Royal Legislative Decree 5/2004, Of 5 March, Which Approves The Revised Text Of The Law On The Income Of Non-Resident Tax.

Original Language Title: Real Decreto Legislativo 5/2004, de 5 de marzo, por el que se aprueba el texto refundido de la Ley del Impuesto sobre la Renta de no Residentes.

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The additional provision i fourth of law 46/2002, December 18, partial reform of the personal income tax, and that amending the tax law on societies and on the income of non-residents in the wording given by the eighteenth final provision of law 62/2003, of 30 December fiscal measures, administrative and social order, establishes that the Government shall draw up and approve the consolidated texts of the tax on the income of the physical persons, from the tax on the income of non-resident and corporate tax within the period of 15 months from the entry into force of this law.

This legislative delegation has the more limited scope than those provided for in paragraph 5 of article 82 of the Constitution, since it is confined to the mere formulation of a single text and does not include permission to regularize, clarify and harmonize the legal texts that are to be consolidated.

This qualification aims to provide greater clarity to the tax system by integrating in a single regulatory body of provisions affecting these taxes, contributing to increase the legal security of the Administration tax and, especially, of taxpayers.

In exercise of this authorization, produces this legislative Royal Decree, which approves the revised text of the law on the income of non-resident tax.

II the law 41/1998 of 9 December, the income of non-resident tax and tax rules, posted in the "official bulletin of the State" on 10 December 1998, responded to the need to set up a rule that regulate, in a unitary manner, the taxation of non-resident tax on the income, known traditionally as the subject "real obligation" to contribute due to the increasing internationalization of economic relations and the gradual integration of Spain into the European Union.

The law 41/1998 of 9 December, from its entry into force on January 1, 1999, has undergone major modifications, which include those introduced by the following standards: to) the law 6/2000, of 13 December, by which approve urgent fiscal stimulus to household savings and the small and medium enterprises It incorporated a new article to law 41/1998 of 9 December on the deduction of payments on account of tax on the income of natural persons when a taxpayer acquires its condition for change of residence and changed the wording of the calculation of the taxable base corresponding to capital gains.

(b) Law 14/2000, of 29 December, fiscal measures, administrative and social order, which established new cases of exemption on the tax on the income of the physical persons which, due to the interrelationship between the two regulations, had repercussions on article 13 of law 41/1998 of 9 December, and equated, for certain cases, the types of assessment in the tax on the income of non-residents with the existing types of retention for residents.

(c) the Act 24/2001, of 27 December, fiscal measures, administrative and social order, which established a new type of assessment for the work yields perceived by seasonal workers.

(d) the mentioned law 46/2002, 18 December, which has been which has given rise to the more substantial reform in the text of the law 41/1998 of 9 December, since that came into force. It was intended to technically improve the previous text in view of the experience provided by the application, at the time incorporated some issues which were not expressly regulated before, such as definitions of cannons or pension or the entities with income allocation regime.

(e) Finally, law 62/2003, of 30 December, fiscal measures, administrative and social order, has introduced certain modifications as a result of the adoption of Directive 2003/49/EC of the Council of 3 June 2003 on a common system of taxation applicable to payments of interest and royalties between associated companies of different Member States to , with a specific transitional arrangements for cannons. On the other hand, has excluded from the obligation to retain and enter account to diplomatic missions or diplomatic offices of foreign States.

(III) in the text approved by Royal Legislative Decree, law 41/1998 of 9 December, recast with the following standards: to) the law 43/1995, of 27 December, the corporation tax, which regulated in their fourth additional provision rules on deductions and other matters relating to financial assets and other securities.

This standard is incorporated in paragraphs 2 et seq. of article 53 of the revised text.

b) the Law 50/1998, of December 30, fiscal measures, administrative and social order, which established, in article 24, the possibility to regulate by law the obligations of withholding and income account which could be entrusted to certain entities or the own partners in the case of transmissions or redemption of shares representing the capital or assets of the institutions of collective investment in the hands of non-resident taxpayers. This regulation is incorporated into paragraph 1 of article 53 of the revised text.

(c) the law 6/2000, of 13 December, which ruled, in paragraph four of article 23, the treatment in the tax on the income of non-residents of the operations of reduction of capital with repayment of contributions to partners and return of the share premium. This regulation is incorporated into paragraph 4 of article 31 of the consolidated text.

(e) Law 34/2003, of 4 November, modification and adaptation to Community law of the legislation of private insurance, which has modified the law 30/1995 of 8 November, management and supervision of private insurance, establishing the obligation of practicing retention or income to account for the representatives of the insurance entities that operate under freedom to provide services in Spain which concerns Article 86.1 and seventeenth additional provision of the aforementioned law 30/1995 of 8 November.

(f) Finally, in order to achieve greater clarity, breaks down the current regulation in a single article of the special tax on real properties of non-resident entities in articles 40 to 45 of this text.

IV should be noted that they are not integrated into the text, for reasons of Systematics and policy coherence, provisions of a fiscal nature which, due to their special content from a subjective point of view, objective or temporary, not applicable to recast with rules of general character and scope. This is the case of those whose recast in this text would lead to a dispersion of the rules therein contained by affecting different areas and various taxes as, for example, the law 20/1990 of 19 December on cooperative tax regime, the Law 19/1994, of 6 July, modification of the economic regime and Canarias tax , law 49/2002, of 23 December, taxation of non-profit entities and tax incentives to the patronage, the additional provision of law 62/2003, of 30 December, relating to securities lending, or the second additional provision of Act 13/1985, of 25 may, 18th of coefficients of investment own resources and obligations of information of financial intermediaries, and the second law 19/2003, of July 4 transitional provision, on legal regime of movements of capital and economic transactions abroad and on certain measures for prevention of money laundering, preferred shares and debt instruments.

Also does not integrate the provisions governing special public events, such as, for example, the Jacobean Holy year 2004 or the Copa América 2007.

V this Royal Legislative Decree contains an article, an additional provision, a transitional provision, a provision repealing and final disposition.

By virtue of its unique article, approves the revised text of the law on the income of non-resident tax.

The sole additional provision states that references containing other standards are to law 41/1998, of December 9, shall be deemed performed to the articles of the consolidated text that was approved.

The single transitional provision notes that until 1 July 2004, date of entry into force of the Act 58/2003, of December 17, General tax, will continue to force a particular rule of law 41/1998 of 9 December, and that up to that date the references made in the revised text to the precepts of the new General tax law shall be deemed performed to the corresponding law 230/1963 , of 28 December, General tax, and law 1/1998, of 26 February, rights and guarantees of taxpayers, in terms that had the law 41/1998 of 9 December.

The single repealing provision includes the rules that shall be merged in this text, without prejudice to those others which are also subject to revision, are repealed in Royal legislative decrees approving the consolidated texts of the laws of taxes on the income of physical persons and societies, by largely affect one of these taxes.


Finally, the sole final provision establishes that the entry into force of the Royal Legislative Decree and the revised text is approved will be the day following its publication in the "official bulletin of the State", except for some cases arising from the entry into force of the new General tax law and the Council Directive 2003/49/EC , on June 3, 2003.

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

The revised text also includes an index of its contents, which aims to facilitate the use of the standard by their recipients through fast location and systematic location of its precepts at the beginning.

By virtue, on the proposal of the Minister of finance, in accordance with the Council of State and after deliberation by the Council of Ministers at its meeting of March 5, 2004, D I S P O N G O: only article. Adoption of the revised text of the law on the income of non-resident tax.

Approves the revised text of the law on the income of non-resident tax, which is then inserted.

Sole additional provision. Regulatory referrals.

The normative references in other provisions to the law 41/1998 of 9 December, of the income of non-resident tax and tax rules, shall be made to the relevant precepts of the consolidated text approved by Royal Legislative Decree.

Sole transitional provision. Law 58/2003, of December 17, General tax.

Until July 1, 2004, date of entry into force of the Act 58/2003, of December 17, General Tributaria: to) will retain its validity article 9.3 of law 41/1998 of 9 December, the tax on the income of non-residents and tax rules.

(b) references made, in the revised text approving this legislative Royal Decree, to the precepts of the law 58/2003, of December 17, are understood to be made to the corresponding law 230/1963, of 28 December, General tax, and law 1/1998, of 26 February, rights and guarantees of taxpayers, in terms that had the law 41/1998 , 9 December.

Sole repeal provision. Repeal legislation.

1. except as provided in the previous single transitory provision, to the entry into force of this Royal Decree will be repealed, on the occasion of their inclusion in the consolidated text is approved, law 41/1998 of 9 December, of the income of non-resident tax and tax rules, with the exception of the second additional provision, which will retain their validity.

2. the repeal of the provisions referred to in paragraph 1 shall not prejudice the rights of the Treasury concerning tax obligations accrued during his term.

Sole final provision. Entry into force.

1 the present Royal Decree and the revised text approving shall enter into force the day following its publication in the "official bulletin of the State", with the exception of the provisions of the following paragraphs.

(2 articles 10.3 and 18.1. b) of the revised text they shall enter into force on July 1, 2004, date of entry into force of the Act 58/2003, of December 17, General tax.

3 article 25.1. i) of the revised text it shall enter into force on January 1, 2005, date at which refers to Directive 2003/49/EC of the Council of 3 June 2003 on a common system of taxation applicable to payments of interest and royalties between associated companies of different Member States to.

Given in Madrid, on March 5, 2004.

JUAN CARLOS R.

Treasury Minister CRISTOBAL MONTORO ROMERO revised text of the law of the tax on the income of non residents index preliminary chapter. Nature, purpose and scope of application.

Article 1. Nature and object.

Article 2. Scope of application.

Article 3. Applicable regulations.

Article 4. Treaties and conventions.

Chapter i. Personal items.

Article 5. Taxpayers.

Article 6. Residence in Spanish territory.

Article 7. Income allocation.

Article 8. Individualisation of income.

Article 9. Responsible.

Article 10. Representatives.

Article 11. Fiscal domicile.

Chapter II. Subject to the tax.

Article 12. Made taxable.

Article 13. Income obtained in Spanish territory.

Article 14. Exempt income.

Article 15. Forms of subjection.

Chapter III. Income obtained through 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 debt.

Article 20. Tax period and accrual.

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

Article 23. Payments on account.

Chapter IV. Income obtained without mediation of permanent establishment.

Article 24. Tax base.

Article 25. Tax fee.

Article 26. Deductions.

Article 27. Accrual.

Article 28. Statement.

Article 29. Formal obligations.

Article 30. Retentions.

Article 31. Obligation to retain and access account.

Article 32. Obligations of withholding on income from work in case of change of residence.

Article 33. Investments by non-residents in Treasury bills and other forms of debt.

Chapter V. entities in income allocation regime.

Article 34. Entities in income allocation regime.

Section 1 entities incorporated in Spain income allocation contract.

Article 35. Entities that perform an economic activity.

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

Section 2 entities in regime of allocation of income made abroad.

Article 37. Entities in regime of allocation of income made abroad.

Article 38. Entities with a presence in Spanish territory.

Article 39. Entities without presence in Spanish territory.

Chapter VI. Special lien on real property of non-resident entities.

Article 40. Clamping.

Article 41. Tax base.

Article 42. Exemptions.

Article 43. Type of assessment.

Article 44. Deductibility of the assessment.

Article 45. Accrual and Declaration.

Chapter VII. Option to taxpayers resident in other Member States of the European Union.

Article 46. Option to taxpayers resident in other Member States of the European Union.

Chapter VIII. Other provisions.

Article 47. Succession in the tax debt.

Article 48. Liability of the taxpayer.

Article 49. Offences and penalties.

Article 50. Court order.

Article 51. Provisional liquidation.

Article 52. Deduction of payments on account of tax on the income of physical persons.

Article 53. Rules on retention, transmission and formal obligations concerning financial assets and other securities.

Sole transitional provision. Transitional provisions of the consolidated text of the law on personal income tax.

First final provision. Qualifications to the General State budget Act.

Second final provision. Enabling legislation.

Chapter preliminary nature, purpose and scope of application article 1. Nature and object.

The tax on the income of non-residents is a tribute of directness that taxed the income obtained in Spanish territory by individuals and non-resident entities in this.

Article 2. Scope of application.

1. this tax applies throughout the Spanish territory.

2. the Spanish territory includes the territory of the Spanish State, including air space, internal waters, as well as the territorial sea and outdoor areas to it, in which, in accordance with international law and under domestic legislation, the Spanish State exercises or may exercise jurisdiction or sovereign rights with respect to the seabed, its subsoil and overlying waters and its natural resources.

3. the provisions of paragraph 1 shall be without prejudice of the FORAL tax regimes of concert and economic agreement in force, respectively, in the historical territories of the Basque country and in the region of Navarre.

4. in the Canary Islands, Ceuta and Melilla shall be taken into account specialties that are applicable under its specific legislation and the provisions of this law.

Article 3. Applicable regulations.

The tax is governed by this law, which shall be construed in accordance with the rules governing the physical personal income tax and corporation tax, as appropriate.

Article 4. Treaties and conventions.

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

Chapter I elements personal article 5. Taxpayers.

They are taxpayers this tax: to) individuals and entities not resident in Spanish territory in accordance with article 6 which obtain income, unless they are taxpayers physical persons income tax.

(b) natural persons who are resident in Spain by any of the circumstances provided for in article 9.4 of the revised text of the law on personal income tax, approved by Royal Legislative Decree 3/2004, of 5 March.

(c) entities in regime of income allocation referred to in article 38.

Article 6. Residence in Spanish territory.


Residence in Spanish territory shall be determined in accordance with the provisions of article 9 of the revised text of the law on personal income tax, approved by Royal Legislative Decree 3/2004, of 5 March, and in article 8.1 of the revised text of the law of corporation tax, approved by Royal Legislative Decree 4/2004 , March 5.

Article 7. Income allocation.

Income corresponding to entities in regime of income allocation referred to in article 10 of the revised text of the law on personal income tax, approved by Royal Legislative Decree 3/2004, of 5 March, as well as withholdings and payments to account that have supported, will be attributed to members , heirs, community members or participants, respectively, in accordance with section 2 of title VII of the revised text and in chapter V of this law.

Article 8. Individualisation of income.

Shall to the taxpayers apply the provisions of article 11 of the text revised personal income tax law, approved by the Royal Decree 3/2004, of 5 March, on individualization of incomes.

Article 9. Responsible.

1 will respond jointly and severally income tax debts for yields that has satisfied or to income from the property or rights whose deposit or management has mandated, respectively, the payer of income earned without mediation of permanent for taxpayers or the depositary or Manager of the property or rights of taxpayers not allocated to a permanent establishment.

This responsibility will not exist when application is obliged to retain and enter account referred to in article 31, even in the cases provided in paragraph 4 of that article, without prejudice to the responsibilities arising from the condition of retainer.

2. do not means that a person or entity satisfies a performance when he sticks to make a simple means of payment. The payment of an amount means through simple payment account and order of a third party.

3. in the case of the payer of income earned without mediation of permanent establishment by the taxpayers of this tax, the actions of the tax administration may understand directly with the person in charge, which will be payable the tax debt, without requiring prior administrative act of derivation of liability envisaged in article 41.5 of the Act 58/2003 , of 17 December, General tax.

In the case of the receiver or Manager of the property or rights not affected to a permanent establishment, joint and several liability shall be required in the terms provided for in article 41.5 of the Act 58/2003, of December 17, General tax.

4 they will respond jointly and severally income tax debts related to permanent establishments of non-resident taxpayers and entities referred to in article 38 of this law, the persons who, in accordance with its article 10, are their representatives.

Article 10. Representatives.

1. taxpayers this tax will be required to appoint, before the end of the term of the obtained income in Spain, a physical or legal person resident in Spain, represent them before the tax administration in relation to its obligations by this tax, when they operate through the mediation of a settlement permanently, in the event that the articles 24.2 refer and 38 or when due to the amount and characteristics of the revenue gained in Spanish territory by the taxpayer, required by the tax administration.

The taxpayer or his representative shall be obliged to inform the tax administration the appointment, duly accredited, in the period of two months from the date of this.

The designation shall be communicated to the delegation of the State Agency of tax administration that be filing tax indicated communication accompanying the express acceptance of the representative.

2. in case of breach of the obligation of appointment referred to in the preceding paragraph, the tax administration may be considered representative of the permanent establishment or the taxpayer referred to in article 5.c) to who appears as such in the commercial register. If there is no appointed or registered representative, or person who is entitled to contract on behalf of those, the tax administration may consider as such to the latter.

3. the breach of the obligation referred to in paragraph 1 shall be considered serious tax offense and the sanction will consist of fixed pecuniary fine of 2,000 euros.

The sanction imposed in accordance with this section shall be reduced pursuant to article 188.3 of the Act 58/2003, of December 17, General tax.

Article 11. Fiscal domicile.

1 taxpayers not resident in Spanish territory will have their fiscal domicile, for the purposes of the fulfillment of tax obligations, in Spain: to) when operating in Spain through a permanent establishment in the place where the effective administrative management and direction of their business in Spain. In the event that cannot be established the place of fiscal domicile in accordance with the above criteria, shall prevail one where the highest value of fixed assets.

(b) obtain income from immovable property, in the fiscal domicile of the representative and, failing that, at the place of location of the corresponding property.

(c) in other cases, the fiscal domicile of the representative or, in absence thereof, by the solidarity responsible for.

2. when representative has not been appointed, notifications on the fiscal domicile of the solidarity responsible will have the same value and will produce the same effects as if had practiced directly to the taxpayer.

Chapter II subject to tax article 12. Made taxable.

1 obtaining of incomes, monetary or in-kind, is taxable in Spanish territory by taxpayers this tax, in accordance with the provisions of the following article.

2 they shall presume fee-charging, unless proven otherwise, benefits or transfers of assets, rights and services capable of generating income subject to this tax.

3. not be subject to this tax revenues that are subject to tax on inheritance and donations.

Article 13. Income obtained in Spanish territory.

1 are considered to be income obtained in Spanish territory as follows: to) the income from activities or economic operations carried out through permanent establishment situated in Spanish territory.

Means a natural person or entity operates through permanent establishment on Spanish territory when by any title available in this, either continuous or habitual, facilities or places of work of any kind, in which perform all or part of its activity, or act on it through an authorized agent to hire, on behalf and for the account of the taxpayer with habitual exercise such powers.

In particular, means that they are permanent establishment headquarters address, branches, offices, factories, workshops, warehouses, shops or other establishments, mines, oil or gas wells, quarries, agricultural, forestry or livestock farms or anywhere else exploration or extraction of natural resources, and the works of construction, installation or Assembly whose duration exceeds six months.

(b) the income from activities or economic exploitation made without mediation of permanent establishment situated in Spanish territory, when no application is another paragraph of this article, in the following cases: 1 when economic activities are performed in Spanish territory. Not be considered obtained in Spanish territory yields resulting from the installation or Assembly of machinery or installations from abroad when such operations are carried out by the supplier of the equipment or facilities, and its amount does not exceed 20 per cent of the purchase price of such items.

2. in the case of supplies of services used in Spanish territory, in particular those concerning the realization of studies, projects, technical assistance and management support. Shall be used in Spanish territory that serve economic activities in Spanish territory or relating to property situated in this. When such benefits partially serve economic activities in Spanish territory, shall be considered obtained in Spain only by the party who serve the activity developed in Spain.

3rd when they derive, directly or indirectly, from the personal performance throughout Spanish artists and athletes, or any other activity related to such action, even if they are received by person or entity other than the artist or athlete.

(c) the performance of the work: 1 when they derive, directly or indirectly, from a personal activity in Spanish territory.

2. in the case of public remuneration paid by the Spanish Government.


3rd in the case of remuneration paid by physical persons engaged in economic activities, in the exercise of their activities, or entities resident in Spanish territory or by permanent establishments situated in this by reason of an employment exercised aboard a ship or aircraft in international traffic.

The 2nd and 3rd paragraphs shall not apply when work is entirely paid abroad and such returns are subject to a personal tax abroad.

(d) pensions and other post-retirement benefits, when they derive from a job in Spanish territory or be satisfied by a person or entity resident in Spanish territory, or by a permanent establishment situated therein.

They are pension earnings paid by reason of a previous employment, regardless of which received by the worker or another person.

They are considered similar benefits, in particular those referred to in article 16.2. to) and f) of the consolidated text of the law on personal income tax, approved by Royal Legislative Decree 3/2004, of 5 March.

(e) the remuneration of the administrators and members of the boards of Directors, boards that make their times or representative bodies of a resident entity in Spanish territory.

(f) the following income from capital: 1 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 text revised from corporation tax law, approved by Royal Legislative Decree 4/2004, of 5 March.

2nd the interests and other yields obtained by the assignment to third parties of own capital paid by persons or entities resident in Spanish territory, or by permanent establishments situated in this, or they pay own capital services used in Spanish territory.

3rd cannons or satisfied royalties by persons or entities resident in Spanish territory or by permanent establishments situated in this, or to be used in Spanish territory.

They have consideration of fees or royalties of any amounts paid by the use, or the use of award: rights to literary, artistic or scientific work including cinematograph films.

Patents, trademarks or of trade, drawings or models, plans, formulas or secret procedures.

Rights to computer programs.

Information concerning industrial, commercial or scientific experience.

Personal rights susceptible of assignment, such as image rights.

Industrial, commercial or scientific equipment.

Similar to the previous claims.

In particular, have this consideration the amounts paid for the use or the granting of use of rights covered by the revised text of the intellectual property Act, approved by Royal Legislative Decree 1/1996 of April 12, 11/1986, of March 20, of patent law, and the law 17/2001 of 7 December , trademark.

4th other income from capital not listed in paragraphs 1st, 2nd, and 3rd previous satisfied by natural persons carrying out economic activities, in the exercise of their activities, or entities resident in Spanish territory or by permanent establishments situated in this.

(g) the income derived, directly or indirectly, of immovable property located in Spanish territory or rights relating to these.

(h) income imputed to the taxpayers holders of urban real estate situated in Spanish territory not subject to economic activities.

(i) capital gains: 1 when they derived from securities issued by persons or entities resident in Spanish territory.

2. when they are derived from other assets furniture, different values, located in Spanish territory or rights that must be met or exercise in Spanish territory.

3rd where they come, directly or indirectly, of immovable property situated in Spanish territory or concerning these rights. In particular, are considered including: capital gains derived from rights or shares in a company, resident or not, whose asset is constituted mainly of directly or indirectly, by real estate situated in Spanish territory.

Capital gains derived from transmission of rights or shares in a company, resident or not, that attributed to its holder the right of enjoyment of real estate situated in Spanish territory.

4th when joining the heritage of taxpayer property situated in Spanish territory or rights that must be met or exercise in that territory, even when not caused by a previous transmission, as profits in the game.

2 are not considered obtained in Spanish territory the following returns: to) the satisfied by reason of international sales of goods, including mediation in these commissions, as well as accessories and related costs.

b) the satisfied individuals and non-resident entities by permanent establishments located abroad, through these, when the corresponding benefits are linked to the activity of the permanent establishment abroad.

3. for the qualification of the various concepts of income according to their origin it will attend to the provisions of this article and, failing that, the criteria set out in the text revised personal income tax law, approved by Royal Legislative Decree 3/2004, of 5 March.

Article 14. Exempt income.

1 exempt the following income: to) the incomes referred to in article 7 of the text revised personal income tax law, approved by Royal Legislative Decree 3/2004, of 5 March, perceived by individuals, as well as assistance for old age pensions recognized under cover of Royal Decree 728/1993 of May 14 whereby the welfare pension for old age in favour of Spanish emigrants are established.

(b) grants and other sums received by individuals, paid by public administrations, under agreements and international cultural, educational and scientific cooperation agreements or international cooperation annual plan approved by the Council of Ministers.

(c) interest income and other income obtained by the assignment to third parties of capital and reserves referred to in article 23.2 of the revised text of the law on personal income tax, approved by Royal Legislative Decree 3/2004, of 5 March, as well as the capital gains arising from movable property, obtained without mediation of permanent establishment resident in another Member State of the European Union or by permanent establishments of such residents located in another Member State of the European Union.

The provisions of the preceding paragraph shall not apply to capital gains arising from the transmission of shares, participations or other rights in an entity in the following cases: 1 when the asset of this Organization consist mainly, directly or indirectly, real estate situated in Spanish territory.

2nd when, at some point, during the period of 12 months preceding the transmission, the taxpayer has been involved, directly or indirectly at least 25 per cent of the capital or assets of that entity.

(d) yields derived from debt, obtained without mediation of permanent establishment in Spain.

(e) income derived from securities issued in Spain by individuals or entities not resident without mediation of permanent settlement, anyone who is the place of residence of the institutions financial bonds that act as agents of payment or medien in the emission or transmission of values.

However, when the owner of the values is a permanent establishment on Spanish territory, the incomes referred to in the preceding paragraph shall be subject to this tax and, where appropriate, to the system of withholding tax, to be practiced by the resident financial institution acting as depository of values.

(f) yields the accounts of non-residents, which are satisfied taxpayers this tax, unless the payment is made to a permanent establishment situated in Spanish territory, by the Bank of Spain or the registered entities referred to in the regulation of financial transactions with the outside.

(g) the income obtained in Spanish territory, without permanent establishment in this mediation, from lease, transfer, or transmission of containers or vessels and aircraft bareboat, used for international maritime or air navigation.

((h) the profits distributed by the subsidiary companies resident in Spanish territory to their parent companies resident in other Member States of the European Union, when there are the following requirements: 1 that both companies are subject and not exempt any of the taxes levied on the benefits of legal entities in the Member States of the European Union, referred to in item 2.c) of the Council Directive 90/435/EEC , of 23 July 1990 on the arrangements applicable to the parent-subsidiary companies of different Member States.

2nd that the distribution of the profit is not the result of the liquidation of the subsidiary company.


3rd that both societies different Member shall take any of the forms provided for in the annex to the directive 90/435/EEC of the Council, of 23 July 1990 on the arrangements applicable to the parent-subsidiary societies of States.

Consideration of parent company will have that entity having a direct participation of at least 25 per cent in the capital of another company. This institution will be considered subsidiary.

The said stakeholding must have been kept continuously during the year prior to the day that the profit that is distributed is enforceable or, failing, which is maintained during the time necessary to complete a year. In the latter case the entered tax fee will be returned once met this deadline.

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

However expected previously, the Finance Minister may declare, on condition of reciprocity, as set out in this paragraph h) applicable to the subsidiaries, which are a legal form other than those provided for in the annex to the directive and the dividends distributed to a parent company that owns a direct participation in the capital of a subsidiary resident in Spain of (at least, 10 per cent, subject to the other conditions laid down in this subparagraph h).

Provisions of this paragraph h) shall not apply when the majority of the voting rights of the parent company held, directly or indirectly, by natural or legal persons who do not reside in the Member States of the European Union, except when that actually make a business directly related to the business activity of the subsidiary or aims at the direction and management of the subsidiary through the proper organization of material (personal and or test that it has been established for valid economic reasons and not to unduly enjoy the regime laid down in this paragraph h).

(i) income derived from the transmission of values or redemption of shares in investment funds in any of the official secondary markets of Spanish values, obtained by individuals or non-resident entities without mediation of permanent establishment on Spanish territory, who are residents in a State that has entered into with Spain a Convention to avoid double taxation with clause of exchange of information.

2 in no case shall apply the provisions of paragraphs c), d) e i) above yields and capital gains obtained through countries or territories qualified by law as tax havens.

Nor shall apply the provisions of paragraph h) of the previous paragraph when the parent company has its tax residence in a country or territory qualified by law as a tax haven.

3. the Minister of finance may declare, on condition of reciprocity, exemption from the yields corresponding to sea or air navigation entities residing abroad whose ships or aircraft touch Spanish territory, although they have in this shipping agents or agents.

Article 15. Forms of subjection.

1. taxpayers who obtain income through a permanent establishment situated in Spanish territory will be taxed by the totality of the income attributable to that establishment, whatever that is the place of production in accordance with the provisions of chapter III.

2. taxpayers who obtain incomes without mediation of permanent establishment will be taxed separately by each total or partial accrual income subject to assessment, without its being possible any compensation between those and the terms provided for in chapter IV.

Chapter III income obtained through permanent establishment article 16. Income attributable to permanent establishments.

1 make up the income attributable to the permanent establishment the following concepts: to) yields the activities or economic operations carried out by the permanent establishment.

(b) the returns derived from assets pertaining to the permanent establishment.

(c) the profits or capital losses arising from the assets allocated to the permanent establishment.

Assets pertaining to the permanent establishment linked are considered functionally to the development of the activity which is its object.

Assets of an institution's own funds covering only will be considered assets pertaining to the permanent establishment when this is a branch registered in the commercial register and meet the requirements established by law.

2 in the case of re-export of goods previously imported by the same taxpayer, shall be considered: to) that there has been no heritage alteration, without prejudice to the treatment applicable to payments made for the period of use, if it's elements of fixed assets imported temporarily.

(b) that there has been altered property, if it's elements of fixed assets acquired for use in the activities carried out by a permanent establishment.

(c) that there have been performance, positive or negative, of an activity or economic exploitation, if it's parts having consideration of stock.

Article 17. Diversity of permanent establishments.

1 when a taxpayer has several centers of activity in Spanish territory, shall be considered that they constitute different permanent establishments, and therefore is taxed separately, when the following circumstances occur concurrently: to) that activities clearly distinguishable.

(b) that the management of these is carried separately.

2. in any case, the compensation of incomes between different permanent establishments will be possible.

Article 18. Determination of the tax base.

1 the taxable income of the permanent establishment shall be determined in accordance with the provisions of the general corporation tax regime, without prejudice to the provisions of the following paragraphs: to) for the determination of the tax base, will not be deductible payments made by the permanent establishment to the headquarters or any of its permanent establishments in concept of cannons interests, commissions, paid in consideration of technical services or for the use or transfer of assets or rights.

Notwithstanding the provisions above, will be deductible interests paid by permanent establishments of foreign banks to its headquarters or other permanent establishments, for the realization of its activity.

(b) for the determination of the tax base will be deductible to the reasonable part of address expenses and General Administration that corresponds to the permanent establishment, provided that the following requirements are met: 1 reflection in the financial statements of the permanent establishment.

2. consistency, through informative report with the Declaration of the amounts, criteria and distribution modules.

3rd rationality and continuity of the allocation criteria adopted.

The requirement of rationality of the allocation criteria shall be fulfilled when these are based on the use of factors by the permanent establishment and the total cost of these factors.

In those cases in which it was not possible to use the criteria referred to in the preceding paragraph, the allocation may be attending the relationship in which they are any of the following quantities: turnover.

Costs and direct costs.

Average in elements of tangible fixed assets investment affect activities or economic exploitation.

Total average investment in items pertaining to activities or economic exploitation.

It shall apply to the determination of Administration General deductible in accordance with this section, in the form determined by law, the procedure laid down in article 91 of the Act 58/2003, of December 17, General tax and address costs.

(c) under no circumstances will prove attributable amounts corresponding to the cost of the capital and reserves of the entity affected, directly or indirectly, to the permanent establishment.

2. operations carried out by the permanent establishment with its headquarters or other permanent establishments of the taxpayer, whether they are located in Spanish territory or abroad, or with other companies or people only he linked, they will be assessed in accordance with the provisions of article 16 of the consolidated text of the law of corporation tax, approved by Royal Legislative Decree 4/2004 , March 5.

3. the permanent establishment may be offset their negative taxable in accordance with the provisions of article 25 of the text revised from corporation tax law, approved by the Royal Legislative Decree 4/2004, of 5 March.

4 when the operations carried out in Spain by a permanent establishment not close a cycle commercial determining income in Spain, ending is this by the taxpayer or by one or more of their permanent establishments without causing any consideration, apart from the coverage of the costs incurred by the permanent establishment and are intended for all or part of products or services to third parties other than the own taxpayer the following rules shall apply:


(a) the income and expenses of the permanent establishment will be assessed according to the rules of article 16 of the consolidated text of the law of corporation tax, approved by Royal Legislative Decree 4 2004, of 5 March, determining the tax debt according to the regulations applicable in the regime tax general tax and provided in the paragraphs above of this article.

(b) subsidiarily, the following rules shall apply: 1 the tax base shall be determined by applying the percentage indicated for this purpose the Minister of Finance on the total of the expenses incurred in the development of the activity that is the object of the permanent establishment. The full amount of income accessory in nature, such as interests or cannons, which do not constitute its corporate object, as well as earnings and economic losses arising from the assets allocated to the establishment will be added to that amount.

For the purposes of this rule, the permanent establishment costs will be calculated by the full amount, without the allowable deduction or compensation.

2nd the total tax is determined by applying the general tax rate, on the taxable deductions and allowances covered in the aforementioned general regime as applicable therein.

5 in the case of permanent establishments whose activity in Spanish territory consists of construction, installation or Assembly whose duration exceeds six months, activities or holdings economic seasonal or seasonal, or resource exploration activities, the tax shall be required in accordance with the following rules: to) as envisioned for the incomes from activities or economic holdings obtained in Spanish territory without mediation of permanent establishment in the articles 24.2 and 25 , being applicable, to these effects, the following standards: 1st accrual and reporting regulations will be those relating to income derived without mediation of permanent establishment.

2nd taxpayers will be relieved from compliance with registration and accounting obligations of a general nature. However, they must keep and available to the tax authorities, proof of income obtained and payments made by this tax, as well as, where appropriate, the withholdings and payments on account practiced and statements concerning these.

Also they will be required to submit a census Declaration and declare their fiscal domicile in Spanish territory, as well as to communicate the changes that occur in this or the data entered in one.

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

It will be mandatory, in any case, the application of the system referred to in paragraph to) earlier when the permanent establishment not available for separate accounting of income derived in Spanish territory.

The option must occur at the time of census activity start filing.

((c) not to be applicable, in any case, taxpayers who keep the system referred to in paragraph to) earlier, the rules laid down in the conventions to avoid double taxation for the assumptions of income obtained without mediation of permanent establishment.

Article 19. Tax debt.

1. to the taxable income determined in accordance with the previous article shall apply the type of levy of 35 percent, except when the activity of the permanent establishment would be the investigation and exploitation of hydrocarbons; in such a case, the tax rate will be 40 per cent.

2 Additionally, when income derived by permanent establishments of non-resident entities are transferred abroad, will be enforceable an imposition that is complementary to the tax rate of 15 percent, over the transferred amounts charged to the income of the permanent establishment, including payments referred to in article 18.1. to), which were not deductible expenses for the purpose of fixing of the base of the permanent establishment.

The filing and payment of such additional tax shall be made in the manner and deadlines for income obtained without mediation of permanent establishment.

3 complementary taxation shall not apply: to) obtained income in Spanish territory through permanent establishments by entities that have their fiscal residence in another Member State of the European Union.

(b) to the obtained incomes in Spanish territory through permanent establishments by entities that have their fiscal residence in a State that has signed an agreement with Spain to avoid double taxation, where not expressly provided otherwise, provided that there is reciprocal treatment.

4 in the full share of the tax may be applied: to) the amount of allowances and deductions referred to in articles 30 to 44 of the text revised from corporation tax law, approved by the Royal Legislative Decree 4/2004, of 5 March.

(b) the amount of retentions, to account revenues and the instalments.

5. the various deductions and allowances practiced according to the circumstances that are in the permanent settlement, without that ladders are others than the same taxpayer on Spanish territory.

6. when withholdings and payments on account effectively fractionated payments exceed the amount resulting from practice in the full quota of tax allowances and deductions referred to in paragraph 4.a) of this article, the tax administration shall ex officio returning excess, in the terms and conditions provided for in article 139 of the revised text of the law of corporation tax approved by legislative Royal Decree 4 of 5 March 2004.

Article 20. Tax period and accrual.

1. the tax period will coincide with the financial year declared by the permanent establishment, unless it does not exceed 12 months.

When not had declared another one, the tax period shall be referred to the calendar year.

Communication of the tax period shall be made at the time that the first statement must be submitted by this tax, meaning subsisting for later periods as long as it is not expressly modified.

2 the tax period shall be concluded when the permanent establishment ceases its activity, or otherwise, do the deallocation of its investment in its day with respect to the permanent establishment, as well as the assumptions in the transmission of the permanent establishment to another individual or entity, those in which the headquarters move his residence from occurring , and when the owner dies.

3. the tax is accrued the last day of the tax period.

Article 21. Statement.

1 permanent establishments will be required to submit Declaration, determining and entering the corresponding tax debt, in the form, place and documentation as the Minister of Finance shall be determined.

The Declaration will be submitted within the period of 25 calendar days following six months after the conclusion of the tax period.

2 when the assumptions of article 20(2) occur, the presentation will be provided generally for the income obtained without mediation of permanent settlement from the date in which occurs the event, unless its decline in index of entities can be authorized insofar as not such a statement has been filed.

Article 22. Accounting, registration and formal obligations.

1. the permanent establishments are obliged to keeping accounts separate, referred to operations that perform and the assets that were allocated to them.

2 they obliged, also to the fulfilment of the remaining obligations in accounting, registration or formal nature due to entities resident in Spanish territory by tax regulations.

Article 23. Payments on account.

1 permanent establishments shall be subject to the withholding tax regime for income received, and will be required to make payments fractionated to the settlement account of this tax on the same terms as the entities subject to corporate income tax.

2. in addition, compelled to practise withholdings and payments on account in the same terms as the entities resident in Spanish territory.

Chapter IV income obtained without mediation of permanent establishment article 24. Tax base.

1. in General, the taxable base corresponding to the returns that taxpayers this tax gain without mediation of permanent establishment will be constituted by its full, determined amount in accordance with the rules of the text revised personal income tax law, approved by Royal Legislative Decree 3/2004, of 5 March without that will not apply the multiplier percentages of article 23.1 of the text revised, the reductions.


2. in cases of performance of services, technical support, installation or Assembly works derived from engineering contracts and, in general, activities or economic holdings in Spain without mediation of permanent establishment, the tax base will be equal to the difference between full revenue and expenses of personnel, procurement of materials incorporated into the works or works and supplies , under the conditions established by law.

3. the taxable base corresponding to the income arising from reinsurance will be constituted by the amounts of ceded premiums, net of reinsurance, to the non-resident reinsurer.

4 corresponding to capital gains tax base shall be determined by applying to each heritage alteration that occurs, the rules laid down in section 4 of chapter I of title II, except for article 31(2)(a), and title VIII, except article 95.1. to), second paragraph, of the revised text of the law on the tax on the income of physical persons approved by Royal Legislative Decree 3/2004 , March 5.

In the case of non-resident entities, where the equity gain comes from an acquisition to lucrative title, their amount shall be the normal market value of the purchased item.

5. in the case of non-resident natural persons, the imputed income of real estate situated in Spanish territory shall be determined pursuant to the provisions of article 87 of the text revised personal income tax law, approved by Royal Legislative Decree 3/2004, of 5 March.

Article 25. Tax fee.

1 the tax share is obtained by applying to the tax base determined in accordance with the preceding article, the following types of assessment: a) as a general rule, 25 percent.

((b) pensions and other post-retirement benefits perceived by individuals not resident in Spanish territory, anyone who is the person that has generated the right to their perception, will be taxed in accordance with the following scale: annual pension amount to - Euro fee - EUR rest pension up to - euro rate applicable - percentage 0 0 9.616,19 8 9.616,19 769,30 5.409,11 30 15.025,30 2.392,03 forward 40 c) yields the work of individuals not resident in Spanish territory , provided that they are not taxpayers by the tax on the income of the physical persons, serving in diplomatic missions and consular representations of Spain abroad, when applicable specific standards derived from international treaties to which Spain is a party, is taxed at 8 percent.

(d) in the case of income arising from reinsurance, 1.5 percent.

(e) the 4 per cent in the case of maritime or air navigation entities resident abroad, whose ships or aircraft touch Spanish territory.

(f) in the case of capital gains, 35 per cent, without prejudice to the provisions of the following paragraph.

(g) the 15 per cent in the case of: 1 dividends and other income derived from the participation in the equity of an entity.

2nd interests and other yields obtained by the assignment to third parties of own capital.

3rd income derived from the transfer or repayment of shares representative of capital or the assets of collective investment institutions.

(h) the work yields earned by non-resident natural persons in Spanish territory under a contract for a fixed term for foreign seasonal workers, in accordance with labour legislation, be taxed at the rate of 2 per cent.

(i) the tax rate applicable to fees or royalties that are satisfied by a company resident in Spanish territory or by a permanent establishment situated therein of a company resident in another Member State of the European Union to a company resident in another Member State or to a permanent establishment situated in another Member State of a resident company of a Member State will be 10 per cent when there are the following requirements ((: 1 that both companies are subject and not exempt any of the taxes referred to in article 3.a) .iii) of Directive 2003/49/EC of the Council of 3 June 2003 on a common system of taxation applicable to payments of interest and royalties between associated companies of different Member States to.

2nd that both societies are one of the ways provided for in the annex to Directive 2003/49/EC.

3rd that both societies 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, are not considered residents of that third State.

4th that both societies are associated. For this purpose, two companies will be considered associated when one owns a direct participation of at least 25 per cent in the capital of the other, or a third own a direct participation of at least 25 percent in the capital of each of them.

Mentioned participation must be maintained continuously during the year prior to the day on which payment of the performance has been satisfied or, failing that, it should always be during the time necessary to complete a year.

5 which, in his case, such amounts are deductible for the permanent establishment which satisfies the yields in the State in which it is located.

6 that the company receiving such payments do so on their own behalf and not as a mere intermediary or agent authorized another person or society and that, in the case of a permanent establishment, the amounts you receive are actually related to their activity and constitute income computable for purposes of determining your taxable in the State in which it is located.

Provisions of this paragraph i) shall not apply when the majority of the voting rights of perceptual yields society held, directly or indirectly, by natural or legal persons who do not reside in the Member States of the European Union, except when that test that it has been established for valid economic reasons and not to unduly enjoy the regime laid down in this paragraph i).

2 for transmissions of immovable property situated in Spanish territory by contributors who act without a permanent establishment, the purchaser shall be obliged to retain and enter 5 per cent, or to make entry into account, of the agreed consideration, in respect of payment of the tax to those.

The provisions of the preceding paragraph shall not apply when the owner of the property transmitted was a natural person and, to December 31, 1996, the property remained in their heritage more than 10 years, without having undergone improvements during that time.

The income will not proceed to account referred to in this section in cases of provision of real estate, in the Constitution or increase of capital of companies resident in Spanish territory.

Without prejudice to the penalties which may be applicable for the offence that is incurred, if retention or entry into account had not entered, transmitted goods will be subject to the payment of the amount resulting lower of such retention or income account and corresponding tax.

Article 26. Deductions.

The fee will be deducted only: to) the amounts corresponding to the deductions for donations in the terms provided for in article 69.3 of the revised text of the law on personal income tax, approved by Royal Legislative Decree 3/2004, of 5 March.

(b) the withholdings and payments on account which has been practiced on the income of the taxpayer.

Article 27. Accrual.

1 tax accrued: to) trying to be returns, when they become due or the date of the payment if this is earlier.

b) in the case of capital gains, when heritage alteration takes place.

c) in the case of imputed income corresponding to the urban real estate, December 31 of each year.

(d) in other cases, when the income are payable.

2. the alleged revenue referred to in article 12(2) shall bear interests at when they were payable or, failing that, on December 31 each year.

3. in the case of death of the taxpayer, all pending allocation incomes shall be payable on the date of death.

Article 28. Statement.

1. taxpayers who obtain incomes on Spanish territory without mediation of permanent establishment will be required to submit Declaration, determining and entering the corresponding tax liability for this tax in the manner, place and time limits established.

2 may also pay the filing and payment of debt responsible for solidarity defined in article 9.

3 shall not be required to taxpayers this tax the filing the corresponding income with respect to which had practiced the retention or effected the income account, referred to in article 31.

Article 29. Formal obligations.


1. taxpayers who obtain income from the referred in article 24.2 shall be obliged to keep the records of income and expenses according to the rules established.

2 when they had practice withholdings and payments on account, they will be required to present the Census Declaration and keeping the records of income and expenses to be determined according to the rules.

Article 30. Retentions.

Taxpayers operating in Spain without mediation of permanent establishment will be required to practice the withholdings and payments on account with respect to yields work that meet, as well as with regard to other income subject to withholding which constitute deductible expense for the obtaining of income referred to in article 24.2.

Article 31. Obligation to retain and access account.

1 will be forced to practice retention and income into account with respect to the income subject to this levy will meet or pay: to) entities, including entities on attribution regime, resident in Spanish territory.

(b) natural persons resident in Spanish territory engaged in economic activities, with respect to pensions that meet or paid in the course of those.

(c) taxpayers this tax through permanent establishment or permanent establishment, but in this case, only with respect to the yields referred to in article 30.

d) the taxpayer referred to in article 5.c).

(e) the representative designated in accordance with the provisions of article 86.1 and the seventeenth additional provision of law 30/1995 of 8 November, management and supervision of private insurances, acting on behalf of the insurance company operating in the regime of free provision of services, in connection with operations carried out in Spain.

In any case, they will be required to practice retention or deposit to account the diplomatic missions or consular offices in Spain of foreign States.

2. the subjects bound to retain must retain or login to account an amount equivalent to that resulting from the provisions laid down in this law for determining the tax debt owed to taxpayers by the tax without a permanent establishment or those set out in an agreement to avoid double taxation which applies, without taking into consideration the provisions of the articles 24.2 26 and 44.

Notwithstanding the foregoing, for the calculation of the income account it will be provisions of regulations.

3 subjects bound withholding or paying on account will assume the obligation to make income in the Treasury, unless the breach of that obligation can excuse them from this.

4 shall not practice retention or deposit to account with regard to: a) the incomes that are exempt pursuant to article 14 or in a Convention to avoid double taxation which applies, without prejudice to the obligation to declare envisaged in paragraph 5 of this article.

(b) the performance derived from the distribution of the premium from issuance of shares, or the reduction of capital. Regulations may be established an obligation to practice retention or income into account in such cases.

(c) the income paid or credited to taxpayers this tax without a permanent establishment, when certifying the payment of the tax or the appropriateness of exemption.

((d) income referred to in article 118.1. c) text revised from corporation tax law, approved by Royal Legislative Decree 4/2004, of 5 March.

(e) revenues that are established by law.

5. the subject required to retain and practice income to account statement and must make membership of the treasure in the place, form and time limits established, the retained amounts or deferred income account made, or negative declaration when had failed to practice these. It will also present an annual overview of withholdings and payments on account with the contents to be determined according to the rules.

The subject liable to retain and practice income to account will be required to keep the relevant documentation and to issue, under conditions to be determined, accredited certification of the withholdings or payments on account made.

6. the provisions of this article are understood without prejudice to the provisions of article 25.2.

Article 32. Obligations of withholding on income from work in case of change of residence.

Self-employed workers which are not contributors to this tax, to acquire this condition as a result of their displacement abroad can contact the tax administration, leaving evidence of the date of departure of the Spanish territory, to the exclusive effects that work yields payer considers them as contributors of this tax.

In accordance with the procedure established by law, the tax administration shall issue a document workers self-employed who request it, they shall inform the payer of their work yields resident or permanent establishment in Spain, and which record the date from which the withholdings and payments on account are practiced by this tax.

The foregoing shall not relieve the worker to prove their new fiscal residence before the tax administration.

Article 33. Investments by non-residents in Treasury bills and other forms of debt.

The managing bodies of the public debt market in book-entry will be required to retain and enter in the Treasury, as a substitute for the taxpayer, the amount of this tax yields from the letters of Treasury and other securities of the public debt which the Chancellor of the Exchequer set obtained by non-resident investors in Spain, without a permanent establishment , if they are not of application exemptions on yields from different debt instruments provided for in this law.

Chapter V entities in article 34 income allocation regime. Entities in income allocation regime.

1. the entities referred to in article 7 of this law which count among their members with taxpayers this tax shall apply the provisions of section 2.adel title VII of the revised text of the law on personal income tax, approved by Royal Legislative Decree 3/2004, of 5 March, with the specifications provided for in this chapter as in the case of entities established in Spain or abroad.

2. in addition, members of the entities referred to in the preceding paragraph which are contributors to this tax apply the specialties listed in this chapter.

Section 1 entities in regime of allocation of revenue constituted in Spain article 35. Entities that perform an economic activity.

In the case of entities in regime of income allocation that develop an economic activity on Spanish territory, members not resident in Spanish territory will be this taxpayers with permanent establishment.

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

1. in the case of entities in regime of income allocation that does not develop an economic activity on Spanish territory, the members not resident in Spanish territory shall be this taxpayers without a permanent establishment, and the portion of income that is attributable to them shall be determined in accordance with the standards of chapter IV.

2. in this case, and without prejudice to paragraph 3, the entity in income allocation regime shall be obliged to enter with the difference between the part of the supported retaining that corresponds to the non-resident member and retention that would have been have been applied directly on the income attributed to article 31.

3 for transmissions of immovable property situated in Spanish territory, when one of the members of the entity with income allocation is not resident in Spanish territory, the acquirer will practice, on the part of the agreed consideration that corresponds to such member, retention resulting by application of article 25.2.

4. the Minister of Finance shall determine form, place and time limits that should fulfil the obligation referred to in paragraph 2.

Section 2 entities in regime established in article 37 foreign income allocation. Entities in regime of allocation of income made abroad.

They shall be regarded as entities in regime of income allocation, entities constituted abroad whose legal nature is identical or analogous to the entities with income constituted in accordance with the Spanish laws allocation.

Article 38. Entities with a presence in Spanish territory.

1. when an entity constituted in foreign income allocation regime in perform an economic activity on Spanish territory, and part or all of this develops, in a continuous or habitual way using facilities or places of work of any kind, or act on it through an authorized agent to hire, on behalf and for the account of the entity It will be taxpayer of this tax and, in the terms established by the Minister of finance, will present an annual autoliquidación in accordance with the following rules:


1st the tax base will be made up of the part of the income, which is the place of collection, determined in accordance with article 90 of the text revised personal income tax law, approved by Royal Legislative Decree 3/2004, of 5 March, that is attributable to the non-resident entity members.

2nd the total tax is determined using tax based on the rate of levy of 35 percent.

3rd such fee will be reduced by applying the bonuses and deductions that allows article 19.4 to taxpayers who operate through permanent establishment, as well as payments on account, always in the part corresponding to the income attributable to the non-resident members.

2. these entities must submit the disclosure statement referred to in article 91 of the revised text of the law of personal income tax, approved by the Royal Decree 3/2004, of 5 March, for the part of the income that is attributable to the members of the entity.

3. the taxpayer referred to in paragraph 1 above shall be obliged to make payments fractionated to account for this tax, autoliquidando and entering your amount under conditions to be determined by regulation.

4. in the event that any of the members not residents of the entities referred to in paragraph 1 of this article invoke a double taxation agreement, shall be deemed that the fees paid by the entity were fulfilled by these in the part that corresponds to them.

Article 39. Entities without presence in Spanish territory.

1 when an entity constituted foreign income allocation regime obtained incomes in Spanish territory without developing an economic activity as provided in paragraph 1 of the preceding article in this, non-resident member in Spanish territory shall be the taxpayers without a permanent establishment and the portion of income that is attributable to them shall be determined according to the provisions in chapter IV.

2. to withholdings or payments on account on income obtained in Spanish territory shall not you application provisions of article 90.2 of the text revised personal income tax law, approved by Royal Legislative Decree 3/2004, of 5 March. The withholdings or payments on account are practiced in the following way: to) is credited to the taxpayer the residence of the members of the entity and the proportion in which the income attributed to them, shall be applicable to each member retention that applicable under such circumstances in accordance with their respective tax.

(b) when the payer does not understand accredited the circumstances described in the previous paragraph, you will practise the retention or deposit to account in accordance with the rules of this tax, regardless of the place of residence of its members or the exemptions that it includes article 14. The retention rate shall be that applicable in accordance with article 25.1.

When the regime of income allocation entity is constituted in a country or territory by regulation qualified as a tax haven, to apply retention will follow in any case the rule established in the preceding paragraph.

Retention or deposit account will be deductible personal taxation of partner, heir, community member or participant, in the same proportion in which attributed income.

3 for transmissions of immovable property situated in Spanish territory, when one of the members of the entity with income allocation is not resident in Spanish territory, the acquirer will practice, on the part of the agreed consideration that corresponds to such member, retention resulting by application of article 25.2.

4. the entities referred to in this article shall not be subject to the obligations of information referred to in article 91 of the text revised personal income tax law, approved by Royal Legislative Decree 3/2004, of 5 March.

Chapter VI special lien on real estate entities non-residents article 40. Clamping.

Entities non residents who are owners or possess in Spain, by any title, real estate or real rights of enjoyment or enjoy on these, are subject to tax through a special assessment.

Article 41. Tax base.

1. the tax base of the special tax will be constituted by the cadastral value of the real estate.

When there were no rateable value, the value determined in accordance with the provisions applicable for the purposes of the wealth tax is used.

2. in cases involving a non-resident entity in the ownership of the property or rights along with another or other persons or entities, the special tax on real properties of non-resident entities in Spain will be callable by the part of the value of the property or rights that corresponds proportionally to their participation in the ownership of those.

Article 42. Exemptions.

1 the special tax on immovable property shall not be enforceable a: to) States and foreign institutions and international organizations.

(b) institutions with the right to the application of a Convention to avoid the international double taxation, where applicable Convention contains clause of exchange of information, and provided that natural persons who ultimately have, directly or indirectly, the capital or assets of the entity, are resident in Spanish territory or entitled to the application of a Convention to avoid double taxation containing clause of exchange of information.

For the application of the exemption referred to in this paragraph, the non-resident entities will be required to present a statement which are related to real estate located in Spanish territory that possess, as well as persons physical holding of its capital or heritage, stating the residence tax, nationality and address of the entity and these individuals. The Declaration, which must be presented in the management or delegation of the State Agency of tax administration in whose territory the property is situated, must be accompanied certification of tax of the entity and the final holders of residence persons physical, issued by the tax authorities of the State concerned. The Declaration would be submitted within the same period provided for income tax.

(c) the entities that develop in Spain, in continuous or habitual way, differentiable economic exploitations of simple ownership or lease of the apartment, according to what is established by law.

(d) the societies that traded on secondary markets of officially recognized values.

(e) entities of charity and cultural non-profit, recognized under the law of a State that has entered into with Spain a Convention to avoid double taxation with information-sharing clause, provided that real estate used in the exercise of activities which constitute its object.

2 when the conditions of residence of partners, participants, or beneficiaries of the non-resident entity referred to in paragraph (b)) above are met partially, the special lien on property share properties of entities not resident in Spain will be reduced in the proportion corresponding to the participation in the corresponding Member State unit-holders or beneficiaries, that fulfil the conditions of residence required.

Article 43. Type of assessment.

The type of the special charge will be 3 per cent.

Article 44. Deductibility of the assessment.

The share of the special tax on real properties of entities non-residents will be considered deductible expenses for purposes of the determination of the taxable income for the tax which, if any, applicable pursuant to the preceding articles of this law.

Article 45. Accrual and Declaration.

1 the special charge accrued at 31 December of each year and must plead and entered into the month of January following the accrual, in the place and form established.

2. the lack of autoliquidación and income from the taxpayers of the special tax in the time limit set in paragraph 1 give rise to its enforceability by the enforcement procedure on real estate, being sufficient title for his initiation of the certificate issued by the tax administration of the voluntary deadline entry without entering the tax and the amount.

Chapter VII option for taxpayers resident in other Member States of the European Union article 46. Option to taxpayers resident in other Member States of the European Union.

1. the taxpayer by this tax, which is an individual resident in a Member State of the European Union, provided that proving that it has set its domicile or habitual residence in a Member State of the European Union and that they have obtained during the year in Spain for performance of the work and performance of economic activities, a minimum 75 percent of all of its income, you can choose to pay as a taxpayer by the tax on the income of physical persons, provided that such incomes have actually paid during the period the income of non-resident tax.


2. the taxable income will be constituted by the totality of the incomes obtained in Spain by the taxpayer who complies with the optional scheme regulated in this article. Pensions will be calculated by their net amounts, determined in accordance with the text revised personal income tax law, approved by Royal Legislative Decree 3/2004, of 5 March.

3. the applicable tax rate will be the average resulting type apply the rules of physical persons income tax to all income derived by the taxpayer during the period, with independence of the place where it had occurred, and any that is the residence of the payer, taking into account the personal and family circumstances that have been duly accredited.

The average assessment rate shall be expressed to two decimal places.

4. the tax fee will be the result of applying the average assessment rate on the part of taxable base, calculated in accordance with the rules of the tax on the income of the physical persons, corresponding to income derived by the non-resident taxpayer in Spanish territory during the tax period which is settled.

5. for the determination of the tax period and the accrual of the tax it will be provisions of the consolidated text of the law of personal income tax approved by Royal Legislative Decree 3/2004, of 5 March, for taxpayers this tax.

6. natural persons that obtained by application the optional scheme regulated in this chapter do not lose their status as taxpayers by the tax on the income of non-residents.

7. the optional regime shall not apply in any case to resident taxpayers in countries or territories qualified by law as tax havens.

8. taxpayers this tax that is part of any household of those set out in article 84.1 of the text revised personal income tax law, approved by Royal Legislative Decree 3/2004, of 5 March, may request that the optional scheme regulated in this article is applied to them taking into account the joint taxation rules contained in Title VI of the above-mentioned consolidated text , provided that the conditions established by law are fulfilled.

9. by law the content of this optional scheme will be developed.

Chapter VIII other provisions article 47. Succession in the tax debt.

In the event of the death of the taxpayer, the successors of the deceased shall be required to comply with tax obligations outstanding of him by this tax, with the exception of the sanctions, in accordance with article 39.1 of the Act 58/2003, of December 17, General tax.

Article 48. Liability of the taxpayer.

The tax debt by the tax on the income of non-residents will have the same consideration that the referred in article 1365 of the Civil Code and, consequently, the marital property will respond directly to the Treasury by debts, such has been incurred by either spouse.

Article 49. Offences and penalties.

Tax offences in this tax will qualify and will sanctioned pursuant to provisions in the law 58/2003, of December 17, General tax.

Article 50. Court order.

The Supreme jurisdiction, prior exhaustion of administrative track, will be the only competent to settle disputes of fact and law arising between the Administration and taxpayers, retainers and other required tax in relation to any of the matters referred to in this law.

Article 51. Provisional liquidation.

1. the organs of tax management may turn the provisional liquidation General tax applicable, in accordance with the provisions in articles 133 and 139 of the law 58/2003, of December 17.

2. as indicated in the preceding paragraph shall be without prejudice to subsequent verification and investigation that can perform the tax administration.

Article 52. Deduction of payments on account of tax on the income of physical persons.

When a taxpayer acquires its condition for change of residence, payments on account of tax on the income of the physical people practiced since the beginning of the year will be considered withholdings or payments on account of this tax until is credited to the tax administration change of residence, when such payments correspond to income subject to this tax received by the taxpayer.

Article 53. Rules on retention, transmission and formal obligations concerning financial assets and other securities.

1. in transmissions or redemption of shares representing the capital or assets of collective investment institutions will be forced to practice retention or income to account for this tax, in cases and in the manner established by law, entities managing, administering, depository, marketers or any other responsible for the above mentioned operations.

The obligation to make payments to account manager of the transferring of shares and shares of collective investment institutions, with a limit of 20 per cent of the income obtained in these transmissions may by regulation establish.

2 a the effects of the obligation to withhold on the implicit income from the capital, to account for this tax, this retention shall be made by the following persons or entities: to) in the yields obtained in the transmission or reimbursement of financial assets that is statutorily established the obligation to withhold, the retainer will be the issuer or the financial institutions responsible for the operation.

(b) the yields obtained in transmissions relating to operations that are not document titles, as well as a financial institution responsible for transmissions, the retainer will be Bank, box or entity acting on behalf of the transferor.

(c) in cases not included in the preceding paragraphs, the intervention of a notary public who will practise the corresponding retention will be required.

3. in order to proceed to the alienation or obtaining of repayment of the securities or assets with implicit returns that must be subject to retention, shall accredit your prior acquisition involving the jurymen or financial institutions referred to in the previous paragraph, as well as the price that the operation was carried out.

The issuer or the financial institutions responsible for the operation which, in accordance with the preceding paragraph, must not be refund the holder of the title or active must be constituted by that number depot at the disposal of the judicial authority.

4. the public notaries that intervene or medien in the issuance, subscription, transmission, Exchange, conversion, cancellation and repayment of Treasury bills, securities or any other securities and financial assets, as well as operations relating to rights in rem over those, come obliged to inform such transactions to the tax administration rela tion nominal of involved subjects with indication of your address and tax identification number class and number of public effects, equities, securities and assets, as well as the price and date of the operation, within the time limits and according to the pattern determined by the Minister of finance.

The same requirement will fall on entities and financial credit establishments, companies and securities agencies, other financial intermediaries and any physical or legal person who engages habitually to the brokerage and placement of bills, securities or any other securities of financial assets, indices, futures and options on them; even documents with annotations into account, with respect to transactions involving, directly or indirectly, recruitment or placement of resources through any class of securities or effects.

Also, the management companies of collective investment with respect to the shares and participations in such institutions are subject to this obligation of information.

Reporting obligations referred to in this section shall be deemed fulfilled with respect to operations subject to retention referred to in it, with the presentation of the relationship of percipients, adjusted to the official model of the annual summary of retentions corresponding.

5 should contact the tax administration the issuance of certificates, guards or documents representing the acquisition of metals or precious objects, stamps of philatelic value or pieces of Numismatic value, by physical or legal persons habitually engaged in the promotion of investment in such securities.

6. the provisions of paragraphs 2 and 3 above will be applicable in relation to the obligation to retain or paying on account is established according to the rules regarding the financial assets of explicit performance transmissions.

Sole transitional provision. Transitional provisions of the amended text of the physical personal income tax, approved by Royal Legislative Decree 3/2004, of 5 March.


The second, fifth, ninth, and tenth transitional provisions of the amended text of the physical persons income tax approved by the Royal Decree legislative 3/2004, of 5 March, shall apply to taxpayers without a permanent establishment who are natural persons.

First final provision. Qualifications to the General State budget Act.

The General State budget Act may: to) modify the types of assessment.

(b) modify the quantitative limits and fixed percentages.

(c) enter and modify the precise rules to meet the obligations of the Treaty on European Union and of the right arising from this.

Second final provision. Enabling legislation.

1. It enables the Government to dictate how many provisions are necessary for the development and implementation of this law.

2 models of this tax and payments on account shall be approved by the Minister of finance, that establish the form, place and time limits for presentation, as well as the assumptions and conditions of its presentation by telematic means.

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