the amounts paid in respect of each of the premiums paid.

Article 20. Capital income obtained in a notoriously irregular manner in the time and income received in a split form.

1. For the purposes of the application of the reduction provided for in Article 24 (2) of the Tax Act, capital returns are regarded as income obtained in a manner that is notoriously irregular over time, exclusively, the following, when they are charged in a single tax period:

(a) Importes obtained by the transfer or transfer of the lease.

(b) Indemnities received from the lessee or subtenant for damages or damages in the tenancies.

(c) Importes obtained by the constitution or transfer of rights of use or enjoyment of a life.

2. Where the income of the capital with a period of generation exceeding two years is collected in a fractional manner, only the 40 per cent reduction provided for in Article 24 (2) of the Tax Act shall apply, if the quotient resulting from dividing the number of years corresponding to the generation period, computed from date to date, between the number of fractionation tax periods, is greater than two.

SECTION 3. PERFORMANCE OF ECONOMIC ACTIVITIES

Subsection 1. General Rules

Article 21. Property assets affected by an activity.

1. The following shall be considered to be property assets affected by an economic activity carried out by the taxpayer, irrespective of whether their ownership, in the case of marriage, is common to both

:

a) The real estate in which the activity is developed.

(b) Goods for the economic and sociocultural services of the staff at the service of the activity.

c) Any other assets that are necessary to obtain the respective returns.

In no case shall the assets representative of the equity of an entity and of the transfer of capital to third parties and those intended for use be considered to be an economic activity. The Commission has also taken the view of the Commission.

2. Only those which the taxpayer uses for the purposes of the economic activity shall be considered to be of an economic activity.

They will not be affected:

1. Those that are used simultaneously for economic activities and for private purposes, except that the use for the latter is incidental and notoriously irrelevant in accordance with the provisions of paragraph 4 of the this article.

2. The persons who, being the property of the taxpayer, do not appear in the accounts or official records of the economic activity that the taxpayer is obliged to carry, unless proof to the contrary.

3. In the case of property assets which serve only partially for the purpose of the activity, the effect shall be limited to that part of the activity which is actually used in the activity in question. In this respect, only those parts of the assets that are susceptible to a separate and independent use of the rest shall be considered to be affected. In no case shall they be subject to partial affectation of indivisible assets.

4. Assets of fixed assets acquired and used for the development of economic activity which are intended for the personal use of the taxpayer in days shall be considered to be used for private purposes in an ancillary and notoriously irrelevant manner. or business hours during which the exercise of such activity is interrupted.

The provisions of the preceding paragraph shall not apply to passenger cars and their trailers, mopeds, motorcycles, aircraft or sports or recreational craft, except for the following cases:

(a) Mixed vehicles intended for the carriage of goods.

(b) Those intended for the provision of passenger transport services by way of consideration.

(c) Those intended for the provision of teaching services for drivers or pilots by way of consideration.

d) Those for displacements

professionals of the representatives or commercial agents.

e) Those destined to be the object of a transfer of use with habituality and onpayment.

For these purposes, motor cars, trailers, mopeds and motorcycles are considered to be those defined as such in the Annex to Royal Legislative Decree 339/1990 of 2 March, approving the text of the Law on Traffic, Vehicle Circulation to Motor and Road Safety, as well as those defined as mixed vehicles in that Annex and, in any case, so-called all-terrain vehicles or type \" jeep \".

Article 22. Values of affectation and disaffection.

1. The affections to economic activities of property or rights of personal property shall be carried out by the acquisition value that according to the rules provided for in Articles 33.1 and 34 of the Law of the Tax had at the said time.

2. In the disaffection of goods or rights affected by economic activities to the personal property, it shall be taken for the purposes of this Tax to have its book value at that time, calculated in accordance with the write-downs that would have been fiscally deductibles, in any case the minimum depreciation.

Article 23. Allocation of income.

For the purpose of determining the outcome of the economic activities of the entities referred to in Article 10 of the Tax Act, the net amount of the business figure provided for in Article 108 of the recast of the Corporate Tax Law shall take into account exclusively all economic activities carried out by such entities.

Article 24. Income from economic activities, which are notoriously irregular in time and income received in a split form.

1. For the purposes of the application of the reduction provided for in Article 30 of the Tax Act, income from economic activities obtained in a manner which is notoriously irregular over time is considered to be exclusively the following, where in the single tax period:

(a) Capital grants for the acquisition of items of non-depreciable fixed assets.

(b) Compensation and aid for the cessation of economic activities.

c) Literary, artistic or scientific awards that do not enjoy exemption in this Tax. For these purposes, no prizes are considered to be awarded for economic purposes arising from or replacing intellectual or industrial property rights.

(d) The compensation received in replacement of economic rights of indefinite duration.

2. Where the income from economic activities over a period of more than two years is collected in a fractionated manner, only the 40 per cent reduction provided for in Article 30 of the Tax Act shall apply, if the quotient resulting from dividing the number of years corresponding to the generation period, computed from date to date, between the number of fractionation tax periods, is greater than two.

Article 25. Methods of determining income from economic activities.

1. In accordance with the provisions of Article 49.2 of the Tax Law, the following methods of determining income from economic activities shall exist:

1. Direct Estimate, which will have two modes, normal and simplified.

2. Objective Estimation.

2. Taxpayers shall apply any of the above methods taking into account the limits of application and the rules of incompatibility, renunciation and exclusion contained in the following Articles.

Subsection 2. First Simplified Direct Estimate

Article 26. Scope of the simplified direct estimation method.

1. Taxpayers exercising economic activities shall determine the net performance of all their activities by the simplified mode of the direct estimation method, provided that:

a) Do not determine the net performance of these activities by the objective estimation method.

b) The net amount of the turnover of all these activities, defined in accordance with Article 191 of the consolidated text of the Law of Companies, approved by the Royal Decree of Law 1564/1989, of 22 December, does not exceed EUR 600,000 per year in the previous year.

c) Do not give up this mode.

2. The net amount of the turnover which is set as the limit for the application of the simplified method of the direct estimation method shall be as the reference for the immediate year preceding the year in which this method is to be applied.

When no activity has been carried out in the preceding year, the net performance shall be determined in this manner, unless the net yield is waived in the terms of the following article.

When an activity has started in the previous year, the net amount of the business figure will be raised per year.

3. Taxpayers who determine the net performance of any of their economic activities by the normal mode of the direct estimation method shall determine the net performance of all their activities in the normal mode.

However, when an economic activity is initiated during the year for which this modality is to be waived, the incompatibility referred to in the preceding paragraph shall not have any effect for that year in respect of activities which are were previously held.

Article 27. Waiver and exclusion to the simplified direct estimation method.

1. The waiver of the simplified method of the method of direct estimation shall be made during the month of December preceding the beginning of the calendar year in which it is to take effect.

The waiver will have effects for a minimum period of three years. After that period, it shall be understood as a tacitly extended period for each of the following years in which the modality may be applicable, unless the time limit laid down in the preceding paragraph is revoked.

The waiver as well as its revocation will be effected in accordance with the provisions of Royal Decree 1041/2003 of 1 August, approving the Regulation governing certain tax censuses and amending other related rules

days with the management of the Tax on Economic Activities.

In case of start of activity, the waiver shall be made as provided for in the preceding paragraph.

2. The exclusion of the simplified method of the method of direct estimation will be a determining factor in the exclusion of the limit set out in the previous article.

The exclusion will produce effects from the start of the immediate year after the year in which that circumstance occurs.

3. The waiver or exclusion of the simplified method of the direct estimation method will mean that the taxpayer will determine for the following three years the net return of all its economic activities in the normal mode of this method.

Article 28. Determination of net yield in the simplified direct estimation method.

The net performance of economic activities, to which the simplified method of the direct estimation method applies, shall be determined in accordance with the rules laid down in Articles 26 and 28 of the Tax Law, with the following specialties:

1. The write-downs of the fixed assets will be practiced in a linear manner, according to the table of simplified amortizations approved by the Minister of Economy and Finance. The amounts of depreciation resulting from these tables shall apply the rules of the special scheme for small-scale undertakings provided for in the recast of the Law on Corporate Tax affecting this concept.

2. The set of deductible provisions and expenses of difficult justification shall be quantified by applying the percentage of 5 per cent on net performance, excluding this concept.

Article 29. Entities under the allocation scheme.

1. The simplified method of the direct estimation method shall be applicable for the determination of the net performance of the economic activities carried out by the entities referred to in Article 10 of the Tax Act, provided that:

1. All your partners, heirs, community members or unit-holders are natural persons contributing to this Tax.

2. The entity meets the requirements defined in Article 26 of this Regulation.

2. The waiver of the modality shall be carried out by all the partners, heirs, communes or members, in accordance with the provisions of Article 27 of this Regulation.

3. The application of this modality shall be carried out independently of the circumstances which are individually fulfilled in the members, heirs, communes or members.

4. The net yield shall be attributed to the partners, heirs, community members or unit-holders, according to the rules or covenants applicable in each case and, if they do not consist of the Administration in a feisty form, shall be attributed equally.

Subsection 3. Objective Estimate

Article 30. Scope of the objective estimation method.

1. The objective estimation method shall be applied to each of the economic activities, in isolation considered, to be determined by the Minister for Economic Affairs and Finance, unless the taxpayers give up or are excluded from their application, in the the terms provided for in Articles 31 and 32 of this Regulation.

2. This method cannot be applied by taxpayers when any of the following conditions are met:

a) That the volume of full yields in the preceding immediate year exceeds any of the following amounts:

For all of its economic activities, 450,000 euros per year.

For the set of agricultural and livestock activities, in terms determined by the Ministerial Order that develops the method of objective estimation, 300,000 euros.

For these purposes, they will only be computed:

The transactions to be recorded in the book of sales or revenue provided for in Article 67.7 of this Regulation or in the book of revenue provided for in Article 40.1 of the Value Tax Regulation Added, approved by Royal Decree 1624/1992, of 29 December.

The transactions for which they are obliged to issue an invoice in accordance with the provisions of the Regulation governing the invoicing obligations, approved by Royal Decree 1496/2003 of 28 November 2003.

When an activity has started in the previous year, the revenue volume will be raised per year.

(b) The volume of purchases in goods and services, excluding fixed assets, in the previous financial year exceeds the amount of EUR 300,000 per year. In the case of subcontracted works or services, the amount of works or subcontracted services shall be taken into account for the calculation of this limit.

When an activity has started in the previous year, the volume of purchases will be raised per year.

c) That economic activities are

developed, in whole or in part, outside the scope of the Tax referred to in Article 4 of the Tax Law.

Article 31. Waives the method of objective estimation.

1. The waiver of the objective estimation method may be performed:

(a) During the month of December preceding the beginning of the calendar year in which it is due to take effect.

In the event of the start of activity, the waiver will be made at the time of filing the censal declaration of activity.

(b) The waiver of the objective estimation method shall also be understood when the statement corresponding to the split payment of the first quarter of the calendar year in which it is due is submitted within the regulatory period. effects in the form arranged for the direct estimation method.

In the event of the commencement of activity, the waiver shall be deemed to be made when the split payment corresponding to the first quarter of the year of the activity in the form arranged for the method is effected within the regulatory period. Direct estimation.

2. The waiver of the objective estimation method will result in the inclusion in the scope of the simplified mode of the estimation method

direct, as provided for in Article 26 (1) of this Regulation.

3. The waiver shall have effect for a minimum period of three years. After that period, it shall be deemed to be tacitly extended for each of the following years in which the method of objective estimation may be applicable, unless the time limit laid down in paragraph 1.

If, in the immediate year preceding the year in which the waiver of the objective estimation method is to take effect, the limits that determine its scope shall be exceeded, such waiver shall be held for failure to be submitted.

4. The waiver referred to in paragraph 1 (1) and the revocation, whatever the form of waiver, shall be made in accordance with the provisions of Royal Decree 1041/2003 of 1 August 2003 approving the Regulation by which the regulate certain tax censuses and modify other rules related to the management of the Tax on Economic Activities.

Article 32. Exclusion of the objective estimation method.

1. The exclusion of the method of objective estimation shall be a determining factor in the concurrence of any of the circumstances set out in Article 30.2 of this Regulation or the exceeding of the limits laid down in the Ministerial Order. to develop the same.

The exclusion will produce effects the immediate year after the year in which that circumstance occurs.

2. The incompatibility provided for in Article 33 and the rules laid down in Article 34 (2) and (4) of this Regulation shall also be considered to be grounds for exclusion from this method.

3. The exclusion of the objective estimation method shall mean the inclusion in the scope of the simplified method of the direct estimation method, in accordance with the terms set out in Article 26 (1) of this Regulation.

Article 33. Incompatibility of objective estimation with direct estimation.

Taxpayers who determine the net performance of any economic activity by the direct estimation method, in any of its modalities, shall determine the net performance of all economic activities by that method. method, in the corresponding mode.

However, when an economic activity is initiated during the year not included or where the method of objective estimation is waived, the incompatibility referred to in the preceding paragraph shall not have an effect for that year. the activities that were previously carried out.

Article 34. Coordination of the objective estimation method with the Value Added Tax and the Indirect General Tax Canarian.

1. The waiver of the simplified special scheme or the special scheme for the agricultural, livestock and fisheries of the value added tax shall mean that the method of objective estimation shall be waived for all economic activities carried out by the taxpayer.

2. The exclusion of the simplified special scheme in the value added tax shall mean the exclusion of the method of objective estimation for all economic activities carried out by the taxpayer.

3. The waiver of the simplified special scheme or the special scheme for the agricultural and livestock farming of the Indirect General Tax Canarian shall entail the waiver of the method of objective estimation for all economic activities carried out by the taxpayer.

4. The exclusion of the simplified special scheme from the Indirect Canarian General Tax will result in the exclusion of the method of objective estimation for all economic activities carried out by the taxpayer.

Article 35. Determination of net performance in the objective estimation method.

1. The contributors shall determine, with reference to each activity to which this method is applicable, the corresponding net return.

2. The determination of the net yield referred to in the preceding paragraph shall be made by the taxpayer himself, by imputation to each activity of the signs, indices or modules that the Minister of Economy and Finance has set.

Where signs, indices or modules are approved for the calculation of the net yield, the amortisation of the fixed assets may be deducted. The amount deducted by this concept will be exclusively the one that results from applying the table which, for these purposes, will be approved by the Minister of Economy and Finance.

3. In the case of initiation after 1 January or the end of the day on 31 December of the operations of an activity received by this method, the signs, indices or modules shall, where appropriate, be applied in proportion to the period of time in which such activity has been exercised, by the taxpayer during the calendar year.

The provisions of this paragraph will not apply to the seasonal activities that will be governed by the corresponding ministerial order.

4.1. Where the development of economic activities to which this method applies is affected by fires, floods or other exceptional circumstances affecting a particular sector or area, the Minister for Economic Affairs and Finance may, by way of exception, authorise the reduction of signs, indices or modules.

2. Where the development of economic activities to which this method applies is affected by fires, floods, sinks or major breakdowns in the industrial equipment, which lead to serious anomalies in the development of the activity, the persons concerned may request the reduction of the signs, indices or modules in the Administration or Delegation of the State Administration of Tax Administration corresponding to their tax domicile, within thirty days of counting from the date on which they are produced, providing the evidence they deem appropriate and making reference, in (a) of the compensation to be paid on account of such anomalies. The effectiveness of such anomalies shall be credited, the reduction of the signs, indices or modules that apply shall be authorised.

You will also authorize the reduction of signs, indexes or modules when the activity holder is in a temporary disability situation and has no other staff employed. The procedure for reducing the signs, indices or modules shall be the same as that provided for in the preceding paragraph.

The reduction of the signs, indices or modules shall be taken into account for the purposes of the split payments due after the date of the authorisation.

3. Where the development of economic activities to which this method applies is seen

affected by fires, floods, sinks or other exceptional circumstances which determine extraordinary expenses outside the normal process of the exercise of that process, the persons concerned may undermine the net yield resulting in the amount of such expenditure. To this end, the taxpayer must bring that circumstance to the attention of the Administration or Delegation of the State Administration of Tax Administration corresponding to its tax domicile, within thirty days from the date of the the date on which it is produced, providing for that purpose the justification for the payment and making reference, where appropriate, of the compensation to be paid on account of such circumstances.

The tax administration will verify the certainty of the cause that motivates the reduction of the yield and the amount of the same.

5. The Ministerial Order under which the signs, indices or modules applicable to each activity are set shall contain the instructions necessary for its proper computation and shall be published in the Official Gazette before 1 December. prior to the applicable period.

The Ministerial Order may refer to a period of time higher than the year, in which case the method of calculating the yield for each of the years included shall be determined separately.

Article 36. Independent activities.

1. For the purposes of the application of the objective estimation method, separate activities shall be considered each of those specifically collected in the Ministerial Orders governing this method.

2. The determination of the economic operations included in each activity shall be carried out in accordance with the rules of the Economic Activities Tax, in so far as they are applicable.

Article 37. Entities under the allocation scheme.

1. The objective estimation method shall be applicable for the determination of the net performance of the economic activities carried out by the entities referred to in Article 10 of the Tax Act, provided that all of its partners, heirs, Community members or members are natural persons contributing to this tax.

2. The waiver of the method, to be carried out in accordance with the provisions of Article 31 of this Regulation, shall be made by all the partners, heirs, community members or unit-holders.

3. The application of this method of objective estimation shall be carried out independently of the circumstances that are individually fulfilled in the partners, heirs, communes or unit-holders.

4. The net yield shall be attributed to the partners, heirs, community members or unit-holders, according to the rules or covenants applicable in each case and, if they do not consist of the Administration in a feisty form, shall be attributed equally.

SECTION 4. PROPERTY GAINS AND LOSSES

Article 38. Determination of the acquisition value.

1. The acquisition value of the transferred assets will be reduced in the amount of the tax deductible depreciation, in any event the minimum depreciation, regardless of the actual consideration of the expenditure.

For these purposes, the resulting minimum amortisation period shall be considered as the result of the maximum amortisation period or the corresponding fixed percentage, depending on each case.

2. In the case of the transfer of property assets to economic activities, the book value shall be deemed to be the value of the acquisition, taking into account the depreciation which would have been tax deductible, without prejudice to the minimum depreciation as referred to in the previous paragraph. Where the assets have been affected by the activity after its acquisition and before 1 January 1999, the date of acquisition shall be taken as the date of acquisition.

Article 39. Exemption from reinvestment in habitual housing.

1. Any property gains that are shown in the transfer of the taxpayer's usual dwelling may be waived where the total amount obtained is reinvested in the purchase of a new habitual dwelling, in the the conditions set out in this Article. Where, in order to acquire the home transmitted by the taxpayer, he has used foreign financing, it shall be considered, exclusively for these purposes, as a total amount obtained as a result of minoring the transfer value on the principal of the loan. which is not yet to be amortised at the time of transmission.

For these purposes, the acquisition of housing is assimilated to its rehabilitation, in the terms provided for in Article 54.5 of this Regulation.

For the housing rating as usual, it will be within the provisions of Article 53 of this Regulation.

2. The reinvestment of the amount obtained in the disposal shall be carried out at one time or in succession within a period not exceeding two years.

The reinvestment shall be deemed to be made within a period of time when the sale has been effected in instalments or with deferred price, provided that the amount of the time limits is intended for the purpose indicated within the tax period in question. that they are perceiving.

When, in accordance with the foregoing paragraphs, reinvestment is not carried out in the same year of disposal, the taxpayer shall be obliged to state in the tax return for the financial year in which he is obtain the wealth gain your intention to reinvest in the terms and conditions outlined above.

They will also be entitled to the exemption by reinvestment of the amounts obtained in the disposal which are intended to satisfy the price of a new habitual dwelling which would have been acquired within the two years preceding the that.

3. In the event that the amount of the reinvestment is less than the total amount obtained in the disposal, only the proportional portion of the wealth gain corresponding to the amount actually invested in the conditions shall be excluded. of this article.

4. Failure to comply with any of the conditions set out in this article will determine the subject matter of the portion of the corresponding property gain.

In such a case, the taxpayer shall impute the portion of the wealth gain not exempt from the year of its obtention, practicing supplementary settlement-settlement, including interest on late payment, and shall be filed within the period specified in the (a) between the date on which the non-compliance occurs and the end of the statutory period of return for the tax period in which the non-compliance occurs.

Article 40. Reduction of capital gains for certain property assets.

1. Taxpayers who carry out the activity of transport by self-taxis, classified under the heading 721.2 of the first section of the Economic Activities Tax rates, who determine their net performance by the method of estimation (a) objective shall be to reduce the property gains resulting from the transmission of intangible fixed assets, where such transmission is motivated by permanent incapacity, retirement or cessation of activity by restructuring of the sector.

Also, the provisions of the preceding paragraph shall apply when, for reasons other than those mentioned therein, the intangible assets are transmitted to the family until the second degree.

2. The reduction, as provided for in the previous paragraph, shall be obtained by applying the following percentages to the property profit determined in accordance with Article 32 of the Tax Law:

(VIEW IMAGE, PAGE 28148)

Elapsed time since the acquisition of the Intangible fixed asset Percentage applicable

Over twelve years .. .. .. .. .. 100 percent Over eleven years .. .. .. .. .. 87 percent Over ten years. ... .. .. .. 74 percent Over nine years .. .. .. .. ... 61 percent Over eight years. ... ... 54 per cent More than seven years .. .. .. .. ... 47 per cent More than six years. ... .. .. ....... 40 percent More than five years. ... ... 33 per cent Over four years .. ... .. .. 26 per cent More than three years. ... .. .. .. 19 percent More than two years. ... .. ....... 12 percent More than a year .. .. .. .. .. .. .. 8 percent Up to one year. .. .. .. .. .. ... .. 4 percent

CHAPTER III

Income in kind

Article 41. Delivery of shares to workers.

1. They shall not have the consideration of income from work in kind, for the purposes of Article 46.2. (a) of the Tax Act, the delivery of shares or units to workers in assets in the following cases:

1. The delivery of shares or units of a company to its employees.

2. Also, in the case of groups of companies in which the circumstances provided for in Article 42 of the Code of Commerce are met, the delivery of shares or units of a company of the group to the workers, taxpayers for this tax, of the companies that are part of the same subgroup.

In the case of shares or units of the group's dominant company, the delivery to the workers, taxpayers for this tax, of the companies that are part of the group.

In the two preceding cases, the delivery may be effected either by the company itself to which the worker provides its services, or by another company belonging to the group or by the public entity, state company or administration. public holding of the shares.

2. The application of the provisions of the above paragraph shall require compliance with the following requirements:

1. The offer is made within the general remuneration policy of the company or, as the case may be, the group of companies and which contributes to the participation of the workers in the company.

2. º That each worker, together with their spouses or relatives to the second degree, has no direct or indirect participation in the society in which they provide their services or in any other of the group, more than 5 percent.

3. º that the titles are maintained, at least, for three years.

The failure to comply with the deadline referred to in the previous No 3 shall give rise to the obligation to submit a supplementary declaration-payment, with the corresponding interest on late payment, within the time limit between the date of the requirement and the finalisation of the statutory period of return for the tax period in which such non-compliance occurs.

Article 42. Study costs for the training or retraining of staff who do not constitute remuneration in kind.

They shall not have the consideration of remuneration in kind, for the purposes of Article 46.2.b) of the Tax Law, for studies prepared by institutions, companies or employers and financed directly by them. for the updating, training or retraining of their staff, when they are required to carry out their activities or the characteristics of the posts, even where their actual performance is carried out by other persons or entities specialised. In these cases, the costs of locomotion, maintenance and stay shall be governed by the provisions of Article 8 of this Regulation.

Article 43. Expenditure by eaters of undertakings which do not constitute remuneration in kind.

1. For the purposes of Article 46 (2) (c) of the Tax Act, they shall be given the consideration of the delivery of products at discounted prices to be carried out in business canteens the direct and indirect formulas for the provision of the service. for labour law, in which the following requirements are met:

1. º That the service delivery takes place during business days for the employee or employee.

2. The provision of the service shall not take place during the days that the employee or employee accrues for living expenses other than tax in accordance with Article 8 of this Regulation.

2. Where the provision of the service is carried out through indirect formulas, the following shall, in addition to the requirements laid down in the preceding number, be fulfilled:

1. The amount of indirect formulas shall not exceed EUR 7,81 per day. If the daily amount is higher, there shall be remuneration in kind for the excess. This amount may be amended by the Minister for Economic Affairs and Finance in the light of economic developments and the social content of these formulas.

2. If the service delivery is delivered to the employee or employee vouchers-food or similar documents, the following shall be observed:

They must be numbered, issued in a nominative form, and must bear the nominal amount and the issuing company.

They will be untransmittable.

The reimbursement of the amount may not be obtained from the company or from the third party.

They can only be used in hospitality establishments.

The Company that delivers them must carry and retain the relationship of the delivered to each of its employees or employees, with the expression of the document number and the delivery day.

Article 44. Expenditure on sickness insurance which does not constitute remuneration in kind.

They will not have the consideration of income from work in kind, as provided for in Article 46.2.f) of the Tax Law, premiums or fees paid by companies to insurance companies for coverage disease, when the following requirements and limits are met:

1. That the disease coverage reaches the worker himself, and can also reach his or her spouse and descendants.

2. That the premiums or contributions paid do not exceed EUR 500 per year for each of the persons referred to in the previous paragraph. The excess over such amounts shall constitute remuneration in kind.

Article 45. Rights of company founders.

The special rights of economic content reserved for the founders or promoters of a company as remuneration for personal services, when they consist of a percentage of the profits of the entity, shall be valued, at least 35 per cent of the equivalent value of share capital which permits the same participation in the profits as the one recognised for those rights.

Article 46. Price offered.

For the purposes of article 47.1.1 (f) of the Tax Law, the price will be considered to be offered to the public, in the remuneration in kind satisfied by companies that have as their usual activity the performance of the activities that give rise to the same, that provided for in Article 13 of Law 26/1984 of 19 July, General for the Defence of Consumers and Users, deducting ordinary or common discounts. Discounts which are offered to other collectives of similar characteristics to employees of the undertaking, as well as promotional discounts which are general in nature and are in force in the Member State, shall be considered as ordinary or common. the time to satisfy the remuneration in kind or, in another case, not exceed 20%.

CHAPTER IV

Liquidable Base

Article 47. Reduction by geographical mobility.

For the application of the geographical mobility reduction set out in Article 53 of the Tax Law, the following requirements must be met:

(a) The taxpayer must be unemployed and registered in the employment office.

(b) The job that is accepted must be located in a municipality other than that of the taxpayer's habitual residence.

c) The taxpayer must move his usual residence to a new municipality.

Article 48. Child care reduction.

For the purposes of Article 54 of the Tax Law, where the adoption of a minor that would have been in a reception regime takes place, or a change in the situation of the reception, the reduction by care for children shall be carried out during the remaining tax periods until the maximum period laid down in that Article is exhausted.

Article 49. Insured forecast plans.

1. For the purposes of paragraph (b) of Article 60.3 of the Tax Act, an insurance contract shall be deemed to satisfy the requirement that the principal cover be that of retirement where the condition that the value of the insurance is Mathematical provision for retirement reached at the end of each annuity represents at least three times the sum of the premiums paid since the start of the plan for the death and invalidity capital.

2. Only the anticipated provision of the insured pension schemes in the cases provided for in the pension scheme rules will be allowed.

The right of advance provision will be valued for the amount of mathematical provision to which penalties, expenses or discounts may not be applied.

However, in the event that the entity has affected investments, the right of early disposition shall be measured by the market value of the assigned assets.

3. The policyholders of the insured provident plans may, by unilateral decision, mobilise their mathematical provision to another insured provident plan of which they are policyholders.

Once the contingency has been reached, mobilization will only be possible if the conditions of the plan allow it.

For this purpose, the data relating to the taker and the intended security plan of destination, as well as the account to be transferred, shall be communicated to the home insurance institution. Such communication may be carried out either directly by the taker or by the destination insurer.

The mobilisation shall be carried out within a maximum of seven days from the receipt by the insurance institution of origin of the relevant documentation. Within the same period, the parent institution shall forward to the target entity all the information it has on the taker and the historical data of the insured forecast plan. For these purposes, it is considered that the request addressed to the target entity implies, on the part of the taker, the authorisation for the referral of such information.

For the assessment of the mathematical provision the date on which the home insurer receives the referred documentation will be taken. In the event that the entity has affected investments, the value of the mathematical provision to be mobilised shall be the market value of the assigned assets.

You will not be able to apply penalties, expenses or discounts to the amount of this mobilization.

4. On a quarterly basis, the insurance institutions shall report to the policyholders insured the value of the rights which they hold.

Article 50. Time limit for the submission of supplementary declarations in the provision of consolidated rights for social security contributions.

For the purposes of Articles 60.2.b) and 61.2 of the Tax Act, statements-settlements

a) additional to the replacement of the reductions in the tax base unduly paid by the advance provision of the consolidated rights in social security contributions shall be submitted within the time limit between the the date of such early provision and the completion of the statutory period of return for the tax period in which the advance provision is made.

Article 51. Excess contributions to pension schemes, insured pension schemes and social welfare insurance schemes.

Members, mutualists or policyholders may request that the amounts provided which could not have been reduced in the tax base, as provided for in Article 60.6 of the Tax Act, be in the Five subsequent exercises.

The application shall be made in the statement of the Income Tax of the Physical Persons corresponding to the financial year in which the contributions made could not have been subject to reduction due to insufficient basis taxable.

The imputation of the excess shall be carried out in compliance with the limits laid down in Articles 60 and 61 of the Tax Law. For these purposes, where contributions from the taxpayer and contributions from the sponsor are made in the tax period in which the excess is incurred, the determination of the proportion of the excess corresponding to one and the other shall be made in proportion to the amounts of the respective contributions and contributions.

Where contributions made in the financial year with contributions from previous years which have not been eligible for reduction in the amount of the tax base are not reduced, they shall be reduced, contributions for previous years.

Article 52. Accreditation of the number of partners, equity and maximum percentage of participation in collective investment institutions.

1. The minimum number of shareholders required by Article 95 of the Law on Tax on Collective Investment Institutions in a corporate manner shall be determined as follows:

(a) For the collective investment institutions included in Article 95 (1), the number of shareholders included in the last quarterly report, prior to the date of transmission or reimbursement, which the institution has referred to the National Securities Market Commission in accordance with the provisions of the Law 35/2003, of 4 November, of the Collective Investment Institutions.

(b) For the collective investment institutions included in Article 95 (2), the number of shareholders included in the last annual communication to the National Securities Market Commission, prior to the date of transmission or reimbursement, which is carried out by a single trading entity with an establishment in Spain designated for that purpose by the collective investment institution or its manager, referred to each registered compartment or sub-fund. For the purposes of the preceding paragraph, this communication shall express the total number of shareholders in each compartment or sub-fund, the total equity of the institution, compartment or sub-fund, the date to which it is refer to the above data and shall have a maximum period of validity of one year from that reference date. The National Securities Market Commission shall make such information public and shall specify the technical requirements and communication procedures for the information referred to in this letter.

2. The taxpayer who wishes to benefit from the deferral regime provided for in Article 95 of the Tax Law for transactions involving a collective investment institution with a societarian form, must communicate to the entities through which the transmission or redemption and acquisition or subscription operations are carried out that have not participated at any time within the twelve months prior to the date of the operation by more than 5 percent of the capital of the relevant collective investment institution. Those entities shall keep at the disposal of the tax administration during the period of limitation of the tax obligations the documentation communicated by the taxpayers.

TITLE III

Quota Deductions

CHAPTER I

Deduction for investment in habitual housing

Article 53. Concept of habitual housing.

1. In general, it is considered that the taxpayer normally houses the building which constitutes his residence for a continuous period of at least three years.

However, it will be understood that the dwelling was normal when, despite the absence of such a deadline, the taxpayer's death occurs or other circumstances that necessarily require the change of address, such as marriage, marriage separation, transfer of employment, first job, or change of employment, or other justified similar.

2. In order for the dwelling to constitute the habitual residence of the taxpayer it must be effectively and permanently inhabited by the taxpayer himself, within twelve months, counted from the date of acquisition or termination of the works.

However, it will be understood that housing does not lose the usual character when the following circumstances occur:

When the death of the taxpayer occurs or other circumstances that necessarily impede the occupation of the dwelling are present, in the terms provided for in paragraph 1 of this article.

When this enjoyment of habitual housing by reason of charge or employment and the acquired dwelling is not object of use, in which case the period indicated above will begin to be counted from the date of the cessation.

3. Where the exceptions provided for in the preceding paragraphs are applicable, the deduction for the purchase of housing shall be made up to the time when the circumstances which necessarily require the change of housing are to be given or prevent the occupation of the same, except where the taxpayer enjoys habitual housing on account of employment or employment, in which case he/she may continue to apply deductions for this concept as long as that situation is maintained and the dwelling is not subject to use.

Article 54. Acquisition and rehabilitation of the usual dwelling.

1. The acquisition of housing is treated as the construction or expansion thereof, in the following terms:

Expansion of housing, when the increase of its habitable surface occurs, by means of closure of part discovered or by any other means, permanently and during all times of the year.

Construction, where the taxpayer directly satisfies the costs arising from the execution of the works, or gives amounts to the promoter of the works, provided that they are completed within a period not exceeding four years from the start of the investment.

2. On the contrary, housing acquisition will not be considered:

(a) The costs of conservation or repair, as provided for in Article 12 of this Regulation.

b) Improvements.

c) The acquisition of garage spaces, gardens, parks, swimming pools and sports facilities and, in general, the annexes or any other element that does not constitute the housing itself, provided that they are acquired regardless of this. The parking spaces purchased with the houses will be treated as housing, with a maximum of two.

3. If, as a result of being in a competitive position, the sponsor does not complete the construction works before the end of the four-year period referred to in paragraph 1 of this Article or he is unable to deliver the housing in the same period, the same period will be extended for a further four years.

In these cases, the twelve-month period referred to in Article 53.2 of this Regulation shall begin to be counted from the date of delivery.

In order for the extension provided for in this paragraph to take effect, the taxpayer who is obliged to file a tax return in the tax period when the initial period has been breached must accompany the the supporting documents showing their investments in housing, as well as any supporting documents relating to the occurrence of any such situation.

In the cases referred to in this paragraph, the taxpayer shall not be obliged to make any revenue due to the non-compliance with the general term of four years of completion of the construction works.

4. Where, for other exceptional circumstances, which are not attributable to the taxpayer and which involve the construction of works, they cannot be completed before the end of the four-year period referred to in paragraph 1 of this Article, the The taxpayer may request the Administration to extend the deadline.

The application must be submitted to the Delegation or Administration of the State Administration of Tax Administration corresponding to its tax domicile for the thirty days following the non-compliance with the deadline.

The application must contain both the reasons for the failure to comply with the deadline and the period of time deemed necessary for the completion of the construction works, which may not exceed four years.

For the purposes of the above paragraph, the taxpayer shall provide the appropriate justification.

In the light of the documentation provided, the Delegate or Administrator of the State Tax Administration Agency will decide both on the origin of the extension requested and on the extension period, which it will not necessarily have to be adjusted to that requested by the taxpayer.

Applications for enlargement which are not expressly resolved within three months may be considered to be rejected.

The extension granted will begin to be counted from the immediate day following the one in which the non-compliance occurs.

5. For the purposes referred to in Article 69.1.1. (a) of the Tax Law, the works on the property that meet any of the following requirements shall be considered to be housing rehabilitation:

(a) That they have been qualified or declared as a protected performance in the field of housing rehabilitation in accordance with the terms of Royal Decree 1/2002 of 11 January 2002.

(b) The purpose of the reconstruction of the house by the consolidation and treatment of structures, facades or covers and other similar structures provided that the overall cost of the rehabilitation operations exceeds the 25 percent of the purchase price if it had been made during the two years prior to the rehabilitation or, in other case, the market value that the house had at the time of its rehabilitation.

Article 55. Conditions for the financing of the usual housing for the application of the increased percentages of deduction.

1. The deduction percentages provided for in Article 69.1.1. (b) of the Tax Law shall apply as follows:

1. In the case of housing acquisition or rehabilitation, to apply the increased percentages, from 16.75 percent and 13.40 percent, the following circumstances should occur:

(a) That the amount financed from the value of the purchase or rehabilitation of the dwelling shall be at least 50% of that value.

In the case of reinvestment for the disposal of the usual house, the percentage of 50 percent will be understood as referring to the excess investment that corresponds.

(b) For the first three years, no amounts exceeding 40% of the total amount requested shall be amortised.

These percentages shall in no case be applicable to the amounts intended for the construction or extension of the dwelling or to the housing deposits.

The percentage of deduction of 16.75 percent shall be applied exclusively for the two years following the acquisition or rehabilitation of the habitual dwelling and the quantities, respectively, for these purposes.

2. In the case of works and suitability facilities performed by the disabled, as referred to in Article 69.1.4. e) of the Tax Law, the following circumstances shall be required:

(a) that the amount of the works or facilities of adequacy is at least 30% of that investment.

(b) For the first three years, no amounts exceeding 40% of the total amount requested shall be amortised.

The deduction percentages of 16.75 or 13.40 percent will apply, at most, to 6,010.12 euros, applying 10.05 percent over the excess, to 12,020.24 euros.

The percentage of deduction of 16.75 percent will be applied, exclusively, during the two years following the completion of the adequacy works or facilities.

2. The conditions and requirements laid down in the preceding paragraph shall also apply to the autonomous or complementary tranche of the deduction for investment in habitual housing provided for in Article 79 of the Tax Act.

Article 56. Housing accounts.

1. The amounts which are deposited in credit institutions, in separate accounts of any other kind of taxation, shall be deemed to have been allocated to the acquisition or rehabilitation of the taxpayer's habitual dwelling, provided that the balances of they are intended exclusively for the first purchase or rehabilitation of the taxpayer's habitual dwelling.

2. The right to deduction will be lost:

(a) Where the taxpayer has amounts deposited in the housing account for purposes other than the first purchase or rehabilitation of his or her usual dwelling. In the case of a partial provision, the quantities laid down shall be deemed to be the first deposited.

(b) When four years elapse, from the date on which the account was opened, the housing has not been acquired or rehabilitated.

(c) When the subsequent acquisition or rehabilitation of the dwelling does not meet the conditions that determine the right to the deduction for that concept.

3. Each taxpayer will only be able to maintain a housing account.

4. The accounts shall be separately identified in the tax return, including at least the following data:

Entity where the account has been opened.

Branch.

Account number.

Article 57. Works of adaptation of the habitual dwelling by the disabled.

1. For the purposes of the deduction provided for in Article 69.1.4. of the Law of the Tax, it is understood by works and installations of adequacy of the habitual housing of the disabled those that involve a reform of the interior of the same, as well as the modification of the common elements of the building which serve as a necessary step between the urban property and the public road, such as staircases, elevators, corridors, portals or any other architectural element, or those necessary for the application electronic devices that serve to overcome sensory or de-communication barriers promotion of their security.

2. The accreditation of the need of the works and facilities for the accessibility and sensory communication that facilitates the dignified and adequate development of the person with disabilities, will be carried out before the tax administration certificate or judgment issued by the Institute for Migration and Social Services or the competent authority of the Autonomous Communities in respect of the assessment of disability, on the basis of the opinion delivered by the Valuation Teams and Guidance dependent on the same.

CHAPTER II

Deduction for income obtained in Ceuta or Melilla

Article 58. Income obtained in Ceuta or Melilla.

For the purposes of the deduction provided for in Article 69.4 of the Tax Law, the following shall be considered for income obtained in Ceuta or Melilla:

1. Income from work derived from unemployment benefits and from those referred to in Article 16.2. of the Tax Act.

2. In the course of economic activities, operations in Ceuta or Melilla shall be understood to mean those which close in these territories a business cycle which determines economic performance or provides for the provision of a service. The professional

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 on them and, in general, where operations are not determine on their own income.

3. In the case of fishing and maritime activities, the rules laid down in Article 33 of the recast of the Companies Tax Act shall apply.

4. Capital income from the lease of movable property, business or mine shall be deemed to constitute an income obtained in Ceuta or Melilla where the purpose of the lease is situated and is actually used in those territories.

CHAPTER III

Loss of right to deduct

Article 59. Loss of right to deduct.

1. Where, in the case of tax periods subsequent to that of their application, the right, in whole or in part, is lost to the deductions made, the taxpayer shall be obliged to add to the state liquid quota and the autonomous or complementary liquid quota. (a) on the date of the year in which the requirements were not met, the amounts unduly deducted, plus the interest on late payment as referred to in Article 26.6 of Law 58/2003 of 17 December 2003, General Tax.

2. This addition will be applied as follows:

(a) In the case of the deduction for investment in habitual housing, as regulated in Article 69 (1) of the Tax Law, the entire state liquid quota shall be added to the total of the deductions unduly paid.

(b) In the case of the deductions provided for in Article 69 (2), (3) and (5) of the Tax Law, 67% of the unduly applied deductions and the liquid quota shall be added to the State's liquid quota. The remaining 33 per cent is either autonomous or complementary.

(c) In the case of deductions established by the Autonomous Community in the exercise of the regulatory powers provided for in Article 38.1 of Law 21/2001 of 27 December 2001 regulating fiscal and administrative of the new system of financing of the Autonomous Communities of the common regime and cities with Autonomy Statute, and

of the autonomous or complementary tranche of the deduction for investment in habitual housing regulated in Article 79 of the Tax Law, shall be added to the autonomous liquid quota or the whole of the deductions improperly practiced.

TITLE IV

Maternity Deduction

Article 60. Procedure for the practice of the maternity deduction and its advance payment.

1. The maternity allowance referred to in Article 83 of the Tax Act shall be applied in proportion to the number of months in which the requirements laid down in paragraph 1 of that Article are met, and shall be limited to: each child, the total contributions and contributions to the Social Security and the alternative of alternative character accrued in each tax period after birth, adoption or acceptance. For the purposes of calculating this limit, contributions and contributions shall be taken into account for their full amounts without taking into account any allowances which may correspond.

2. For the purposes of calculating the number of months for the calculation of the deduction amount referred to in the preceding paragraph, the following rules shall be taken into account:

1. The determination of the children who will give the right to the deduction will be made according to their situation on the last day of each month.

2. The requirement of high in the corresponding system of Social Security or Mutuality shall be understood to be fulfilled when this situation occurs on any day of the month.

3. Where the adoption of a child who has been under a host scheme or a change in the situation of the host is taking place, the maternity allowance shall be made during the period up to the end of the maximum period of the three years referred to in the second subparagraph of Article 83 (1) of the Tax Act.

4. In the case of the existence of several taxpayers entitled to the application of the maternity deduction in respect of the same or the same benefit, the amount shall be apportioned among them equally.

5.1. The taxpayers entitled to the application of this deduction may apply to the State Administration of Tax Administration for their payment in advance for each of the months in which they are discharged from the security system. Social or Mutual and the minimum time limits set out below are:

(a) Workers with a full-time contract of work, on the high for at least 15 days of each month, in the General Regime or in the Special Regiments of Coal and Sea Workers.

(b) Workers with a part-time employment contract whose working day is at least 50% of the ordinary day in the company, in monthly calculation, and is on the high for the entire month in the referred to in the preceding paragraph.

(c) Employees who are not members of the Special Agrarian Social Security Scheme in the month and who are carrying out at least ten actual days in that period.

(d) Workers included in the other Special Social Security Regulations not mentioned in the preceding or mutualistic paragraphs of the respective alternative social security mutual societies for 15 days in the month.

2. The processing of the advance payment will be carried out according to the following procedure:

(a) The application shall be submitted at the place, form and time limit to be determined by the Minister for Economic Affairs and Finance, who may determine the cases in which it may be made by telematic or telephone means. In the case provided for in paragraph 4 of this Article, applications must be submitted simultaneously.

(b) The State Tax Administration Agency, in the light of the application received, and of the data in its possession, shall, in advance, pay the amount of the maternity deduction.

In the event that you do not proceed with the advance payment of the deduction, you will notify the taxpayer of the reasons for the refusal.

(c) The payment of the deduction in advance shall be made, by bank transfer, by the State Agency for Tax Administration on a monthly basis and without a proportion of EUR 100 for each child. The Minister for Economic Affairs and Finance may authorise the payment by a cross-check or a nominee when circumstances warrant it.

3. The taxpayers entitled to the advance payment of the maternity deduction shall be obliged to inform the tax authorities of the variations affecting their advance payment, as well as when for some reason or Overcome circumstance, do not meet any of the requirements for your perception.

The communication will be carried out using the model that, for these purposes, will be approved by the Minister of Economy and Finance, who will establish the place, form and deadlines for the presentation, as well as the cases in which this communication can be perform by telematic or telephone means.

4. When the amount of the maternity deduction does not correspond to that of your advance payment, the taxpayers shall regularise such a situation in their declaration for this Tax. In the case of taxpayers who are not obliged to declare, they must inform the tax administration of the information determined by the Minister of Economy and Finance, who will also establish the place, form and time of the tax. presentation.

5. No interest on late payment shall be payable for the collection, through the advance payment and for reasons not attributable to the taxpayer, of amounts in excess of the corresponding maternity allowance.

TITLE V

Tax Management

CHAPTER I

Obligation to declare

Article 61. Obligation to declare.

1. Taxpayers will be required to file and subscribe for this Tax in the terms provided for in Article 97 of the Tax Act. For the purposes of paragraph 4 of that Article, they shall in any event be required to declare taxpayers who have the right to deduct by investment in housing, by means of a business, by double taxation or by make contributions to protected assets of persons with disabilities,

pension schemes, insured pension schemes or social welfare insurance schemes which reduce the tax base, when exercising such a right.

2. Without prejudice to the provisions of the preceding paragraph and Article 64 of this Regulation, taxpayers shall not be required to declare, without prejudice to the provisions of Article 64 of this Regulation, any income from work, capital, professional activities and profits. assets, up to a maximum sum of EUR 1,000 per year, in individual or joint taxation

3. They shall also not be required to declare, without prejudice to the provisions of the foregoing paragraphs and in Article 64 of this Regulation, taxpayers who obtain income from the following sources exclusively, in individual tax or joint:

A) Integration of work, with the following limits:

1. º. of a general character, 22,000 euros per year, when they come from a single payer. This limit shall also apply in the case of taxpayers who receive income from more than one payer, and either of the following two situations:

(a) The sum of the amounts received from the second and the remaining payers, in order of amount, does not exceed the amount of EUR 1,000 per year.

b) That their only income from the work consists of the passive benefits referred to in Article 16.2. (a) of the Tax Act and the determination of the applicable rate of retention would have been carried out in accordance with the special procedure laid down in Article 81 of this Regulation.

2. € 8,000 per year, when:

(a) Proceed with more than one payer, provided that the sum of the amounts received from the second and remaining payers, in order of value, exceeds the amount of EUR 1,000 per year.

(b) Compensatory pensions of the spouse or annuities for food other than those provided for in Article 7 (k) of the Tax Act shall be levied.

(c) The payer of the income of the work is not obliged to retain in accordance with the provisions of Article 74 of this Regulation.

B) Integration of capital and capital gains subject to retention or income on account, with a total limit of EUR 1,600 per year.

(C) Real estate charges, as referred to in Article 87 of the Tax Act, which come from a single property, full income from capital not subject to withholding tax from Treasury bills and subsidies for the purchase of houses for official protection or for the price of a price, with a total limit of EUR 1 000 per year.

4. The submission of the declaration, in cases where there is an obligation to carry out the declaration, shall be necessary to request refunds on account of the payments made.

5. The Minister for Economic Affairs and Finance shall approve the models for the declaration and shall establish the form, place and time-limits for their submission, as well as the assumptions and conditions for the submission of the declarations by means of telematic means. Taxpayers shall complete all the data requested in the declarations and accompany the documents and supporting documents to be determined.

The Minister of Economy and Finance may, for exceptional reasons, establish special time limits for a specific group of contributors or for the territorial areas to be determined.

6. In the case of a joint contribution, the declaration shall be signed and submitted by the members of the older family unit, who shall act on behalf of the children integrated in it, in accordance with Article 45.1 of the Law. 58/2003, of 17 December, General Tax.

Article 62. Self-validation and admission.

1. The taxpayers who are obliged to declare for this tax, at the time of filing their declaration, must determine the corresponding tax liability and enter it in the place, form and time limits determined by the Minister of Economy and Finance.

If, at the time of filing the declaration, the suspension of the entry of all or part of the tax liability resulting from the self-settlement would have been requested, in accordance with the provisions of Article 6 (6) 98 of the Law of the Tax, will follow the procedure regulated in it.

The suspension request will refer to the entry of any of the following amounts:

(a) To the entire tax liability, when the same is equal to or less than the return resulting from the self-settlement filed by the spouse for this same tax.

b) To the same amount as the return resulting from the self-settlement filed by the spouse, when the tax liability is higher.

2. The amount of the amount resulting from the authorization may be split, without interest or surcharge, in two parts: the first, 60 percent of its amount, at the time of filing the declaration and the second, of the remaining 40 percent, in the time limit to be determined as set out in the previous paragraph.

To enjoy this benefit it will be necessary for the declaration to be filed within the stated deadline.

It shall not be split, in accordance with the procedure laid down in the preceding paragraph, with the entry of supplementary statements.

3. 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 Furniture or in the General Register of Goods of Cultural Interest, according to Article 73 of Law 16/1985 of 25 June of the Spanish Historical Heritage.

Article 63. Fractionation in the case of death and loss of residence in Spain.

1. In the case of the death of the taxpayer provided for in Article 14 (4) of the Tax Law, all outstanding income must be included in the tax base of the last tax period to be declared for this tax.

2. In the event that the taxpayer loses his/her status for a change of residence, as provided for in Article 14.3 of the Tax Act, all outstanding amounts of imputation must be integrated into the tax base corresponding to the the last period to be declared by this Tax, where applicable, where appropriate, a supplementary statement-settlement, without penalty, no interest on late payment or any additional charge, within three months of the taxpayer's loss of his/her status by change of residence.

3. In these cases, the successors of the deceased or the taxpayer may request the fractionation of the part of the tax liability corresponding to those income, calculated by applying the rate regulated in Article 82.2 of the Tax Law.

4. The division shall be governed by the rules laid down in Chapter VII, Title 1 of Book I of the General Rules of Collection, with the following specialties:

(a) Applications must be made within the regulatory period of the declaration.

(b) The applicant shall provide security in the form of a solidarity guarantee of a credit institution or a mutual guarantee company, in accordance with the terms of the General Tax Collection Regulation.

(c) In the event of the requested fractionation being granted, the amount and the time limit of each fraction shall be granted on the basis of the tax periods to which those rents would be charged in the event that the death or the loss of the condition of the taxpayer would not have occurred, with the limit of four years.

The part corresponding to periods exceeding that limit shall be imputed by equal parts during the fractionation period.

Article 64. Data communication by the taxpayer and return request.

1. However, taxpayers who are not required to make a declaration on the tax may, however, obtain the excess of the withholding tax and the revenue from the accounts and of the instalments made on the liquid quota. Total of the tax paid in the amount of the deductions for double taxation of dividends and international, by, if applicable, the presentation of a communication addressed to the tax administration, requesting the return from.

The communication models will be approved by the Minister of Economy and Finance, who will set the deadline and the place of his presentation and the assumptions in which it comes. It shall also determine the assumptions and conditions for the submission of communications by telematic or telephone means and cases where the data communicated shall be understood to be subsisting for successive years, if the taxpayer does not communicate variation in the same. The communication may be preceded by the submission to the taxpayer of the data previously held by the tax administration and affect the determination of the quota referred to in the preceding paragraph.

Where the maternity deduction has not been obtained in advance, they may apply for the receipt of the maternity allowance which, in application of the provisions of Article 83 (1) and (2) of the Law of Tax, appropriate. The application shall be made using the model approved by the Minister for Economic Affairs and Finance, who shall establish the place, form and time limits for the submission of the application, as well as the cases in which the application may be made by means of telematic or telephone.

2. The tax authorities shall, where appropriate, in the light of the communication received, the data and the background in their possession and the supporting documents provided by the taxpayer with the communication or required for that purpose, shall, if necessary, carry out (a) the repayment of the excess of the withholding taxes and revenue incurred on the quota referred to in paragraph 1 above.

3. The refund shall be made within the average time between the submission of the communication, or the opening of the reporting period, where such presentation is not required, and the two months following the end of the said period. For information purposes only, the taxpayer shall be notified by ordinary mail or by means of telematics, the result of the calculations made for the determination of the amount of the refund.

Received the refund or, if appropriate, after the deadline for making it, the taxpayers may request, within the following three months, that the Administration practice a provisional settlement, in accordance with the Article 104.2 of the Law of Tax and Law 58/2003 of 17 December, General Tax. The notification may not imply any obligation under the taxpayer other than the refund of the previously returned interest plus the interest on late payment referred to in Article 26.6 of Law 58/2003 of 17 December, General Tax. This same regime will also be subject to taxpayers who have obtained returns in excess of those that correspond to them.

4. Without prejudice to the second subparagraph of paragraph 3 above, the time limit with which the tax administration has been given for the repayment without the payment of the payment has been made, for reasons attributable to the administration The tax will apply to the amount of interest for late payment as referred to in Article 26.6 of Law 58/2003 of 17 December, General Tax, from the day following the end of that period and to the date on which the tax is due. the payment is ordered, without the need for the taxpayer to claim it.

Article 65. Trade returns.

1. The refunds referred to in Articles 100 and 105 of the Tax Law shall be made by bank transfer.

2. The Minister for Economic Affairs and Finance may authorise the refunds referred to in the preceding paragraph by a cross-check or a nominee where circumstances warrant it.

Article 66. External collaboration in the presentation and management of declarations and communications.

1. The State Tax Administration Agency will be able to make effective the social collaboration in the presentation of declarations and communications by this Tax through agreements with the Autonomous Communities and other public administrations, with entities, institutions and bodies representing sectors or social, labour, business or professional interests, or directly with undertakings, in relation to the facilitation of such services to their employees.

2. The agreements referred to in the preceding paragraph may cover, inter alia, the following:

a) Information and dissemination campaigns.

b) Assistance in the making of statements and communications and in their correct and truthful fulfillment.

c) Issuance of statements and communications to the tax administration.

d) Subhealing of defects, subject to the authorization of the taxpayer.

e) Information on the status of the processing of returns of trade, subject to the authorization of the taxpayer.

3. The State Tax Administration Agency shall provide the necessary technical assistance for the development of the indicated actions, without prejudice to the provision of such services in general to the taxpayers.

4. The Order of the Minister of Economy and Finance will establish the assumptions and conditions

in which the entities that have subscribed the said agreements may submit by telematic means declarations, communications,

statements-settlements or any other documents required by the tax law, representing third parties.

This Order may also provide for other persons or entities to access such a system of presentation by telematic means on behalf of third parties.

CHAPTER II

Formal, accounting and registration obligations

Article 67. Formal, accounting and registration obligations.

1. The taxpayers of the Income Tax of the Physical Persons shall be obliged to keep, for the maximum period of limitation, the supporting documents and documents of the operations, income, expenses, income, reductions and deductions of any kind which must be stated in their declarations, to be provided in conjunction with the declarations and communications of the Tax, when so established and to be displayed before the competent authorities of the tax administration, when are required for this purpose.

2. Taxpayers who carry out business activities whose performance is determined in the normal mode of the direct estimation method shall be required to keep accounts in accordance with the provisions of the Trade Code.

3. By way of derogation from the above paragraph, where the business activity carried out is not of a commercial nature, in accordance with the Trade Code, the accounting obligations shall be limited to the keeping of the following records:

a) Book record of sales and revenue.

b) Book of purchases and expenses.

c) Book record of investment goods.

4. Taxpayers who carry out business activities whose performance is determined in the simplified mode of the direct estimation method shall be obliged to carry out the books referred to in the preceding paragraph.

5. Taxpayers engaged in professional activities whose performance is determined by direct estimation method, in any of its forms, shall be required to carry the following records:

a) Income record book.

b) Book of expenditure.

c) Book record of investment goods.

d) Book of funds and supply provisions.

6. Taxpayers who develop economic activities that determine their net performance by means of the objective estimation method shall keep, numbered by order of dates and grouped by quarters, the invoices issued in accordance with the provided for in the Regulation governing the invoicing obligations, approved by Royal Decree 1496/2003 of 28 November 2003, and the invoices or documentary evidence of another type received.

Similarly, they must retain the evidence of the signs, indices or modules applied in accordance with what, if any, provides for the Ministerial Order to approve them.

7. Taxpayers who have received this method of depreciation will be obliged to carry out a book of investment goods. In addition, for activities whose net performance is determined taking into account the volume of transactions, a book of sales or revenue shall be carried.

8. Institutions under the allocation of income which carry out economic activities shall carry a number of only compulsory books corresponding to the activity carried out, without prejudice to the allocation of returns to be carried out in respect of relationship with their partners, heirs, community members or unit-holders.

9. The Minister for Economic Affairs and Finance is hereby authorized to determine the manner of conduct of the books recorded in this article.

10. Taxpayers who carry accounting according to the provisions of the Trade Code shall not be required to carry the records set out in the preceding paragraphs of this Article.

Article 68. Other formal reporting obligations.

1. An institution which grants mortgage loans for the purchase of dwellings shall submit in the first 30 calendar days of January of the following year an information statement on such loans, with identification, by name and surname and number of tax identification, of the borrowers of the same, total amount of the loan, amounts which they have satisfied in the interest and amortisation of the capital and indication of the year of constitution of the loan and the duration of the loan.

2. The entities receiving donations referred to in Article 69.3.b of the Tax Law shall submit an information statement on the donations received during each calendar year, in which, in addition to their identification data, provide the following information for donors:

a) First and last names.

b) Tax identification number.

c) The amount of the donation.

d) Indication of whether the donation entitles to the application of any of the deductions approved by the Autonomous Communities.

The presentation of this information statement will be made in the month of January each year, in relation to the donations received in the previous year.

This information statement will be made in the form and place to be determined by the Minister of Economy and Finance, who will be able to establish the assumptions in which it will be presented in support directly readable by computer or by means of telematics.

3. In the first thirty calendar days of January of the following year, the Management Entities of Collective Investment Institutions shall submit a statement of information on the securities of shares or shares taken to by the partners or members, which may be required to contain the following information:

a) Name and surname and tax identification number of the partner or participate.

b) Value of acquisition and disposal of shares or units.

c) Period of stay of the shares/units held by the partner or participate.

This obligation shall be deemed to be fulfilled with the submission of the annual summary referred to in Article 106.2 of this Regulation, provided that the information provided for in the preceding letters is included in the summary.

4. The business public entity Lotteries and Gambling of the State, as well as the organs or entities of the Autonomous Communities, the Red Cross and the National Organization of the Spanish Blind will have to present, in the first thirty calendar days of the month January of the following year, an information statement of the prizes that have been satisfied exempt from the Tax on the Income of the Physical Persons, in which, in addition to their identifying data, may be required identification, by name and surname and number of tax identification, of the recipients, as well as the the amount or value of the prizes received by the same in excess of the amount to be fixed by the Minister for Economic Affairs and Finance.

5. The insurance institutions which market the insured pension schemes referred to in Article 60.3 of the Tax Act shall, in the first 30 calendar days of January of the following year, submit a information declaration where the following data shall be entered:

a) Name, last name, and tax identification number of the policyholders.

b) Amount of premiums paid by the policyholders.

However, in the event that the declaration is made directly on a computer-readable medium, the deadline for submission shall be 20 February of the following immediate year.

6. The institutions or bodies responsible for social security and mutual societies shall provide the State Agency for Tax Administration with monthly and annual information from their members or mutualists within the time limit set by the Minister for Social Security. Economy and Finance, which may be required to include the following data:

(a) First name, surname, tax identification number and membership number.

b) Listing and period of discharge.

c) Total contributions and contributions due.

7. The data in the Civil Registry relating to births, adoptions and deaths shall be provided to the State Agency for Tax Administration in the place, form, time and frequency to be established by the Minister for Economic Affairs and Hacienda, who may require, for these purposes, the following information:

(a) Name, surname and tax identification number of the person to whom the information is referred.

(b) Name, surname and number of the tax identification of the mother and, where appropriate, the father in the case of birth, adoptions and deaths of minors.

8. The information declarations referred to in the preceding paragraphs shall be made in the form and place laid down by the Minister for Economic Affairs and Finance, who may determine the procedure and the conditions under which his presentation is to be made. support directly readable by computer or by telematic means.

Article 69. Reporting obligations of entities on the basis of income allocation.

1. Entities under the allocation of income by means of which an economic activity is carried out, or whose income exceeds EUR 3 000 per year, shall submit annually an information declaration in which, in addition to their identifying data and, where appropriate, those of your representative, shall include the following information:

(a) Identification, tax domicile and tax identification number of its members, heirs, community members or unit-holders, residents or not in Spanish territory, including variations in the composition of the entity over the course of each tax period.

In the event that any of the members of the entity is not resident in Spanish territory, identification of who has the tax representation of the entity in accordance with the provisions of Article 10 of the recast text of the Non-Resident Income Tax Law, approved by the Royal Legislative Decree 5/2004, of 5 March.

In the case of entities on the basis of income attribution established abroad, the members of the entity who are contributing to this tax or subject shall be identified in the terms set out in this Article. liabilities of the Company Tax, as well as to the members of the entity contributing to the Income Tax of non-residents in respect of the income obtained by the entity subject to said Tax.

b) Total amount of income obtained by the entity and the income attributable to each of its members, specifying, if applicable:

1. Full income and deductible expenses for each source of income.

2. The amount of foreign source income, indicating the country of origin, with an indication of the income and expenses.

3. In the case referred to in Article 90 (5) of the Tax Law, identification of the collective investment institution whose shares or shares have been acquired or subscribed, date of acquisition or the subscription and acquisition value of the shares or units, as well as the identification of the person or entity, resident or non-resident, of the own funds.

c) Basis of deductions.

d) Amount of withholding and income to account supported by the entity and attributable to each of its members.

e) Net amount of the turnover in accordance with Article 191 of the consolidated text of the Law of Companies, approved by the Royal Decree of Law 1564/1989 of 22 December 1989.

2. An entity under a revenue allocation system shall notify its members in writing of the information referred to in paragraphs (b), (c) and (d) of the previous paragraph. The notification shall be made available to the members of the institution within one month of the end of the time limit for the submission of the declaration referred to in paragraph 1.

3. The Minister for Economic Affairs and Finance shall establish the model, time, place and form of presentation of the information declaration referred to in this Article.

CHAPTER III

Accreditation of disabled condition

Article 70. Accreditation of the condition of disabled persons and the need for assistance from another person or the existence of mobility difficulties.

1. For the purposes of the Income Tax of the Physical Persons, those taxpayers with a degree of disability equal to or greater than 33% will have the consideration of the disabled.

The degree of disability must be accredited by certificate or resolution issued by the Migration and Social Services Institute or the competent authority of the Autonomous Communities. However, they shall be considered to be of a disability equal to or greater than 33% of Social Security pensioners who are entitled to a permanent disability pension in the degree of total permanent incapacity, absolute or large invalidity and pensioners of passive classes who are entitled to a retirement or retirement pension for permanent incapacity for service or uselessness. Similarly, a degree of disability equal to or greater than 65% shall be deemed to be accredited in the case of disabled persons whose incapacity is declared judicially, even if they do not reach such a degree.

2. For the purpose of the disability reduction of active workers provided for in Article 58.3 of the Tax Act, disabled taxpayers shall be required to prove the need for assistance from third parties to move to their place of employment. or to carry out the same, or reduced mobility to use collective means of transport, by means of a certificate or a decision of the Institute of Migration and Social Services or the competent authority of the Autonomous Communities in respect of assessment of the handicaps, on the basis of the opinion delivered by the Valuation Teams and Guidance dependent on them.

CHAPTER IV

Complementary Statements

Article 71. Time limit for submission of supplementary declarations.

1. Where the taxpayer loses the exemption from the severance or termination allowance referred to in Article 1 of this Regulation, he shall submit a supplementary declaration-payment, including interest on late payment, within the time limit laid down in this Regulation. between the date on which it returns to provide services and the completion of the regulatory period of return for the tax period in which that circumstance occurs.

2. For the purposes of Article 31.5 (e) and (g) of the Tax Act, where the taxpayer makes the acquisition of the assets or the homogeneous securities or units after the end of the period (a) a statement of the tax period in which the loss of assets arising from the transfer is to be taken into account, including the interest for late payment, within the period between the date of the transfer; the date on which the acquisition takes place and the end of the regulatory period for declaration corresponding to the tax period in which the acquisition is made.

3. In the general plans for the delivery of options for the purchase of shares or shares covered by Article 48 of the Tax Act, the failure to comply with the requirement to maintain the shares or shares acquired at least during the period Three years, it shall give rise to the obligation to submit a supplementary declaration-payment, including interest on late payment, within the period between the date on which the requirement and the completion of the regulatory period are not met. a statement corresponding to the tax period in which such non-compliance occurs.

TITLE VI

Payments to account

CHAPTER I

Holds and Income to Account. General rules

Article 72. Obligation to practice deductions and income on account of the Income Tax of the Physical Persons.

1. The persons or entities referred to in Article 74 of this Regulation who satisfy or pay the income provided for in Article 73 shall be obliged to retain and enter the Treasury, as a payment on account of the Income Tax Physical Persons corresponding to the recipient, in accordance with the rules of this Regulation.

There shall also be an obligation to retain in the operations for the transmission of financial assets and for the transmission or redemption of shares or units of collective investment institutions, under the conditions set out in This Regulation.

2. Where the abovementioned income is satisfied or paid in kind, the persons or entities referred to in the preceding paragraph shall be obliged to make an income on account of the payment of the income tax on the income of the persons concerned. Physical corresponding to the recipient, in accordance with the rules of this Regulation.

3. For the purposes of this Regulation, the references to the retainer shall also be construed as having to make an income on account, in the case of joint regulation of both payments on account.

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

1. The following income shall be subject to withholding or income:

a) The returns of the job.

(b) The income of the capital.

c) The yields of the following economic activities:

The performance of professional activities.

The yields of agricultural and livestock activities.

The yields of forest activities.

(d) The property gains obtained as a result of the transmissions or repayments of shares and units representing the capital or assets of the collective investment institutions.

2. They will also be subject to withholding or income on account of the following income, regardless of their rating:

(a) Yields from the lease or sublease of urban buildings.

For these purposes, references to the lease shall also be construed as being made to the sublease.

(b) Income from intellectual property, industrial property, provision of technical assistance, lease of movable property, business or mine, sub-lease on previous goods and those from the transfer of the right to the exploitation of the right of image.

c) Prizes that are awarded as a result of participation in games, contests, raffles or random combinations, whether or not they are linked to the offer, promotion or sale of certain goods, products or services.

3. There shall be no obligation to hold or take account of the following income:

(a) exempt income and allowances and travel expenses other than lien.

(b) The income of the securities issued by the Banco de España which constitute a regulatory instrument for intervention in the money market and the returns of the Treasury bills.

However, credit institutions and other financial institutions that formalize with their clients contracts of accounts based on Treasury bills will be required to retain their income from income. obtained by the holders of those accounts.

(c) The conversion premiums for equity bonds.

d) The income of foreign accounts satisfied or paid by permanent establishments abroad of credit institutions and financial institutions resident in Spain.

e) dividends and participations in profits as referred to in Article 23 (1) (a) and (2) (a) of the Tax Act which derive from benefits obtained during tax periods during the period of the entity that distributes them in the regime of the heritage companies.

(f) Yields derived from the transmission or redemption of financial assets with explicit performance, provided that they meet the following requirements:

1. º That are represented by annotations in account.

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

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

The Minister of Economy and Finance is empowered to establish the procedure to make the exclusion of regulated retention effective in this paragraph.

Notwithstanding this paragraph (f), credit institutions and other financial institutions that formalise with their clients contracts of accounts based on transactions on the above securities shall be required to retain in respect of the income obtained by the holders of the accounts.

Similarly, the share of the price equivalent to the coupon in the transfers of financial assets effected within thirty days immediately preceding the maturity of the coupon shall be subject to retention, meet the following requirements:

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

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

g) The prizes to be awarded as a result of games organised under the provisions of Royal Decree-Law 16/1977 of 25 February, governing the criminal, administrative and tax aspects of the games of luck, send or chance and bets, as well as those whose retention base does not exceed 300 euros.

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

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

2. When the rent paid by the lessee to the same landlord does not exceed 900 euros per year.

3. When the activity of the lessor is classified in one of the headings of group 861 of the First Section of the Tariff of the Tax on Economic Activities, approved by the Royal Legislative Decree 1175/1990, of 28 in September, or in any other heading which empowers the activity of leasing or subleasing of urban real estate, and applying to the cadastral value of the buildings for the lease or sublease the rules for determine the quota set in the headings of the said group 861, would not have resulted in quota zero.

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

(i) Returns from the return of the premium for the issue of shares or units and the reduction of capital with the return of contributions, unless they come from undistributed profits, in accordance with the in the second paragraph of Article 31.3 (a) of the Tax Act.

(j) The property gains arising from the repayment or transfer of shares or shares in collective investment institutions, where, in accordance with Article 95 of the Tax Act, their computation.

Article 74. Required to retain or enter into account.

1. As a general rule, they shall be obliged to retain or enter into account, as soon as they meet the income of this obligation:

(a) Legal persons and other entities, including the owners ' communities and entities under the income allocation scheme.

(b) Taxpayers who engage in economic activities, when they meet income in the course of their activities.

(c) Natural persons, legal entities and other non-resident entities in Spanish territory, who operate in the Spanish territory by permanent establishment.

(d) Natural persons, legal entities and other non-resident entities in Spanish territory, operating in the non-mediation of permanent establishment, in respect of the performance of the work they satisfy, as well as other income subject to withholding tax or income which constitutes deductible expenditure for the purpose of obtaining the income referred to in Article 24.2 of the recast of the Non-Resident Income Tax Act.

A person or entity shall not be deemed to meet income when it is limited to a simple payment mediation.

Simple mediation of payment means the payment of an amount for account and order of a third party.

They do not have the consideration of simple payment mediation operations as specified below.

Consequently, the persons and entities mentioned above will be required to retain and enter the following assumptions:

1. When they are foreign securities depositories owned by residents in Spanish territory or are responsible for the collection of income derived from such securities, provided that such income has not been retained prior to Spain.

2. When they satisfy their staff on behalf of Social Security.

3. When they satisfy their staff amounts paid by third parties for the purpose of tipping, remuneration for the service or similar.

4. Dealing with agricultural cooperatives, when they distribute or market products from the holdings of their partners.

2. In particular:

(a) They are required to retain resident entities or permanent establishments in which the taxpayer provides services when they are satisfied with the performance of the work by another entity, resident or non-resident, linked to those in the terms provided for in Article 16 of the recast of the Companies Tax Act, or by the holder abroad of the permanent establishment based in Spanish territory.

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

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

In the case of turn instruments converted after their issuance in financial assets, at maturity they shall be obliged to retain the public purse or financial institution that intervenes in their filing for recovery.

2. º In the returns obtained in the transfer of financial assets including the instruments of rotation referred to in the previous paragraph, when channelled through one or more financial institutions, the bank, cash or financial institution acting on behalf of the transferor.

For the purposes of this paragraph, it shall be understood that the bank, box or financial institution receiving the order for the sale of the financial assets shall act on behalf of the transferor.

3. In the cases not mentioned in the previous paragraphs, the public purse must intervene in the operation.

(c) In the transmission of securities of the State Debt, the management entity of the Public Debt Market in Annotations that intervenes in the transmission shall be held.

(d) In the transmission or redemption of shares or units representing the capital or assets of collective investment institutions, the following persons shall be required to carry out or take into account the following persons; entities:

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

2. In the case of collective investment institutions domiciled abroad, the trading entities or the intermediaries empowered to market the shares or units of those institutions and, (a) the institution or entities responsible for the placement or distribution of the securities among potential subscribers, when they make the reimbursement.

3. In the case of female managers operating under the freedom to provide services, the representative appointed in accordance with the provisions of Article 55.7 and the second provision of Law 35/2003 of 4 November Institutions of Collective Investment.

4. In cases where the retention practice does not apply in accordance with the above paragraphs, you will be obliged to make a payment to the partner or participate in the transfer or obtain the refund. The said payment shall be made in accordance with the rules laid down in Articles 94, 95 and 96 of this Regulation.

(e) In the case of operations carried out in Spain by insurance companies operating under the freedom to provide services, the designated representative shall be required to carry out a retention or entry into account Article 86.1 and the additional 17th provision of Law 30/1995, of 8 November, of the Management and Supervision of Private Insurance.

Article 75. Amount of the withholding or income to be taken into account.

1. The amount of the withholding tax shall be the result of applying to the withholding tax the corresponding rate of retention, in accordance with the provisions of Chapter II below. The retention basis shall be the total amount to be satisfied or paid, without prejudice to the provisions of Article 91 for the capital income and in Article 95 for the property gains arising from the transfers or repayments of shares or units of collective investment institutions of this Regulation.

2. The amount of the income to account which corresponds to the remuneration in kind shall be the result of applying to the value of the same, determined in accordance with the rules contained in this Regulation, the percentage that corresponds, according to the provided for in Chapter III below.

Article 76. Birth of the obligation to retain or to enter into account.

1. As a general rule, the obligation to retain shall be born at the time when the corresponding income is satisfied or paid.

2. In the case of capital gains and capital gains arising from the transmission or redemption of shares and units of collective investment institutions, the items shall be treated as provided for in the Articles 92 and 96 of this Regulation.

Article 77. Temporary imputation of the withholding or income on account.

Withholding or income on account shall be charged by the taxpayer to the period in which the income is charged for withholding or taking into account, regardless of the time in which they were made.

CHAPTER II

Calculating Holds

SECTION 1. PERFORMANCE OF WORK

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

1. The withholding tax on income from work shall be the result of applying to the total amount of remuneration which is paid or paid, the rate of retention corresponding to the following:

1. On a general basis, the rate of retention as provided for in Article 84 of this Regulation.

2. The determined according to the special procedure applicable to recipients of passive benefits as provided for in Article 81 of this Regulation.

3. º 35% for the remuneration that is received by the status of administrators and members of the Boards of Directors, of the Boards that do their times and other members of other representative bodies.

4. º 15% for yields derived from teaching courses, conferences, colloquia, seminars and the like, or derived from the elaboration of literary, artistic or scientific works, provided that the right to their exploitation.

2. The rate of retention resulting from the above shall be divided by two in the case of work income obtained in Ceuta and Melilla benefiting from the deduction provided for in Article 69.4 of the Tax Act.

Article 79. Quantitative limit excluding the obligation to retain.

1. No retention shall be made on the income of the work, the amount of which, as determined in accordance with Article 82.2 of this Regulation, does not exceed the annual amount set out in the table below according to the number of children and other descendants and the situation of the taxpayer:

(VIEW IMAGE, PAGE 28161)

N. of children and other descendants

Taxpayer situation

0 1 2 or more

1. Single Contributor,

widowed, divorced, or separated

legally.

-10,750

euros

12.030

euros

2. Contributor whose

spouse does not get rents

higher than 1,502.53 euros

yearly, excluding the

exempt.

10,600

euros

11,825

euros

13.135

euros

3. Other situations. 7.515

euros

8,215

euros

8,965

euros

For the purposes of the application as provided in the above table, it is understood by children and other descendants those who give the minimum right by descendants provided for in Article 43 of the Tax Law.

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

1. Single contributor, widowed, divorced or legally separated. This is the single taxpayer, widowed, divorced or legally separated with descendants, when he is entitled to the minimum personal income referred to in Article 86.2.3. of the Law on Tax for single-parent family units.

2. Taxpayer whose spouse does not earn income of more than EUR 1,500, excluding those exempt. The taxpayer is married, and not legally separated, whose spouse does not earn annual income of more than EUR 1,500, excluding those exempt.

3. Other situations, including the following:

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

(b) The single, widowed, divorced or legally separated taxpayer, without descendants or descendants of his or her dependants, where, in the latter case, he is not entitled to the increased amount of the minimum personal The circumstances of the case referred to in Article 86.2.3. of the Tax Law.

(c) Taxpayers who do not manifest themselves in any of the situations 1 and 2.

2. The amounts provided for in the above table shall be increased by EUR 600 in the case of pensions or liabilities under the Social Security and Passive Classes scheme and EUR 1,200 for unemployment benefits or allowances.

3. The provisions of the preceding paragraphs shall not apply where the fixed rates of retention, in the cases referred to in Article 78 (1), (3) and (4), and the minimum rates of retention referred to in Article 78 (1), are applied. 84.2 of this Regulation.

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

In order to calculate the deductions on income from work, as referred to in Article 78.1.1. of this Regulation, the following operations shall be performed successively:

1. The basis for calculating the rate of retention shall be determined in accordance with Article 82 of this Regulation.

2. The retention fee shall be determined in accordance with Article 83 of this Regulation.

3. The retention rate shall be determined in the manner provided for in Article 84 of this Regulation.

4. The amount of the withholding tax shall be the result of applying the withholding rate to the total amount of remuneration that is paid or paid, excluding any arrears corresponding to previous financial years and taking into account account for regularisations which come under Article 85 of this Regulation. The above arrears will be applied to the fixed rate of 15 per cent.

Article 81. Special procedure for determining the rate of retention applicable to taxpayers receiving passive benefits.

1. Taxpayers whose only income from the work consists of the passive benefits referred to in Article 16.2. of the Tax Law, may request the tax administration to determine the total amount of the holds applicable to these yields, in accordance with the procedure provided for in this Article, provided that the following requirements are met:

(a) That the benefits are received in the form of income.

(b) The full annual amount does not exceed EUR 22,000.

c) That they come from more than one payer.

d) That all payers are required to practice withholding tax.

2. The determination of the retention type shall be performed according to the following special procedure:

(a) The procedure shall be initiated at the request of the person concerned relating to the amounts of the passive benefits to be collected during the year, as well as the identification of the payers. The application shall be accompanied by the communication model to the payer of the personal and family situation of the recipient referred to in Article 86.1 of this Regulation.

The application will be submitted during the months of January and February of each year and its content will be adjusted to the model approved by resolution of the Director General of the State Tax Administration Agency, who will establish the place of presentation and the conditions under which its presentation by telematic means is possible.

b) In view of the data contained in the application and in the communication of the personal and family situation, the tax administration shall determine, taking into account all the passive benefits and in accordance with the provided for in Articles 80, 82 and 83 of this Regulation, the annual amount of the deductions to be applied by each payer and shall, within the maximum period of 10 days, provide the taxpayer with a communication for each of the respective payers; in which that amount shall be included.

The taxpayer must transfer the aforementioned communications to each of the payers before the 30th of April, obtaining and maintaining a record of this transfer.

In the event that, for failure to comply with any of the requirements set out above, the application of this procedure does not apply, this circumstance shall be communicated to the person concerned by the tax administration, with expression of the causes that motivate it.

c) Each of the payers, in view of the communication received from the taxpayer containing the total amount of the annual deductions to be applied, and taking into account the benefits already met and the deductions already (a) to determine the rate of retention applicable to benefits to be met until the end of the financial year. The rate of retention shall be the result of multiplying by 100 the ratio obtained from dividing the difference between the annual deductions and the deductions already made between the amount of the benefits to be met until the end of the exercise. This type of retention shall be expressed in whole numbers, rounded to the nearest. The payer shall maintain the communication of the tax administration provided by the taxpayer.

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

3. The procedure referred to in the preceding paragraphs shall be exclusively annual and shall be irrevocable by the taxpayer for the financial year in respect of which he has applied, once he has transferred the payers of the (a) Communication from the tax administration.

However, each payer, at the beginning of the following financial year, shall provisionally apply the same rate of retention as it applied at the end of the preceding period, unless the taxpayer expressly disclaims from the respective payer, during the months of November and December.

Once the taxpayer transfers to the payer, in accordance with the procedure and time limits provided for in the previous paragraph, the communication of the tax administration containing the annual amount of the retentions to practice in the financial year, the latter shall calculate the new rate of retention as referred to in paragraph 2 (c) above.

If, within the period referred to in subparagraph (b) of paragraph 2 above, the taxpayer shall not transfer to the payer the communication of the tax administration referred to in the preceding paragraph, the latter shall determine the type of tax Withholding tax which is applicable to the provision by the person satisfied under the general procedure for determining the rate of retention referred to in Article 80 of this Regulation, by exercising the relevant regularisation.

4. The exclusive limit of the obligation to declare EUR 22,000 per year provided for in Article 97.3 (2) of the Tax Act shall not apply to taxpayers covered by the special scheme provided for in this Article when they are produce any of the following circumstances:

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

b) That the amount of the benefits actually paid by the payers differs from the statement initially made by the taxpayer in formulating their application.

For these purposes, it is estimated that the amount of benefits paid does not differ from those reported by the taxpayer when the difference between the two does not exceed the amount of EUR 300 per year.

(c) That during the financial year there has been some other of the circumstances set out in Article 85 of this Regulation determining an increase in the rate of retention.

Article 82. Base to calculate the hold type.

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

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

1. General Rule: In general, the sum of the remuneration, cash or in-kind which, in accordance with applicable contractual rules or stipulations and other foreseeable circumstances, will normally be taken the taxpayer in the calendar year, with the exception of business contributions to pension schemes and social welfare insurance schemes which reduce the tax base of the taxpayer, as well as the corresponding arrears impute to previous exercises. For these purposes, the remuneration in kind shall be computed by its value determined in accordance with Article 47 of the Tax Law, without including the amount of the income to be taken into account.

The sum of the remuneration, calculated in accordance with the preceding paragraph, shall include both fixed remuneration and foreseeable variables. For these purposes, variable remuneration shall be presumed to be at least foreseeable in the previous year, unless circumstances permit an objective to be established in an objective manner.

2. Specific Rule: In the case of manual workers who receive their remuneration for daily peonings or daily wages, the result of a sporadic and daily relationship with the employer shall be taken as the amount of the pay the result of multiplying by 100 the amount of the daily or daily wage.

3. The total amount of remuneration for work, cash and in-kind, calculated in accordance with the preceding paragraph, shall be reduced by the following amounts:

(a) In the reductions provided for in Articles 17 (2) and (3) and (94) of the Tax Law.

(b) In the case of social security contributions, compulsory general mutual funds of officials, shares for liabilities and contributions to colleges of orphans or similar institutions, as referred to in the paragraphs (a), (b) and (c) of Article 18.2 of the Tax Act.

c) In the amount of the minimum personal and by descendants, without application the minimum personal increase referred to in article 86.2.3. of the Law of the Tax.

Descendants will be computed in half, except when the taxpayer is entitled, exclusively, to the application of the entire family minimum for this concept.

(d) In reductions in income from work, extension of work activity, geographical mobility and disability of active workers. For the purposes of calculating such reductions, the payer shall take into account, exclusively, the amount of the net performance of the work resulting from the mini-sentences provided for in paragraphs (a) and (b) above.

e) In reductions for child care, age, attendance and disability, except for the disability situation referred to in paragraph (d) above.

Without prejudice to the provisions of Article 54 of the Law of the Tax, in relation to the minors who have been received and with the adopted descendants, the age of the recipient and the descendants and ascendants who give the right to a sentence (a) shall mean the date of accrual of the tax, in addition, the following specialties:

1. The retainer shall not take into account the circumstance referred to in Article 57.2. of the Tax Law.

2. Descendants shall be counted in half, except where the taxpayer is entitled, exclusively, to the application of the corresponding reduction.

f) In the amount that proceeds, according to the following circumstances:

In the case of taxpayers who receive pensions and liabilities under the Social Security and Passive Classes scheme or who have more than two descendants who are entitled to the application of the minimum for their intended descendants In Article 43 of the Tax Law, 600 euros.

When they are unemployment benefits or allowances, EUR 1,200.

These reductions are compatible with each other.

(g) Where the recipient of income from work is required to provide a compensatory pension to his or her spouse by judicial decision, the amount of the pension may decrease the amount resulting from the provisions of the paragraphs previous. To this end, the taxpayer shall, in the manner provided for in Article 86 of this Regulation, bring to the attention of his/her payer such circumstances, accompanied by a full or partial literal testimony of the decision determining the pension.

Article 83. Retention fee.

1. In general, the retention fee shall be obtained by applying to the basis for calculating the rate of retention, provided that the retention rate is positive, the percentages indicated on the following scale:

(VIEW IMAGE, PAGE 28163)

Rest base for

calculate the type

retention

-Up to Euro

Base to calculate

the hold type

-Up to Euro

Retention Fee

-Euros

Applicable Type

-Percentage

0

4,000

13,800

25,800

45,000

0

600

2,952

6.312

13,416

4,000

9,800

12,000

19,200

Forward

15

24

28

37

45

2. Where the recipient of income from work satisfies annuities for children by a court decision, provided that the amount is lower than the basis for calculating the rate of retention, the party shall determine separately the of the holding fee corresponding to the amount of such annuities and the amount referred to the rest of the base to calculate the rate of retention. To this end, the taxpayer shall, in the manner provided for in Article 86 of this Regulation, bring to the attention of its payer the fact that it is accompanied by a full or partial literal testimony of the judicial decision determining the annuity.

3. Where the taxpayer obtains a total amount of remuneration, as referred to in Article 82.2 of this Regulation, not exceeding EUR 22,000 per year, the retention fee, calculated in accordance with the provisions of the preceding paragraphs, shall be as the maximum limit the smaller of the following two amounts:

(a) The result of applying the percentage of 35% to the positive difference between the amount of that amount and the amount corresponding, according to their situation, to the minimum withholding tax provided for in Article 79 of this Regulation. Regulation.

(b) When regularisations occur, the result of applying the 45% percentage on the total amount of remuneration to be met until the end of the year.

4. The previous 45 per cent limit will apply to any taxpayer.

Article 84. Type of retention.

1. The retention rate shall be obtained by multiplying by 100 the ratio obtained from dividing the holding fee by the total amount of remuneration referred to in Article 82.2 of this Regulation. When the base for calculating the hold type is zero or negative, the hold type will be zero.

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

2. The rate of retention resulting from the provisions of the preceding paragraph may not be less than 2% in the case of contracts or relationships of shorter duration than the year, nor less than 15% where the income of the work is derived from special working relationships of a dependent nature.

However, the minimum of the 15 percent retention referred to in the preceding paragraph shall not apply to the income earned by the penados in the penitentiary institutions or the income derived from the special employment relationships affecting the disabled.

Article 85. Regularisation of the type of retention.

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

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

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

2. If after the suspension of the recovery of unemployment benefits, the right to unemployment benefit is resumed or the unemployment benefit is paid, within the calendar year.

3. When under general rules or the applicable sectoral rules, or as a result of the promotion, promotion or fall of the category of the worker, and, in general, when they occur during the year in the amount of the remuneration or deductible expenses which have been taken into account for the determination of the rate of retention which has been applied up to that time.

4. º If the worker continues or extends his or her work activity by the age of sixty-five years.

5. If in the course of the calendar year the pensioner began to receive new pensions or liabilities which were added to those already in receipt, or increase the amount of the latter.

6. Where the worker transfers his habitual residence to a new municipality and the geographical mobility reduction provided for in Article 47 of this Regulation applies.

7. If in the course of the calendar year there was an increase in the number of descendants or a variation in their circumstances, the condition of disabled would be exceeded or the degree of disability in the recipient of income would increase. or their descendants, provided that these circumstances determine a decrease in the basis for calculating the rate of retention.

8. Where by judicial decision the recipient of income from the work is obliged to satisfy a compensatory pension to his spouse or annuities for food in favour of the children, provided that the amount of the latter is lower than the base to calculate the hold type.

9. If in the course of the calendar year the spouse of the taxpayer obtains income of more than 1,500 euros per year, excluding those exempt.

10. When in the course of the calendar year the taxpayer will change his habitual residence of Ceuta or Melilla, Navarra or the Historical Territories of the Basque Country to the rest of the Spanish territory or the rest of the Spanish territory to the Cities of Ceuta or Melilla, or where the taxpayer acquires his/her status for change of residence.

11. º If in the course of the calendar year there was a variation in the number or circumstances of the ancestors that resulted in a variation in the base to calculate the type of retention.

3. The regularisation of the retention rate shall be carried out as follows:

(a) A new amount of the withholding tax shall be calculated in accordance with the procedure laid down in Article 80 of this Regulation, taking into account the circumstances of the regularisation.

(b) This new amount of the withholding tax shall be reduced by the amount of the withholding tax and income to account for that period. In the case of taxpayers who acquire their status for residence, the new amount of the withholding tax will be reduced to the withholding tax and income from the Income Tax of non-residents practiced during the period tax in which the change of residence occurs, as well as the fees paid for this tax due during the tax period in which the change of residence occurs.

(c) The new rate of retention shall be obtained by multiplying by 100 the ratio obtained from dividing the difference resulting from the preceding paragraph between the total amount of the remuneration referred to in Article 82.2 of this Regulation. Regulation which will subtract until the end of the year and will be expressed in whole numbers, rounded up to the nearest. When the base for calculating the hold type is zero or negative, the hold type will be zero.

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

The provisions of this paragraph shall be without prejudice to the retention minima provided for in Article 84.2 of this Regulation.

4. The new rates of retention shall apply from the date on which the variations referred to in the numbers 1, 2, 2, 3, 3, 4 and 5. of this Article and from the moment when the recipient of the income of the Member State is concerned, shall be applied. (a) to inform the payer of the variations referred to in the numbers 6. º, 7. º, 8. º, 9. º, 10. and 11. of that paragraph, provided that such communications occur at least five days prior to the preparation of the corresponding payroll, without prejudice to the responsibilities in which the recipient may incur when the (a) the application of a lower rate to which it corresponds, in the terms provided for in Article 109 of the Tax Act.

The regularisation referred to in this Article may be carried out, at the option of the payer, from day 1 of the months of April, July and October, in respect of the variations which, respectively, have occurred in the quarters immediately prior to these dates.

5. The rate of retention, calculated in accordance with the procedure laid down in Article 80 of this Regulation, may not be increased when regularisations are carried out under circumstances determining a reduction in the basis for calculating the rate of (a) to the extent that it is necessary for the purposes of Article 83 (2) of Regulation (EC) No 79/2014 to be retained in advance of the regularisation, or to be obliged to the recipient by judicial decision to satisfy annuities for food for the children.

In addition, in the case of regularisation in circumstances that determine an increase in the basis for calculating the pre-regularisation rate, the new rate of retention applicable may not determine an increase of the amount of the retentions in excess of the increase produced in that calculation basis.

Article 86. Communication of data from the income recipient of the work to its payer.

1. The taxpayer must inform the payer of the personal and family situation which affects the amount of the withholding tax, the determination of the type of retention or the regularisations of the withholding tax, and the paying-in- keep the communication duly signed.

The content of the communications will be adjusted to the model approved by the Tax Management Department's Resolution of the State Tax Administration Agency.

2. The lack of communication to the payer of such personal and family circumstances or variation shall determine that the person applies the corresponding type of retention without taking into account those circumstances, without prejudice to the responsibilities of the the recipient may incur when the lack of communication of such circumstances determines the application of a lower rate than that which corresponds to the terms provided for in Article 109 of the Tax Act.

3. The data communication referred to in the preceding paragraph shall be made prior to the first day of each calendar year or the beginning of the relationship, taking into account the personal and family situation which is likely to exist in these two last dates, without prejudice to the fact that, in the absence of such a situation on the dates indicated, their variation to the payer is to be communicated.

It will not be necessary to reiterate in each exercise the communication of data to the payer, as long as the personal and family circumstances of the taxpayer do not vary.

4. Changes in personal and family circumstances occurring during the year and involving a lower rate of retention may be communicated for the purposes of the regularisation provided for in Article 85 of this Regulation and shall take place. effects from the date of the communication, provided that at least five days for the preparation of the corresponding payrolls are subtracted.

When these variations assume a higher rate of retention, they must be communicated within ten days after they occur and will be taken into account in the first payroll to be made after that communication, provided at least five days for the making of the payroll.

5. Taxpayers may at any time request the application of retention rates in excess of those provided for in the preceding Articles, in accordance with the following rules:

(a) The application shall be made in writing to the payers, who shall be obliged to take care of the requests made to them, at least five days in advance of the preparation of the corresponding payroll.

(b) The new rate of retention applied for shall be applied at least until the end of the year and, as long as it does not resign in writing to the said percentage or does not apply for a higher rate of retention, during successive financial years, unless a variation of circumstances that determines a higher rate occurs.

6. The payer shall keep, at the disposal of the tax administration, the documents provided by the taxpayer to justify the personal and family situation.

Article 87. Special procedure for determining withholding and income on account of income from work in the event of change of residence.

1. Employees who are not taxpayers for this tax, but who will acquire such a condition as a result of their movement to Spanish territory, may inform the tax administration of that fact, by means of the communication model approved by the Minister of Economy and Finance, who shall establish the form, place and time limit for his presentation, as well as the documentation to be attached to it.

This communication will include the identification of the worker and the payer of the performance of the work, the date of entry into Spanish territory and the date of commencement of the work in this territory for this payer, as well as the existence of objective data in this employment relationship that make it foreseeable that, as a result of the same, there will be a stay in the Spanish territory of more than one hundred and eighty-three days, counted from the beginning of the provision of the work in Spanish territory, during the calendar year in which the or, failing that, the following.

2. The tax administration, in the light of the communication and documentation submitted, shall issue to the worker, where appropriate, no later than 10 working days following the date of the submission of the communication, a supporting document in which the the date from which the withholding tax will be applied for this tax.

3. The worker shall provide the paying agent with a copy of the document issued by the tax administration, in order to ensure that the latter, for the purposes of withholding tax, considers it a tax payer. on the Income of the Physical Persons as of the date indicated therein.

4. Having received the document, the obligation to retain, on the basis of the date indicated, shall practice retentions as laid down in the rules of this Tax, applying, where appropriate, the regularisation provided for in Article 85.2.10.

5. When the person concerned does not become a contributor to this tax in the year of posting, in his declaration for the Income Tax of non-residents, he will be able to deduct the deductions practiced on account of this tax.

Also, when the provisions of Article 32 of the recast text of the Non-Resident Income Tax Act had been applied, and the worker would not have acquired the status of taxpayer by the Income tax of non-residents in the year of travel abroad, withholding and income on account of such tax will be considered for payments to account for the Income Tax of the Physical Persons

SECTION 2. CAPITAL RETURNS

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

1. The retention to practice on capital returns will be the result of applying to the retention basis the percentage of 15 per cent.

2. This type of retention shall be divided by two in the case of income to which the deduction provided for in Article 69.4 of the Tax Act is applied, from companies which operate effectively and materially in Ceuta or Melilla and with its registered office and exclusive social object in those cities.

Article 89. Concept and classification of financial assets.

1. Financial assets are considered to be transferable securities representing the collection and use of foreign capital, irrespective of the way in which they are documented.

2. They shall have the consideration of financial assets with implicit return where the yield is generated by difference between the amount satisfied in the issue, first placement or endorsement and the commitment to repay the the maturity of those operations whose performance is fixed, in whole or in part, implicitly, through any transferable securities used for the collection of foreign resources.

Emissions, amortization or redemption premiums are included as implied yields.

The implicit performance concept is excluded from the placement bonuses or bonuses, which are rotated on the issue price, provided that they are within the market practices and that they are fully income for the the mediator, intermediary or financial colocation, acting in the issuance and entry into circulation of the financial assets covered by this rule.

Any instrument of rotation, including those originating in commercial transactions, shall be deemed to be a financial asset with implicit return, from the time it is made or transmitted, unless the endorsement or transfer is made. as payment of a credit from suppliers or suppliers.

3. They shall have the consideration of financial assets with explicit performance, those that generate interest and any other form of remuneration agreed as consideration for the transfer to third parties of own capital and which is not included in the the concept of implied income in the terms set out in the previous paragraph.

4. Financial assets with mixed performance shall follow the scheme of financial assets with explicit return where the annual cash they produce of this nature is equal to or greater than the reference rate in force at the time of the issue, although in terms of issue, redemption or repayment, other additional performance would have been set out implicitly. This reference rate shall be, during each calendar quarter, 80% of the effective rate corresponding to the rounded weighted average price that would have resulted in the last auction of the preceding quarter corresponding to State Bonds three years, in the case of financial assets with a term of less than or equal to four years; to five-year State Bonds, in the case of financial assets with a term of more than four years but equal to or less than seven years, and State-to-State Obligations 10, 15 or 30 years, in case of higher-term assets. In the event that the reference rate cannot be determined for a period of time, the deadline for the planned issue shall apply.

For the purposes of this paragraph, in respect of the issuance of financial assets with floating or floating performance, their domestic performance rate shall be taken as the effective interest of the transaction, considering only yields of an explicit and calculated nature, where applicable, with reference to the initial valuation of the parameter for which the final amount of the accrued income is fixed periodically.

Article 90. Tax requirements for the transmission, redemption and amortization of financial assets.

1. To proceed with the disposal or acquisition of the repayment of securities or financial assets with implicit performance and of financial assets with explicit performance to be withheld at the time of their transmission, amortisation or reimbursement, the prior acquisition of the same shall be credited with the intervention of the fedarios or financial institutions required to retain, as well as the price at which the transaction was carried out.

When a turning instrument becomes a financial asset after its entry into circulation, the first endorsement or transfer must be made through the public purse or financial institution, unless the same acquirer is a financial institution.

The fédliere or the financial institution shall indicate in the document its financial asset character, with the identification of its first acquirer or holder.

2. For the purposes of the preceding paragraph, the issuing person or entity, the financial institution acting on its behalf, the public purse or the financial institution acting or acting on behalf of the acquirer or depositor, As appropriate, they shall extend accreditative certification of the following:

a) Date of operation and identification of the asset.

(b) Denomination of the acquirer.

(c) The tax identification number of the acquirer or depositor.

d) Acquisition price.

Of the aforementioned certification that will be extended in triplicate, two copies will be given to the acquirer, remaining another in the power of the person or entity that certifies.

3. Financial institutions or public servants shall refrain from mediating or intervening in the transmission of such assets where the transfer does not justify their acquisition in accordance with the provisions of this Article.

4. The persons or entities issuing the financial assets referred to in this Article shall not be able to reimburse them when the holder fails to accredit their prior acquisition by means of appropriate certification, as set out in paragraph 1. 2 above.

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 the judicial authority.

Repurchase, redemption, cancellation or early repayment shall require the intervention or mediation of a financial institution or public purse, leaving the entity or person issuing the asset as a mere acquirer in the event that put the title back into circulation.

5. The holder of the title, in case of loss of a certificate of proof of his acquisition, may request the issuance of the corresponding duplicate of the person or entity that issued such certification.

This person or entity shall record the duplicate character of that document, as well as the date of issue of that document.

6. For the purposes set out in this Article, in cases of lucrative transmission, the acquirer shall be deemed to be subrogated in the acquisition value of the transfer, as long as a sufficient justification of the cost is sufficient.

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

1. As a general rule, the withholding tax on capital returns shall constitute the full consideration payable or satisfied.

2. In the case of amortisation, redemption or transfer of financial assets, the positive difference between the redemption, redemption or transmission value and the acquisition or subscription value of such assets shall be the basis of retention. The acquisition value shall be the value of the accrediting certification of the acquisition. For these purposes, the ancillary costs shall not be reduced to the operation.

Without prejudice to the withholding tax, in the event that the issuing entity acquires a financial asset issued by it, the retention and income on the performance that it obtains in any form of subsequent transfer of the title, excluding depreciation.

3. Where the obligation to retain has its origin as provided for in the last paragraph of Article 73.3 (f) of this Regulation, the share of the price equivalent to the run-off coupon of the transmitted value shall be the basis of withholding.

4. If the reductions referred to in Articles 24.2 and 94.2 of the Tax Act are applicable to the above yields, the retention basis shall be calculated by applying the reductions in respect of such yields. are applicable.

5. In the case of perceptions arising out of insurance contracts and for life income and other temporary income resulting from the imposition of capital, the withholding tax shall be the amount to be included in the taxable amount calculated in accordance with the law of the Tax.

Article 92. Birth of the obligation to retain and to take into account the income of the capital.

1. As a general rule, the obligations to retain and to enter into account shall be due at the time of the enforceability of the capital returns, in cash or in kind, subject to withholding or income, respectively, or in that of its payment or delivery if above.

In particular, interest shall be deemed to be payable on the due dates indicated in the deed or contract for settlement or recovery, or otherwise recognised in other form, even if the recipient does not claim his/her recovery or returns are accumulated to the principal of the transaction, and dividends on the date set out in the distribution agreement or from the day following that of its adoption in the absence of the determination of that date.

2. In the case of capital returns arising from the transmission, amortisation or repayment of financial assets, the obligation to retain shall be incurred at the time of transmission, redemption or redemption.

The retention will be performed on the date the transmission is formalized, whatever the agreed charging conditions.

SECTION 3. PERFORMANCE OF ECONOMIC ACTIVITIES

Article 93. Amount of withholding tax on income from economic activities.

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

However, in the case of taxpayers initiating the exercise of professional activities, the rate of retention shall be 7 per cent in the business start tax period and the following two, as long as they do not have been engaged in any professional activity in the year preceding the date of commencement of the activities.

For the application of the type of retention provided for in the preceding paragraph, the taxpayer must communicate to the payer of the income the concurrency of that circumstance, the payer being obliged to keep the duly signed communication.

The retention rate will be 7 percent in the case of satisfied returns to:

a) Guaranteed Representatives of \" Tabacalera, Sociedad Anonima \ ".

b) Municipal recauders.

(c) Insurance agents and insurance brokers using the services of sub-agents or business partners.

(d) Commercial delegates of the business public entity Lotteries and Gambling of the State.

These percentages will be divided by two when yields are entitled to the deduction in the quota provided for in Article 69.4 of the Tax Act.

2. For the purposes of the preceding paragraph, they shall be considered as being between the performance of professional activities:

(a) In general, the derivatives of the activities included in the Second and Third Sections of the Tax Rates on Economic Activities, approved by the Royal Legislative Decree 1175/1990, of 28 of September.

(b) In particular, they shall be regarded as professional income obtained by:

1. The authors or translators of works, coming from intellectual or industrial property. When authors or translators directly edit their works, their performance will be understood among those corresponding to the business activities.

2. º The Commists. It is understood that it is comionists who are limited to bringing together or approximating the interested parties for the conclusion of a contract.

On the contrary, it is understood that they are not limited to the conduct of their own operations when, in addition to the function described in the preceding paragraph, they assume the risk and the sale of such commercial transactions, in which case the Performance shall be included among those for business activities.

3. The teachers, whatever the nature of the teachings, who exercise the activity, either in their home, private homes or in an open school or establishment. Teaching in academies or own establishments shall be considered as a business activity.

3. No income from professional activities shall be regarded as the amounts collected by the persons who, at the salary of an undertaking, are obliged to register in their respective professional colleges or, in the case of a company, by virtue of their duties. (a) a general approach, which is derived from a working or dependent relationship. These amounts shall be included in the performance of the work.

4. Where yields are offset from an agricultural or livestock activity, the following percentages of retention shall apply:

1. Animal fattening and poultry farming activities: 1 percent.

2. º Restantes cases: 2 percent.

These percentages will be applied on the basis of the full income, with the exception of current and capital grants and compensation.

For these purposes, agricultural or livestock farming activities shall be such as to ensure that natural, plant or animal products are obtained directly from holdings and do not undergo processing, manufacture or manufacture.

A process of transformation, production or manufacture shall be considered to be an activity for which the discharge in an item corresponding to industrial activities in the rates of the Tax on Activities is required. Economic.

It shall be understood as including agricultural and livestock activities:

(a) Independent livestock farming.

(b) The provision, by farmers or farmers, of ancillary works or services of agricultural or livestock nature, with the means which are ordinarily used on their holdings.

(c) The breeding, keeping and fattening of livestock services.

5. Where yields are offset from a forestry activity, the rate of retention of 2% shall apply on the basis of the full income, with the exception of current and capital grants and compensation.

SECTION 4 HERITAGE GAINS

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

The retention to practice on the property gains arising from the transmissions or repayments of shares and units of collective investment institutions shall be the result of applying to the withholding percent of 15 percent.

Article 95. Basis of retention on the property gains arising from transfers or repayments of shares and units of collective investment institutions.

The retention basis on the property gains arising from transfers or repayments of shares or units of collective investment institutions shall be the amount to be included in the calculated tax base with the regulations of the Tax on the Income of the Physical Persons.

Article 96. Birth of the obligation to retain.

The obligation to retain shall be incurred at the time when the transmission or redemption of the shares or units of collective investment institutions is formalized, whatever the agreed charging conditions.

Article 97. Amount of holds on prizes.

The retention to practice on cash prizes will be 15 percent of your amount.

SECTION 5. OTHER RENTS

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

The retention to practice on income from the lease or sublease of urban buildings, whatever their qualification, will be the result of applying the 15 percent percentage on all concepts that are satisfied to the lessor, excluding Value Added Tax.

This percentage will be divided by two when the urban property is located in Ceuta or Melilla, in the terms provided for in Article 69.4 of the Tax Law.

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

1. The withholding tax on income from the transfer of the right to the exploitation of the right of image, whatever its qualification, will be the result of applying the 20 per cent rate of withholding tax on income. satisfied.

2. The withholding tax on the income of the other items referred to in Article 73.2.b) of this Regulation, whatever its rating, will be the result of applying the 15 per cent rate of withholding tax on income. satisfied.

CHAPTER III

Revenue to account

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

1. The amount of the income to account which corresponds to the remuneration paid in kind shall be calculated by applying to its value, determined in accordance with the rules of Article 47.1 of the Tax Law, and by the application, where appropriate, of the the procedure provided for in the second provision of this Regulation, the rate corresponding to those provided for in Article 78 of this Regulation.

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

Article 101. Income on account of remuneration in kind of capital.

The amount of the revenue to be paid in kind shall be calculated by applying the percentage provided for in Section 2 of Chapter II preceding the result of an increase of 20 per cent. the value of acquisition or cost to the payer.

Article 102. Income on account of remuneration in kind of economic activities.

The amount of the income to account that corresponds to the remuneration paid in kind shall be calculated by applying to its market value the percentage resulting from the provisions of Section 3 of Chapter II above.

Article 103. Revenue to account for prizes.

The amount of the revenue to be made by the awards in kind, which constitute a property gain, shall be calculated by applying the percentage provided for in Article 97 of this Regulation to the the result of increasing the value of purchase or cost to the payer by 20 percent.

Article 104. Income on account of other income.

The amount of income on account of income in kind referred to in Articles 98 and 99 of this Regulation shall be calculated by applying the percentage provided for in this Regulation to its market value.

Article 105. Income to account on image rights.

The percentage for calculating the income to be charged in the case referred to in Article 93 (8) of the Tax Law will be 15 percent.

CHAPTER IV

Obligations of the retainer and the obligation to enter into account

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

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

However, the declaration and entry referred to in the preceding paragraph shall be made in the first twenty calendar days of each month, in relation to the amounts withheld and the revenue to account corresponding to the month (a) the date of the application of the first subparagraph of Article 71 (3) of the Regulation on the value added tax, approved by the Royal Commission of the European Communities, of the Council of the European Communities, of the European Parliament and of the Council of the European Communities Decree 1624/1992 of 29 December 1992. By way of derogation, the declaration and entry for the month of July shall be made during the month of August and the first twenty calendar days of the month of September.

The provisions of the preceding paragraph shall also apply in the case of retainers or obliged to take into account the consideration of public administrations, including social security, the latter of which Annual budget approved before the beginning of the financial year exceeds the amount of EUR 6 million, in relation to the amounts withheld and the revenue for the income referred to in paragraphs (a) and (c) of the paragraph 1 and paragraph 2 (c) of Article 73 (2) of this Regulation.

Notwithstanding the foregoing, the corresponding retention and income, when the entity paying the performance is the State Administration and the procedure established for its payment so permits, shall be made directly.

The holder of the holding or obliged to enter into account shall submit a negative statement when, despite the fact that he has satisfied income which is subject to withholding or income, he has not, for the purposes of his/her amount, carried out the retention or income to any account. No negative statement shall be made where the income for the declaration is not satisfied in the reporting period.

2. The retainer or obliged to enter into account shall, within the same period of the last statement of each year, present an annual summary of the withholding and revenue to be made. However, in the event that the summary is presented in support directly readable by computer or has been generated by the use, exclusively, of the corresponding printed modules developed for this purpose, by the Tax administration, the time limit for filing shall be between 1 January and 31 January of the year following that of the annual summary.

In this summary, in addition to your identification data, you may be required to record a nominee relationship with the following data:

a) First and last names.

b) Tax identification number.

(c) Income obtained, indicating the identification, description and nature of the concepts, as well as the financial year in which the income was due, including income not subject to withholding or income reason for the amount, as well as the exempted allowances and the exempt income.

(d) Reductions applied in accordance with Articles 17 (2) and (3), (2) and (94) of the Tax Act.

(e) deductible expenses referred to in Articles 18.2 and 24.1) of the Tax Law, with the exception of the fees paid to trade unions and professional associations and those of legal defence, provided that they have been deducted by the paying of the satisfied returns.

(f) Personal and family circumstances and the amount of reductions that have been taken into account by the payer for the application of the corresponding retention rate.

g) Amount of compensatory pensions between spouses and annuities for foods that have been taken into account for the practice of withholding taxes.

h) Withheld or made-to-account retention.

(i) Reintegrated amounts to the payer from income earned in previous years.

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

3. The holder or the person to be admitted shall issue in favour of the taxpayer certifying evidence of the withholding tax or of the income to be paid, as well as of the other data relating to the taxpayer who must be included in the annual summary referred to in the previous paragraph.

This certification must be made available to the taxpayer prior to the opening of the notice or declaration for this tax.

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

4. The payers shall communicate to the taxpayer the withholding or income at the time they satisfy the income, indicating the percentage applied, except in income from economic activities.

5. The declarations referred to in this Article shall be made in the models for each class of income established by the Minister for Economic Affairs and Finance, who may also determine the data to be included in the referred to in paragraph 2 above, the holder being obliged to enter into account to complete all the data so determined and contained in the statements that affect him.

The declaration and entry will be made in the form and place to be determined by the Minister of Economy and Finance, who will be able to establish the assumptions and conditions for the presentation of the statements by means of telematics and to expand the the time limit for declarations which may be submitted on this route, on the basis of technical reasons, and to amend the amount of the annual budget and the nature of the income referred to in the third subparagraph of paragraph 1 of this article.

6. The declaration and entry of the payment into account referred to in Article 74.2.d (3) of this Regulation shall be made in the form, place and time limit to be determined by the Minister for Economic Affairs and Finance.

CHAPTER V

Fractional payments

Article 107. Forced upon payment by fractionation.

1. Taxpayers who carry out economic activities shall be obliged to self-abolish and enter the Treasury, as a payment on account of the Income Tax of the Physical Persons, the amount resulting from the provisions of the Articles without prejudice to the exceptions provided for in the following paragraphs.

2. Taxpayers who carry out professional activities will not be obliged to make payments in proportion to them if, in the previous calendar year, at least 70% of the income of the activity was withheld. or income on account.

3. Taxpayers who carry out agricultural or livestock farming activities shall not be obliged to make instalments in respect of such activities if, in the preceding calendar year, at least 70% of the income from the holding, with The exemption from current and capital grants and compensation payments was the subject of a withholding tax.

4. Taxpayers who carry out forestry activities shall not be obliged to make instalments in respect of forestry activities if, in the preceding calendar year, at least 70% of the income from the activity, with the exception of the current and the capital and compensation grants were the subject of withholding tax or income.

5. For the purposes of paragraphs 2, 3 and 4 above, account shall be taken of the percentage of revenue which has been the subject of retention or revenue for the period referred to in the instalments in the case of the start of the activity.

Article 108. Amount of fractionation.

1. The contributors referred to in the previous Article shall, within each period, enter the following quantities:

(a) For activities that are in the direct estimation method, in any of its modalities, 20 percent of the net yield corresponding to the period of time elapsed from the first day of the year to the the last day of the quarter to which the split payment refers.

Of the amount resulting from the application of the provisions of this letter, the fractional payments entered in the preceding quarters of the same year shall be deducted.

(b) For activities that are in the method of objective estimation, 4 percent of the net yields resulting from the application of that method according to the data-base of the first day of the year to which the payment by instalments or, in the event of the start of activities, on the day on which they were started.

However, in the case of activities that have only one person who is salaried, the percentage above will be 3 percent, and in the case that no salaried personnel will be available, this percentage will be 2 percent.

When any of the base data cannot be determined on the first day of the year, it shall be taken, for the purposes of the split payment, for the preceding immediate year. On the assumption that no date-base could be determined, the fractionated payment will consist of 2 percent of the quarter's sales volume or revenue.

c) Dealing with agricultural, livestock, forestry or fisheries activities, whatever the method of determining net yield, 2 percent of the quarter's revenue volume, excluding subsidies from capital and compensation.

2. The percentages referred to in the preceding paragraph shall be divided by two for the economic activities which are entitled to the deduction in the quota provided for in Article 69.4 of the Tax Act.

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

(a) Withholding taxes and income for account incurred for the period of time from the first day of the year to the last day of the quarter to which the split payment relates, in the case of from:

1. Professional activities that determine their net performance by the method of direct estimation, in any of its modalities.

2. Tenancy of urban buildings constituting economic activity.

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

(b) Withholding taxes and income on account effected in accordance with Articles 93 and 102 of this Regulation for the quarter, in the case of:

1. º Professional activities that determine their net performance by the objective estimation method.

2. Agricultural or livestock activities.

3. Forest Activities.

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

Article 109. Declaration and income.

1. Employers and professionals shall be required to declare and enter into the Treasury on a quarterly basis the amounts determined in accordance with the foregoing Article within the following time limits:

a) The first three quarters, between day 1 and 20 of the months of April, July and October.

b) The fourth quarter, between the 1st and 30th of the month of January.

When the application of the provisions of the previous article does not result in amounts to be entered, the taxpayers will submit a negative statement.

2. The Minister for Economic Affairs and Finance may extend the time limits referred to in this Article, as well as to establish six-monthly income assumptions with the adjustments that come from the percentages determined in the previous article.

3. The tax payers shall submit the declarations to the competent authority of the tax administration and shall enter the amount in the public treasury.

The declaration will conform to the conditions and requirements and the income will be made in the form and place that the Minister of Economy and Finance determines.

Article 110. Entities on the basis of income allocation.

The split payment corresponding to the income of economic activities obtained by entities under the income allocation regime shall be made by each of the members, community members or unit-holders, in proportion to their income. participation in the benefit of the institution.

Additional disposition first. Exemption from compensation for personal injury.

For the purposes of Article 7.d) of the Tax Law, the compensation paid in accordance with the provisions of Article 1 (2) of the Law on Civil and Safe Liability in the Movement of Motor vehicles and concordants of their Regulation shall be given the consideration of compensation in the amount legally recognised, for the purposes of their qualification as exempt income, as long as they are paid by an insurance undertaking as a result of the civil liability of your insured.

Additional provision second. Prior agreements for the valuation of remuneration in kind of personal work for the purpose of determining the corresponding income from the Income Tax of the Physical Persons.

1. Persons or entities required to make income on account as a result of the income of the work in kind which they satisfy may ask the tax administration to assess the income, in accordance with the rules of the Tax, to the exclusive effects of determining the corresponding income.

2. The application shall be submitted in writing before the delivery of goods or services to which it relates and shall be accompanied by a proposal for an assessment made by the applicant.

This written will contain at least the following:

a) Identification of the requesting person or entity.

(b) Identification and description of the supplies of goods and services in respect of which the valuation is requested.

(c) Proposed valuation, with reference to the applied valuation rule and the economic circumstances that have been taken into consideration.

3. The tax administration will examine the documentation referred to in the previous point, and may require the applicants to have any data, reports, background and supporting documents related to the proposal.

In addition, applicants may, at any time in the proceedings before the hearing proceedings, present the allegations and provide the documents and supporting documents they deem appropriate.

Applicants will be able to propose the practice of the evidence they understand relevant by any of the media admitted into law. The tax authorities may also carry out the necessary tests.

Both the tax administration and the applicants will be able to request the issuance of expert reports on the content of the valuation proposal.

Once the procedure has been instructed and prior to the drafting of the motion for a resolution, the tax administration will make it clear to the applicants, along with the content and conclusions of the tests. and the reports requested, who may make the allegations and present the documents and supporting documents which they consider relevant within 15 days.

The procedure must be completed within the maximum period of six months from the date on which the application has entered into any of the records of the competent administrative body or from the date of the same at the request of the tax administration. Failure to resolve the tax administration within the prescribed period shall imply acceptance of the values proposed by the applicant.

4. The resolution terminating the procedure may:

a) Approve the proposal initially formulated by the applicants.

b) Approve another alternative proposal formulated by the applicants in the course of the procedure.

c) Disestimate the proposal made by the applicants.

The resolution will be motivated and, if approved, will contain at least the following specifications:

a) Place and date of formalization.

b) Identification of applicants.

c) Description of the operations.

(d) Description of the valuation method, indicating its essential elements and the value or values deriving from it, as well as the economic circumstances to be understood as basic in order to its application; highlighting the fundamental assumptions.

e) Period referred to in the proposal. The maximum period of validity shall be three years.

(f) Reasons or reasons for which the tax administration approves the proposal.

g) Indication of the binding nature of the valuation.

5. The decision to be taken shall not be used, without prejudice to the remedies and complaints which may be brought against the acts of liquidation which are carried out as a result of the application of the values laid down in the resolution.

6. The tax administration and the applicants must apply the valuation of the income in kind from the work approved in the resolution during their term of validity, provided that the legislation is not changed or significantly changes economic circumstances that founded the valuation.

7. The competent body to report, instruct and resolve the procedure will be the Department of Financial and Tax Inspection of the State Administration of Tax Administration.

Additional provision third. Information to the policyholders of the insured Forecast Plans.

Without prejudice to the reporting obligations set out in the private insurance regulations, the information obligations set out in the General Directorate for Insurance and Pension Funds will be established. insurance companies that market insured forecast plans shall inform the policyholders, prior to their hiring, about the guaranteed interest rate, the time limits for each guarantee and the expected expenses.

First transient disposition. Transfers of property assets previously carried out before 1 January 1998.

1. For the application of the provisions of Article 21.3 of Law 43/1995 of 27 December 1995 on the Company Tax, in the wording in force until 1 January 2002, in the transmission, before 1 January 1998, of elements Property assets which are assigned to the financial activities carried out by taxpayers who determine their net performance by means of the objective estimation method, the maximum depreciation period shall be taken as the amortisation period. officially approved tables in force at the time of reinvestment.

2. The period of residence of the property assets affected by economic activities carried out by taxpayers who determined their net performance by means of the method of objective estimation, as referred to in Article 21.4 of Law 43/1995, On 27 December, the Company Tax, in the form in force until 1 January 2002, shall be, where the reinvestment had been carried out before 1 January 1998, seven years, except that its useful life, calculated on the basis of the maximum repayment period according to tables officially approved at the time of reinvestment, is lower.

3. The taxpayers who determined their net return by the method of objective estimation who would have received the reinvestment exemption provided for in Article 127 of Law 43/1995 of 27 December 1995 on the company tax in the In force until 1 January 1999, the economic activity of the heritage elements which are the subject of reinvestment must be maintained in accordance with the following rules:

1. Where the transfer and reinvestment would have taken place before 1 January 1998, the period of stay of the assets will be determined according to the maximum period of depreciation according to official tables. approved at the time of the reinvestment. The retention requirement shall also be deemed to be fulfilled where the asset item had been retained for the seven years following the end of the tax period in which the period of three years after the date of delivery expired or making available the assets whose transmission originated the exempt income.

2. When reinvestment took place after 1 January 1998, the maximum repayment period referred to in the previous rule shall be determined in accordance with the amortisation table provided for in the Article 35.2 of this Regulation.

Second transient disposition. Reinvestment of extraordinary profits.

The taxpayers who, in tax periods started before 1 January 2002, had transmitted property assets to the economic activities carried out by them and opted to apply it. Article 21 of Law 43/1995 of 27 December 1995 on Corporate Tax, in the form in force until 1 January 2002, shall comprise the total amount of the property gain in accordance with the provisions of Articles 36.2 of Law 40/1998, of 9 December, of the Income Tax of the Physical Persons and Others Tax rules, and 40 of the Income Tax Regulation of the Physical Persons, approved by Royal Decree 214/1999 of 5 February, according to the redactions in force until 1 January 2003.

Transitional provision third. Regularisation of deductions for non-compliance with requirements.

Where, for failure to comply with any of the conditions laid down, the right, in whole or in part, to the deductions applied in tax periods initiated before 1 January 2002, the amounts are lost (a) to be deducted from the State's liquid quota and the autonomous or complementary liquid quota for the year in which the non-compliance occurs, in the same percentage as, at the time, applied.

Transitional disposition fourth. Dividends from transparent companies.

There shall be no obligation to practice withholding or income from the Income Tax of the Physical Persons in respect of dividends or participations in profits from tax periods during which the the entity that distributes them is found in the tax transparency system, in accordance with the provisions of the transitional provision of Law 46/2002 of 18 December 2002, of partial reform of the Income Tax of the Physical Persons and amending the Laws of Taxes on Societies and on the Income of Non-Residents.

Transient disposition fifth. Transitional arrangements for changes to the income of capital and capital gains made in respect of income from capital.

1. The obligation to retain in the transmissions, redemptions or repayments of financial assets with explicit performance shall be applicable to transactions which have been formalised since 1 January 1999.

In the transmissions of financial assets with explicit return issued prior to 1 January 1999, in the event of failure to credit the purchase price, the retention shall be made on the difference between the value of the issue of the asset and the transmission price.

No retention shall be made for returns arising from the transmission, exchange or amortisation of securities issued prior to 1 January 1999, issued prior to 1 January 1999, which were not subject to this date. retention.

2. Where, as from 1 January 1999, explicit returns are received for which, as the frequency of the liquidations exceeding 12 months, income has been made on account, the definitive withholding tax shall be applied to the rate in force in the the time of the enforceability and shall be regulated on the basis of the revenue to be realised.

Single end disposition. Authorisation to the Minister for Economic Affairs and Finance.

The Minister for Economic Affairs and Finance is hereby authorised to make the necessary provisions for the implementation of this Regulation.