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 Taxes on Societies and on the Income of Residents, in the wording given by the 18th final provision of Law 62/2003, of 30 December, of fiscal, administrative and social order measures, provides that the Government will prepare and approve within 15 months of the The texts recast of the Tax on the Income of the Physical Persons, of the Non-Resident Income Tax and Corporate Tax.

This legislative delegation has the most limited scope of those provided for in Article 82 (5) of the Constitution, since it is limited to the mere formulation of a single text and does not include authorization to regularise, clarify and harmonise the legal texts to be recast.

This enablement is intended to provide greater clarity to the tax system through the integration into a single regulatory body of the provisions affecting these taxes, thereby contributing to increased security. The legal basis for the tax administration and, in particular, taxpayers.

In the exercise of such authorization, this royal legislative decree is elaborated, whereby the recast text of the Non-Resident Income Tax Law is approved.

II

Law 41/1998, of December 9, of the Income Tax of Non-Residents and Tax Rules, published in the "Official State Gazette" on December 10, 1998, responded to the need to set up a standard that (i) the taxation of non-residents in income taxes, which is traditionally known as being subject to a "real obligation to contribute", due to the growing internationalisation of economic relations and the progressive integration of Spain into the European Union.

Law 41/1998 of 9 December, since its entry into force on 1 January 1999, has undergone significant changes, including those introduced by the following rules:

(a) Law 6/2000 of 13 December, approving urgent fiscal measures to stimulate family savings and small and medium-sized enterprises, which incorporated a new article into Law 41/1998 of 9 December on the deduction of payments on account of the Income Tax of the Physical Persons when a taxpayer acquires his/her condition for change of residence and changed the wording of the calculation of the tax base corresponding to the property gains.

b) Law 14/2000 of 29 December, of fiscal, administrative and social order measures, which established new cases of exemption in the Income Tax of the Physical Persons that, due to the interrelationship between Both regulations, passed on to Article 13 of Law 41/1998 of 9 December, and equated, for certain cases, the rates of tax on the Income Tax of non-residents with the existing types of retention for residents.

c) Law 24/2001 of 27 December, of fiscal, administrative and social order measures, which established a new type of tax for the income from work received by seasonal workers.

d) The aforementioned Law 46/2002, of December 18, which has been the one that has originated the most substantial reform in the text of Law 41/1998, of December 9, since it came into force. It was intended to improve technically the previous text in the light of the experience that has been provided by its application, while some issues that were not expressly regulated previously, such as the definitions, were incorporated. of fees or pensions or the scheme of entities for the allocation of income.

e) Finally, Law 62/2003 of 30 December, of fiscal, administrative and social order measures, has introduced certain amendments as a result of the adoption of Council Directive 2003 /49/EC of 3 June 2003, concerning a common system of taxation applicable to interest and royalty payments made between associated companies of different Member States, with a specific transitional regime for royalties. On the other hand, it has also been excluded from the obligation to retain and enter into account diplomatic missions or diplomatic offices of foreign states.

III

In the text approved by this royal legislative decree, Law 41/1998, of December 9, recasts with the following rules:

(a) Law 43/1995 of 27 December of the Company Tax, which regulated in its additional provision fourth the rules on withholding and other matters relating to financial assets and other securities.

This rule is incorporated in paragraphs 2 and 2 of article 53 of the recast text.

(b) Law 50/1998 of 30 December 1998 on tax, administrative and social measures, which laid down, in Article 24, the possibility of regulating the retention and entry-to-account obligations which could be regulated it is for certain entities or the unit-holders themselves to be responsible for transmissions or repayments of shares or shares representing the capital or assets of collective investment institutions in the hands of non- residents. This regulation is incorporated in Article 53 (1) of the recast text.

c) Law 6/2000 of 13 December, which regulated, in Article 23 (4), the treatment in the Income Tax of non-residents of the capital reduction transactions with the return of contributions to the partners and return of the issue premium. This regulation is incorporated in Article 31 (4) of the recast text.

e) Law 34/2003 of 4 November amending and adapting to the Community legislation of private insurance legislation, which has amended Law 30/1995 of 8 November, of the management and supervision of insurance (a) by establishing the obligation to carry out withholding tax or to take account of the representatives of the insurance undertakings operating under the freedom to provide services in Spain, as referred to in Article 86.1 and the provision Additional seventeenth of that Law 30/1995 of 8 November.

(f) Finally, in order to achieve greater clarity, the current regulation is broken down into a single article of the Special Gravamen on Property of Non-Resident Entities in Articles 40 to 45 of this text recast.

IV

It should be noted that they are not integrated into the recast text, for reasons of systematic and consistent normative, those rules of a fiscal nature which, by their special content from a subjective, objective or temporal point of view, do not it should be recast with the general rules of character and scope. This is the case for those whose recasting in this original text is a dispersion of the rules contained in them for affecting different areas and various taxes, such as the Law 20/1990 of 19 December on Tax Regime Cooperatives, Law 19/1994, of 6 July, of

modification of the Economic and Fiscal Regime of the Canary Islands, Law 49/2002, of 23 December, of tax regime of the non-profit entities and of the tax incentives to the patronage, the additional eighteenth of the Law 62/2003 of 30 December relating to securities lending, or the second provision of Law 13/1985 of 25 May 1985, of investment coefficients, own resources and information obligations of financial intermediaries, and the Second transitional provision of Law 19/2003 of 4 July on the legal status of the capital movements and economic transactions with the outside world and on certain measures to prevent money laundering, relating to preference shares and debt instruments.

The regulatory provisions of events of particular public interest, such as the 2004 Holy Year or the 2007 America Cup, are not included.

V

This royal legislative decree contains an article, an additional provision, a transitional provision, a derogation provision, and a final provision.

Under its unique article, the recast text of the Non-Resident Income Tax Act is approved.

In the single additional provision, it is available that the references which in other rules are contained in Law 41/1998, of 9 December, shall be construed as being made to the articles of the recast text which is adopted.

The only transitional provision states that until July 1, 2004, the date of entry into force of Law 58/2003, of December 17, General Tax, will continue to apply a certain precept of Law 41/1998, of 9 of December, and that until that date the references made in the text recast to the precepts of the new General Tax Law will be understood to the corresponding ones of Law 230/1963, of December 28, General Tax, and of the Law 1/1998, of 26 February, of the Rights and Guarantees of the Taxpayers, in the terms that the Law 41/1998, of December 9.

The rules that are recast in this text are included in the single derogation provision, without prejudice to those rules which, as well as being recast, are repealed in the actual legislative decrees approving the texts recast of the Laws of Taxes on the Income of the Physical Persons and on Societies, to affect to a greater extent one of these taxes.

Finally, the only final provision states that the entry into force of the actual legislative decree and the recast text which is adopted shall be the day following that of its publication in the Official Gazette of the State. certain exceptional cases resulting from the entry into force of the new General Tax Law and Council Directive 2003 /49/EC of 3 June 2003.

The recast text approved is composed of 53 articles, grouped in a preliminary chapter and eight chapters, a transitional provision and two final provisions.

Likewise, the recast text includes at the beginning an index of its content, the purpose of which is to facilitate the use of the standard by its recipients by means of a rapid localization and systematic location of its precepts.

In its virtue, on the proposal of the Minister of Finance, in agreement with the Council of State and after deliberation of the Council of Ministers at its meeting of March 5, 2004,

D I S P O N G O:

Single item. Approval of the recast text of the Non-Resident Income Tax Act.

The recast text of the Non-Resident Income Tax Act, which is inserted below, is approved.

Single additional disposition. Regulatory referrals.

The normative references made in other provisions to Law 41/1998, of December 9, of the Income Tax of Non-Residents and Tax Rules, shall be construed as being made to the corresponding precepts of the text recused by this royal legislative decree.

Single transient arrangement. Law 58/2003, of December 17, General Tax.

Until July 1, 2004, date of entry into force of Law 58/2003, of December 17, General Tax:

a) Article 9.3 of Law 41/1998 of 9 December of the Non-Resident Income Tax and Tax Rules shall be retained.

(b) The references made, in the recast text approving this royal legislative decree, to the precepts of Law 58/2003, of 17 December, shall be construed as being made to the corresponding provisions of Law 230/1963, of 28 of December, General Tax, and Law 1/1998, of February 26, of the Rights and Guarantees of the Taxpayers, in the terms provided for in Law 41/1998, of December 9.

Single repeal provision. Regulatory repeal.

1. Subject to the provisions of the previous single transitional provision, the entry into force of this royal legislative decree will be repealed, on the occasion of its incorporation into the recast text which is adopted, Law 41/1998 of 9 December of the Tax on the Income of Non-Residents and Tax Rules, with the exception of the second provision, which shall remain in force.

2. The repeal of the provisions referred to in paragraph 1 shall not prejudice the rights of the public treasury with respect to the tax obligations due during its lifetime.

Single end disposition. Entry into force.

1. This royal legislative decree and the recast text it approves shall enter into force on the day following that of its publication in the "Official Gazette of the State", with the exception of the following paragraphs.

2. Articles 10.3 and 18.1.b) of the recast text shall enter into force on 1 July 2004, the date of entry into force of Law 58/2003 of 17 December 2004, General Tax.

3. Article 25 (1) (i) of the recast text shall enter into force on 1 January 2005, the date referred to in Council Directive 2003 /49/EC of 3 June 2003 on a common system of taxation applicable to interest and royalty payments carried out between associated companies of different Member States.

Dado en Madrid, a 5 de marzo de 2004.

JOHN CARLOS R.

The Minister of Finance,

CRISTOBAL MONTORO ROMERO

RECAST TEXT OF THE NON-RESIDENT INCOME TAX LAW

Index

Preliminary Chapter. Nature, object and scope of application.

Article 1. Nature and object.

Article 2. Scope.

Article 3. Applicable rules.

Article 4. Treaties and conventions.

Chapter I. Personal items.

Article 5. Contributors.

Article 6. Residence in Spanish territory.

Article 7. Allocation of income.

Article 8. Individualisation of income.

Article 9. Responsible.

Article 10. Representatives.

Article 11. Tax domicile.

Chapter II. Subject to tax.

Article 12. Taxable fact.

Article 13. Income obtained in Spanish territory.

Article 14. Exempt income.

Article 15. Forms of attachment.

Chapter III. Income obtained by permanent establishment.

Article 16. Income attributable to permanent establishments.

Article 17. Diversity of permanent establishments.

Article 18. Determination of the tax base.

Article 19. Tax liability.

Article 20. Tax and accrual period.

Article 21. Declaration Article 22. Accounting, registration and formal obligations.

Article 23. Payments on account.

Chapter IV. Income obtained without permanent establishment mediation.

Article 24. Tax base.

Article 25. Tax quota.

Article 26. Deductions.

Article 27. Accrual.

Article 28. Statement.

Article 29. Formal obligations.

Article 30. Holds.

Article 31. Obligation to retain and enter into account.

Article 32. Retention obligations on income from work in case of change of residence.

Article 33. Investments of non-residents in Treasury bills and in other forms of Public Debt.

Chapter V. Entities on the basis of income attribution.

Article 34. Entities on the basis of income allocation.

Section 1. Entities in the allocation of income in Spain.

Article 35. Entities performing an economic activity.

Article 36. Entities that do not perform an economic activity.

Section 2. Third Entities in the allocation of income from abroad.

Article 37. Entities on the basis of the allocation of income abroad.

Article 38. Entities with presence in Spanish territory.

Article 39. Entities without presence in Spanish territory.

Chapter VI. Special Tax on Non-Resident Entities ' Real Estate.

Article 40. Attachment.

Article 41. Tax base.

Article 42. Exemptions.

Article 43. Type of lien.

Article 44. Tax deductibility.

Article 45. Accrual and declaration.

Chapter VII. Option for tax payers resident in other EU Member States.

Article 46. Option for tax payers resident in other EU Member States.

Chapter VIII. Other provisions.

Article 47. Succession in the tax liability.

Article 48. Taxpayer's wealth liability.

Article 49. Infringements and penalties.

Article 50. Court order.

Article 51. Provisional settlement.

Article 52. Deduction of payments on account of the Income Tax of the Physical Persons.

Article 53. Rules on retention, transmission and formal obligations relating to financial assets and other transferable securities.

Single transient arrangement. Transitional provisions of the recast text of the Income Tax Act of the Physical Persons.

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

Final disposition second. Regulatory enablement.

PRELIMINARY CHAPTER

Nature, object, and scope of application

Article 1. Nature and object.

Non-Resident Income Tax is a direct income tax that taxes the income obtained in Spanish territory by natural persons and non-resident entities.

Article 2. Scope.

1. This tax will apply throughout the Spanish territory.

2. The Spanish territory comprises the territory of the Spanish State, including the airspace, the inland waters, as well as the territorial sea and the areas outside it, in which, under international law and under its legislation internal, the Spanish State exercises or can exercise jurisdiction or sovereignty rights with respect to the seafloor, its subsoil and suprayacent waters and its natural resources.

3. The provisions of paragraph 1 shall be without prejudice to the foral tax systems of concert and economic agreement in force respectively in the

Historical Territories of the Basque Country and the Autonomous Community of Navarre.

4. In the Canary Islands, Ceuta and Melilla shall take into account the specialities which are applicable under their specific rules and the provisions of this law.

Article 3. Applicable rules.

The tax is governed by this law, which will be interpreted in accordance with the rules governing the Income Tax of the Physical Persons and the Corporate Tax, as appropriate.

Article 4. Treaties and conventions.

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

CHAPTER I

Personal items

Article 5. Contributors.

They are taxpayers for this tax:

(a) Natural persons and non-resident entities in Spanish territory under Article 6 who obtain income in the Spanish territory, unless they are taxpayers for the Income Tax of the Physical Persons.

(b) Natural persons who are resident in Spain for one of the circumstances provided for in Article 9.4 of the recast of the Law on the Income Tax of the Physical Persons, approved by the Royal Decree Legislative 3/2004, dated March 5.

(c) The entities under the income allocation regime referred to in Article 38.

Article 6. Residence in Spanish territory.

The residence in Spanish territory will be determined in accordance with the provisions of Article 9 of the recast of the Law on the Income Tax of the Physical Persons, approved by the Royal Legislative Decree 3/2004, 5 of Article 8.1 of the consolidated text of the Law on Corporate Tax, approved by the Royal Decree of Law 4/2004, of March 5.

Article 7. Allocation of income.

The income corresponding to the entities in the income allocation system referred to in Article 10 of the recast of the Law on the Income Tax of the Physical Persons, approved by the Royal Legislative Decree The members, heirs, members, members and members of the members, heirs, members and members of the Commission shall be assigned to the members, the heirs, the members and the members, respectively, in accordance with Section 2 of Title VII of that text. recast and in Chapter V of this law.

Article 8. Individualisation of income.

The taxpayers will be subject to the provisions of Article 11 of the recast text of the Law on the Income Tax of the Physical Persons, approved by the Royal Legislative Decree of 5 December. March, on the individualization of income.

Article 9. Responsible.

1. They shall respond jointly and severally to the income of the tax debts corresponding to the income which they have paid or to the income of the goods or rights the deposit or management of which is entrusted, respectively, by the payer of the income accrued without permanent establishment mediation by the taxpayers or the depositary or manager of the goods or the rights of the taxpayers not affected by a permanent establishment.

This liability shall not exist where the obligation to retain and enter into account as referred to in Article 31, even in the cases provided for in paragraph 4 of that Article, does not apply, without prejudice to responsibilities arising from the retainer condition.

2. A person or entity shall not be deemed to satisfy a performance when it is limited to a simple payment mediation. Simple payment mediation means the payment of an amount on behalf of and order of a third party.

3. In the case of the payer of accrued income without mediation of permanent establishment by the taxpayers of this tax, the actions of the tax administration may be understood directly with the person responsible, to which it will be required the tax liability, without the need for the prior administrative act of derivation of liability provided for in Article 41.5 of Law 58/2003, of 17 December, General Tax.

In the case of the depositary or manager of the goods or rights not affected by a permanent establishment, the joint liability shall be required in accordance with the terms laid down in Article 41.5 of Law 58/2003 of 17 December 2003. Tax General.

4. They shall respond jointly and severally to the income of the tax debts corresponding to the permanent establishments of non-resident taxpayers and to the entities referred to in Article 38 of this Law, persons who, according to established in Article 10, be their representatives.

Article 10. Representatives.

1. The taxpayers for this tax will be required to appoint, before the end of the income statement period obtained in Spain, a natural or legal person with residence in Spain, to represent them before the tax administration in Spain. relationship to their obligations under this tax, when they operate through a permanent establishment, in the cases referred to in Articles 24.2 and 38 or where, due to the amount and characteristics of the income obtained in the territory The tax administration is required by the taxpayer, as required by the taxpayer.

The taxpayer or its representative shall be required to inform the tax administration of the appointment, duly accredited, within two months of the date of the appointment.

The designation will be communicated to the Delegation of the State Administration of Tax Administration in which they have to present the declaration by the tax, accompanying the indicated communication the express acceptance of the representative.

2. In the event of non-compliance with the obligation of appointment laid down in the preceding paragraph, the tax administration may consider the permanent establishment or the taxpayer referred to in Article 5 (c) to be a representative of the tax administration. as such in the Mercantile Register. If there is no appointed or registered representative, or a person other than the person empowered to hire on behalf of those, the tax administration may consider the latter as such.

3. Failure to comply with the obligation referred to in paragraph 1 shall be deemed to be a serious tax breach and the penalty shall be a fixed pecuniary fine of EUR 2 000.

The penalty imposed in accordance with this paragraph shall be reduced in accordance with the provisions of article 188.3 of Law 58/2003 of 17 December, General Tax.

Article 11. Tax domicile.

1. Non-resident taxpayers in Spanish territory shall have their tax domicile, for the purpose of fulfilling their tax obligations, in Spain:

a) When they operate in Spain through permanent establishment, in the place in which they radique the effective administrative management and the direction of their business in Spain. In the case where the place of the tax domicile cannot be established in accordance with the above criterion, the place where the highest value of the fixed asset is to be used shall prevail.

(b) When they obtain income derived from real estate, in the tax domicile of the representative and, failing that, in the place of situation of the property concerned.

(c) In the other cases, in the tax domicile of the representative or, failing that, in that of the person responsible for solidarity.

2. Where no representative has been appointed, the notifications in the tax domicile of the person in charge shall have the same value and shall have the same effect as if they were applied directly to the taxpayer.

CHAPTER II

Clamping the tax

Article 12. Taxable fact.

1. It is the taxable fact to obtain income, cash or in kind, in Spanish territory by the taxpayers for this tax, as set out in the following article.

2. Benefits or disposals of goods, rights and services liable to generate income subject to this tax shall be presumed to be paid, unless otherwise specified.

3. The income that is subject to the Tax on Successions and Donations shall not be subject to this tax.

Article 13. Income obtained in Spanish territory.

1. Income obtained in Spanish territory is considered as follows:

(a) The income of economic activities or holdings carried out by permanent establishment located on Spanish territory.

A natural person or entity shall be understood to be operating by permanent establishment on Spanish territory where, by any title, it has, on a continuous or regular basis, facilities or workplaces of any type, in which it carries out all or part of its business, or acts in it by means of an agent authorised to hire, in the name and on behalf of the taxpayer, to exercise these powers with habitability.

In particular, it will be understood that the headquarters, branches, offices, factories, workshops, warehouses, shops or other establishments, mines, oil wells are permanent establishment. or gas, quarries, agricultural, forestry or livestock holdings or any other place of exploration or extraction of natural resources, and construction, installation or assembly works of which the duration exceeds six months.

(b) The income of economic activities or holdings carried out without permanent establishment mediation located in Spanish territory, where another paragraph of this article does not apply, in the following cases:

1. When economic activities are carried out in Spanish territory. Yields arising from the installation or assembly of machinery or installations from abroad shall not be considered to have been obtained on Spanish territory where such operations are carried out by the supplier of machinery or installations; and their amount does not exceed 20% of the purchase price of those items.

2. In the case of services used in Spanish territory, in particular those relating to the carrying out of studies, projects, technical assistance or management support. They shall be understood to be used in Spanish territory for economic activities carried out on Spanish territory or relating to goods located in Spain. Where such benefits are partially used for economic activities carried out on Spanish territory, they shall be deemed to be obtained in Spain only on the part of the activity carried out in Spain.

3. When they derive, directly or indirectly, from personal action in the Spanish territory of artists and sportspersons, or any other activity related to such performance, even if they are perceived by person or entity other than the artist or sportsman.

c) The returns of the job:

1. º When derived, directly or indirectly, from a personal activity developed in Spanish territory.

2. In the case of public remuneration satisfied by the Spanish Administration.

3. In the case of remuneration paid by natural persons engaged in economic activities, in the exercise of their activities, or entities resident in Spanish territory or by permanent establishments located in This is the reason for employment on board a ship or aircraft in international traffic.

The provisions of paragraphs 2 and 3 shall not apply where the work is provided in full abroad and such returns are subject to a tax of a personal nature abroad.

(d) Pensions and other similar benefits, where they derive from a job borrowed on Spanish territory or when they are satisfied by a person or entity resident in Spanish territory or by a permanent establishment located in this.

Pensions are considered to be paid on the basis of a previous job, regardless of whether they are perceived by the worker or another person.

Similar benefits are considered, in particular those provided for in Article 16.2.a) and (f) of the recast text of the Income Tax Act of the Physical Persons, approved by the Royal Legislative Decree 3/2004, 5 of March.

e) The remuneration of the directors and members of the boards of directors, who do their meetings or representative bodies of an entity resident in Spanish territory.

f) The following capital returns:

1. º The dividends and other income derived from the participation in the own funds of entities resident in Spain, without prejudice to the provisions of Article 118 of the recast of the Law on the Tax on Companies, approved by the Royal Legislative Decree 4/2004 of 5 March 2004.

2. º Interest and other income obtained by the transfer to third parties of own capital satisfied by persons or entities resident in Spanish territory, or by permanent establishments located in the Spanish territory, or that pay back capital benefits used in Spanish territory.

3. º royalties or royalties satisfied by persons or entities resident in Spanish territory or by permanent establishments located in the Spanish territory, or used in Spanish territory.

They have the consideration of royalties or royalties the amounts of any class paid for the use, or the granting of use of:

Rights on literary, artistic or scientific works, including film films.

Patents, trademarks, designs, drawings, models, plans, or trade marks.

Software rights.

Information related to industrial, commercial or scientific experiences.

Personal rights that can be transferred, such as image rights.

Industrial, commercial, or scientific equipment.

Any rights similar to previous ones.

In particular, they have that consideration the amounts paid for the use or the granting of the use of the rights protected by the recast text of the Law on Intellectual Property, approved by the Royal Legislative Decree 1/1996, of 12 April, Law 11/1986, of 20 March, of Patents, and Law 17/2001, of 7 December, of Marks.

4. Other capital returns not mentioned in paragraphs 1, 2, 2 and 3 above, satisfied by natural persons engaged in economic activities, in the exercise of their activities, or entities resident in the Spanish territory or by permanent establishments located in that territory.

g) Yields derived, directly or indirectly, from real estate located in Spanish territory or from rights relating to them.

(h) The income attributed to the taxpayer by natural persons holding urban real estate located in Spanish territory not affected by economic activities.

i) Heritage gains:

1. º When derived from securities issued by persons or entities resident in Spanish territory.

2. º When derived from other movable property, other than securities, located in Spanish territory or of rights to be fulfilled or exercised on Spanish territory.

3. When they come, directly or indirectly, from real estate located in Spanish territory or from rights relating to them. In particular, they are considered as:

Property gains derived from rights or interests in an entity, resident or not, whose asset is primarily, directly or indirectly, constituted by real estate located in Spanish territory.

The property gains arising from the transfer of rights or interests in an entity, resident or not, that attribute to its holder the right to enjoy real estate located in Spanish territory.

4. Where the assets located in Spanish territory or rights that are to be fulfilled or exercised in the territory of the taxpayer are incorporated into the assets of the taxpayer, even if they do not result from prior transmission, such as profits in the game.

2. The following yields are not considered to be obtained in Spanish territory:

(a) Satisfied by the international purchase of goods, including mediation fees, as well as ancillary and related expenses.

(b) Satisfied persons or entities not resident by permanent establishments located abroad, under these conditions, where the corresponding benefits are linked to the activity of the establishment permanent abroad.

3. For the classification of the different concepts of income according to their origin, it will be in accordance with the provisions of this article and, failing that, the criteria established in the recast text of the Law of the Income Tax of the Persons Physical, approved by the Royal Legislative Decree 3/2004, dated March 5.

Article 14. Exempt income.

1. The following income shall be exempt:

(a) The income mentioned in Article 7 of the recast of the Law on the Income Tax of the Physical Persons, approved by the Royal Legislative Decree of March 5, received by individuals, as well as the This is the case in point of fact.

the case of the Spanish authorities, the Commission has taken a decision on the application of the provisions of the Treaty on European Union.

(b) Grants and other amounts received by natural persons, satisfied by public administrations, under international agreements and conventions for cultural, educational and scientific cooperation or under the plan annual international cooperation approved by the Council of Ministers.

(c) Interest and other income obtained by the transfer to third parties of capital as referred to in Article 23.2 of the recast of the Law on the Income Tax of the Physical Persons, approved by the Royal Legislative Decree 3/2004 of 5 March, as well as property gains derived from movable property, obtained without permanent establishment, by residents of another Member State of the European Union or by establishments permanent members of such residents located in another Member State of the European Union.

The provisions of the preceding paragraph shall not apply to property gains arising from the transmission of shares, units or other rights in an entity in the following cases:

1. º When the asset of such entity consists primarily, directly or indirectly, in real estate located in Spanish territory.

2. º When, at some point, during the 12-month period preceding the transmission, the taxpayer has participated, directly or indirectly, in at least 25 percent of the capital or equity of that entity.

(d) Yields derived from Public Debt, obtained without permanent establishment mediation in Spain.

(e) Income derived from securities issued in Spain by natural persons or non-resident entities without permanent establishment mediation, whatever the place of residence of the financial institutions acting as such as payment agents or mediate in the issue or transfer of securities.

However, where the holder of the securities is a permanent establishment on Spanish territory, the income referred to in the preceding paragraph shall be subject to this tax and, where applicable, to the withholding tax system, to be practiced by the resident financial institution acting as the depositary of the securities.

(f) The income of the non-resident accounts, which are satisfied to taxpayers for this tax, unless the payment is made to a permanent establishment located in Spanish territory, by the Banco de España or by the registered entities referred to in the rules of economic transactions with the outside.

(g) Income obtained on Spanish territory, without permanent establishment in the territory of Spain, from the lease, transfer or transfer of containers or vessels and aircraft to the bare hull used in the maritime or international air navigation.

(h) The profits distributed by subsidiary companies resident in Spanish territory to their parent companies resident in other Member States of the European Union, where the following conditions are met:

1. That both companies are subject to and not exempt from any of the taxes on the benefits of legal entities in the Member States of the European Union, as referred to in Article 2 (c) of Directive 90 /435/EEC of the Council of 23 July 1990 on the arrangements applicable to parent companies and subsidiaries of different Member States.

2. That the distribution of profit is not a consequence of the liquidation of the subsidiary.

3. The two companies are in one of the forms set out in the Annex to Council Directive 90 /435/EEC of 23 July 1990 on the arrangements applicable to parent companies and subsidiaries of Member States different.

It will have the consideration of the parent company of that entity that holds in the capital of another society a direct participation of, at least, 25 percent. The latter entity shall have the consideration of a subsidiary.

The said participation must have been kept uninterruptedly during the year preceding the day on which the profit to be distributed or, failing that, to be maintained for as long as it is necessary for the complete one year. In the latter case, the tax revenue entered will be returned after the deadline has been met.

Residence shall be determined in accordance with the law of the Member State concerned, without prejudice to the provisions of the conventions to avoid double taxation.

Notwithstanding the foregoing, the Minister of Finance may declare, on condition of reciprocity, that the provisions of this paragraph (h) apply to subsidiary companies which have a different legal form of those provided for in the Annex to the Directive and to dividends distributed to a parent holding in the capital of a subsidiary company resident in Spain a direct participation of at least 10%, provided that the other conditions set out in this paragraph (h).

The provisions of this subparagraph shall not apply where the majority of the voting rights of the parent company are held, directly or indirectly, by natural or legal persons who do not reside in the Member States of the Union. European, except where it effectively carries out a business activity directly related to the business activity carried out by the subsidiary company or has as its object the management and management of the subsidiary by the appropriate organisation of material and personal means or evidence which has been constituted for reasons valid economic and not to unduly enjoy the scheme provided for in this paragraph.

(i) The income derived from the transfer of securities or the repayment of shares in investment funds made in one of the official secondary markets of Spanish securities, obtained by natural persons or non-resident non-resident entities of permanent establishment in Spanish territory, who are resident in a State that has an agreement with Spain to avoid double taxation with an exchange of information clause.

2. In no case shall the provisions of paragraphs (c), (d) and (i) of the preceding paragraph apply to the income and property gains obtained through the countries or territories that are regulated as tax havens.

Nor shall the provisions of paragraph (h) of the previous paragraph be applied when the parent company has its tax residence in a country or territory that is regulated as a tax haven.

3. The Minister of Finance may declare, on condition of reciprocity, the exemption of the income corresponding to maritime or air navigation entities resident abroad whose vessels or aircraft touch Spanish territory, even if they have in this consignees or agents.

Article 15. Forms of attachment.

1. Taxpayers who obtain income by permanent establishment located in Spanish territory shall be taxed for the whole of the income attributable to that establishment, whichever is the place of their obtaining, in accordance with the provisions of Article 1 (1) of the in Chapter III.

2. Taxpayers who obtain income without permanent establishment mediation shall be taxed separately for each full or partial accrual of income subject to taxation, without any compensation being possible between them and in the provided for in Chapter IV.

CHAPTER III

Rents obtained by permanent establishment

Article 16. Income attributable to permanent establishments.

1. The following concepts are composed of the income attributable to the permanent establishment:

(a) The income of the economic activities or holdings developed by that permanent establishment.

(b) Yields derived from property assets affected by the permanent establishment.

(c) The property gains or losses arising from the property assets affected by the permanent establishment.

The permanent establishment is considered to be an asset to the permanent establishment, functionally linked to the development of the activity that constitutes its object.

The representative assets of an institution's own funds holding shall only be considered to be property assets for the permanent establishment where it is a registered branch of the institution

Register and meet the requirements laid down in regulation.

2. In the case of re-export of goods previously imported by the same taxpayer, it shall be considered:

(a) That there has been no alteration of any assets, without prejudice to the treatment applicable to payments made for the period of use, in the case of temporarily imported fixed assets.

b) That there has been an alteration of assets, in the case of assets acquired for use in the activities carried out by a permanent establishment.

c) That there has been performance, positive or negative, of an economic activity or exploitation, if these are items that have the consideration of stocks.

Article 17. Diversity of permanent establishments.

1. Where a taxpayer has different centres of activity on Spanish territory, they shall be deemed to constitute different permanent establishments, and shall be taxed accordingly separately, where the following conditions are met: circumstances:

a) That they perform clearly differentiable activities.

b) The management of these is carried out separately.

2. In no case shall the compensation of rents between different permanent establishments be possible.

Article 18. Determination of the tax base.

1. The taxable base of the permanent establishment shall be determined in accordance with the provisions of the general arrangements for corporate taxation, without prejudice to the following paragraphs:

(a) For the determination of the tax base, the payments which the permanent establishment makes to the central house or to any of its permanent establishments in respect of royalties, interest, commissions, shall not be deductible. paid in consideration for technical assistance services or for the use or transfer of goods or rights.

Notwithstanding the foregoing, interest paid by the permanent establishments of foreign banks to their central house or other permanent establishments will be deductible for the realization of their activity.

(b) For the determination of the tax base, the reasonable portion of the management and general administrative expenses corresponding to the permanent establishment shall be deductible, provided that the following conditions are met: requirements:

1. Reflection in the accounting states of the permanent establishment.

2. º Constance, by means of information presented with the declaration, of the amounts, criteria and modules of the distribution.

3. º Rationality and continuity of the imputation criteria adopted.

The rationale requirement of the imputation criteria shall be understood when these are based on the use of factors made by the permanent establishment and on the total cost of such factors.

In those cases where it is not possible to use the criterion set out in the preceding paragraph, the imputation may be carried out on the basis of the relationship in which one of the following measures is found:

Business figure.

Direct costs and expenses.

Average investment in items of tangible fixed assets affected economic activities or holdings.

Total average investment in items affected by economic activities or holdings.

It shall be applicable to the determination of the costs of management and general administration deductible under this paragraph, in the manner that is determined, the procedure provided for in Article 91 of the Law 58/2003, dated December 17, General Tax.

(c) In no case shall amounts corresponding to the cost of the capital of the entity affected, directly or indirectly, be imputable to the permanent establishment.

2. The operations carried out by the permanent establishment with its central house or other permanent establishments of the taxpayer, whether located in Spanish or abroad, or with other companies or persons connected with it, are value in accordance with the provisions of Article 16 of the recast of the Companies Tax Act, approved by Royal Decree-Law 4/2004 of 5 March 2004.

3. The permanent establishment may compensate its negative tax bases in accordance with the provisions of Article 25 of the recast of the Law on Corporate Tax, approved by Royal Decree-Law 4/2004 of 5 March 2004.

4. Where the operations carried out in Spain by a permanent establishment do not close a complete business cycle determining income in Spain, the latter being ended by the taxpayer or by one or more of its permanent establishments without that there is any consideration, apart from the coverage of the costs incurred by the permanent establishment and without any or all of the products or services being allocated to third parties other than the taxpayer itself, the following rules:

(a) The income and expenses of the permanent establishment shall be valued according to the rules of Article 16 of the recast of the Law on Corporate Tax, approved by the Royal Legislative Decree 4 /2004 of 5 March, the tax liability is determined in accordance with the rules applicable to the general corporate tax regime and as provided for in the preceding paragraphs of this Article.

b) Subsidaily, the following rules apply:

1. The tax base shall be determined by applying the percentage which the Minister of Finance points out to these effects on the total expenditure incurred in the development of the activity which constitutes the object of the establishment permanent. This amount shall be added to the total amount of ancillary revenue, such as interest or royalties, which do not constitute its business object, as well as the profits and losses arising from the property assets to the establishment.

For the purposes of this rule, the expenses of the permanent establishment shall be computed by its full amount, without being admissible in terms of any minorings or compensation.

2. The full quota shall be determined by applying the general charge rate on the basis of the taxable amount, without applying the deductions and allowances provided for in the general scheme.

5. For permanent establishments whose activity in Spanish territory consists of construction, installation or assembly works of a duration exceeding six months, seasonal or seasonal economic activities or holdings, or activities For the exploration of natural resources, the tax will be required according to the following rules:

(a) As intended for the income of economic activities or holdings obtained in Spanish territory without permanent establishment mediation in Articles 24 (2) and 25, the effect of which is to apply the The following rules:

1. The rules on accrual and presentation of declarations shall be those relating to income obtained without permanent establishment mediation.

2. Taxpayers Shall Be Relieved of the fulfilment of general accounting and registration obligations. However, they shall keep and keep at the disposal of the tax administration the supporting documents for the revenue obtained and the payments made for this tax, as well as, where appropriate, the withholding tax and revenue from which the tax is payable. statements relating to these.

They will also be required to file a census declaration and declare their tax domicile on Spanish territory, as well as to communicate any changes in this or the data entered in the latter.

(b) However, the taxpayer may opt for the application of the general scheme provided for permanent establishments in the preceding articles.

It shall be compulsory, in any case, for the application of the system referred to in paragraph (a) above where the permanent establishment does not have separate accounts for the income obtained in Spanish territory.

The option must be displayed while presenting the census declaration of activity start.

(c) In no case shall it be applicable to taxpayers who follow the system provided for in paragraph (a) above, the rules laid down in the conventions to avoid double taxation for the alleged income obtained without permanent establishment mediation.

Article 19. Tax liability.

1. The rate of charge of 35% shall be applied to the taxable amount determined in accordance with the preceding Article, except where the activity of the permanent establishment is the activity of research and exploitation of hydrocarbons; in such a case, the of the levy will be 40 percent.

2. In addition, where the income obtained by permanent establishments of non-resident entities is transferred abroad, a supplementary levy, at the rate of 15%, on the amounts transferred shall be payable. the income from the permanent establishment, including the payments referred to in Article 18.1.a), which have not been deductible expenses for the purposes of fixing the taxable base of the permanent establishment.

The declaration and entry of such additional charge shall be made in the form and time limits established for the income obtained without permanent establishment mediation.

3. Supplementary taxation shall not apply:

(a) To income obtained in Spanish territory through permanent establishments by entities that have their tax residence in another Member State of the European Union.

(b) To the income obtained in Spanish territory through permanent establishments by entities that have their tax residence in a State that has signed a convention with Spain to avoid double taxation, in which they do not Another thing is expressly stated, provided that there is reciprocal treatment.

4. In the full quota of the tax may be applied:

(a) The amount of the allowances and deductions referred to in Articles 30 to 44 of the recast of the Company Tax Act, approved by Royal Decree-Law 4/2004 of 5 March 2004.

b) The amount of holds, income to account, and fractional payments.

5. The various deductions and allowances will be made in the light of the circumstances in the permanent establishment, without the fact that they are transferable to other than the same taxpayer on Spanish territory.

6. Where the withholding, revenue to account and payments actually incurred exceeds the amount resulting from the full amount of the tax the allowances and deductions referred to in paragraph 4 (a) of this Article, the The tax administration will proceed to return the excess, within the deadlines and conditions provided for in Article 139 of the recast of the Law on Corporate Tax, approved by the Royal Legislative Decree 4, 2004, of 5 March.

Article 20. Tax and accrual period.

1. The tax period shall coincide with the economic year declared by the permanent establishment, without exceeding 12 months.

Where no other has been declared, the tax period shall be understood as referring to the calendar year.

The communication of the tax period shall be made at the time the first declaration is to be filed for this tax, which shall be understood as subsisting for subsequent periods as long as it is not expressly amended.

2. The tax period shall be deemed to be terminated if the permanent establishment ceases its business or, otherwise, the investment in its day effected in respect of the permanent establishment, as well as in the cases in which it is established, is effected. the transfer of the permanent establishment to another natural person or entity, those in which the central house transfers its residence, and when its holder is deceased.

3. The tax shall be due on the last day of the tax period.

Article 21. Statement.

1. Permanent establishments shall be obliged to make a declaration, determining and entering the corresponding tax liability in the form, place and documentation to be determined by the Minister of Finance.

The declaration shall be filed within 25 calendar days following the six months after the end of the tax period.

2. Where the cases referred to in Article 20 (2) occur, the time limit for filing shall be that provided for in general for the income obtained without permanent establishment as from the date on which the event occurs, without the possibility of To be allowed to decline in the Entity Index as long as no such statement has been made.

Article 22. Accounting, registration and formal obligations.

1. Permanent establishments shall be obliged to keep separate accounts, relating to the operations they carry out and to the assets which are affected by them.

2. They shall also be required to comply with the remaining accounting, registration or formal obligations of entities resident in Spanish territory by the Company Tax rules.

Article 23. Payments on account.

1. Permanent establishments shall be subject to the system of withholding tax on companies for the income they receive, and shall be obliged to make instalments on account of the liquidation of this tax on the same terms the entities subject to the Company Tax.

2. They shall also be obliged to carry out withholding and income on the same terms as the entities resident in Spanish territory.

CHAPTER IV

Rents obtained without permanent establishment mediation

Article 24. Tax base.

1. As a general rule, the taxable amount corresponding to the income which the tax payers obtain without the intermediary of permanent establishment shall be constituted by their full amount, determined in accordance with the rules of the recast of the Law on the Income Tax of the Physical Persons, approved by the Royal Legislative Decree 3/2004 of 5 March, without application of the multiplying percentages of Article 23.1 of the said recast text, nor the reductions.

2. In the case of services, technical assistance, installation or assembly works resulting from engineering contracts and, in general, from economic activities or holdings carried out in Spain without permanent establishment mediation, the taxable amount shall be equal to the difference between the total revenue and the staff costs, the supply of materials incorporated in the works or works and supplies, under the conditions laid down in the regulations.

3. The taxable amount corresponding to the income derived from reinsurance transactions shall be the amounts of the premiums transferred, in reinsurance, to the non-resident reinsurer.

4. The taxable amount corresponding to the capital gains shall be determined by applying the rules laid down in Section 4, Chapter I of Title II, with the exception of Article 31.2, and Title VIII, to each alteration to be produced. Except for the second paragraph of Article 95.1.a), the recast of the Law on the Income Tax of the Physical Persons approved by the Royal Legislative Decree of March 5.

In the case of non-resident entities, where the wealth gain comes from a profit-making acquisition, the amount shall be the normal market value of the item purchased.

5. In the case of non-resident natural persons, the income attributed to immovable property located in Spanish territory shall be determined in accordance with Article 87 of the recast of the Income Tax Act. Physical, approved by the Royal Legislative Decree 3/2004, dated March 5.

Article 25. Tax quota.

1. The tax rate shall be obtained by applying to the tax base determined in accordance with the preceding article the following types of tax:

a) With a general character, 25 percent.

(b) Pensions and other similar benefits received by natural persons not resident in Spanish territory, whichever person has generated the right to their perception, shall be taxed according to the following scale:

Amount pension up to - Euros	Cuota - Euros	Rest pension up to - Euros	Applicable Type - Percentage
0	0	9,616.19
9.616.19	769.30	5.409.11	30
15.025.30	2.392.03
40

(c) The income of the work of natural persons not resident in Spanish territory, provided that they are not taxpayers for the Income Tax of the Physical Persons, who provide their services in diplomatic missions and Consular representations of Spain abroad, where there is no application of specific rules derived from international treaties in which Spain is a party, will be taxed at 8 percent.

d) For returns derived from reinsurance operations, 1.5 percent.

e) 4% in the case of maritime or air navigation entities resident abroad, whose vessels or aircraft touch Spanish territory.

f) In the case of property gains, 35 percent, without prejudice to the following paragraph.

g) 15 percent when it comes to:

1. º Dividends and other returns derived from participation in an entity's own funds.

2. º Interest and other income earned by the transfer to third parties of own capital.

3. The income derived from the transmission or redemption of shares or shares representing the capital or the equity of collective investment institutions.

(h) The income from work received by natural persons not resident in Spanish territory under a fixed-term contract for foreign seasonal workers, in accordance with the provisions of the labor regulations, will be taxed at the rate of 2 percent.

(i) The rate of charge applicable to royalties or royalties satisfied by a company resident in Spanish territory or by a permanent establishment situated in the territory of a company resident in another Member State of the Union European a company resident in another Member State or a permanent establishment situated in another Member State of a resident company of a Member State shall be 10% when the following conditions are met:

1. º That both companies are subject to and not exempt from any of the taxes referred to in Article 3 (a) (iii) of Council Directive 2003 /49/EC of 3 June 2003 on a common system of taxation applicable to payments interest and royalties made between associated companies of different Member States.

2. º That both companies are in one of the forms set out in the Annex to Directive 2003 /49/EC.

3. That both companies are tax residents in the European Union and that, for the purposes of an agreement to avoid double taxation on income concluded with a third State, they are not considered to be residents of that third State.

4. Let both societies be associated. For these purposes, two companies shall be deemed to be associated when one has a direct holding of at least 25% in the capital of the other, or a third holding in the capital of each of them a direct participation of at least one of them. 25 percent.

The said participation must have been kept uninterruptedly during the year before the day when the payment of the performance has been satisfied or, failing that, it must be maintained for as long as it is necessary to complete one year.

5. º That, if any, such amounts are deductible for the permanent establishment that satisfies the returns in the State in which it is situated.

6. º that the company receiving such payments does so for its own benefit and not as a mere intermediary or authorized agent of another person or society and that, in the case of a permanent establishment, the amounts it receives are effectively related to their business and constitute a computable income for the purposes of determining their taxable amount in the State in which they are located.

This paragraph (i) shall not apply where the majority of the voting rights of the income-bearing company are held, directly or indirectly, by natural or legal persons who do not reside in the Member States of the European Union, except where that proves that it has been constituted for valid economic reasons and not for unduly enjoying the arrangements provided for in this paragraph (i).

2. In the case of transfers of immovable property located in Spanish territory by taxpayers acting without permanent establishment, the acquirer shall be obliged to retain and enter 5%, or to make the entry into account corresponding to the agreed consideration, in terms of payment on account of the tax corresponding to those.

The provisions of the preceding paragraph shall not apply where the owner of the property transmitted was a natural person and, at 31 December 1996, the property had remained in his estate for more than 10 years, without having been the object of improvements during that time.

The income referred to in this paragraph shall not be made in the case of the contribution of immovable property, in the formation or increase of capital of companies resident in Spanish territory.

Without prejudice to any penalties that may be caused by the infringement, if the withholding or entry into account has not been entered, the goods transmitted shall be affected by the payment of the amount is lower between such withholding or income on account and the corresponding tax.

Article 26. Deductions.

The quota will only be deducted:

(a) The amounts corresponding to the deductions for donations in the terms provided for in Article 69.3 of the recast of the Law on the Income Tax of the Physical Persons, approved by the Royal Decree Legislative 3/2004, dated March 5.

(b) Retentions and income on account that would have been practiced on the taxpayer's income.

Article 27. Accrual.

1. The tax shall be payable:

(a) In the case of yields, where they are payable or at the date of recovery if the latter is earlier.

b) Dealing with property gains, when the property alteration takes place.

c) Dealing with imputed rents corresponding to urban real estate, on December 31 of each year.

d) In other cases, where the corresponding income is payable.

2. The presumed income referred to in Article 12 (2) shall be payable if it is payable or, failing that, on 31 December of each year.

3. In the case of the death of the taxpayer, all outstanding charges shall be deemed to be payable on the date of death.

Article 28. Statement.

1. Taxpayers who obtain income in Spanish territory without permanent establishment mediation shall be obliged to make a declaration, determining and entering the corresponding tax liability, for this tax in the form, place and deadlines to be set.

2. The debt declaration and the debt securities defined in Article 9 may also be made and entered into the debt.

3. Taxpayers shall not be required by this tax to submit the statement corresponding to the income in respect of which the withholding tax has been made or the income to be paid, as referred to in Article 31.

Article 29. Formal obligations.

1. Taxpayers who obtain income from those referred to in Article 24 (2) shall be obliged to keep the records of revenue and expenditure which they regulate shall be established.

2. Where they have to carry out withholding and income on account, they shall be obliged to submit the census declaration and to keep records of revenue and expenditure which are determined in accordance with the rules.

Article 30. Holds.

Taxpayers who operate in Spain without permanent establishment mediation will be obliged to practice withholding and income in respect of the income of the work they satisfy, as well as other yields subject to retention which constitute deductible expenditure for the purpose of obtaining the income referred to in Article 24.2.

Article 31. Obligation to retain and enter into account.

1. They shall be required to carry out withholding and income in respect of income subject to this tax which they satisfy or pay:

(a) Entities, including entities under the allocation regime, resident in Spanish territory.

(b) Natural persons resident in Spanish territory who carry out economic activities in respect of the income they satisfy or pay in the exercise of those income.

(c) Taxpayers of this tax by permanent establishment or without permanent establishment, but in this case only in respect of the yields referred to in Article 30.

(d) The contributors referred to in Article 5 (c).

(e) The representative appointed in accordance with the provisions of Article 86.1 and the additional seventeenth provision of Law 30/1995 of 8 November of private insurance management and supervision, acting on behalf of the an insurance undertaking operating under the freedom to provide services, in relation to operations carried out in Spain.

In no case will they be obliged to practice withholding or taking into account the diplomatic missions or consular offices in Spain of foreign states.

2. The persons required to retain must retain or enter into account an amount equivalent to that resulting from the application of the provisions laid down in this law to determine the tax liability corresponding to the taxpayers for this tax. without permanent establishment or those laid down in an agreement to avoid double taxation which is applicable, without taking into account the provisions of Articles 24.2, 26 and 44.

Without prejudice to the foregoing, the calculation of the income to account shall be subject to the provisions of the regulations.

3. The persons required to retain or to enter into account shall assume the obligation to make the entry into the Treasury, without the failure of that obligation to excuse them from this.

4. No retention or entry into account shall be carried out in respect of:

(a) Income which is exempt pursuant to Article 14 or an agreement to avoid double taxation which is applicable, without prejudice to the obligation to declare as provided for in paragraph 5 of this Article Article.

(b) The yield arising from the distribution of the share or equity issue premium, or the reduction of capital. The obligation to practise retention or entry into account in these cases may be laid down.

(c) The income paid to or paid to taxpayers for this tax without permanent establishment, when the payment of the tax or the source of exemption is credited.

(d) The income referred to in Article 118.1 (c) of the recast of the Company Tax Act, approved by Royal Decree-Law 4/2004 of 5 March 2004.

e) The income to be regulated.

5. The subject obliged to retain and to practice income on account shall make a declaration and make the entry into the Treasury at the place, form and time-limits to be established, of the amounts withheld or of the revenue to be realized, or statement negative when they did not carry out their practice. It shall also provide an annual summary of withholding and revenue in accordance with the content to be determined by regulation.

The subject obliged to retain and to practice income on account shall be obliged to keep the relevant documentation and to issue, under the conditions to be determined, certifying certification of the withholding or income to account.

6. The provisions of this Article shall be without prejudice to the provisions of Article 25.2.

Article 32. Retention obligations on income from work in case of change of residence.

The employees who, not being taxpayers of this tax, will acquire such a condition as a result of their displacement abroad will be able to communicate it to the tax administration, leaving a record of the date of departure of the Spanish territory, to the exclusive effects of the paying of the income of the work to them as taxpayers of this tax.

In accordance with the procedure to be established, the tax administration shall issue a document of credit to the employed persons who request it, which shall inform the payer of their income. of the resident job or permanent establishment in Spain, and in which the date from which the withholding and income to account will be practiced by this tax.

This will not exonerate the worker from crediting his new tax residence with the tax administration.

Article 33. Investments of non-residents in Treasury bills and in other forms of Public Debt.

Public Debt market management entities in the accounts will be required to retain and enter the Treasury, as a substitute for the taxpayer, the amount of this tax corresponding to the income of the Treasury bills and other securities representative of the Public Debt established by the Minister of Finance obtained by non-resident investors in Spain, without permanent establishment, provided that the exemptions on the returns from the various instruments of the public debt provided for in this law.

CHAPTER V

Entities on the basis of income attribution

Article 34. Entities on the basis of income allocation.

1. The entities referred to in Article 7 of this Law that count among their members with taxpayers of this tax shall apply the provisions of Section 2.adel Title VII of the recast text of the Income Tax Act. Physical, approved by the Royal Legislative Decree 3/2004 of 5 March, with the specialties provided for in this chapter according to whether entities incorporated in Spain or abroad.

2. In addition, the members of the entities referred to in the previous paragraph who are taxpayers of this tax shall apply the specialities listed in this Chapter.

Section 1. Entities on the basis of income allocation set up in Spain

Article 35. Entities performing an economic activity.

In the case of entities under the allocation of income that develop an economic activity in Spanish territory, non-resident members in Spanish territory will be taxpayers of this tax with establishment permanent.

Article 36. Entities that do not perform an economic activity.

1. In the case of entities under the allocation of income that do not develop an economic activity in Spanish territory, non-resident members in Spanish territory shall be taxpayers of this tax without permanent establishment, and the of income which is attributable to them shall be determined in accordance with the rules of Chapter IV.

2. In this case, and without prejudice to paragraph 3, the entity on the basis of income allocation shall be obliged to take into account the difference between the part of the withholding tax which corresponds to the non-resident member and the retention that would have resulted from having been directly applied to the income attributed to the provisions of Article 31.

3. In the case of transfers of immovable property located in Spanish territory, where one of the members of the entity in the allocation of income is not resident in Spanish territory, the acquirer shall practice, on the part of the consideration agreed to correspond to those members, the retention resulting from the application of Article 25.2.

4. The Minister of Finance shall determine the form, place and time-limits in which the obligation referred to in paragraph 2 is to be fulfilled.

Section 2. Third Entities in the allocation of income from abroad.

Article 37. Entities on the basis of the allocation of income abroad.

They shall have the consideration of entities under the allocation of income, entities incorporated abroad whose legal status is identical or analogous to that of the entities in the allocation of income with Spanish laws.

Article 38. Entities with presence in Spanish territory.

1. Where an entity under a revenue allocation scheme incorporated abroad carries out an economic activity on Spanish territory, and all or part of it is carried out on a continuous or regular basis, by means of facilities or workplaces of any kind, or act in it through an agent authorized to hire, in the name and on behalf of the entity, shall be a contributor to this tax and present, in the terms established by the Minister of Finance, an annual self-settlement according to the following rules:

1. The taxable base shall be constituted by the part of the income, whatever the place of its obtaining, determined in accordance with the provisions of Article 90 of the recast of the Law on Income Tax Natural Persons, approved by the Royal Legislative Decree 3/2004 of 5 March, which is attributable to non-resident members of the entity.

2. The full quota will be determined by applying the tax rate of 35 percent on the tax base.

3. This quota shall be reduced by applying the allowances and deductions permitted under Article 19.4 for taxpayers operating on a permanent basis, as well as payments on account, always on the part of the corresponding to the income attributable to non-resident members.

2. These entities must present the information declaration referred to in Article 91 of the recast of the Law on the Income Tax of the Physical Persons, approved by the Royal Legislative Decree of March 5, by the the income that is attributable to the resident members of the entity.

3. The taxpayer referred to in paragraph 1 shall be obliged to make payments in instalments on account of this tax, which shall be self-contained and shall be paid in accordance with the conditions which are determined.

4. In the event that any of the non-resident members of the entities referred to in paragraph 1 of this Article invoke a double taxation agreement, the shares satisfied by the institution shall be deemed to have been met by the institution in the part of the appropriate part.

Article 39. Entities without presence in Spanish territory.

1. Where an entity under a revenue allocation scheme established abroad obtains income in Spanish territory without developing an economic activity in the form provided for in paragraph 1 of the previous Article, the members shall not resident in Spanish territory shall be taxpayers of this tax without permanent establishment and the portion of income that is attributable to them shall be determined in accordance with the provisions of Chapter IV.

2. Withholding taxes or income on income earned in Spanish territory will not apply to them as provided in Article 90.2 of the recast text of the Law on the Income Tax of the Physical Persons, approved by the Royal Legislative Decree 3/2004 of 5 March. Holds or income on account will be practiced as follows:

(a) If the payer is credited with the residence of the members of the entity and the proportion in which the income is attributed to the payer, the retention corresponding to those circumstances shall apply to each member in accordance with his/her respective tax.

(b) Where the payer does not understand the circumstances described in the preceding paragraph, he shall practice the withholding or income in accordance with the rules of this tax, without regard to the place of residence of his or her Member States and the exemptions provided for in Article 14. The retention rate shall be the rate corresponding in accordance with Article 25 (1

.

When the entity in the allocation of income is constituted in a country or territory that is regulated as a tax haven, the retention to be applied will in any case follow the rule set out in the paragraph previous.

Withholding or income on account will be deductible from the personal taxation of the partner, heir, community or participant, in the same proportion as the income is attributed.

3. In the case of transfers of immovable property located in Spanish territory, where one of the members of the entity in the allocation of income is not resident in Spanish territory, the acquirer shall practice, on the part of the consideration agreed to correspond to those members, the retention resulting from the application of Article 25.2.

4. The entities referred to in this Article shall not be subject to the reporting obligations referred to in Article 91 of the recast of the Law on the Income Tax of the Physical Persons, approved by the Royal Decree Legislative 3/2004, dated March 5.

CHAPTER VI

Special Tax on Non-Resident Entities ' Real Estate

Article 40. Attachment.

Non-resident entities that own or hold in Spain, for any title, real estate or real rights of enjoyment or enjoyment on them, shall be subject to the tax by a special charge.

Article 41. Tax base.

1. The taxable amount of the special charge shall be the cadastral value of the immovable property.

When there is no cadastral value, the determined value shall be used in accordance with the applicable provisions for the purposes of the Heritage Tax.

2. In cases where a non-resident entity participates in the ownership of the goods or rights together with other persons or entities, the Special Gravamen on Real Estate of Non-Resident Entities in Spain shall be payable by the party. the value of the goods or rights that corresponds proportionally to their participation in the ownership of those goods or rights.

Article 42. Exemptions.

1. The special charge on immovable property shall not be chargeable to:

(a) Foreign States and public institutions and international bodies.

(b) Entities entitled to the application of a convention to avoid international double taxation, where the applicable convention contains an exchange of information clause, and provided that the natural persons who last they have, directly or indirectly, the capital or assets of the institution, are resident in Spanish territory or are entitled to the application of an agreement to avoid double taxation containing the exchange clause information.

For the purposes of the application of the exemption referred to in this paragraph, non-resident entities shall be required to submit a statement relating to the properties located on their own territory, as well as the the last physical holding of its capital or assets, stating the tax residence, nationality and domicile of the institution itself and of such natural persons. To the declaration, which must be presented in the Administration or Delegation of the State Administration of Tax Administration in whose territorial scope the building is situated, the certification of the tax residence of the entity and of the final holders of natural persons, issued by the competent tax authorities of the State concerned. Such a declaration shall be submitted within the same time limit for the entry of the tax.

(c) Entities that develop in Spain, on a continuous or regular basis, economic holdings that are differentiable from the simple holding or lease of the property, in accordance with what is established in law.

(d) Companies that are listed on secondary markets of officially recognised securities.

e) Non-profit entities of a beneficial or cultural nature, recognized under the law of a State that has an agreement with Spain to avoid double taxation with an exchange clause information, provided that the buildings are used in the exercise of the activities that constitute their object.

2. Where the conditions of residence of the partners, members or beneficiaries of the non-resident entity referred to in subparagraph (b) of the previous paragraph are partially met, the share of the special charge on immovable property of non-resident entities residents in Spain shall be reduced by the proportion corresponding to the participation in the institution corresponding to the partners, members or beneficiaries, who fulfil the conditions of residence required.

Article 43. Type of lien.

The rate of the special charge will be 3 percent.

Article 44. Tax deductibility.

The share of the Special Gravamen on Non-Resident Entities ' Property shall have the consideration of deductible expenditure for the purposes of determining the tax base of the tax which, where appropriate, corresponds to the previous articles of this law.

Article 45. Accrual and declaration.

1. The special charge shall be payable at 31 December of each year and shall be declared and entered in the month of January following the accrual, in the place and form to be established.

2. The lack of self-recognition and entry by the taxpayers of the special charge within the time limit laid down in paragraph 1 shall give rise to the enforceability of the award procedure on immovable property, being sufficient for its initiation of the certification issued by the Tax Administration of the expiration of the voluntary period of entry without having entered the tax and its amount.

CHAPTER VII

Option for taxpayers resident in other EU Member States

Article 46. Option for tax payers resident in other EU Member States.

1. The taxpayer for this tax, who is a resident of a Member State of the European Union, provided that he is established to have his registered office or habitual residence in a Member State of the European Union and that he has obtained during the year in Spain for income from work and income from economic activities, at least 75 percent of the total income, will be eligible to be taxed as a taxpayer by the Income Tax of the Natural persons, provided that such income has actually been taxed during the period by the Non-Resident Income Tax.

2. The taxable income will be constituted by all the income obtained in Spain by the taxpayer who is in charge of the optional regime regulated in this article. The income shall be computed by its net amounts, determined in accordance with the provisions of the recast of the Law on the Income Tax of the Physical Persons, approved by the Royal Legislative Decree of March 5.

3. The rate of charge applicable shall be the average rate resulting from the application of the rules of the Income Tax of the Physical Persons to all the income obtained by the taxpayer during the period, irrespective of the place where they have produced and whatever the residence of the payer, taking into account the personal and family circumstances that have been duly accredited.

The average rate of lien will be expressed with two decimal places.

4. The tax rate shall be the result of applying the average rate of charge to the part of the liquidable base, calculated in accordance with the rules of the Income Tax of the Physical Persons, corresponding to the income obtained by the taxpayer. resident on Spanish territory during the tax period that is settled.

5. For the determination of the tax period and the tax accrual will be the provisions of the recast text of the Law on the Income Tax of the Physical Persons approved by the Royal Legislative Decree of March 5, for the taxpayers for that tax.

6. The natural persons to whom the optional regime regulated in this chapter applies shall not lose their status as taxpayers for the Non-Resident Income Tax.

7. The optional scheme shall not in any case apply to taxpayers resident in countries or territories which are regulated as tax havens.

8. The taxpayers for this tax that are part of a family unit of those established in article 84.1 of the recast text of the Law of the Income Tax of the Physical Persons, approved by the Royal Legislative Decree 3/2004, On 5 March, they may request that the optional arrangements provided for in this Article be applied to them taking into account the rules on joint taxation contained in Title VI of the said recast text, provided that the conditions under which the establish regulations.

9. The content of this optional regime will be developed.

CHAPTER VIII

Other Provisions

Article 47. Succession in the tax liability.

In the case of the death of the taxpayer, the successors of the deceased will be obliged to comply with the tax obligations of the taxpayer, excluding the penalties, in accordance with the Article 39.1 of Law 58/2003, of 17 December, General Tax.

Article 48. Taxpayer's wealth liability.

The tax debts for the Non-Resident Income Tax will have the same consideration as those referred to in Article 1365 of the Civil Code and, as a result, the ganancial goods will respond directly to public finances for debts which, by such a concept, have been incurred by any of the spouses.

Article 49. Infringements and penalties.

Tax violations in this tax will be qualified and sanctioned in accordance with the provisions of Law 58/2003 of December 17, General Tax.

Article 50. Court order.

The judicial-administrative jurisdiction, prior to exhaustion of the economic-administrative route, will be the only competent authority to settle disputes in fact and in law that arise between the administration and the taxpayers, retainers and other tax payers in relation to any of the issues referred to in this law.

Article 51. Provisional settlement.

1. The tax management bodies may, in accordance with Articles 133 and 139 of Law 58/2003 of 17 December, be able to turn the provisional settlement as appropriate.

2. The above paragraph shall be without prejudice to the subsequent verification and investigation that may be carried out by the tax administration.

Article 52. Deduction of payments on account of the Income Tax of the Physical Persons.

When a taxpayer acquires his/her status for change of residence, they will have the consideration of withholding or income on account of this tax payments on account of the Income Tax of the Physical Persons practiced from the beginning of the year until the tax administration has been credited with the change of residence, when such payments to account correspond to income subject to this tax levied by the taxpayer.

Article 53. Rules on retention, transmission and formal obligations relating to financial assets and other transferable securities.

1. In the case of transfers or repayments of shares or units representing the capital or assets of the collective investment institutions, they shall be required to carry out withholding tax, in cases and in the form of such taxes. which is regulated by regulation, the managing, managing, depository, marketing or other entities in charge of the operations referred to.

The obligation to make payments on account of the transfer of shares and units of collective investment institutions may be established, with the limit of 20 percent of the income obtained in the Such transmissions.

2. For the purposes of the obligation to retain on the implied returns of capital, account of this tax, this withholding shall be made by the following persons or entities:

(a) In the returns obtained in the transmission or redemption of the financial assets on which the obligation to retain was established, the holding shall be the issuing institution or the institutions. financial management of the operation.

(b) In returns obtained in transmissions relating to transactions that are not documented in securities, as well as in transmissions entrusted to a financial institution, the retainer shall be the bank, box or entity acting on behalf of the institution. Account of the transmittent.

(c) In cases not listed in the preceding paragraphs, the intervention of the public purse shall be compulsory for the relevant retention.

3. In order to transfer or obtain the repayment of securities or assets with implied returns to be withheld, their prior acquisition shall be credited with the intervention of the financial institutions or financial institutions. mentioned in the previous section, as well as the price at which the operation was performed.

The issuer or financial institutions in charge of the transaction which, in accordance with the preceding paragraph, are not required to repay the holder of the title or asset shall constitute such a deposit at the disposal of the the judicial authority.

4. The public authorities involved in the issuance, subscription, transmission, exchange, conversion, cancellation and redemption of public effects, securities or any other securities and financial assets, as well as in transactions relating to (a) the right to communicate such transactions to the tax authorities by submitting a nominal return of the interveners with an indication of their domicile and the number of tax identification, class and number of the public effects, securities, securities and assets, as well as the price and date of the transaction; within the time limits and in accordance with the model determined by the Minister of Finance.

The same obligation shall be on credit institutions and financial institutions, securities companies and agencies, other financial intermediaries and any natural or legal person who is engaged in habituality. to the intermediation and placement of public effects, securities or any other securities of financial assets, indices, futures and options on them; including documents by means of account, in respect of transactions involving, directly or indirectly, the acquisition or placement of resources through any class of values or effects.

The management companies of collective investment institutions in respect of shares and units in such institutions shall be subject to this reporting obligation.

The reporting obligations set out in this paragraph shall be understood to be fulfilled in respect of the transactions subject to the withholding tax referred to in this paragraph, with the presentation of the recipients ' ratio, adjusted to the official model. of the corresponding annual withholding summary.

5. The issuing of certificates, certificates or documents representing the acquisition of precious metals or precious objects, philatelic value stamps or pieces of numismatic value, by natural persons or by natural persons, shall be communicated to the tax authorities. legal entities that are used to promote investment in such securities.

6. The provisions of paragraphs 2 and 3 above shall be applicable in relation to the obligation to retain or to enter into account to be established in a regulatory manner with respect to the transmission of financial assets for explicit performance.

Single transient arrangement. Transitional provisions of the recast of the Tax on the Income of the Physical Persons, approved by the Royal Legislative Decree of March 5.

The second, fifth, ninth and tenth transitional provisions of the amended text of the Tax on the Income of Physical Persons approved by the Royal Legislative Decree of March 5, will be applicable to the taxpayers without permanent establishment who are natural persons.

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

The State General Budget Law may:

a) Modify the lien types.

b) Modify the quantitative limits and fixed percentages.

(c) Introduce and amend the precise rules to comply with the obligations arising from the Treaty on European Union and from the Treaty of European Union.

Final disposition second. Regulatory enablement.

1. Government is enabled to dictate how many provisions are necessary for the development and enforcement of this law.

2. The models for the declaration of this tax and those of its payments to account shall be approved by the Minister of Finance, who shall establish the form, place and time limits for his presentation, as well as the assumptions and conditions of his presentation by means of telematics.