Royal Legislative Decree 4/2004, Of 5 March, Which Approves The Consolidated Text Of The Law Of Corporation Tax.

Original Language Title: Real Decreto Legislativo 4/2004, de 5 de marzo, por el que se aprueba el texto refundido de la Ley del Impuesto sobre Sociedades.

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I the additional fourth provision of law 46/2002, December 18, of partial reform of the personal income tax and by 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 an authorization to regularize, clarify and harmonize the legal texts that are to be consolidated.

This empowerment aims to increase the clarity of the tax system by integrating in a single regulatory body of provisions affecting these taxes, contributing to improve the legal certainty of the tax administration and taxpayers.

In exercise of this authorization, produces this legislative Royal Decree which approves the revised text of the law of corporation tax.

II the law 43/1995, of 27 December, the corporation tax, posted on December 28, 1995, in the "official bulletin of the State" had as main causes of commercial legislation and physical persons income tax reforms carried out in previous years, as well as the opening of our economy to cross-border capital flows and the development of tax systems in the neighbouring countries.

The law 43/1995, of 27 December, from its entry into force on 1 January 1996, has undergone major modifications, which include those introduced by the following standards: to) Law 10/1996, of 18 December, urgent fiscal measures on correction of intersocietal double internal taxation and incentives for the internationalisation of companies which established the new regime of deduction by double taxation internal regulated in article 28 of law 43/1995, of 27 December, as well as the legal regime of the tribute that taxed the revaluations made under cover of the Royal Decree Law 7/1996, of 7 June, on urgent measures of a fiscal nature and promotion and liberalization of economic activity.

b) the law 40/1998, of December 9, the tax on the income of natural persons and other tax rules, and 41/1998 of 9 December, non-resident income tax and tax rules. These standards were the regulation separated from the taxation of non-residents with respect to physical persons and legal residents in Spain.

(c) the law 6/2000, of 13 December, by which approve urgent fiscal stimulus to household savings and the small and medium enterprises, which established the non-integration in the taxable base of the income corresponding to the lender in certain securities lending operations, extended the deadline for the computation of the deductions for double international taxation and established no retention yields derived from the distribution of the premium from issuance of shares and reduction of capital.

d) Law 24/2001, of 27 December, fiscal measures, administrative and social order, amending, among other aspects of the tax treatment of the taxation of the windfall profits with the tax consolidation system.

(e) the mentioned law 46/2002, 18 December, which suppressed the internal fiscal transparency regime and established the regime of economic societies.

f) La law 36/2003, of 11 November, economic reform measures, which established the tax system of entities engaged in the leasing of housing.

(g) and, finally, law 62/2003, of 30 December, fiscal measures, administrative and social order, which has introduced various measures as, for example, the improvement of the deduction for research and development and technological innovation.

In the text approved by the Royal Legislative Decree Law 43/1995, of 27 December, she recasts with different standards, some of which are integrated in its articles and others are introduced as additional and transitional provisions. This distribution has been carried out on the basis of the possibility or not of integrating the substance of each provision in the regulations of the tax structure, as well as its more or less specific scope and its temporal validity.

Certain references contained in law 43/1995, of 27 December, that have lost its validity as a result of subsequent amendments of the tax rules have been eliminated in the consolidated text.

Firstly, it should be pointed out the reform carried out by the law 41/1998, of December 9, which, by virtue of its sole repeal provision, repealed, among other rules, the title VII of law 43/1995, 27 December. In the preparation of this consolidated text has been taken into account the provisions by the first additional provision of law 41/1998 of 9 December, which clarifies how the references made by the law of corporation tax to the obligation to contribute, given the new regulatory framework that is born with the enactment of the law 41/1998 real should be interpreted , 9 December.

References made to the companies subject to the system of internal fiscal transparency, whose special regime has been suppressed with the entry into force of law 46/2002 of 18 December last, disappear.

III as well, in the articles of the revised text shall be merged the articles of law 43/1995, of 27 December, and the following provisions: to) accelerated depreciation for property, plant and equipment and intangible of limited labour societies, according to wording of the law 4/1997, of 24 March, labour societies, that is included in paragraph to) of paragraph 2 of article 11.

(b) deductibility of accrued interest of certain equity loans in accordance with the drafting of the Royal Decree Law 7/1996, of 7 June, which is incorporated as paragraph 2 of article 14.

(c) are not subject of the incomes that are highlighted as a result of the right rescue and the share of profit from collective insurance contracts that they implemented commitments for pensions, contained in the first additional provision of law 46/2002, December 18, and that is included as a new paragraph 4 of article 17.

(d) cases of income that are not subject to integration into the tax base, which are added, respectively, as paragraphs 5 and 6 of article 17: 1 which becomes manifest at the time of the payment of tax debts referred to in article 73 of the law 16/1985, of 25 June, on Spanish historical heritage.

2. from certain forest subsidies in accordance with the fifth additional provision of law 46/2002 of 18 December.

(e) taxation of the sports entities as referred to in the first paragraph of the additional provision twenty sixth law 31/1991 of 30 December, of the General State budget for 1992, which is incorporated as a new Chapter XVIII of the title VII.

(f) obligation to make certain payments on account of tax on the income of the physical persons, of the tax on income of non-residents and companies, and tax obligation to retain or log in to account regarding the financial assets of explicit performance transmissions, contained in article 24 of the Law 50/1998, of December 30 fiscal measures, administrative and social order, including, respectively, in paragraphs 1 and 6 of article 141. Also has been incorporated in articles 140 and 141, respectively, as subjects bound to retain or log in to account the representatives of the insurance companies operating in Spain freedom to provide services, in accordance with article 86.1 and the transitional provision of law 30/1995 of 8 November, 17th of ordination and supervision of private insurance , and representatives designated in accordance with article 55.7 and the second additional provision of law 35/2003, 4 November, of collective investment institutions, acting on behalf of the Fund management company operating in the regime of free provision of services.

(h) also be incorporated into the articles of the text, for reasons of Systematics and legislative technique, the regulations contained in the first additional provision of law 43/1995, of 27 December, concerning the application of the special arrangements for mergers, divisions, transfers of assets and exchange of values to taxable persons of the tax having no way to legal society , and the additional provision relating to retention, transmission and formal obligations concerning financial assets and other securities regulations, fourth of the aforementioned law. The first of these has been collected in paragraph 6 of article 83 of the revised text and the second in paragraphs 2, 3, 4 and 5 of its article 141.

IV on the other hand, are incorporated as additional provisions of the consolidated text, along with those of law 43/1995, of 27 December, the following standards:
(a) in the third additional provision, the tax treatment helps the common agricultural and fisheries policy and other public aid contained in the second additional provision twenty of the law 40/1998 of 9 December, which recasts with the additional provision ten of law 43/1995, 27 December.

(b) in the seventh additional provision, the depreciation rates applicable to acquisitions of new assets made between January 1, 2003 and December 31, 2004, under the twelfth article of law 36/2003, of 11 November.

V Finally, incorporate provisions transitional consolidated text, along with the of law 43/1995, of 27 of December, still applicable, the following provisions: a) in paragraph 3 of the second transitional provision, the regulation contained in paragraph 2 of the transitional provision eighth Law 50/1998, of December 30, concerning the transitional tax regime of activities of research and exploitation of hydrocarbons; and in paragraph 4, the content of the transitional provision of law 53/2002, of 30 December, seventh fiscal, administrative measures and the social order, concerning the transitional arrangements of the modification of the taxation of research and exploitation of hydrocarbons.

(b) in the third transitional provision, in paragraph 2, the regulation contained in the ninth transitional provision of law 50/1998, of December 30, and in paragraphs 3, 4 and 5 set out in the third transitional provision of the law 24/2001, of 27 December, relating to the reinvestment of windfall profits.

(c) in paragraph 3 the seventh transitional provision of the transitional provision sixth of law 24/2001, of 27 December, amended by the additional provision sixth of law 46/2002, December 18, concerning the effects of the difference between the acquisition price of participation and its theoretical value in operations carried out by the special merger regime , divisions, transfers of assets and exchanges of values.

(d) in the transitional provision eighth, in paragraph 2, the provisions in the transitional provision of law 6/2000, of 13 December, on pending articles 29 bis deductions and 30 bis of law 43/1995, of 27 December, second and, in its paragraph 3, provisions of the transitional provision three of law 46/2002 , 18 December, relating to deductions pending of chapter IV of title VI of the law 43/1995, 27 December.

(e) in the ninth transitional provision, regulation of the fourth transitional provision of the law 24/2001, of 27 December, concerning the carryforwards pending compensation in corporation tax.

(f) in the fourteenth transitory provision, the regulation established by the sixteenth transitional provision of law 24/2001, of 27 December, concerning the transitional arrangements for transition to competition.

(g) in the transitional provisions fifteenth and sixteenth, the contents of the transitional provisions first and second law 46/2002 of 18 December, which regulates the transitional taxation of companies transparent.

(h) at the disposal transient seventeenth, paragraph 1 of the provision transient single law 10/1996 of 18 December, which is excepted from the restrictions provided for in paragraph 4 of article 28 of law 43/1995, of 27 December, dividends or shares in profit on securities capital or equity acquired prior to the Royal Decree Law 8/1996 , June 7.

(i) in the eighteenth transitional provision, the application of paragraph 11 of article 128 of the law 43/1995, of 27 December, assets whose construction period completed prior to December 31, 2002.

VI it 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 affect different areas and various taxes, as for example, the law 20/1990 of 19 December on regime Prosecutor of cooperatives, the Law 19/1994, of 6 July, modification of the economic regime and Canarias Attorney , 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.

VII the Royal Legislative Decree contains an article, an additional provision, two transitional provisions, a repealing provision and final disposition.

Pursuant to its article only approves the revised text of the law of corporation tax.

According to the sole additional provision, the normative references in other provisions to law 43/1995, of 27 December, shall be deemed performed the relevant precepts of a consolidated text.

The first transitional provision notes that until 1 July 2004, date of entry into force of the Act 58/2003, of December 17, General tax, continue to force certain precepts of law 43/1995, of 27 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 law 43/1995, 27 December.

Layout transient second sets that up to September 1, 2004, date of entry into force of the law 22/2003, of July 9, bankruptcy, will continue to force certain precepts of law 43/1995, of 27 December, and that the bankruptcy proceedings that are pending on the aforementioned date are remain them such precepts.

Repealing provision lists the rules that shall be merged in this text, without prejudice to those others who, being also object of recasting, are repealed in Royal legislative decrees approving texts consolidated the laws of tax on physical persons income and the income of non-residents, by largely affect one of these taxes. In addition, repealing the transitional provision of law 62/2003, of 30 December, seventh fiscal measures, administrative and social order, by having been incorporated into the second transitional provision of this Royal Decree.

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 bankruptcy law.

The revised text is approved is composed of 144 items, grouped into nine titles, eight additional provisions, 18 transitional provisions and four final provisions.

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 of corporation tax.

Approves the revised text of the law of corporation tax, which is then inserted.

Sole additional provision. Regulatory referrals.

Normative references made to other provisions to law 43/1995, of 27 December, the corporation tax, shall be made to the relevant precepts of the consolidated text approved by Royal Legislative Decree.

First 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 tax: to) be kept in force the articles 77.2, 84.4, 107.4, 135 quater.2 and 141.2 of law 43/1995, of 27 December, the corporate income tax.
(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 law 43/1995 , 27 December.

Second transitional provision. Law 22/2003, of July 9, bankruptcy.

Until September 1, 2004, date of entry into force of the law 22/2003, of July 9, bankruptcy, be kept in force the articles 12.2. b) and 81.4. b) of law 43/1995, of 27 December, the corporate income tax. However, to the bankruptcy proceedings that are pending on that date will remain them application these precepts according to his drafting effective until August 31, 2004, as governed by the earlier right at law 22/2003, of July 9.

Sole repeal provision. Repeal legislation.

1 except as provided in the transitional provisions above, the entry into force of this Legislative Decree shall be repealed, on the occasion of their incorporation into the consolidated text that is approved, the following standards: to) the law 43/1995, of 27 December, the corporate income tax. However, retain its validity the thirteenth additional provision and paragraph 2, subject to provisions in relation to article 24 of law 20/1990 of 19 December, on Fiscal regime of cooperatives, and paragraph 4, both the second final disposition, and the seventh final disposition, of law 43/1995, 27 December.

(b) the first paragraph of the twenty sixth additional provision of law 31/1991 of 30 December, of the General State budget for 1992.

(c) paragraph two of article 20 of the Royal Decree Law 7/1996, of 7 June, on urgent measures of a fiscal nature and promotion and liberalization of economic activity.

(d) paragraph 1 of the transitional provision of law 10/1996, of 18 December, of urgent fiscal measures on correction of intersocietal double internal taxation and incentives for the internationalisation of companies.

(e) the second paragraph of the fourth additional provision of law 4/1997, of 24 March, labour societies.

Article 24 (f)) and the transitional provisions eighth, paragraph 2, and ninth of the Law 50/1998, of December 30, fiscal measures, administrative and social order.

(g) the second transitional provision of the law 6/2000, of 13 December, laying down urgent fiscal stimulus to household savings and the small and medium enterprises.

(h) the transitional provisions third, fourth, sixth and sixteenth of the law 24/2001, of 27 December, fiscal measures, administrative and social order.

(i) the fifth additional provision and transitional provisions first, second and third law 46/2002, December 18, of partial reform of the personal income tax and by amending the tax law on societies and on the income of non-residents.

(j) the twenty fifth additional provision and the transitional provision of law 53/2002, of 30 December, seventh fiscal measures, administrative and social order.

(k) the article of law 36/2003, of 11 November, 12th economic reform measures.

(l) the transitional provision of law 62/2003, of 30 December, seventh fiscal measures, administrative and social order.

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 is approved 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. the articles 63.2, 70.4, 93.4, 125.2 and 135.2 of the revised text shall enter into force on July 1, 2004, date of entry into force of the Act 58/2003, of December 17, General tax.

3 the articles 12.2. b) and 67.4. b) of the revised text they will come into force on September 1, 2004, date of entry into force of the law 22/2003, of July 9, bankruptcy.

Given in Madrid, on March 5, 2004.

JUAN CARLOS R.

Treasury Minister CRISTOBAL MONTORO ROMERO revised text of the law of the tax on companies index title I. nature and scope of the tax.

Article 1. Nature.

Article 2. Spatial scope.

Article 3. Treaties and conventions.

Title II. The taxable transactions.

Article 4. Made taxable.

Article 5. Estimation of incomes.

Article 6. Income allocation.

Title III. The taxable person.

Article 7. Taxable persons.

Article 8. Residence and domicile tax.

Article 9. Exemptions.

Title IV. The tax base.

Article 10. Concept and definition of the tax base.

Article 11. Value adjustments: redemptions.

Article 12. Value: loss of value of the assets.

Article 13. Provision for risks and charges.

Article 14. Non-deductible expenses.

Article 15. Valuation rules: general rule and special rules in the case of non-profit and corporate transmissions.

Article 16. Rules of valuation: related-party transactions.

Article 17. Valuation rules: changes of residence, cessation of permanent establishments, or transactions by persons or entities resident in tax havens and subject to withholding amounts. Special rules.

Article 18. Effects of substitution of the book value for the normal market value.

Article 19. Temporary allocation. Accounting registration of revenues and expenses.

Article 20. Thin capitalisation.

Article 21. Exemption to prevent international economic double taxation on dividends and foreign source income derived from the transfer of securities of the own funds of non-resident entities in Spanish territory.

Article 22. Exemption of certain income obtained abroad through a permanent establishment.

Article 23. Deduction for investments for the establishment of businesses abroad.

Article 24. Charitable work of savings banks.

Article 25. Carryforwards compensation.

Title V. tax period and accrual of the tax.

Article 26. Tax period.

Article 27. Accrual of the tax.

Title VI. Tax debt.

Chapter i. Types of assessment and total tax.

Article 28. The type of assessment.

Article 29. Total tax.

Chapter II. Deductions to avoid double taxation.

Article 30. Deduction for double internal taxation: dividends and capital gains from internal source.

Article 31. Deduction for double international taxation: tax borne by the taxpayer.

Article 32. Deduction for double international taxation: dividends and shares in profits.

Chapter III. Bonuses.

Article 33. Bonus for income obtained in Ceuta and Melilla.

Article 34. Bonus for export activities and provision of local public services.

Chapter IV. Deductions to encourage certain activities.

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

Article 36. Deduction for the promotion of information and communication technologies.

Article 37. Deduction for export activities.

Article 38. Deduction for investment in assets of cultural interest, film productions, editing books, navigation systems and vehicle tracking, adaptation of vehicles for the disabled and nurseries for children of employees.

Article 39. Deductions for environmental investments.

Article 40. Deduction for training expenses.

Article 41. Deduction for job creation for the disabled workers.

Article 42. Deduction for reinvestment of windfall profits.

Article 43. Deduction for business contributions to employment pension plans or mutual social welfare acting as an instrument of corporate welfare.

Article 44. Rules common to the deductions provided for in this chapter.

Chapter V. payment by installments.

Article 45. The payment by installments.

Chapter VI. Deduction of payments.

Article 46. Deduction of withholdings, payments and instalments.

Title VII. Special tax regimes.

Chapter i. Special in particular tax regimes.

Article 47. Definition.

Chapter II. Economic interest groupings, Spanish and European, and temporary unions of companies.

Article 48. Spanish economic interest groupings.

Article 49. European economic interest groupings.

Article 50. Temporary unions of companies.

Article 51. Allocation criteria.

Article 52. Identification of partners or member companies.

Chapter III. Entities engaged in the leasing of housing.

Article 53. Scope of application.

Article 54. Bonuses.

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

Article 55. Companies and venture capital funds.

Article 56. Societies of regional industrial development.

Chapter V. collective investment institutions.

Article 57. Taxation of collective investment undertakings.

Article 58. Taxation of partners or participants in collective investment undertakings.

Article 59. Posted income from shares or shares of collective investment institutions.
Article 60. Taxation of partners or participants in collective investment undertakings incorporated in countries or territories qualified by law as tax havens.

Chapter VI. Heritage societies.

Article 61. Regime of economic societies.

Article 62. Distribution of profits gained in exercises in which has been application the regime of economic societies and transmission of shares or interests in companies that have been subject to the regime of economic societies.

Article 63. Identification of participants.

Chapter VII. Tax consolidation system.

Article 64. Definition.

Article 65. Taxable person.

Article 66. Tax responsibilities arising from the application of the system of fiscal consolidation.

Article 67. Definition of the tax group. Parent company. Subsidiaries.

Article 68. Inclusion or exclusion of companies in the tax group.

Article 69. Determination of the indirect domain.

Article 70. Application of the system of fiscal consolidation.

Article 71. Determination of the taxable income of the tax group.

Article 72. Eliminations.

Article 73. Incorporations.

Article 74. Carryforwards compensation.

Article 75. Reinvestment.

Article 76. Tax period.

Article 77. Total tax of the tax group.

Article 78. Deductions and allowances of the full share of the tax group.

Article 79. Information obligations.

Article 80. Determining causes of the loss of the tax consolidation system.

Article 81. Effects of the loss of the regime of fiscal consolidation and the extinction of the tax group.

Article 82. Declaration and autoliquidación of the tax group.

Chapter VIII. Special scheme for mergers, divisions, transfers of assets and exchanges of values.

Article 83. Definitions.

Article 84. Income derived from the transmission system.

Article 85. Tax assessment of the property acquired.

Article 86. Tax valuation of shares or shares received in Exchange for the contribution.

Article 87. Taxation of the exchange of values.

Article 88. Taxation of the partners in the operations of merger, absorption, and partial or total excision.

Article 89. Shareholdings in the capital of the transferring entity and the acquirer.

Article 90. Subrogation in the rights and tax obligations.

Article 91. Allocation of income.

Article 92. Losses of permanent establishments.

Article 93. Accounting obligations.

Article 94. Non-monetary contributions.

Article 95. Rules for avoidance of double taxation.

Article 96. Application of the tax system.

Chapter IX. The mining tax regime.

Article 97. Mining entities: accelerated depreciation.

Article 98. Depletion factor: scope and modalities.

Article 99. Depletion factor: investment.

Article 100. Depletion factor: requirements.

Article 101. Depletion factor: failure to meet requirements.

Chapter x. Taxation of research and exploitation of hydrocarbons.

Article 102. Exploration, investigation and exploitation of hydrocarbons: exhaustion factor.

Article 103. Depletion factor: requirements.

Article 104. Depletion factor: failure to meet requirements.

Article 105. Shared ownership.

Article 106. Amortization of intangible investments and research costs. Carryforwards compensation.

Chapter XI. International fiscal transparency.

Article 107. Inclusion in the tax base of certain positive income derived by non-resident entities.

Chapter XII. Tax incentives for small size businesses.

Article 108. Scope: turnover.

Article 109. Accelerated depreciation.

Article 110. Accelerated depreciation for investments of little value.

Article 111. Depreciation of new tangible and intangible assets.

Article 112. Provision for possible bad debts of debtors.

Article 113. Amortization of assets subject to reinvestment.

Article 114. Type of assessment.

Chapter XIII. Taxation of certain finance lease contracts.

Article 115. Leasing contracts.

Chapter XIV. Regime of holdings of foreign securities institutions.

Article 116. Holdings of foreign securities institutions.

Article 117. Income derived from the holding of securities of the own funds of non-resident entities in Spanish territory.

Article 118. Distribution of benefits.

Transmission of participation.

Article 119. Application of this regime.

Chapter XV. Partially exempt entities regime.

Article 120. Scope of application.

Article 121. Exempt income.

Article 122. Determination of the tax base.

Chapter XVI. Turnkey common holders communities of montes neighborhood system.

Article 123. Turnkey common holders communities of montes neighborhood system.

Chapter XVII. Regime of the shipping entities depending on the tonnage.

Article 124. Scope of application.

Article 125. Determination of the tax base by the method of objective estimation.

Article 126. Type of assessment and fee.

Article 127. Instalments.

Article 128. Application of the scheme.

Chapter XVIII. Regime of sports entities.

Article 129. Regime of sports entities.

Title VIII. Tax management.

Chapter I. The index of entities.

Article 130. Index of entities.

Article 131. Low on the index of entities.

Article 132. Obligation of collaboration.

Chapter II. Accounting obligations. Property and rights not recorded. Voluntary revaluations.

Article 133. Accounting obligations. Powers of the tax administration.

Article 134. Property and rights not accounted or not declared: presumption of obtaining of incomes.

Article 135. Voluntary accounting revaluations.

Chapter III. Declaration, autoliquidación and provisional liquidation.

Article 136. Statements.

Article 137. Autoliquidación and income of the tax debt.

Article 138. Provisional liquidation.

Chapter IV. Return of trade.

Article 139. Return of trade.

Chapter V. obligation to retain and access account. Obligations in relation to the fiscal domicile.

Article 140. Withholdings and payments on account.

Article 141. Rules on retention, transmission and formal obligations concerning financial assets and other securities.

Article 142. Obligations of taxable persons in relation to the fiscal domicile.

Chapter VI. Powers of the Administration to determine the taxable base.

Article 143. Powers of the Administration to determine the taxable base.

Title IX. Court order.

Article 144. Competent jurisdiction.

First additional provision. Restrictions on the deduction for double taxation of dividends.

Second additional provision. References to the law 29/1991, of December 16, adaptation of certain tax concepts to the directives and regulations of the European communities contained in various provisions. Regime of the tax on the increase of the value of the land of urban nature in certain operations.

Third additional provision. Subsidies of the Community agricultural and fisheries policy and public aid.

Fourth additional provision. Taxation of assets transmissions carried out in compliance with provisions with range of law and with the rules of competition.

Fifth additional provision. Tax incentives for the renewal of the merchant fleet.

Sixth additional provision. Incidence of the reserve for investments in the Canary Islands in the calculation of the instalments.

Seventh additional provision. Depreciation rates applicable to acquisitions of assets made between 1 January 2003 and 31 December 2004.

First transitional provision. Regularization of balance adjustments.

Second transitional provision. Taxation of research and exploitation of hydrocarbons and mining development.

Third transitional provision. Fourth transitional provision windfall profits reinvested. Tax benefits of reconversion and reindustrialization.

Fifth transitional provision. Tax benefits of law 12/1988, of 25 may, law 5/1990 of 29 June, and law 30/1990 of 27 December.

Sixth transitional provision. Financial leasing.

Seventh transitional provision. Funds of Commerce, trademarks, rights of transfer and other elements of intangible assets acquired prior to the entry into force of law 43/1995, of 27 December, the corporate income tax. Effects of the difference between the acquisition price and its theoretical value in operations carried out by the special regime for mergers, divisions, transfers of assets and exchanges of values.

Eighth transitory provision. Deductions pending apply in corporation tax.

Ninth transitional provision. Carryforwards pending compensation in corporation tax.

Tenth transitional provision. Balance of the provision for bad debts covered by article 82 of the Royal Decree 2631 / 1982, of 15 October.

Eleventh transitional provision. Transitional regime of the profits on financial operations.

Twelfth transitional provision. Tax value of shares of collective investment institutions.

Thirteenth transitional provision. Update accounts.

Fourteenth transitory provision. Transitional regime for the intensification of competition.

Fifteenth transitional provision. Transparent societies.
Sixteenth transitional provision. Dissolution and liquidation of transparent societies.

Seventeenth transitory provision. Transitional regime of the deduction for the double internal taxation of dividends at the corporate tax.

18th transitional provision. Pursuant to paragraph 11 of article 115 of the law on assets whose construction period completed prior to December 31, 2002.

First final provision. Entities benefiting to the law 49/2002, of 23 December, tax regime of non-profit entities and tax incentives to sponsorship.

Second final provision. Entities benefiting from the law 20/1990 of 19 December on Fiscal regime of cooperatives.

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

Fourth final provision. Enabling legislation.

REVISED text of the law of the tax on companies title i. nature and scope of the tax article 1. Nature.

Corporate tax is a tribute of directness and personal nature that taxes the income of corporations and other legal entities in accordance with the provisions of this law.

Article 2. Spatial scope.

1. the tax shall apply throughout the Spanish territory.

For the purposes of the preceding paragraph, the Spanish territory also includes those areas adjacent to the territorial waters over which Spain can exercise the rights that are appropriate concerning soil and marine subsoil, overlying waters, and their natural resources, in accordance with Spanish law and international law.

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

Article 3. 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.

Title II article 4 taxable. Made taxable.

1 shall constitute the taxable transactions the obtaining of income, whatever that was its source or origin, by the taxable person.

2. in the special regime of Spanish and European economic interest groupings, and temporary unions of companies, means obtaining income imputation to the taxable taxable bases, or the benefits or losses, of the entities subject to this regime.

In the international tax transparency regime compliance determining conditions of inclusion means obtaining income tax base of positive income derived by the non-resident entity.

Article 5. Estimation of incomes.

Transfers of goods and rights in its various forms shall presume paid by their normal market value, unless proven otherwise.

Article 6. Income allocation.

1. pensions for civil societies, with or without legal personality, legacies recumbent, communities of goods and other entities referred to in article 35.4 of the Act 58/2003, of December 17, General tax, as well as withholdings and payments on account which have supported, will be attributed to members, heirs, community members or participants, respectively, pursuant to section 2 of title VII of the recast of the tax law on the income of physical persons, approved by the Royal Decree legislative 3/2004, of 5 March.

2. the income allocation regime shall not apply to the agrarian societies of transformation, which will be taxed by tax.

3. the entities with income allocation regime will not be taxed by tax.

Title III the taxable person article 7. Taxable persons.

1 will be taxable tax, when they have their residence in Spanish territory: to) legal persons, except the civil societies.

(b) investment funds, regulated in the law on collective investment institutions.

(c) temporary unions of companies, regulated by law 18/1982, of 26 May, on taxation of groupings and temporary unions of companies and societies of regional industrial development.

d) venture capital funds, regulated by law 1/1999, of 5 January, regulatory institutions of venture capital and their management companies.

(e) pension funds, regulated in the revised text of the law of regulation of plans and pension funds, approved by Royal Legislative Decree 1/2002 of 29 November.

(f) the regulation of the mortgage market funds, regulated by law 2/1981, dated March 25, regulation of the mortgage market.

(g) the mortgage securitisation funds, regulated in the Law 19/1992, July 7, about regime of companies and real estate investment funds and mortgage securitisation funds.

(h) the funds of securitization of assets referred to in the additional provision quinta.2 of the law 3/1994, of 14 April, on adaptation of the Spanish legislation on credit to the second directive of Bank coordination and other changes to the financial system.

(i) the investment guarantee funds, regulated by law 24/1988, of July 28, the stock market.

(j) the holders communities of neighborhood montes in common hand regulated by law 55/1980, 11 November, on turnkey common neighborhood mountains system, or in the corresponding regional legislation.

2. the taxable person will be taxed by the totality of income obtained, irrespective of the place where it has occurred and any that is the residence of the payer.

3. taxable persons of the tax shall be designated abbreviated and indistinctly by denominations societies or organizations throughout this law.

Article 8. Residence and domicile tax.

1 will be considered resident in Spanish territory entities in which if any of the following requirements: to) which had been subject to the Spanish laws.

(b) have its registered office in Spanish territory.

(c) have their place of effective management in Spanish territory.

For these purposes, means that an entity has its place of effective management in Spanish territory when the aforesaid the direction and control of all their activities.

2. the fiscal domicile of taxpayers resident in Spanish territory will be their head office, provided that it is effectively centralized administrative management and direction of their business.

In another case, it will serve to place that can perform such management or direction.

In cases that cannot be established the place of fiscal domicile, in accordance with the above criteria, shall prevail one where is situated the highest value of fixed assets.

Article 9. Exemptions.

1 shall be completely exempt from tax: to) the State, the autonomous communities and local authorities.

(b) autonomous bodies of the State and entities of public right of analog character of the autonomous communities and local authorities.

(c) the Bank of Spain, deposit guarantee funds and guarantee of investment funds.

(d) the public entities responsible for the management of Social Security.

(e) the Institute of Spain and Royal official academies integrated in the institutions of the autonomous communities and one with its own official language that have purposes analogous to the de la Real Academia Española.

(f) other public bodies referred to in the additional provisions ninth and tenth, paragraph 1, of the law 6/1997, of 14 April, organization and functioning of the General Administration of the State, as well as the entities of public right of analog character of the autonomous communities and local authorities.

2 they will be partially exempt from tax, under the terms provided in the title II of law 49/2002, of 23 December, taxation of non-profit entities and tax incentives to the patronage, the entities and non-profit institutions that is the title.

3 will be partially exempt from tax under the terms provided in Chapter XV of the title VII of this Act: to) not included in previous section entities and non-profit institutions.

(b) unions, federations and confederations of cooperatives.

(c) the professional associations, business associations, official Chambers, workers unions and political parties.

(d) funds for the promotion of employment constituted on the basis of article 22 of law 27/1984, of 26 July, about conversion and reindustrialization.

(e) the mutual of accidents at work and occupational diseases from Social security that meet the requirements established by its rules governing.

(f) the entity of public law State ports and port authorities.

Title IV taxable article 10. Concept and definition of the tax base.

1. the tax base will be constituted by the amount of the income in the tax period tax carryforwards for tax periods previous compensation.

2. the tax base is determined by the direct estimation, by the estimation method objective when this law determines its application and, secondarily, by the of indirect estimate, in accordance with the provisions of the General tax law.
3. in the direct estimation method, the tax base shall be calculated, correcting, by applying the precepts laid down in this law, the outcome accountant determined in accordance with the rules laid down in the commercial code, other laws relating to the determination and the provisions issued in development of the above-mentioned standards.

4. in the method of objective estimate the tax base may determine total or partially through the application of signs, indexes or modules to sectors of activity determined by this law.

Article 11. Value adjustments: redemptions.

1 will be deductible, amounts for depreciation of tangible or intangible, correspond to effective depreciation which suffer the various elements for operation, use, enjoyment or obsolescence.

The depreciation is effective when: to) is the result of applying the linear depreciation rates set out in officially approved depreciation tables.

(b) be the result of applying a constant percentage of the pending of amortization value.

The constant percentage is determined by weighing the straight-line depreciation coefficient obtained from the period of depreciation according to officially approved depreciation tables, by the following coefficients: 1 1.5, if the item has a less than five-year amortization period.

2nd 2, if the item has a repayment period to five years and less than eight years.

3rd 2.5, if the item has a payback period equal to or greater than eight years.

The constant percentage may not be less than 11 per cent.

Buildings, furniture and furnishings may not be eligible to the depreciation through constant percentage.

(c) be the result of applying the method of digit numbers.

The sum of digits is determined by the amortization period set forth in the officially approved depreciation tables.

Buildings, furniture and furnishings may not be eligible to depreciation by digit numbers.

(d) is set to a plan formulated by the individual passive and accepted by the tax authorities.

(e) the taxable person justifies its amount.

Implementing regulations will be adopted tables of depreciation and the procedure for the resolution of the plan referred to in paragraph d).

2 can pay freely: to) elements of tangible and intangible business corporations and societies limited labour affects the realization of their activities, acquired during the first five years from the date of qualification as such.

(b) the active miners in the terms established in article 97.

(c) the elements of tangible and intangible, excluding buildings, affects the activities of research and development.

Buildings may pay for itself, equally, for a period of 10 years, in the part which are related to the activities of research and development.

(d) research and development expenses activated as intangible assets, excluding depreciation of the items to enjoy accelerated depreciation.

(e) the elements of tangible or intangible entities that have the qualification of priority associative holdings in accordance with the provisions of law 19/1995, of 4 July, modernisation of agricultural holdings, acquired during the first five years from the date of their recognition as a priority exploitation.

The amounts applied to accelerated depreciation will increase the tax base on the occasion of the repayment or transmission of elements who enjoyed that.

3. in the case of assignment of use of goods with option to purchase or renewal, when by the economic conditions of operation do not exist reasonable doubts that be exercised one or another option, will be deductible to the assignee company an amount equivalent to quotas of depreciation which, as laid down in paragraph 1, would correspond to the aforementioned goods.

It shall be assumed that reasonable doubt who is going to exercise any option when the amount to be paid by their exercise is less than the amount resulting from lower price of acquisition or production cost of the good in the sum of the maximum amortization contributions that apply to this within the duration of the transfer time there is no.

The difference between the amounts to be paid to the transferor entity and the price of acquisition or production cost of the good will be for the entity assignee spending considered to be distributed among the tax periods within the duration of the transfer time.

When good has been the subject of prior transmission by the assignee to the assignor, the assignee will continue the amortization of that under identical conditions and on the same value prior to transmission.

When application the provisions of this paragraph, the transferor entity amortised the price of acquisition or cost of production of the good, deducted the value of the option, in the term of operation.

The goods referred to in this paragraph may also pay for itself freely in the cases referred to in the preceding paragraph.

4 allowance for depreciation of goodwill will be deductible up to the annual maximum of the twentieth part of the amount, provided that the following requirements are fulfilled: to) that goodwill it has become apparent under an acquisition against payment.

(b) that the acquirer is not, with respect to the person or entity transferring, in any of the cases provided for in article 42 of the code of Commerce. For these purposes, means that the cases of article 42 of the code of Commerce are those referred to in section 1 of chapter I of the rules for the formulation of the annual accounts consolidated, approved by the Royal Decree 1815 / 1991, of 20 December. Requirement provided for in this paragraph shall not apply with respect to the purchase price of goodwill satisfied by the person or entity transferring when he had acquired it from persons or entities not linked.

Allowance for depreciation of goodwill which do not meet the requirements provided for in paragraphs a) and b) above will be deductible if it is proven that they respond to an irreversible depreciation of that.

5 when the requirements laid down in paragraphs a) and b) of the preceding paragraph will be deductible up to the annual maximum of tenth of its amount allowance for: a) amortisation of brands.

(b) the amortization of the rights of transfer, except that the contract had a duration of less than 10 years, in which case the maximum annual limit will be calculated according to the duration.

(c) the remaining assets of fixed assets intangible that they did not have certain date of extinction.

When not met the requirements set forth in paragraphs a) and b) of the preceding paragraph, mentioned allowance will be deductible if it is proven that they respond to irreversible depreciation of the aforementioned assets.

Article 12. Value: loss of value of the assets.

(d) will be deductible allowance for coverage of the reduction of the value of publishing, phonographic and audiovisual funds of entities performing the corresponding production activity, a time within two years after the placing on the market of the respective productions. Before the course of that period, they may also be deductible if the depreciation is determined.

(2 are deductible allowance for covering the risk derived from the possible insolvency of the debtors, when at the time of the accrual of the tax if any of the following circumstances: d) that within six months has elapsed since the expiration of the obligation.

(b) that the debtor is declared in a situation of competition.

(c) that the debtor is prosecuted for the offence of concealment of assets.

(d) obligations have been legally claimed or are the subject of judicial proceedings or arbitration whose solution depends on their Bill.

Will not be tax-deductible provisions with respect to credits then cited, except that are the subject of an arbitral or judicial proceedings on its existence or amount: 1 the owed or secured by public law bodies.

2. the secured by credit institutions or reciprocal guarantee companies.

3rd those guaranteed by rights in rem, compact retention of title and right of retention, except in cases of loss or lowering of the warranty.

4th the guaranteed under a contract of insurance of credit or bond.

5 those who have been the subject of express extension or renewal.

Allowance for covering the risk derived from the possible insolvency of individuals or entities linked to the creditor, except in case of insolvency judicially declared, nor allocations based on global estimates of the risk of insolvency of clients and debtors will not be deductible.

By regulation standards for determining circumstances resulting from the possible insolvency of the debtors of the financial institutions and those relating to the amount of allowance for coverage of the aforementioned risk will be established.
3. the deduction in respect of provision for depreciation of participation in own funds of entities that are not listed on an organized secondary market securities may not exceed the difference between the theoretical book value at the beginning and at the end of the year, and must be taken into account contributions or refunds of contributions made in it. This same criterion applies to shares in the capital of Group companies or associated in the terms of the commercial law.

To determine the difference referred to in the preceding paragraph, the values will be taken to the end of the year whenever they pick up on balance sheets formulated or approved by the competent authority.

The appropriations corresponding to the participation in entities resident in countries or territories qualified by law as tax havens, except that such entities consolidate their accounts with the entity that performs the endowment in the sense of article 42 of the code of Commerce, nor those relating to the subject's own equity securities shall not be deductible.

4 will be deductible allowance for depreciation of fixed income securities admitted to trading on secondary markets organized, with a global depreciation in the tax period limit by the set of values of debt owned by the taxable person admitted to trading in those markets.

Allowance for depreciation of securities that have a true value will not be deductible reimbursement are not admitted to trading on organized secondary markets or which are admitted to trading on organized secondary markets in countries or territories qualified by law as tax havens.

5. when purchased securities participation in own funds of entities not resident in Spanish territory, whose income eligible for the exemption established in article 21 of this law, the amount of the difference between the acquisition price and its theoretical book value at the date of acquisition will fall within the property and rights of the non-resident entity in Spanish territory , in accordance with the criteria laid down in the Royal Decree 1815 / 1991, of 20 December, which approved the rules for the formulation of consolidated annual accounts, and part of the difference that had not been liable will be deductible from the taxable income, up to the annual maximum of the twentieth part of its amount, unless it had included in the basis of deduction of article 37 of this law without prejudice of the established with the applicable accounting regulations.

The deduction of this difference will support, where appropriate, with the provisions referred to in paragraph 3 of this article.

Article 13. Provision for risks and charges.

1 allocations to provisions for foreseeable risks, any losses, expenses or debts likely coverage will not be deductible.

However 2 as laid down in the previous paragraph, will be deductible: to) allocations relating to liabilities from litigation in course or arising from compensation or justified pending payments whose amount is not definitely established.

(b) allowance for the recovery of the assets appropriated, according to the conditions of reversal in the granting, without prejudice to the amortization of the elements that are susceptible to it, in such a way that the balance of the reversion Fund is equal to the carrying amount of the asset at the time of reversal, including the amount of the repairs required by the grantor for the reception of that entity.

(c) allocations companies dedicated to marine fisheries and maritime and air navigation intended for the provision for major repairs that is needed because of the General revisions to that necessarily must be subjected ships and aircraft.

(d) allowance for coverage of extraordinary repairs of assets other than those provided for in the preceding paragraph and the costs of abandonment of economic exploitations of temporary, provided that they correspond to a plan formulated by the individual passive and accepted by the tax authorities.

Regulations will establish the procedure for the resolution of the plans formulated.

(e) allocations to technical provisions made by the insurance entities, up to the amount of the minimum amounts established by applicable standards.

The allocation to the provision for premiums or contributions receivable shall be, for the same balances, with the provision to cover possible insolvencies of debtors.

(f) the allocations that the reciprocal guarantee companies carried out in the background of technical provisions charged to the profit and loss account, up to the mentioned Fund reaches claims the compulsory minimum referred to in article 9 of the law 1/1994 of 11 March, on legal regime of the reciprocal guarantee companies. The endowments which exceed the mandatory amounts will be deductible by 75 percent.

Not be integrated into the taxable subsidies granted by public authorities to the reciprocal guarantee companies or income arising from such subsidies, provided that a and others intended to fund technical provisions.

The provisions of this paragraph (f)) shall also apply to societies of rebonding activities which in accordance with the provisions of article 11 of the law 1/1994 on legal regime of the reciprocal guarantee companies, have necessarily integrate its social object.

(g) allowance for coverage of guarantees of repair and overhaul, up to the amount needed to determine a balance of providing no more than the result of applying the percentage determined by the proportion in which it had found expenses to meet guarantees existing in the tax period and the two previous in relation to sales made guarantees sales guaranteed alive at the end of the tax period in These tax periods.

The provisions of the preceding paragraph also applies to allocations for costs for refunds of sales coverage.

Newly created entities may also deduct allocations referred to in the first subparagraph, by fixing the percentage referred to in this with respect to costs and sales made in the tax periods that had elapsed.

3. the contributions of supporters of pension plans regulated by the revised text of the law of regulation of plans and pension funds will be deductible. Such contributions shall be charged to each participant in the share, except those carried out in an extraordinary way by application of article 5.3. d) the cited consolidated text of the law of regulation of plans and pension funds. Shall also be tax-deductible contributions for coverage of contingencies similar to pension schemes, provided that the following requirements are fulfilled: to) that are fiscally imputed to persons to whom benefits are linked.

to) that is transmitted right to the perception of future benefits irrevocably.

(c) that is transmitted to the ownership and management of resources that consist of these contributions.

Article 14. Non-deductible expenses.

1 shall not fiscally deductible expenses: to) that represent a remuneration of own funds.

(b) the derivatives of tax accounting. Not from such posting shall be regarded as income.

(c) fines and penal and administrative sanctions, urgency surcharge and the surcharge for late of due and self-assessment filing.

(d) the loss of the game.

(e) donations and donations.

Means not falling within this paragraph e) expenditures by public relations with clients or suppliers or which pursuant to the habits and customs are carried out with respect to the personnel of the company or those carried out to promote, directly or indirectly, the sale of goods and provision of services, or which are correlated with income.

(f) the allocations to provisions or internal funds for coverage of contingencies that are identical or similar to those that are subject to the revised text of the law of regulation of plans and pension funds.

(g) costs of services relating to operations carried out, directly or indirectly, with persons or entities resident in countries or territories by regulation qualified for its nature of tax havens, or that are paid through persons or entities resident therein, unless the taxable person try the accrued expenditure responds to an operation or transaction effectively made.

International tax transparency standards do not apply in relation to qualified as tax non-deductible expenses for income.

2. interests accrued, both fixed and variable, of a participatory loan that meets the requirements set out in section one of article 20 of the Royal Decree Law 7/1996, of 7 June, on urgent measures of a fiscal nature and promotion and liberalization of economic activity will be deductible.

3 will be deductible met quantities and the book value of the goods delivered by way of donation, insofar as they are applicable to the achievement of the purposes of the following beneficiary entities:
(a) the societies of regional industrial development.

(b) the Spanish, territorial autonomous sports federations and sports clubs, in relation to amounts received for the promotion and development of non-professional sports, sports public limited companies provided that between concerned institutions has been established a onerous contractual relationship necessary for the realization of the object and purpose of the concerned federations and sports clubs.

The transmissions referred to in this paragraph not determined for the entity transferring the obtaining of income, positive or negative, provided for in paragraph 3 the following article.

Article 15. Valuation rules: general rule and special rules in the case of non-profit and corporate transmissions.

1. the assets will be valued at the cost of acquisition or production cost.

The amount of accounting revaluations not will be taxable, except when carried out under legal or regulatory rules that force to include the amount in the accounting profit.

The revaluation not integrated in the taxable amount not determined a higher value, for tax purposes, of the revalued elements.

2 will be assessed by their normal market value of the following assets: to) the transmitted or acquired a lucrative title.

(b) provided to entities and the securities received in Exchange.

(c) transmitted to the partners by cause of dissolution, separation of these, reduction of capital with repayment of contributions, distribution of premium playout and delivery of benefits.

d) the transmitted under fusion, absorption, and partial or total excision.

e) acquired by Exchange.

f) acquired by redemption or conversion.

Normal value means the market which had been agreed in normal market between independent parties. The methods provided for in article 16.3 of this law shall apply to determine such value.

3 in the cases provided for in paragraphs a), b), c) and d) the transferring entity will integrate into your taxable income the difference between the normal market value of the transferred items and its book value.

In the cases referred to in paragraphs e) and f) entities be integrated into taxable income the difference between the normal market value of the purchased items and the book value of the delivered.

In the lucrative title acquisition, the acquirer will integrate into its tax base the normal market value of the acquired asset.

Integration into the tax base of the incomes referred to in this article shall be made in the tax period in which are carried out operations that derive such incomes.

For the purposes of the provisions of this paragraph grants not be understood as acquisitions to lucrative title.

4. in reduction of capital with repayment of contributions will be integrated into the taxable income of the partners the excess of the normal market value of items received on the book value of the participation.

The same rule shall apply in the case of distribution of the premium from issuance of shares.

5. in the distribution of benefits the normal market value of the received elements will be integrated into the taxable income of the partners.

6. on the dissolution of entities and separation of partners will be integrated into the tax base of these the difference between the normal market value of items received and the carrying amount of the cancelled participation.

7. in the merger, absorption or partial or total excision will be integrated into the base of members the difference between received participation market value and the book value of the cancelled participation.

8. the reduction of capital whose purpose is different from the return of contributions will not determine for partners income, positive or negative, can be integrated into the tax base.

9. the acquisition and amortization of own shares will not determine, for the acquirer, positive or negative incomes.

10 a effects of integrating the taxable positive income derived in the transmission of assets plant and equipment that have the nature of real estate, will be deducted the amount of the monetary depreciation produced since January 1, 1983, calculated according to the following rules: a) multiply the price of acquisition or production cost of real property transmitted and accumulated depreciation relating to those by the coefficients that it is established in the relevant General State budget Act.

(b) the difference between the amounts determined by the application of the provisions of the preceding paragraph will be reduced in the book value of the asset transmitted.

(c) the amount resulting from that operation will be multiplied by a coefficient determined by: 1 the numerator: own funds.

2nd in the denominator: total liabilities less credit rights and the Treasury.

Determining quantities of the coefficient will be the gotten during the tenure of the patrimonial element transmitted or in the five years prior to the date of the transmission, if this time period is smaller at the choice of the taxable person.

The provisions of this paragraph shall not apply when the coefficient is higher than 0.4.

Article 16. Rules of valuation: related-party transactions.

1. the tax administration estimate, within the period of prescription, by normal market value, transactions between related entities or persons when the agreed assessment had determined, whereas the set of persons or entities related, taxation in Spain less than which has been reciprocated by application of the normal value of market or a deferral of the taxation.

The resulting tax debt of the administrative assessment will fall, for all purposes, including the calculation of interest on arrears and the calculation of the limitation period, the tax period in which operations were conducted with persons or entities linked to.

The administrative assessment will not determine the taxation by this tax and, where appropriate, by the tax on the income of the physical persons, of an income exceeding the effectively derived from operation for the set of entities that would have made it.

By regulation the procedure will be established to practice estimation by the normal market value.

2 are considered to be persons or entities related the following: to) a society and its partners.

(b) a company and its directors or administrators.

(c) a company and spouses, ascendants or descendants of members, directors or administrators.

d) two companies which, in accordance with article 42 of the code of Commerce, meet conditions required to form part of the same group of companies, without that they are of application, to these effects, the causes of exclusion provided for in article 43 of the said code.

(e) a society and members of another company when both companies belong to the same group of companies as defined in article 42 of the code of Commerce, unless they are of application, to these effects, the causes of exclusion provided for in its article 43.

(f) a company and the directors or managers of another company when both belong to the same group of companies as defined in article 42 of the code of Commerce, unless they are of application, to these effects, the causes of exclusion provided for in its article 43.

(g) a company and spouses, ascendants or descendants of the partners or directors of another company when both companies belong to the same group of companies as defined in article 42 of the code of Commerce, unless they are of application, to these effects, the causes of exclusion provided for in its article 43.

(h) a company and another company in which the first indirectly in, at least 25 per cent of the share capital.

(i) two companies in which the same partners or their spouses, ascendants or descendants will participate, directly or indirectly, at least 25 per cent of the share capital.

(j) a company resident in Spanish territory and its permanent establishments abroad.

(k) a company resident abroad and its permanent establishments in Spanish territory.

(l) two entities that are part of a group that tribute in the regime of the groups of cooperative societies.

(m) two societies, when one of them has the power of decision on the other.

In the cases where linking is defined based on the socio-sociedad relationship, participation must be equal to or greater to five percent or 1 percent if it's quoted on an organized secondary market values.

For the purposes of this paragraph means that the Group of companies referred to in article 42 of the code of Commerce is referred to in section 1 of chapter I of the rules for the formulation of the annual accounts consolidated, approved by the Royal Decree 1815 / 1991, of 20 December.

3 for the determination of the normal value of market the tax administration shall apply the following methods: to) market price of the good or service in question or other similar features, making, in this case, the necessary corrections to obtain equivalent, as well as to consider the peculiarities of the operation.

(b) supplementary they will be applicable:
1. selling price of goods and services calculated by increasing the value of acquisition or production cost of those at the margin that usually gets the taxable person in comparable operations agreed upon with people or independent entities or in the margin that usually get the companies operating in the same sector in comparable operations agreed upon with persons or entities independent.

2nd price of resale of goods and services established by the purchaser, discounting in the margin that usually gets quoted buyer in comparable operations agreed with people or independent entities or in the margin that usually get the companies operating in the same sector in comparable operations agreed upon with people or independent entities, whereas, where appropriate, the costs which it had incurred quoted buyer to transform the aforementioned goods and services.

(c) where not applicable none of the above methods, apply the price resulting from the distribution of the joint result of the operation in question, taking into account the risks involved, the assets involved and the duties performed by the related parties.

4 the deduction of the cost of contributions to research and development performed by a related entity will be conditioned to the fulfillment of the following requirements: to) that are payable under a contract written, held prior, which identify the project or projects which will carry out and which give the right to use their results.

(b) that the criteria for distribution of expenditures supported effectively by the entity that performs the activity of research and development rationally correspond to the content of the right to use the results of the project or projects by entities making contributions.

5. the deduction of the cost of management support services between related entities will be conditioned to its amount is established on the basis of a written contract entered into with previous character, through which established the criteria of distribution of the expenses incurred for this purpose by the entity that provides. The Pact or contract shall meet the following requirements: to) will specify the nature of the services to provide.

(b) establish the methods of distribution of the expenses according to criteria of rationality and continuity.

6. taxable persons may submit to the tax authorities a proposal for the evaluation of operations carried out between persons or entities linked with prior to their implementation. Such a proposal shall be based on the normal market value.

The proposal may also refer to the costs referred to in paragraphs 4 and 5.

The adoption of the proposal will take effect with respect to operations that are initiated after the date which is carried out the aforementioned approval, provided that they are carried out according to the terms of the approved proposal, and is valid for three tax periods.

In the event of significant change in economic circumstances existing at the time of the adoption of the proposal, this may be modified to adapt to the new economic circumstances.

The tax administration may establish agreements with administrations of other States for the purposes of determining the normal market value.

The proposals referred to in this paragraph may understood ignored after expiry of the period of resolution.

Regulations will establish the procedure for the resolution of the proposals for the evaluation of related-party transactions.

7. in any case, means that the consideration effectively satisfied coincides with the normal market value in the operations corresponding to the exercise of professional activities or the provision of personal work by individuals to societies in which more than 50 percent of its revenues come from the exercise of professional activities, provided that the entity has personal media and materials for the development of its activities.

Article 17. Valuation rules: changes of residence, cessation of permanent establishments, or transactions by persons or entities resident in tax havens and subject to withholding amounts. Special rules.

1 will be integrated into the taxable income the difference between the market value and the book value of the following assets: to) that is owned by an entity resident in Spanish territory, which moved their residence out of this, except that such assets are affected to a permanent establishment situated in Spanish territory of the mentioned entity.

In this case shall apply to such assets as provided for in article 85.

(b) those who are subject to a permanent establishment situated in Spanish territory that ceases its activity.

(c) those who previously being affections to a permanent establishment situated in Spanish territory are transferred abroad.

2. the tax administration estimate, by their market value, operations carried out with or by persons or entities resident in countries or territories qualified regulations as tax havens when the agreed assessment had determined taxation in Spain less than which has been reciprocated by application of the normal value of market or a deferral of the taxation.

3. the beneficiary of amounts on which should hold to account for this tax be calculated those by the accrual full consideration.

When retention has not been practiced, or would have been less than the proper amount, the beneficiary be deducted fee the amount that should be withheld.

In the case of legally established remuneration that would have been met by the public sector, the beneficiary may only deduct effectively retained amounts.

When he could not prove the full consideration accrued, the tax administration can compute as full a quantity which, subtracted once it from retention, throw the actually perceived. In this case, shall be deducted from the fee, as withholding tax, the difference between what is actually perceived and the full amount.

4. the income that is manifest as a result of the exercise of the right of collective insurance contracts rescue that they implemented commitments for pensions, in the terms provided for in the first additional provision of the consolidated text of the law of regulation of plans and pension funds, is not subject to the corporation tax of the holder of the economic resources that in each case corresponds (, in the following cases: to) for the total or partial integration of commitments implemented in the policy in another insurance contract that meets the requirements of this first additional provision.

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

The assumptions set out in paragraphs a) and b) above not alter the nature of premiums with respect to their tax imputation from the company, or the computation of the antiquity of the premiums paid in the original insurance contract. Still, in the so-called established in paragraph (b)) above, if the premiums were not imputed, the company may deduct them on the occasion of this mobilization.

The income that gets revealed as a result of participation in benefits of insurance contracts which implemented commitments for pensions in accordance with provisions in the first additional provision of the consolidated text of the law on regulation of pension funds and plans, if such participation in benefits is intended to increase the benefits secured in such contracts is not subject.

5. do not be integrated into taxable positive or negative incomes that are highlighted on the occasion of the payment of tax debts referred to in paragraph 2 of article 137 of this law and the tax debts referred to in article 73 of the law 16/1985, of 25 June, on Spanish historical heritage.

6. do not will be integrated into the taxable subsidies granted to taxpayers this tax that exploit managed forest farms in accordance with technical plans of forest management, management of montes, dasocraticos plans or reforestation plans approved by the competent forestry administration, provided that the average period of production, depending on the species concerned as determined in each case by the competent forestry administration, is equal to or greater than 20 years.

Article 18. Effects of substitution of the book value for the normal market value.

When an asset or service had been assessed for tax purposes by the normal market value, the acquirer of that will integrate into your taxable income the difference between that value and the value of acquisition, in the following manner: a) in the case of patrimonial elements of the current assets in the tax period in which they motivate the accrual of income.

b) in the case of nonamortising assets of the fixed assets in the tax period in which they are transmitted.
(c) in the case of depreciable assets of the fixed assets in the tax periods remaining useful life, applying the aforementioned unlike the depreciation method used with respect to those elements.

d) in the case of services, within the tax period of receipt, except that the amount should be joining an asset in which case it will be as provided in the preceding paragraphs.

Article 19. Temporary allocation. Accounting registration of revenues and expenses.

1. the revenue and expenditure shall be charged in the tax period in which accrued, according to the actual stream of goods and services they represent, regardless of when the monetary or financial flow occurs respecting the proper correlation with one another.

2. the fiscal effectiveness of criteria for temporary allocation of income and expenses, other than those provided for in the preceding paragraph, used exceptionally by the taxable person to get the true picture of the heritage of the financial situation and results, as laid down in articles 34.4 and 38.2 of the commercial code, shall be subject to approval by the tax administration , in the form determined by law.

3 will not be fiscally deductible expenses that not will have imputed accounted for in the profit and loss account or in a reserve account setting of a rule by law or regulation, with the exception of provisions with respect to the assets that can pay for itself freely.

The income and the expenses charged for the account of profit and loss in a tax period other than that in which appropriate their temporary imputation, as provided for in the preceding paragraphs, shall be charged in the tax period that applicable pursuant to those paragraphs. However, in the case of expenses charged on the account of profit and loss in a tax period subsequent to that in which appropriate their imputation temporary or income imputed on the mentioned account in a previous tax period, the temporary allocation of some and others accounted for it shall be in the tax period in which the accounting allocation is completed , provided that it is not derived taxation below which has been reciprocated by application of the rules of temporary allocation provided for in the preceding paragraphs.

4. in the case of operations in instalments or with deferred price, pensions shall be obtained proportionally to carried out the corresponding charges, unless the entity chooses to apply the criterion of accrual.

Operations in instalments or with deferred price, sales and execution of work whose price is perceived, wholly or partly, by successive payments or a single payment, provided that the period between delivery and the last or only deadline is over the year will be considered.

In case of endorsement, discount or advance payment of the deferred amounts, shall be obtained, at that time, the income imputation pending.

The provisions of this paragraph applies to anyone who has been the way in which any posted revenue and expenditure corresponding to the affected incomes.

5. allocations made to provisions and internal funds for coverage of contingencies that are identical or similar to those that are subject to the revised text of the law of regulation of plans and pension funds, will be chargeable in the tax period in which benefits are paid. The same rule shall apply with respect to contributions to the coverage of contingencies similar to the pension that has not been deductible schemes.

6. the recovery of value of the assets which have been subject of a correction value will fall in the tax period in which this recovery has occurred, either in the entity that practiced the correction or other linked with it.

The same rule shall apply in the event of loss arising from the transmission of assets fixed assets which have been newly acquired within six months following the date in which they were transmitted.

7. by law, for the sole purpose of determining the taxable base, is can dictate rules for the application of the provisions in paragraph 1 to activities, operations or certain sectors.

8. in any case, income derived from the acquisitions of assets to lucrative title, both in cash and in kind, shall be charged in the tax period in which those may occur without prejudice to the provisions in the last subparagraph of paragraph 3 of article 15.

9 when elimination of allowances, have not applied to its intended purpose, without credit to an account of income from the exercise, its amount will be taxable entity which had given them, in so far as this provision had been considered deductible expense.

10 when the entity is receiving or has recognized the right to rescue of life insurance contracts in which, moreover, assume the risk of investment, will integrate in any case the taxable difference between the net asset value of the assets to the policy at the end and at the beginning of each tax period.

The provisions of this section shall not apply to insurance that instrumenten pension commitments entered into by the companies in the terms laid down in the first additional provision of the consolidated text of the law of regulation of plans and pension funds, and its implementing regulations.

The amount of imputed rents will reduced the yield derived from the perception of amounts of the contracts.

Article 20. Thin capitalisation.

1. when the net debt paid, directly or indirectly, of an entity, excluding financial institutions, with another or other persons or entities not resident in Spanish territory that is linked, exceed the result of applying the coefficient 3 the number of the equity, accrued interest corresponding to the excess shall be regarded as dividends.

2. for the implementation of the provisions of the preceding paragraph, both paid net borrowing and the capital tax will be reduced to its average during the tax period.

Equity means the amount of own funds of the entity, not including the profit for the period.

3. taxable persons may be subject to the tax administration, in terms of article 16.6 of this Act, a proposal for the application of a coefficient other than that provided for in paragraph 1. The proposal shall be based on the debt that the taxable person had been able to obtain under normal market of individuals or entities not linked.

The provisions of this paragraph shall not apply to transactions carried out with or by persons or entities resident in countries or territories qualified by law as tax havens.

4. the provisions of this article shall not apply where the related entity not resident in Spanish territory is resident in another Member State of the European Union, unless you reside in a territory by regulation qualified as a tax haven.

Article 21. Exemption to prevent international economic double taxation on dividends and foreign source income derived from the transfer of securities of the own funds of non-resident entities in Spanish territory.

1 shall be exempt dividends or shares of profit from entities not resident in Spanish territory, when the following requirements are met: to) that the percentage of participation, direct or indirect, in the capital or equity of the non-resident entity is, at least five percent.

Corresponding participation must possess uninterrupted during the year prior to the day that the profit that is distributed is enforceable or, failing that, should be maintained subsequently during the time required to complete the term.

For the computation of the period be also taken into account the period in which participation has been owned continuously by other entities that meet the circumstances referred to in article 42 of the code of Commerce to form part of the same group of companies.

(b) that the investee entity has been taxed by a foreign tax identical or analogous to this tax in the year in which obtained the benefits that are distributed or in which it participates.

For these purposes, those foreign taxes that have had intended the imposition of the income obtained by the investee entity, even be partially, regardless that the object of the tribute constitutes it own income, income or any other indiciario element of that shall be taken into account.

Shall be deemed fulfilled this requirement, when the investee entity is resident in a country with which Spain has entered into an agreement to avoid double international taxation, which may apply and that contains clause of exchange of information.

In no event shall apply in this article when the investee entity is resident in a country or territory qualified by law as a tax haven.

(c) that the benefits that are distributed or in which it participates come from business activities abroad.

We only consider fulfilled this requirement when at least 85 per cent of the income from the exercise correspond a:
1. income, that obtained abroad and are not included among those classes of income referred to in paragraph 2 of section 107 as capable of being included in the tax base for application of the system of fiscal transparency international. In any case, income derived from participation in other entities, or the transmission of the values or corresponding shares, benefits will have to meet the requirements of paragraph 2 below.

In particular, for these purposes, will be considered obtained overseas income from the following activities: 1st trade to the wholesale, when goods are made available to purchasers in the country or territory in which resides the entity owned or in any other country or territory different from the Spanish, provided that the operations are carried out through the Organization of personal media and materials available to the investee entity.

2nd services, as they are used in the country or territory in which resides the entity owned or in any other country or territory different from the Spanish, provided that they are carried out through the Organization of personal media and materials available to the investee entity.

3rd likewise and financial, when loans and credits are granted to persons or entities resident in the country or territory in which resides the entity owned or in any other country or territory different from the Spanish, provided that the operations are carried out through the Organization of personal media and materials available to the investee entity.

4th insurers and reinsurers, when the insured risks are in the country or territory in which resides the entity owned or in any other country or territory different from the Spanish, provided that those are carried out through the Organization of personal media and materials available to the investee entity.

(2nd dividends or shares in the profits of non-resident entities for which the taxable person has an indirect participation that meets the requirements of percentage and seniority referred to in paragraph to), when concerned benefits and entities fulfil at the same time, the requirements established in the other paragraphs of this section. Also, income derived from the transfer of participation in non-resident entities, where the requirements of the following subparagraph are fulfilled.

For the application of this article, in the case of distribution of reserves it attend the designation contained in the social agreement and, failing that, shall be deemed applied the latest amounts paid to such reservations.

2. the income obtained in the transmission of participation in a non-resident entity in Spanish territory, when the requirements set out in the preceding paragraph shall be exempt. The same regime applies to the income obtained in the event of separation of the partner or dissolution of the entity.

Requirement provided for in paragraph a) of the preceding paragraph shall comply the day in which transmission occurs. (The requirements laid down in paragraphs b) and (c)) must be met in each and every holding of participation exercises. Still, when participation in the non-resident entity would have been valued in accordance with the rules of the special scheme for Chapter VIII of title VII of this Act, shall apply the exemption under the conditions laid down in paragraph d) of this section.

The exemption does not apply if the purchaser is resident in a country or territory qualified by law as a tax haven.

In the following cases, the application of the exemption will be the specialties listed below: to) when the non-resident entity has, directly or indirectly, interests in entities resident in Spanish territory or assets located in that territory and the sum of the market value of some and others exceed 15 per cent of the market value of its total assets.

In this case, the exemption is limited to that part of the obtained income corresponding to the net increase of undistributed profits generated by the entity owned during the tenure of the participation.

(b) when had the taxpayer made any correction value transmitted participation that would have been fiscally deductible.

In this course, the exemption is limited to the excess of income obtained in the transmission on the amount of this correction.

(c) if had participation in the non-resident entity previously been transmitted by another entity that meets the circumstances referred to in article 42 of the code of Commerce to form part of the same group of companies with the taxpayer, having obtained a negative income that had been integrated into the base of this tax.

In this case, the positive income obtained in the transmission of participation will be taxed up to the amount of negative income obtained by another entity of the group.

(d) had participation in the non-resident entity been valued according to the rules of the special scheme for Chapter VIII of title VII of this Act and the application of those rules, even in a previous transmission, had determined the non-integration of income in the tax base of this tax, personal income tax or the tax on the income of non-residents derived from: 1 the transfer of the share in an entity resident in Spanish territory.

(2nd transmission of participation in a non-resident entity that does not meet the requirements referred to in paragraphs b)) and (c) of paragraph 1 above.

3rd the non-cash contribution of other assets.

In this case, the exemption shall apply only to the income corresponding to the positive difference between the value of transmission of participation in the non-resident entity and the normal market value of that at the time of its acquisition by the transferor entity. The rest of the income obtained in the transmission will be integrated into the taxable income of the period.

3 the exemption provided by this article shall not apply: to) foreign source income obtained by Spanish and European economic interest groupings, and temporary unions of companies.

(b) to the foreign source income from entities that develop their activities overseas with the aim of enjoying the tax arrangements laid down in this article. It shall be presumed that such circumstance attends when the same activity that develops the subsidiary abroad, in relation to the same market, had developed earlier in Spain by another entity, that has stopped in the aforementioned activity and save any of the relationships referred to in article 42 of the code of Commerce, unless the existence of another valid economic reason try with that one.

(c) to the incomes of foreign source that the entity integrates in its tax base and in connection with which chooses to apply, if necessary, the deduction established in articles 31 or 32 of this Act.

4. in any case, if the exemption would have applied to foreign source dividends, not be can be integrated into taxable depreciation of the participation, that is the form and the tax period in which gets revealed, up to the amount of such dividends.

Also, if you got a negative income in the transmission of participation in a non-resident entity that had previously been transmitted by another entity that meets the circumstances referred to in article 42 of the code of Commerce to form part of the same group of companies with the taxable person, such negative income will be reduced by the amount of positive income obtained in the previous transmission and to which the exemption had been applied.

Article 22. Exemption of certain income obtained abroad through a permanent establishment.

1 exempt the income obtained abroad through a permanent establishment situated outside the Spanish territory when the following requirements are met: to) that the income of the permanent settlement comes from business activities abroad, in the terms referred to in paragraph c) of paragraph 1 of article 21 of this law.

(b) that the permanent establishment has been imposed by a tax identical or analogous to this tax, under the terms of the previous article, and that it is not located in a country or territory by regulation qualified as a tax haven.

2. when in earlier tax periods the permanent establishment would have got negative net income that had been integrated into the taxable income of the entity, the exemption provided for in this article or the deduction referred to in article 31 of this law only apply to positive income derived later from the moment in which exceed the amount of such negative incomes.
3. for this purpose, it shall be deemed that an entity operates through a permanent establishment abroad when, by any title, available outside the Spanish territory, form continuous or regular facilities or workplaces that make all or part of its activity. En_particular, means that they constitute permanent establishments those referred to in paragraph a) of paragraph 1 of article 13 of the consolidated text of the law on the income of non-resident tax, approved by Royal Legislative Decree 5/2004, of 5 March. If the permanent establishment is located in a country with which Spain has signed an agreement to avoid international double taxation, which may apply, it will be what it is.

4. does not apply the system provided for in this article where there is, with respect to the taxable person or of the obtained incomes abroad, the circumstances provided for in paragraph 3 of the preceding article. The option referred to in paragraph c) of that paragraph shall be exercised by each establishment located outside the Spanish territory, even in the event that there are several in the territory of a single country.

Article 23. Deduction for investments for the establishment of businesses abroad.

1 will be deductible in the taxable income the amount of investment actually made in the year for the acquisition of holdings in the equity of non-resident companies in Spanish territory that allow to reach the majority of the voting rights in them, provided that the following requirements are fulfilled: to) that the investee develop business activities abroad (, in the terms set forth in paragraph c) of paragraph 1 of article 21 of this law. The deduction will not fit when the main activity of the investee entity is real estate, financial or insurance, or consist of the provision of services to related entities resident in Spanish territory.

(b) the activities developed by the investee have not exercised previously under other ownership.

(c) that the investee does not reside in the territory of the European Union or in any of the territories or countries qualified by law as a tax haven.

This deduction will not be conditioned to its accounting charges in the profit and loss account.

2. the annual maximum amount of the deduction shall be 30.050.605,22 EUR shall not exceed 25 per cent of the tax base of the tax period prior to the computation of that.

The amount of the deduction shall be reduced by the amount of the depreciation of the value of participation at the non-resident companies which has been fiscally deductible.

If in connection with an investment are the requirements for the practice of the deduction referred to in this article and the deduction provided for in article 37 of this law, the entity may choose to apply one or the other, even distributing the basis of deduction between the two. The same amount of investment will not give right to deduction for both concepts.

3. the amounts deducted will be integrated into the tax base, equally, in the tax periods that will conclude in the next four years. If any of these tax periods the depreciation in the value of participation in those societies, will be integrated into your taxable income, in addition, the amount of such depreciation that has been fiscally deductible, up to the amount of the deduction.

The degree of participation and the other requirements for the deduction must be met for at least four years. If it were not so, in the tax period in causing the breach the totality of the deducted amount that was pending such integration will be integrated into the tax base.

4. the provisions of this article shall not apply in relation to those subsidiaries entities that develop their activities abroad in order to enjoy the deduction provided for in the main. It shall be presumed that such circumstance attends when the same activity that develops the subsidiary abroad, in relation to the same market, had developed earlier in Spain by another entity that has ceased in such activity and that store with that any of the relationships referred to in article 42 of the code of Commerce, except that proves the existence of another valid economic reason.

Article 24. Charitable work of savings banks.

1 will be deductible tax amounts that savings banks intended results for the financing of social benefit works, in accordance with the regulations by which they are governed.

2. the amounts allocated to the work beneficosocial of savings banks should apply, at least, by 50 per cent, in the same period that corresponds to the assignment, or in the immediate following, to the realization of affected investments, or to cover costs of sustaining the institutions or establishments accepted that.

3 not be integrated into the taxable base: to) maintenance costs of charitable work, even though they exceeded carried out assignments, without prejudice of having consideration of application of future assignments.

(b) income derived from investments affected to charitable work transmission.

Article 25. Carryforwards compensation.

1. the carryforwards which have been subject to liquidation or autoliquidación may be compensated with positive income from the tax periods that immediate and successive age 15 have been concluded.

2 the negative taxable income liable to compensation shall be reduced by the amount of the positive difference between the value of the contributions of the partners, by any title, corresponding to the acquired participation and acquisition cost, when the following circumstances occur concurrently: to) the majority of share capital or rights to participate in the results of the entity which has been acquired by a person or entity or a group of persons or entities related, subsequent to the conclusion of the tax period corresponding to the negative tax base.

(b) the persons or entities referred to in the preceding paragraph would have had a share of less than 25 per cent at the time of the conclusion of the tax period corresponding to the negative taxable.

(c) the entity would have not made economic holdings within the six months prior to the acquisition of the stake which gives the majority of the share capital.

3. the newly created entities can compute the term of compensation referred to in paragraph 1 from the first tax period whose income is positive.

4. the provisions of the preceding paragraph shall apply to the carryforwards arising from the exploitation of new motorways, tunnels and toll roads by the concessionary companies of such activities.

5. the taxable person must demonstrate the origin and amount of the carryforwards whose compensation intended, through display of the settlement or autoliquidación, accounting and timely documentary stands, anyone who is the exercise that originated.

Title V tax period and accrual of tax article 26. Tax period.

1. the tax period will coincide with the fiscal year of the institution.

2 in any case will conclude the tax period: to) when the entity is extinguished.

(b) where takes place a change of residence of the entity resident in Spanish territory abroad.

c) when there is the transformation of the legal form of the entity and thus determine the are not subject to this tax of the resulting entity.

In order to determine the taxable base corresponding to this tax period means that the entity has been dissolved with the effects laid down in article 15.3 of this law.

d) when there is the transformation of the legal form of the entity, and this determines its rate of assessment or the application of a special tax regime.

The income derived from the transmission of assets existing at the time of transformation, made after this, shall be generated linearly, unless proven otherwise, during all the time of holding of the transmitted item. The part of the income generated up to the moment of transformation be taxed using the tax rate and the tax system that would have corresponded to the entity to have preserved its original legal form.

3. the tax period shall not exceed 12 months.

Article 27. Accrual of the tax.

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

Title VI debt tax chapter I kind of assessment and quota integrates article 28. The type of assessment.

1. the general tax rate for taxable persons from this tax will be 35 per cent.

2 will be taxed at the rate of 25 per cent: to) mutual general insurance, mutual social welfare organizations and the mutual of accidents at work and occupational diseases from Social security that meet your regulatory requirements.

(b) the societies of mutual guarantee and rebonding societies regulated in law 1/1994, of 11 March, on the legal regime of the reciprocal guarantee companies, registered in the special register of the Bank of Spain.

(c) the rural savings and credit cooperative societies except by what refers to extracooperativos results, which will be taxed at the general rate.
(d) professional bodies, business associations, official Chambers, workers unions and political parties.

(e) entities without profit that no application procedure is tax established in the law 49/2002, of 23 December, tax regime of non-profit entities and tax incentives to sponsorship.

(f) funds for the promotion of employment constituted on the basis of article 22 of law 27/1984, of 26 July, about conversion and reindustrialization.

(g) unions, federations and confederations of cooperatives.

3 will be taxed at 20 per cent tax protected cooperative societies, except for the extracooperativos results, which will be taxed at the general rate.

4 they will be taxed at 10 percent the entities that may apply the tax regime established in the law 49/2002, of 23 December, tax regime of non-profit entities and tax incentives to sponsorship.

5 will be taxed at the rate of one per cent: to) variable capital investment companies regulated by the law on collective investment institutions, provided that the required number of shareholders is at least that laid down in the fourth paragraph of the ninth article of the law.

(b) investment funds of a financial nature provided for in the law mentioned above, provided that the required number of participants is at least that laid down in the fourth paragraph of article 5 of this law.

(c) real estate investment companies and real estate investment funds regulated by this law, provided that the required number of shareholders or unit-holders is at least in the fourth of the five articles sections and nine of the Act and that, with the character of collective investment institutions not financial relate to exclusive investment in any kind of property for lease-urban nature and In addition, housing, student residences and senior residences, in the terms established by law, jointly, represent at least 50 per cent of total assets.

The application of rates of assessment in this section will require that real estate that integrate the assets of the collective investment institutions referred to in the preceding paragraph is not alienated until not after three years from its acquisition, unless, exceptionally, mediate express authorisation from the National Commission of the stock market.

(d) the Fund's regulation of public character of the market mortgage, laid down in article 25 of the law 2/1981, dated March 25, of regulation of the mortgage market.

6 they will be taxed at the rate of zero per cent pension funds regulated by the revised text of the law of regulation of plans and pension funds.

7 they will be taxed at the rate of 40 per cent entities that engage in exploration, research and exploitation of deposits and storage underground of hydrocarbons in the terms established in law 34/1998, of October 7, the hydrocarbons Sector.

Activities relating to the refining and any other than exploration, research, exploitation, transportation, storage, purification and sale of extracted hydrocarbons, or the activity of underground storage of hydrocarbons owned by third parties, shall be subject to the general tax rate.

Entities that develop exclusively hydrocarbons storage activity owned by third parties won't you be applicable the special regime provided for in chapter X of the title VII of this Act and will be taxed at the rate of 35 percent.

8 they will be taxed at the rate of special assessment resulting from the provisions of article 43 of law 19/1994, of 6 July, modification of the economic regime and Canarias Prosecutor, entities of the Zec, by the part of taxable income corresponding to operations effectively and materially in the geographical area of the Zec.

Article 29. Total tax.

The amount resulting from applying to taxable the tax rate means total tax.

Chapter II deductions for avoidance of double taxation article 30. Deduction for double internal taxation: dividends and capital gains from internal source.

1. where between the taxable income is included taxable dividends or interests in other entities resident in Spain benefits will be deducted 50 per cent of the total tax that corresponds to the taxable income derived from such dividends or shares in the profits.

The taxable income derived from dividends or shares in the profits will be the full amount of these.

2. the deduction referred to in the preceding paragraph will be 100 percent when dividends or shares in profits come from entities in which the percentage of participation, direct or indirect, is equal to or higher than five per cent, provided that percentage has had uninterrupted during the year preceding the day which will be callable profit that is distributed or , failing, that is maintained during the time necessary to complete a year. The deduction will also be 100 per cent with respect to the participation in profits from mutual general insurance, social welfare institutions, associations and mutual guarantee societies.

3. the deduction also applies in the event of liquidation, separation of partners, acquisition of shares to their depreciation and dissolution without liquidation operations of merger, total excision or global transfer of assets and liabilities, on computed income derived from those operations, in the part corresponding to the undistributed profits even those they had been incorporated to the capital and income that the company which carries out the operations referred to in the preceding paragraph should integrate the taxable pursuant to article 15.3 of this law.

4 the deduction provided for in the preceding paragraphs shall not apply with respect to the following income: to) those arising from the reduction of the capital or of the distribution of the premium from issuance of shares, without prejudice to the provisions of the last paragraph of the previous section.

When together with operations referred in the previous paragraph the distribution of dividends or shares in profits, the deduction on them in accordance with the rules laid down in this article shall apply.

(b) referred to in the preceding paragraphs, when prior to its distribution there has been a reduction of capital constitute reserves to offset losses, the transfer of the share premium reserves, or a contribution of partners to replenish the equity, up to the amount of the reduction, transfer or contribution.

The provisions of the preceding paragraph shall not apply with respect to the distributed incomes which had integrated into the tax base without have occurred with respect to those compensation carryforwards, except that no compensation derived as provided in paragraph 2 of article 25 of this law.

(c) distributed by the Fund's regulation of public character of the mortgage market.

(d) dividends or shares in benefits that correspond to actions or shares acquired within the two months prior to the date on which those have had met when after this date, within the same period, there is a transmission of homogeneous values.

(e) when the distribution of the dividend or the share of profit does not determine the integration of income tax base or when that distribution has been a depreciation in the value of the participation. In this case recovery of the value of participation will not be taxable.

The provisions of the preceding paragraph shall not apply when: 1 the taxable person prove that an amount equal to the depreciation in the value of the participation has been integrated into the base of the corporation tax paid to any of the types of assessment laid down in paragraphs 1, 2 and 7 of article 28 or section 114 of this Act , in respect of income obtained by successive proprietary organizations of the participation on the occasion of its transmission, and that this income has not been entitled to the deduction by double internal taxation of capital gains.

In this course, when previous proprietary participation organizations have applied to income they obtained at the time of its transmission the deduction by reinvestment of windfall profits, the deduction will be 18 per cent of the amount of the dividend or the participation in profits.

The deduction shall be partially when the test referred to in this paragraph e) partial character.

2 the taxable person prove that an amount equal to the depreciation in the value of the participation has been integrated into the taxable income of the tax on the income of the physical persons, in respect of income obtained by successive owners individuals from participation, on the occasion of its transmission.

The deduction shall be partially when the test referred to in this paragraph e) partial character.
In this case, the deduction may not exceed the amount resulting apply to dividend or to participation in benefits the type of assessment that corresponds to capital gains in the special part of the tax base for personal income tax.

(f) dividends or shares in profits to entities of the Zec from benefits that have been paid at the rates indicated in paragraph 8 of article 28 of this law. For these purposes, it shall be deemed received incomes come first of such benefits.

5 when between the taxable income is counted those arising from the transmission of securities capital or own funds of entities resident in Spanish territory to pay tax to the general type of assessment or at the rate of 40 percent, the result of applying the tax rate to the net increase of undistributed profits shall be deducted from the total tax even those that were incorporated into the social capital, corresponding to the transmitted participation, generated by the entity owned during the tenure of such participation or the amount of income computed if this is lower.

This deduction shall be provided that the following requirements are fulfilled: to) that the percentage of participation, direct or indirect, prior to the transmission is equal to or greater than five percent.

(b) that that percentage has been owned continuously during the year prior to the day in which the participation is transmitted.

When, due to the date of acquisition, the amount of undistributed at the date of acquisition of the participation, benefits cannot be determined shall be presumed values were acquired by its theoretical value.

The application of the present deduction will be incompatible with the deferral by reinvestment foreseen in article 21 of law 43/1995, of 27 December, corporate tax, in the share of income that has enjoyed the deduction provided for in this paragraph.

The provisions of this paragraph shall also apply to transmissions of securities representing the capital of the entities referred to in paragraph b) of paragraph 2 of article 28 of this law, must apply, to these effects, the type of assessment referred to in paragraph 2 concerned.

The deduction under this paragraph shall not apply with respect to the portion of the net increase of undistributed profits which corresponds to income not integrated in the base of the entity owned because of the negative taxable compensation.

6. the amounts not deducted for failure of total tax may deduct quotas intact the tax periods that concluded in seven years immediate and successive.

Article 31. Deduction for double international taxation: tax borne by the taxpayer.

1 when the taxable income of the taxpayer are integrated incomes obtained and taxed abroad, the smaller of the two following amounts will be deducted from the total tax: to) the actual amount of the satisfied abroad by reason of nature identical or analogous to this tax assessment.

Taxes not paid pursuant to exemption, bonus or any other tax benefit will not be reduced.

Application being a Convention to avoid double taxation, the deduction may not exceed the tax that corresponds according to the.

(b) the amount of the total tax that would pay for the above-mentioned incomes if they were caught within Spanish territory in Spain.

2. the amount of the tax paid abroad will be included in income for the purposes specified in the preceding paragraph, and also will be part of the tax base, even though it was not fully deductible.

3. where the taxable person has been obtained in the tax period several foreign income, deduction will be grouping from a same country unless the income of permanent establishments, to be computed separately for each of these.

4. the amounts not deducted for failure of total tax may deduct in tax periods are completed in 10 years immediate and successive.

Article 32. Deduction for double international taxation: dividends and shares in profits.

1. where the taxable is included taxable dividends or bonuses paid by a non-resident entity in Spanish territory, shall be deducted the tax actually paid by the latter with regard to benefits which are paid dividends, the amount corresponding of such dividends, provided that this amount is included in the taxable income of the taxpayer-funded.

The application of this deduction will require that direct or indirect participation in the capital of the non-resident entity is, at least, the five per cent, and that that would have owned 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 case of distribution of reserves it attend the designation contained in the social agreement, understanding applied the latest amounts paid to such reservations.

2 will also have consideration of tax actually paid the tax paid by the entities owned directly by the company that distributes the dividend and that, in turn, are owned directly by those, partly attributable to the benefits charge to which dividends are paid, provided that such shares are not below five per cent and meet the requirement that referred to earlier concerning the time of holding of participation.

3. This deduction, together with the established in the article above with respect to the dividends or bonuses, may not exceed the total tax that would pay these rents if they have obtained in Spanish territory in Spain.

The excess over that limit will not have the consideration of tax deductible expense.

4. the amounts not deducted for failure of total tax may deduct in tax periods are completed in the ten years immediate and successive.

5. do not it will integrate in the taxable income of the taxable person who perceives the dividends or participation in benefits depreciation derived the distribution of the benefits of participation, anyone that is the form and the tax period on such depreciation is put of manifest, except that the amount of these benefits has been paid in Spain through any transmission of participation.

Chapter III bonus article 33. Bonus for income obtained in Ceuta and Melilla.

1. you will have a bonus of 50 percent, the portion of total tax that corresponds to the incomes obtained by entities that operate effectively and materially in Ceuta, Melilla or their dependencies.

The entities referred to in the previous paragraph shall be as follows: to) Spanish entities fiscally residing in those territories.

b) Spanish entities domiciled tax purposes outside those territories and that operate in them by means of establishment or branch office.

(c) foreign entities not resident in Spain and that they operate in such territories through permanent establishment.

2. it is understood by operations effectively and materially carried out in Ceuta and Melilla or their dependencies those that close a business cycle that determine economic performance in these territories.

He is not estimated that such circumstances mediate in the case of isolated extraction, manufacture, purchase, transportation operations, input and output of genres or effects in those and, in general, when operations do not conclude on single incomes.

3 exceptionally, for the determination of the income attributable to Ceuta and Melilla, obtained by fishing entities, shall be assigned the following percentages: a) 20 per cent of the total income to the territory in which the place of effective management is.

b) a 40 per cent of such income will be distributed in proportion to the volume of landings of catches which carried out in Ceuta and Melilla and separate territory.

Exports shall be charged to the territory where the place of effective management.

(c) the remaining 40 percent, compared to the book value of the ships as they enrolled in Ceuta and Melilla and in different territories.

The expected percentage in paragraph (c)) shall apply only when the entity in question has the place of effective management in Ceuta and Melilla. In another case this percentage intermediations on paragraph (b)).

4. in maritime navigation entities will be income to Ceuta and Melilla in accordance with the same criteria and percentages applicable to fishing companies, replacing the reference to landings of catches by passages, freights and leases there contracted.

Article 34. Bonus for export activities and provision of local public services.
1 will have a bonus of 99 percent the portion of total tax corresponding to the income from the export of films or audiovisual Spanish, books, activity booklets and elements whose content is usually homogeneous or edited together with those, as well as any manifestation of publishing of didactic character, provided that the profits are reinvested in the same tax period to which refers the bonus or the next in the acquisition of items pertaining to the implementation of the above activities or in any of the assets referred to in articles 37, 38 and 39 of this Act.

Elements in which materializes the reinvestment will not enjoy the deduction provided for in articles 37, 38 and 39.

The part of the total tax for subsidies for the implementation of the activities referred to in this paragraph will not be subject to bonus.

((2 will have a bonus of the 99 percent the portion of total tax that corresponds to income derived from the provision of any of the services included in paragraph 2 of article 25 or paragraph 1.a), b) and (c)) article 36 of Act 7/1985, of 2 April, regulating the Bases of the regime Local powers of provincial, municipal and territorial local authorities, except when is exploited by the system of joint venture or entirely private capital.

The bonus also applies where services referred to in the preceding paragraph are provided by entities entirely dependent on the State or the autonomous communities.

Chapter IV deductions to encourage certain activities article 35. Deduction for research and development and technological innovation.

1. deduction for research and development activities.

The realization of research and development activities entitle to practice a deduction of the full fee, under the conditions laid down in this section.

(a) concept of research and development.

Research to the original planned inquiry which pursues to discover new knowledge and a greater understanding in the scientific and technological field, and development to the implementation of the results of research or any other type of scientific knowledge for the manufacture of new materials or products or for the design of new processes or production systems shall be considered , as well as for the substantial technological improvement of materials, products, processes or pre-existing systems.

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

Also be considered research and development design and preparation of the sample for the launch of new products. For these purposes, means as a new product launch their introduction on the market and as a new product, that whose novelty is essential and not merely formal or accidental.

You will also be research and development conception of advanced software, provided that it involves significant scientific and technological progress through the development of new theorems and algorithms, or through the creation of new languages and operating systems, or whenever it is intended to help people with disabilities access to the services of the information society. Does not include normal or routine activities related to the software.

(b) the deduction base.

The basis of the deduction will be constituted by the amount of research and development costs and, where appropriate, by investments in property, plant and equipment and intangible excluded property and land.

Research and development expenses are considered to be those carried out by the taxable person, including the depreciation of the assets pertaining to the above-mentioned activities, insofar as they are directly related to such activities and be applied effectively to the realization of these, consisting specifically individualized projects.

The basis of the deduction in 65 percent of the grants received for the promotion of such activities and attributable will be reduced as income in the tax period.

Of research and development expenditures to activities abroad may also be subject to the deduction provided research and development main activity takes place in Spain and do not exceed 25 percent of the total amount invested.

Also shall be regarded as expenses of research and development amounts paid to carry out such activities in Spain, on behalf of the taxable person, individually or in collaboration with other entities.

Investments shall be deemed performed when the assets are put in working order.

(c) percentage of deduction.

1. the 30 per cent of the expenditures in the tax period for this concept.

In the event that the costs incurred in carrying out research and development in the tax period are higher than the average of the made in the previous two years, shall apply the percentage established in the preceding paragraph to the Middle, and 50 per cent on the excess with respect to this.

In addition to the deduction which proceed according to the provisions of the preceding paragraphs shall be an additional deduction of 20 per cent of the amount of the following expenses for the period: the entity staff costs to qualified investigators assigned exclusively to research and development activities.

Expenditure on research and development projects with universities, public agencies of research or centres of innovation and technology, recognized and registered as such according to the Royal Decree 2609 / 1996, of 20 December, which regulates the centres of innovation and technology.

2 10 per cent of investment in elements of fixed assets tangible and intangible, excluding real estate and land, provided that they are exclusively related to the activities of research and development.

The deduction referred to in the previous subparagraph will be incompatible and compatible with that set out in article 42 of this law for the same investment with the remaining deductions provided for in the other articles of this chapter.

Elements that materializes, the investment must remain in the assets of the taxable person, except justified losses, up to to meet your specific purpose in the activities of research and development, except that its useful life according to the amortization method, admitted in paragraph a) of paragraph 1 of article 11, to be enforced, would be less.

2. deduction for activities of technological innovation.

Technological innovation activities entitle to practice a deduction from the total tax under the conditions laid down in this section.

(a) concept of technological innovation.

Shall be considered technological innovation the activity whose result is a technological breakthrough on obtaining new products or production processes or improvements of existing ones. Products or processes whose characteristics or applications, from the technological point of view, to differ materially from previously existing ones will be considered new.

This activity will include the realization of new products or processes in a plan, scheme or design, as well as the creation of a first prototype of non-tradable and initial demonstration projects or pilot projects, provided that they can not converted or used for industrial applications or commercial exploitation.

Also included are activities of diagnosis technology aimed at the identification, definition and the orientation of technological solutions advanced by the entities referred to in paragraph (b)). following 1st, regardless of the results that will be crowned.

(b) the deduction base.

The basis of the deduction will be constituted by the amount of the expenses of the period in activities of technological innovation that correspond to the following concepts: 1 projects whose realization is responsible to universities, government agencies or research centres of innovation and technology, recognized and registered as such according to the Royal Decree 2609 / 1996, of 20 December.

2nd industrial design and engineering of production processes, which will include the design and the preparation of plans, drawings and stands destined to define the descriptive elements, technical specifications and functions necessary for the manufacture, testing, installation and use of a product.

3rd acquisition of advanced technology in the form of patents, licenses, know-how and designs. Satisfied quantities will not be entitled to the deduction to persons or entities linked to the taxable person. The basis for this concept may not exceed the amount of one million euros.

4th obtaining the certificate of compliance with the standards of series ISO 9000, GMP quality assurance or similar, excluding those relating to the implementation of those standards.
They are considered expenses of technological innovation by the taxable person insofar as they are directly related to such activities and be applied effectively to the realization of these, consisting specifically tailored for projects.

The cost of technological innovation activities carried out abroad may also be subject to the deduction provided the main technological innovation activity is carried out in Spain and do not exceed 25 percent of the total amount invested.

Also shall be regarded as expenses of technological innovation the amounts paid for the accomplishment of such activities in Spain, on behalf of the taxable person, individually or in collaboration with other entities.

To determine the basis of the deduction the amount of costs of technological innovation will be reduced in 65 percent of subsidies received for the promotion of such activities and chargeable as income in the tax period.

(c) percentage of deduction.

Deduction percentages applicable to the deduction provided for in paragraph b base) will be 15 per cent for the concepts laid down in its ordinal 1st and 10 per cent for those provided for in the remaining ordinals.

3. exclusions.

Research and development and technological innovation activities are not considered as the consistent: to) activities that do not involve a significant scientific or technological innovation. In particular, the efforts of routine to improve the quality of products or processes, the adaptation of a product or production process already existing to specific requirements imposed by a client, regular or seasonal changes as well as aesthetic modifications or less than existing products to differentiate them from other similar.

(b) the activities of industrial production and provision of services or distribution of goods and services. En_particular, planning of productive activity: the preparation and the start of production, including the adjustment of tools and other activities other than those described in paragraph b) of the preceding paragraph; the addition or modification of facilities, machinery, equipment and production systems that are not affected in qualified activities as research and development and innovation; the solution of technical problems of interrupted production processes; quality control and standardization of products and processes; the survey in the field of social science and market research; the establishment of networks or facilities for marketing; the training and the training of personnel related to these activities.

(c) scanning, probing, or prospecting for minerals and hydrocarbons.

4. application and interpretation of the deduction.

((a) for the purposes of the deduction regulated in this article, the taxable person may provide reasoned report issued by the Ministry of science and technology, or a body attached to it, relative to compliance with the scientific and technological requirements in paragraph a) of paragraph 1 of this article to describe the activities of the taxable person as research & Development (, or in the paragraph a) of paragraph 2, to qualify them as innovation, taking into account in both cases set out in paragraph 3.

This report will be binding for the tax administration.

(b) the taxable person may submit questions about the interpretation and application of this deduction, whose answer will be binding for the tax administration, in the terms laid down in articles 88 and 89 of the Act 58/2003, of December 17, General tax.

For this purpose, taxable persons may make reasoned report issued by the Ministry of science and technology, or a body attached to it, relative to compliance with the scientific and technological requirements in paragraph a) of paragraph 1 of this article to describe the activities of the subject liability such as research and development, or in the paragraph to) paragraph 2 to qualify them as technological innovation, taking into account in both cases set out in paragraph 3. This report will be binding for the tax administration.

(c) Similarly, for the purpose of applying this deduction, the taxable person may ask the tax administration the adoption of previous agreements for the evaluation of costs and investments for projects of research and development or technological innovation, according to the provisions of article 91 of the Act 58/2003, of December 17, General tax.

For this purpose, taxable persons may make reasoned report issued by the Ministry of science and technology, or a body attached to it, relative to compliance with the scientific and technological requirements in paragraph a) of paragraph 1 of this article to describe the activities of the subject liability such as research and development, or in the paragraph to) paragraph 2 to qualify them as technological innovation, taking into account in both cases set out in paragraph 3, as well as to the identification of the costs and investments that may be charged to such activities. This report will be binding for the tax administration.

5. regulatory development.

The assumptions of fact that determine the application of the deductions referred to in this provision, as well as the procedure for adoption of agreements for the evaluation referred to in the preceding paragraph may by Regulation specify.

Research and development expenses are considered to be those carried out by the taxable person, including the depreciation of the assets pertaining to the above-mentioned activities, insofar as they are directly related to such activities and be applied effectively to the realization of these, consisting specifically individualized projects.

Article 36. Deduction for the promotion of information and communication technologies.

1. the entities that meet the requirements set out in article 108 of this law shall be entitled to a deduction in the total tax of 10 per cent of the amount of investments and expenditures of the period related with the improvement of their ability to access and management of information of commercial Internet transactions, as well as the improvement of its internal processes through the use of information and communication technologies (, as specified below: to) access to the internet, which will include: 1 acquisition of equipment and terminals, with its software and associated peripherals, internet access and access to email facilities.

2. acquisition of communications equipment specific to internal networks of computers connected to internet.

3rd installation and implementation of such systems.

4th training of the staff of the company for their use.

(b) presence on the internet, which will include: 1 acquisition of computers, software and peripherals partners, for the development and publication of web sites and portals.

2nd work, internal or contracted to third parties, for the design and development of web sites and portals.

3rd installation and implementation of such systems.

4th training of the staff of the company for their use.

(c) e-commerce, which will include: 1 acquisition of computers, software and peripherals partners, for the implementation of electronic commerce over the internet with the appropriate guarantees of security and confidentiality of the transactions.

2. acquisition of equipment, with its software and associated peripherals, for the implementation of e-commerce through closed networks formed by groups of companies, customers and suppliers.

3rd installation and implementation of such systems.

4th training of the staff of the company for their use.

(d) incorporation of the technologies of information and communication to business processes, which will include: 1 acquisition of equipment and specific software packages for the interconnection of computers, the integration of voice and data, and the creation of intranet settings.

2. acquisition of software packages for specific processes of management, design and production applications.

3rd installation and implementation of such systems.

4th training of the staff of the company for their use.

2. This deduction shall be for the same investments or costs with others provided for in this chapter. The part of investment or expenditure financed with subsidies will not give right to the deduction.

Article 37. Deduction for export activities.

1 export activities entitle to practice the following deductions from the total tax: to) 25 per cent of the amount of investments that actually occur in the creation of branches or permanent establishments abroad, as well as in the acquisition of shares of foreign companies or the creation of subsidiaries directly related to the exportation of goods or services or the contracting of travel services in Spain , provided that participation is at least 25 per cent of the share capital of the subsidiary. 25 percent of the total investment made in this and the preceding two tax periods shall be deducted in the tax period in which 25 per cent of participation is achieved.

For the purposes of this paragraph the financial and insurance activities are not considered as directly linked to the export activity.
(b) 25 per cent of the amount paid in costs of advertising and publicity screening multiannual for launch of products, opening and prospection of foreign markets and attendance at fairs, exhibitions and other events similar, including in this case those held in Spain with an international character.

2. do not proceed the deduction when investment or expenditure is carried out in a State or territory by regulation qualified as a tax haven.

3. the basis of the deduction will be reduced in 65 percent of the subsidies received for the realization of investments and expenses referred to in paragraph.

Article 38. Deduction for investment in assets of cultural interest, film productions, editing books, navigation systems and vehicle tracking, adaptation of vehicles for the disabled and nurseries for children of employees.

1 taxable persons of the tax are entitled to a deduction in the total tax of 15 per cent of the amount of investments or expenses engaged for: to) the acquisition of the Spanish historical heritage assets, performed outside the Spanish for their introduction within that territory, provided that the goods are declared of cultural interest or included in the general inventory of movable property within a year since its introduction and to remain on Spanish territory and the heritage of the holder for at least four years.

The basis of this deduction will be the assessment carried out by the Board of qualification, evaluation and export of goods of the Spanish historical heritage.

(b) conservation, repair, restoration, dissemination and exhibition of its property that are declared of cultural interest according to the regulations of the historical heritage of the State and the autonomous communities, provided that compliance with the requirements laid down in the said legislation, particularly with regard to the duties of visit and public exhibition of such property.

(c) the rehabilitation of buildings, maintenance and repair of roofs and facades, as well as the improvement of infrastructures of its property located in the environment that is the subject of protection of the Spanish cities or datasets, architectural, archaeological, natural and landscape and the goods declared world heritage by the Unesco in Spain.

2. investments in Spanish Cinema feature films and productions audio-visual series of fiction, animation or documentary, permitting the making of a physical support prior to their mass industrial production entitles the producer to a deduction of 20 per cent. The basis of deduction will be constituted by the production cost discounting on the part financed by the financial co-producer.

The financial co-producer who participates in a Spanish production of cinematographic film shall be entitled to a deduction of five per cent of the investment fund, with a limit of five per cent of the income of the period for such investments.

For the purposes of this deduction, shall be deemed co-producer financial entity that participates in the production of the films referred to in the preceding paragraph only through the contribution of financial resources in the amount that is not less than 10 per cent nor superior to 25 per cent of the total cost of the production, in Exchange for the right to participate in the income derived from their exploitation. The contract of co-production, which should include the circumstances indicated, will be presented to the Ministry of education, culture and sport.

The deductions referred to in this paragraph is practiced from the tax period that ends production of the work. Amounts not deducted in that period may be applied in the liquidation of the successive tax periods, under the conditions provided for in paragraph 1 of article 44 of this law. In this case, the limit of five per cent referred to in this section shall be calculated on the income derived from the co-production which is obtained in the period in which the deduction is applied.

The conditions and procedures for the practice of this deduction may by regulation establish.

3. investments in the publication of books that allow the making of a physical, prior to their mass industrial production support, shall be entitled to a deduction of five per cent.

4. investments in systems of navigation and location of satellite vehicles incorporated in industrial or commercial vehicles for road transport will give right to practise a deduction from the total tax of 10 per cent of the amount of such investments.

5. investments in platforms of access for people with disabilities or anchors for fixing of wheelchairs, incorporated in passenger transport by road vehicles, shall be entitled to practise a deduction from the total tax of 10 per cent of the amount of such investments.

6. investments and expenses in premises approved by the competent public administration to provide the service of first cycle of early childhood education to the children of employees of the entity, and the expenses of hiring this service with a duly authorized third party, shall be entitled to practise a deduction from the total tax of 10 per cent of the amount of such investments and expenses.

The basis of the deduction will be reduced in the part of the cost of the service affected by the company workers and 65 per cent of subsidies received for the provision of such service and attributable as income in the tax period.

7. the part of the investment, financed with grants will not give right to deduction.

Article 39. Deductions for environmental investments.

1 investments in material assets aimed at the protection of the environment consisting of facilities that prevent the air pollution from industrial facilities, pollution of surface, groundwater and marine reduction, recovery or industrial waste treatment for the improvement of the legislation in these fields of action, shall be entitled to a deduction in the total tax of 10 per cent of the investments that are included in programs conventions or agreements with the competent administration in environmental matters, who must issue the certification of recognition of investment.

2. the deduction provided for in the preceding paragraph shall also apply in the case of acquisition of new industrial or commercial vehicles for road transport only for that part of the investment to be determined according to the rules that it contributes effectively to the reduction of air pollution.

3 also, may deduct from the total tax 10 percent on investments in new active material goods intended for the use of renewable energy sources facilities and equipment with any of the purposes mentioned below: to) use of energy from the Sun to transform it into heat or electricity.

(b) use as fuel, solid waste or biomass from waste from agricultural and forest industries, agricultural and forestry residues and energy crops to transform it into heat or electricity.

(c) treatment of biodegradable waste from livestock farms, wastewater treatment of wastewater, industrial effluents or solid waste for processing into biogas.

(d) treatment of agricultural, forestry products or oils used for conversion into biofuels (bioethanol or biodiesel).

4. the part of the investment, financed with grants will not give right to deduction.

Article 40. Deduction for training expenses.

1. the implementation of vocational training activities entitle to practice a deduction of the full quota of five per cent of the costs incurred in the period tax, accounted in 65 per cent of the amount of received subsidies for these activities, and chargeable as income in the tax period.

In the event that the costs incurred in the implementation of vocational training in the tax period are higher than the average of the made in the previous two years, shall apply the percentage established in the preceding paragraph to the Middle, and 10 per cent on the excess with respect to this.

2. for the purposes of the provisions of the preceding paragraph shall be considered training the whole of formative actions developed by a company, directly or through third parties, aimed at updating, training or recycling of its staff and demanded by the development of their activities or by the characteristics of the jobs. In any case they shall be understood as training expenses which, in accordance with the provisions of the revised text of the law on personal income tax, with consideration of the personal work performance.
3. the deduction also applies for those costs incurred by the entity in order to get used to the employees in the use of new technologies. Changes made include those expenses to provide, facilitate or fund your internet connection as well as derivatives of free delivery, at reduced prices, or the granting of loans and financial aid for the acquisition of equipment and terminals necessary to access it with your software and associated peripherals, even when their use by employees may be out of place and work schedule. Costs referred to in this paragraph shall be considered, for tax purposes, of expenses of personnel training and non-determined, the obtaining of a performance of the work for the employee.

Article 41. Deduction for job creation for the disabled workers.

1 it will be deductible from the total tax the amount of 6,000 euros per person/year of increase of the average of the template of disabled workers hired, in accordance with article 39 of the Act 13/1982 of 7 April, social integration of disabled people, for an indefinite time, experienced during the tax period, regarding the template mean workers disabled with this type of contract in the run-up.

2. for the calculation of the increase in the average number of staff workers are counted, only disabled people per year with indefinite contract that develop full-time, in the terms that has labor regulations.

3 employees that give right to the deduction provided for in this article are not counted for purposes of accelerated depreciation with regulated employment creation in the Royal Decree Law 7/1994 of 20 June, the Royal Decree Law 2/1995, of 17 February, and article 109 of this Act.

Article 42. Deduction for reinvestment of windfall profits.

1 the total tax deduction.

20 percent of the positive incomes obtained in the onerous transmission of patrimonial elements detailed in the following section integrated into the taxable subject to the general tax rate or the scale envisaged in article 114 of this Act, reinvestment provided, the terms and requirements of this article shall be deducted from the total tax.

This deduction will be of 10 per cent, the five per cent or 25 per cent when the taxable tribute to rates of 25 per cent, 20 per cent or 40 per cent, respectively.

Means that reinvestment condition is satisfied if the amount obtained in the onerous transmission is reinvested in the assets that referred to in paragraph 3 of this article and the income comes from the heritage elements listed in paragraph 2 of this article.

The limit referred to in the last subparagraph of paragraph 1 of article 44 of this law shall not apply to this deduction. This deduction is not computed for the purposes of the calculation of this limit.

2. transferred assets.

The assets transferred, generate incomes that form the basis of the deduction provided for in this article, are as follows: to) belonging to the tangible and intangible, that is they had owned at least one year before transmission.

(b) securities of the participation in the capital or own funds of all kinds of entities that grant not less than five percent on their social capital participation, and who had owned at least a year in advance to the date of transmission.

Means not covered in this paragraph b) values that do not grant a stake in the capital.

For the purposes of calculating the time of possession, means that the transmitted values have been the oldest. The computation of the transmitted participation refers to the tax period.

3. assets subject to reinvestment.

The assets that must be reinvested the amount obtained in the transmission that generates income subject to deduction, are as follows: to) those belonging to tangible or intangible affects to economic activities.

(b) of the participation in the capital or own funds of all kinds of entities that grant a participation of not less than five percent on the social capital of those securities.

Means not covered in this paragraph b) values that do not grant a share in the share capital and the representative's participation in the capital or in the own funds of entities resident in countries or territories qualified by law as a tax haven.

4 deadline for the reinvestment.

(a) reinvestment should be carried out within the period comprised between the year prior to the date of the making available of the transmitted asset and three years or, exceptionally, in accordance with a special reinvestment plan approved by the tax administration on the proposal of the taxable person.

When two or more transmissions made in the tax period of participation in the capital or in the own funds of all kinds of entities securities, this period will be calculated from the end of the tax period.

Reinvestment means effected on the date in which occurs the making available of the assets that will materialize.

(b) in the case of elements heritage that they are financial leases referred to in paragraph 1 of the additional provision seven of law 26/1988, of July 29, on discipline and intervention of credit institutions, shall be deemed made reinvestment in the date of conclusion of the contract, by an amount equal to the value of cash from the asset. The effects of the reinvestment will be conditioned, a decision-making basis, the exercise of the purchase option.

(c) the deduction shall be in the total tax for the tax period in which the reinvestment is made. When the reinvestment has been made prior to transmission, the deduction shall be in the total tax for the tax period in which such transfer takes place.

5. the deduction base.

The deduction base is constituted by the amount of the income obtained in the transmission of the assets referred to in paragraph 2 of this article, which is incorporated into the tax base.

For the sole purpose of this basis of deduction calculation, the transmission value shall not exceed the market value.

They will not form part of the revenue gained in the transmission the amount of provisions relating to the assets or securities, insofar as these allocations had been fiscally deductible, nor the amounts applied to accelerated depreciation, or the recovery of the cost of the good fiscally deductible as provided for in article 115 of this Act that must be integrated into the taxable on the occasion of the transmission of the assets that accepted such schemes.

The part of the income obtained in the transmission that has generated the right to practise the deduction by double taxation is not included in the basis of deduction.

Inclusion on the basis of deduction of the amount of the income obtained in the transmission of the assets whose acquisition or subsequent use to generate deductible expenses, either that is the year in which they accrued, shall be incompatible with deduction of such expenses. The taxpayer can choose between invoked the reinvestment deduction and the deduction of expenditures mentioned. In this case, the loss of the right to this deduction regularize in the way established in article 137.3 of this law.

In the case of assets referred to in paragraph a) of paragraph 2 of this article the revenue gained will be corrected, where appropriate, the amount of the monetary depreciation in accordance with paragraph 10 of article 15 of this law.

Reinvestment of an amount less than the amount obtained in the transmission will give right to the deduction provided for by this article, being the basis of the deduction the part of income proportionally corresponding to the reinvested amount.

6. maintenance of the investment.

(a) the assets object of the reinvestment must remain in the assets of the taxable person, except justified loss, up to the term of five years, or three years be fulfilled if it is movable, except if its useful life according to the depreciation method of students admitted in article 11 of this law, that applies It is less.

b) transmission of the assets object of the reinvestment prior to the end of the period referred to in the preceding paragraph shall determine the loss of the deduction, except if the amount obtained or the net book value, if it was a minor, is subject to reinvestment in the terms established in this article.

In this case, the loss of the right to this deduction regularize in the way established in article 137.3 of this law.

7. Special reinvestment plans.

When you try that, due to its technical characteristics, investment must be made necessarily in a period exceeding that provided for in paragraph 4 of this article, the taxable person may submit special reinvestment plans. Regulations will establish the procedure for the presentation and approval of the special reinvestment plans.

8. formal requirements.
Taxable persons shall set forth the amount of income received to the deduction provided for in this article and the date of reinvestment in the notes on the accounts. This mention shall be as it is does not meet the deadline of maintenance referred to in paragraph 6 of this article.

Article 43. Deduction for contributions corporate pension plans of employment, mutual social welfare acting as an instrument of corporate welfare or for contributions to heritage protected people with disabilities.

1. the taxable person may practise a deduction in the total tax of 10 per cent of the imputed corporate contributions in favor of workers with less than 27,000 euros annual gross remuneration, provided that such contributions be made to employment pension plans or mutual social welfare acting as an instrument of social welfare which the taxable person is promoter.

2. Likewise, the taxable person may practise a deduction in the total tax of 10 per cent of the contributions in favour of assets protected from workers with annual gross remuneration less than 27,000 euros, or of their relatives online direct or collateral to the third degree inclusive, their spouses or dependents of those workers regulated in the heritage of people protection law guardianship or foster care with (disability and amendment of the Civil Code, the law of Civil procedure and the tax legislation to this end, in accordance with the following rules: a) the contributions that generate the right to practise the deduction under this paragraph may not exceed 8,000 euros per year for each worker or disabled person.

(b) contributions that exceed the limit laid down in the preceding paragraph shall be entitled to practice the deduction in the four tax periods following, while supplies last, in his case, in each of them the maximum amount that generates the right to deduction.

When fee deductions are in a tax period for contributions made in the year, with outstanding deductions practice from previous years is practiced, firstly, deductions from contributions from previous financial years, until the maximum amount that generates the right to deduction.

(c) in the case of non-monetary contributions be taken as the amount of the contribution resulting from the provisions in article 18 of the law 49/2002, of 23 December, tax regime of non-profit entities and tax incentives to sponsorship.

Positive income that made manifest on the occasion of business contributions to protected assets are exempted from corporate income tax.

3. where in the case of workers with annual gross remuneration equal to or exceeding 27,000 euros, the deduction provided for in paragraphs 1 and 2 above will apply on the proportion of corporate contributions and contributions that correspond to the amount of the annual gross remuneration described in those paragraphs.

4. This deduction may not be applied with respect to the contributions under the protection of the transitional regime laid down in the fourth, fifth and sixth transitional provisions of the consolidated text of the law of regulation of plans and pension funds.

It shall not apply in the case of specific commitments with employees as a result of a record of employment regulation.

(5 when carried out provisions of goods or rights contributed to the heritage protected workers, relatives, spouses or dependants of workers of guardianship or foster care, in the terms provided in paragraphs b)) and (c) of paragraph 5 of article 59 of the revised text of the law on personal income tax the taxpayer who made the contribution, in the period that you have breached requirements, together with the fee to your tax period, enter the amount deducted in accordance with the provisions of this article, in addition to the interest on arrears.

Article 44. Rules common to the deductions provided for in this chapter.

1. the deductions provided for in this chapter be practiced once made deductions and allowances of chapters II and III of this title.

The amounts corresponding to the tax period not deducted may be applied in the liquidations of the tax periods that immediate and successive age 10 have been concluded. However, the amounts corresponding to the deductions provided for in articles 35 and 36 of this Act, may be applied in the liquidation of the tax periods that immediate and successive age 15 have been concluded.

The computation of time limits for the application of the deduction provided for in this chapter may be extended to the first year in which, within the period of prescription, positive results, occur in the following cases: to) in the newly created entities.

(b) in institutions that AES losses of previous years through the effective contribution of new resources, unless deemed as such application or capitalization of reserves.

The amount of the deductions provided for in this chapter which referred to in this paragraph, applied in the tax period, does not exceed jointly of 35 per cent of the total tax reduced in deductions to avoid domestic and international double taxation and subsidies. However, the limit will rise to 50 percent when the amount of the deduction provided for in articles 35 and 36, which correspond to expenses and investments carried out in the own tax period, exceed 10 per cent of the total tax, reduced in deductions to avoid domestic and international double taxation and subsidies.

2. an investment shall not lead to the application of the deduction in more than one entity.

3. the assets subject to the deductions provided for in the preceding articles must remain in operation for five years, or three years, if it is movable, or lifetime if it is lower.

Together with the fee for the tax period in which failure to comply with this requirement occurs, it will enter the deducted amount, plus interest.

Chapter V payment article 45. The payment by installments.

1. in the first 20 days of the months of April, October and December, taxable persons must make a payment instalments to the settlement account for the tax period which is underway on day 1 of each of the months indicated.

2. the basis for calculating the installments will be the full fee of the last tax period whose statutory declaration period is expired the first day of the 20 natural referred to in the preceding paragraph, discounting in the deductions and allowances referred to in chapters II, III and IV of this title, as well as withholdings and payments on account associated with that.

When the last completed tax period is less than the year be also taken into account the proportional part of the quota of tax earlier periods, up to a period of 12 months.

3. fractional payments may also be made at the option of the taxpayer, on the part of the taxable income of the period of the first three, nine, or 11 months of every calendar year determined according to the rules laid down in this law.

Taxable persons whose tax period does not coincide with the calendar year shall be the payment of instalments on the part of the taxable base corresponding to the days elapsed since the beginning of the tax period up to the day prior to the beginning of each of the periods of income of the instalment payment referred to in paragraph 1. In these cases, the payment will be to the settlement account for the tax period which is indicated the day before the start of each of the above-mentioned periods of payment.

So the choice referred to in this section is valid and produces effects, it must be exercised in the corresponding census Declaration, during the month of February of the calendar year which must be valid, provided the tax period to which it relates the aforementioned option coincides with the calendar year.

Otherwise, the exercise of the option must be made in the corresponding census Declaration, during the period of two months counted from the beginning of the tax period or within the period between the beginning of the tax period and the expiry of the deadline for the first payment for the referred tax period when this time period is less than two months.

The taxable person shall be bound to this modality of payment instalments for payments for the same tax period and following, while not you renounce your application through the Census Declaration which must be exercised within the same deadlines set out in the preceding paragraph.

4. the amount of the payment will be the result of applying to the bases provided for in the two preceding paragraphs the percentage that is set in the General State budget Act.
In the form provided for in the preceding paragraph, the resulting fee shall be deducted bonuses of chapter III of this title, other bonuses that you apply to the taxable person, withholdings and payments on account that are practiced on the income of the taxpayer and instalments payments made for the tax period.

5. the payment will be considered tax debt.

Chapter VI deduction of payments article 46. Deduction of withholdings, payments and instalments.

They will be deductible from the total tax: to) the deductions to account.

(b) payments on account.

(c) the instalments.

When these concepts exceeded the amount resulting from practice in the total tax from tax deductions referred to in chapters II, III and IV of this title, the tax administration shall return, ex officio, the excess.

Title VII regimes tax special chapter I regimes tax special particular article 47. Definition.

1 they are the regulated in this title special tax regimes, either by reason of the nature of the taxable persons concerned or by reason of the nature of the facts, acts or operations concerned.

2. the rules contained in the remaining titles shall apply on a supplementary basis with respect to those contained in this title.

Chapter II economic interest groupings, Spanish and European, and temporary unions of companies article 48. Spanish economic interest groupings.

1 economic interest groupings regulated by law 12/1991, of 29 April, economic interest groupings, shall apply the General rules of this tax with the following specialties: to) not will be taxed by the corporation tax for the part of taxable income attributable to partners resident in Spanish territory.

In the event that the entity chooses to instalments mode regulated in paragraph 3 of article 45 of this law, the basis of calculation will not include the part of the taxable income attributable to partners who need to support the allocation of the tax base. In no event shall be the refund referred to in article 46 of this law in relation to that same part.

(b) be charged to partners resident in Spanish territory: 1 taxable, positive or negative, bases obtained by these entities. Carryforwards that charged its members shall not be compensated by the entity that obtained them.

2nd deductions and reductions in the share to which the entity is entitled. The bases of the deductions and allowances will be integrated in the liquidation of the partners, reducing the fee according to the rules of this tax or the tax on the income of physical persons.

3rd withholdings and payments on account associated with the entity.

2. dividends and shares in benefits that apply to members not resident in Spanish territory will be taxed in such a concept, in accordance with the rules laid down in the revised text of the law of the tax on the income of non-residents, and conventions for avoidance of double taxation signed by Spain.

3. dividends and shares in profits corresponding to partners who need to support the allocation of the tax base and come from tax periods during which the entity was in the present regime, not will be taxed for this tax or the tax on the income of physical persons.

The amount of these dividends or interests in benefits will not be integrated the acquisition value of the shares of members who had been charged. For partners who purchase shares subsequent to the allocation, acquisition cost shall be reduced by this amount.

In the transmission of participations in the capital, results or own funds of entities covered by this scheme, the purchase price will increase by the amount of social benefits that, without effective distribution, had been charged to partners as income from their shares during the time between their acquisition and transmission.

4. the application of the provisions of paragraph 11 of article 115 of this Act will require that the assets concerned there are leased to third parties not related to the economic interest grouping which affects their activity, and that its partners maintain their participation until the end of the tax period in which concluded the mentioned leasing.

5. this tax regime shall not apply in those tax periods that are carried out activities other than suitable for your object or holding, directly or indirectly, interests in companies who are his partners, or directing or controlling, directly or indirectly, activities of its partners or third parties.

Article 49. European economic interest groupings.

1 a European economic interest groupings covered by Regulation (EEC) No. 2137 / 1985 of the Council, of 25 July 1985, and its partners, shall apply the provisions of the preceding article, with the following specialties: to) will not be taxed by tax.

These entities will not be the instalments that referred to in article 45 of this law, or not proceed for them deduction collecting article 46 of the same law.

(b) if the entity is not resident in Spanish territory, resident partners in Spain be integrated into the taxable corporate income tax or the tax on the income of physical persons, as appropriate, the corresponding part of the benefits or certain losses in the grouping, corrected by the application of the rules for determining the taxable base.

When the activity carried out by partners through the Association has given rise to the existence of a permanent establishment abroad, shall apply the rules laid down in the tax or the respective agreement to avoid international double taxation signed by Spain.

(c) the non-resident partners in Spanish territory, regardless that the entity is resident in Spain or outside of it, shall be subject by the tax on the income of non-residents only if, in accordance with article 13 of the consolidated text of the law of the tax on the income of non-residents, or the respective Convention of international double taxation feels that the activity carried out by those through the group gives rise to the existence of a permanent establishment in that territory.

(d) benefits charged to members not resident in Spanish territory which have been subject to taxation under rules of the tax on income of non-residents will not be subject to taxation by reason of its distribution.

2. the arrangement provided for in the preceding paragraphs shall not be of application in the tax period in which the European economic interest grouping carried out activities other than those of its object or prohibited in paragraph 2 of article 3 of Regulation EEC 2137 / 1985, of 25 July.

Article 50. Temporary unions of companies.

1 temporary unions of companies regulated by the law 18/1982, of 26 May, on taxation of groups and temporary unions of companies and societies of industrial and regional development, registered in the special register of the Ministry of finance, as well as their member companies, will be taxed in accordance with the provisions of article 48 of this law.

Member companies of a temporary union of companies that operate abroad may qualify for income from abroad to the exemption method.

2. entities that participate in works, services or supplies that perform or provide abroad, through formulas for collaboration similar to the temporary nes unio, may benefit from the exemption with respect to income from abroad.

Entities must apply for the exemption to the Ministry of finance, providing information similar to that required for the temporary unions of companies incorporated in Spanish territory.

3. the choice by the exemption will determine its application until the expiry of the temporary union. Negative income obtained by the joint venture will fall in the tax base of the member entities. In such a case, when in successive years, the temporary union get positive income, member firms be integrated into its tax base, with positive character, negative income previously imputed, the limit of the amount of such revenue positive.

4. the provisions of this article shall not apply in those tax periods where the taxable person carried out activities other than those that must be its social object.

Article 51. Allocation criteria.

1. the allegations referred to in this chapter shall be made to the persons or entities that hold the economic rights inherent in the quality of Member or member company the day of the conclusion of the tax period of the entity under the present regime, in the proportion resulting from the articles of incorporation of the entity and , in their absence, by equal parts.

2 imputation shall be: to) when partners or member companies are entities subject to this regime, on the closing date of the exercise of the entity subject to this regime.

(b) in other cases, the following tax period, unless it decides to make continuously on the same date of the year-end of the company subject to this regime.

The option will manifest itself in the first tax return that should take effect and should be kept for three years.
Article 52. Identification of partners or member companies.

Entities that may apply the provisions of this chapter shall submit, together with your tax return, a list of people who have inherent rights or the quality of partner or company member the last day of the tax period, as well as the proportion in which each of them participate in the results of such entities.

Chapter III entities engaged in the leasing of housing article 53. Scope of application.

1 societies that have as their exclusive purpose the lease of dwellings located in Spanish territory shall benefit from the envisaged regime in this chapter. This exclusivity will support investment in business premises and parking lots for lease, provided that joint book value does not exceed 20 per cent of the total book value of investments in housing of the entity.

For these purposes, only means rental housing defined in article 2 of law 29/1994, of 24 November, tenancies, subject to the requirements and conditions established in this law to leases of dwellings.

2 the application of the special tax regime regulated in this chapter will require compliance with the following requirements: to) that the number of dwellings rented or offered on lease by the entity is at any time equal to or greater than 10. The book value of the set of dwellings acquired by the entity in phase of construction, including the purchased on plane, may not exceed 20 per cent of the total book value of the dwellings of the entity.

(b) that at least one third of rented dwellings incorporated into lease an option of buying the House in favour of the lessee.

The recognition of the option must not presume to the lessee the payment of any consideration and must specify the price of exercise of own choice, which will always be optional. In any case you can provide for the non-exercise of the right of extension of lease during the first five years or lack of exercise of the right of option to determine the obligation to pay any compensation to the lessor for the lessee.

c) where leased or offered homes in lease by the entity are not qualified for official protection or declared protected there will be complied with, in addition, the following requirements: 1 dwellings acquired by the entity to market value and do not have at the time of your purchase more than three years from the completion of its construction or the rehabilitation of the building in which is situated. For this purpose, stated means rehabilitation of buildings in article 37 of the Royal Decree 1/2002, of 11 January, on measures of financing actions protected housing and floor Plan 2002-2005, or with the rules that replace it.

In the case of homes already acquired at the time of benefit from the regime, antiquity will be calculated to the date of commencement of the tax period in which the option by the regime to communicate.

2. the surface area of each dwelling not to exceed 110 square meters, can reach up to a maximum of 135 square meters in 20 per cent of the total of homes managed under this regime by each entity. The lease may include a maximum of two parking lots and the annexes located in the same building, excluding business premises, provided that each and others are rented together with the housing.

3rd which is carried out by applying, as a maximum, the percentage change experienced by the General national the system of Indices of price index of consumption over a period of 12 months immediately prior to the date of each update reduced by 0.75 percentage points during the first five years of the contract of lease, the annual update of the rent regulated in paragraph 1 of article 18 of law 29/1994.

4th the option right recognized to the lessee in accordance with the provisions of paragraph (b)), be exercisable within six months prior to the date of termination of the lease. In any case, the exercise of this option shall have effect the day after the termination of the lease, unless the parties, by mutual agreement, negotiated another date.

d) when dwellings leased or offered on lease by the entity are qualified as official protection or declared prote gidas, the option right recognized to the tenant in accordance with the provisions of paragraph b) above be exercisable within a maximum period of six months, once past the term of protection laid down in the corresponding State or autonomic legislation provided that lease to continue existing. For this purpose, the lessee may extend the contract for these six additional months.

3. the option for this scheme should contact the tax administration. The special tax regime applies in the tax period that ends after this communication and in the successive that concluded before that is communicated to the tax administration the waiver regime.

According to the rules the communication requirements and the content of the information may be to supply with it.

4. when the entity resulting you from any application of remaining special schemes referred to in this title VII, except the international fiscal transparency, with the mergers, demergers, contributions of assets and exchange of values, not may choose regime regulated in this chapter III, without prejudice to the provisions of the following paragraph.

Entities which, in accordance with article 108 of this law, them will not apply tax incentives for small size businesses provided for in chapter XII of this title VII, may choose to apply such incentives or apply the regime regulated in this chapter III.

5. the application of the system regulated in this chapter III will be incompatible with the deduction for reinvestment of extraordinary benefits provided for in article 42 of this law.

Article 54. Bonuses.

1 entities meeting the requirements provided for in the foregoing article may apply the following bonuses in the total tax: to) the 85 per cent of the portion of the total tax that corresponds to the income derived from the lease or transmission housing that meet the requirements of the preceding article.

In the cases of transmission of dwellings must meet, in addition, the following: 1 that have been leased by the institution for at least five years in the case of dwellings referred to in paragraph 2.c) of the preceding article and, at least in the term of protection laid down in the corresponding State or autonomic legislation, in the case of dwellings referred to in paragraph 2.d) of the preceding article.

2. that the amount obtained is to reinvest, within the period of three years from the transmission, in other homes that meet the requirements established in the previous article.

b) the 97 per cent of the portion of the total tax that corresponds to the incomes derived from the lease or transmission housing where, in addition to the requirements of the previous article, are met as follows: 1 in the case of leased or offered homes in lease by the entity are not qualified official protection or declared protected : The initial annual income that the lessee should satisfy not more than the result of applying a four per cent the legal maximum selling price of homes protected in lease, calculated according to established rules in every existing moment of State housing plans.

(Lease incorporating purchase in accordance with the provisions of paragraphs b)) and (c) of paragraph 2 of the previous article.

(2nd in the case of dwellings leased or offered on lease by the entity being rated official protection or declared protected, lease incorporating a purchase option in accordance with the provisions of paragraph d) of paragraph 2 of the preceding article.

In the case of transmission of dwellings must comply, in addition, the following: that have been leased by the institution for at least five years in the case of dwellings referred to in paragraph 1 above, and, at least in the period specified in the regulations applicable to offer homes for sale to tenants, in the case of dwellings referred to in paragraph 2 above.

That the amount obtained is to reinvest, within the period of three years from the transmission, in other homes that meet the requirements established in the previous article.

2 reward derived from the rental income shall be composed for each dwelling of the full income obtained, discounting in the expenditures directly related to obtaining such income and on the part of general expenses proportionally corresponding to the cited entry.
3. If the entity had acquired the House through transmission for operations of merger, Division or transfer of assets, and the income generated in that transmission had not integrated in the taxable income of the transferor pursuant to the special regime relating to such operations, income to reward derived from its rear transmission in accordance with the provisions of paragraph 1 shall be exclusively that exceed the market value on the date of the acquisition.

4. allowances provided for in paragraph 1 of this article are incompatible each other for the same incomes and will practice once applied, where appropriate, bonuses remaining regulated in the rules of this tax.

5 it will be members of entities who opt for the regime regulated in this chapter application deduction to avoid double taxation regulated in paragraph 1 of article 30 of this law for cases of benefit sharing and transmission of shares.

6. the tax system laid down in this chapter also may be applied, with planned specialties in this paragraph, by the entities referred to in paragraph 1 of article 53 of this law that rented or offered in leasing homes that have been built, promoted, or acquired. In these cases, will have to meet the following requirements: that the number of dwellings rented or offered on lease by the entity is at any time equal to or greater than 10.

That lease do not enter purchase option.

In the case of housing non-qualified as official protection or declared protected, the second and third requirements of paragraph c) of paragraph 2 of article 53. For purchased homes, must, in addition, the first requirement of the above-mentioned paragraph c).

That dwellings remain leased or offered leases for at least 15 years from the date on which were leased or offered leases for the first time by the entity.

In the case of homes listed in the heritage of the entity before the moment of benefit from the regime, the term shall be calculated from the commencement date of the tax period in which to communicate the option by the regime.

Entities meeting the requirements provided for in this section may apply in the full quota a bonus of 85 per cent of the portion of the total tax that corresponds to income from the lease or transmission housing that meet the requirements set out in this section. The application of this bonus in the case of transmission of dwellings will require, in addition, compliance with the following requirements: that the housing is not acquired by the tenant, spouse or relatives, including the related, up to the third degree inclusive.

That the amount obtained is to reinvest, within the period of three years from the transmission, in other homes that meet the requirements set out in this section.

Chapter IV corporate and venture capital funds and companies of regional industrial development article 55. Companies and venture capital funds.

1. companies and venture capital funds, regulated by law 1/1999, of 5 January, regulatory institutions of venture capital and their management companies, exempt in 99 percent of the incomes obtained in the transmission of the participation in the capital or own funds of enterprises referred to in article 2.1 of the aforementioned law securities in which to participate, provided that transmission occurs from the beginning of the second year of tenure computed from the time of acquisition and up to the 15th, even.

Exceptionally may be permitted an extension of this time period through the twentieth year, inclusive.

Regulations shall be determined cases, conditions and requirements that enable for this enlargement.

With the exception of the course provided for in the preceding paragraph, the exemption shall not apply in the first year and from the fifteenth.

In the event that the investee entity access to the trading on a stock market regulated in Directive 93/22/EEC of the Council of 10 May 1993, the application of the exemption provided for in the preceding paragraphs will be conditioned to the company or venture capital fund appropriate to transmit its participation in the capital of the company within a period not exceeding three years from the date that the admission to trading of the latter had occurred.

2. companies and venture capital funds may apply the deduction provided for in article 30.2 of this Act or the exemption provided for in article 21.1 of the Act, depending on the source of these revenues, dividends and, in general, shares in profit on societies that promote or encourage, what ever the participation rate and the time of holding of the shares or participations.

3 the dividends and, in general, stakes in perceived of the companies and venture capital funds benefits will have the following treatment: to) shall be entitled to the deduction provided for in article 30.2 of this law anyone who is the participation rate and the time of holding of the shares or participations when its recipient is a taxable person for this tax or a taxpayer for the income tax of non-residents with permanent in Spain.

(b) they shall be obtained within Spanish territory when your beneficiary is a natural person or entity taxpayer of the tax on the income of non-residents without a permanent establishment in Spain.

4 the positive incomes make clear in transmission or reimbursement of shares representing equity of companies and venture capital funds will have the following treatment: to) shall be entitled to the deduction provided in the article 30.5 of this law, that is the percentage of participation and ownership of the shares or participations time when its recipient is a taxable person of this tax or a contributor to tax the Income of non-residents with a permanent establishment in Spain.

(b) they shall be obtained within Spanish territory when your beneficiary is a natural person or entity taxpayer of the tax on the income of non-residents without a permanent establishment in Spain.

(5. the provisions of paragraph b) of paragraphs 3 and 4 above shall not apply when the income is obtained through a country or territory qualified by law as a tax haven.

Article 56. Societies of regional industrial development.

1. the regulated societies of regional industrial development Act 18/1982, of 26 May, on taxation of groups and temporary unions of companies and societies of regional industrial development, will enjoy partial exemption for income obtained in the transmission of shares and participations in capital of the companies that participate in the terms set forth in paragraph 1 of the preceding article.

2. dividends and, in general, the stakes in perceived benefits of the companies by the societies of regional industrial development will enjoy the deduction provided for in article 30.2 of this law anyone who is the participation rate and the time of holding of the shares or participations.

Chapter V article 57 collective investment institutions. Taxation of collective investment undertakings.

1 collective investment institutions regulated by the law on collective investment institutions with the exception of the subject to the general tax rate, not entitled to deduction of dues or the exemption of income tax base to avoid international double taxation. In no case will be application of heritage societies regime provided for in articles 61 to 63 of this law.

2. when the amount of fractionated payments, withholdings and payments on account, practiced on the income exceeds the amount of the total tax, the tax administration shall return, ex officio, the excess.

Article 58. Taxation of partners or participants in collective investment undertakings.

1. the provisions of this article shall apply to members or participants subject to this tax or the tax on the income of non-residents who obtain their incomes through permanent establishment on Spanish territory, the collective investment institutions referred to in the preceding article.

2 taxable persons who referred to above be integrated into taxable income the following concepts: to) income, positive or negative, obtained as a result of the transmission of the shares or participations or reimbursement of the latter.

(b) the benefits distributed by the collective investment institution. These benefits will not give right to deduction for double taxation.

3. the arrangement provided for in paragraph 2 of this article shall apply to members or participants in collective investment institutions, regulated by Directive 85/611/EEC of the Council of 20 December 1985, other than those provided for in article 60 of this law, constituted and domiciled in any Member State of the European Union and registered in the special register of the National Commission of the stock market , for the purposes of its marketing by entities resident in Spain.

Article 59. Posted income from shares or shares of collective investment institutions.
It will be integrated into taxable income the amount of revenue income or that derived from shares or shares of collective investment institutions must be accounted for by the taxable person.

Article 60. Taxation of partners or participants in collective investment undertakings incorporated in countries or territories qualified by law as tax havens.

1 taxable persons of this tax and the tax on the income of non-residents who obtain their incomes through permanent establishment on Spanish territory, participating in collective investment institutions incorporated in countries or territories qualified by law as tax havens, be integrated into the tax base the positive difference between the net asset value of the participation to the day of the end of the tax period and their acquisition cost.

Integrated in the taxable amount will be considered greater value acquisition.

2. the benefits distributed by the collective investment institution will not integrate the taxable and minorarán the value of acquisition of the participation.

These benefits will not give right to deduction for double taxation.

3. it shall be presumed, unless evidence to the contrary, that the difference referred to in paragraph 1 is 15 per cent of the acquisition value of the action or participation.

Chapter VI partnerships heritage article 61. Regime of economic societies.

1 shall be regarded as heritage societies, those in which the following circumstances: to) that more than half of its assets is constituted by values or that more than half of its assets is not fond of economic activities.

To determine if there is economic activity or whether an asset is fond of her, it will be the physical personal income tax provisions.

Both the value of the asset as the of the assets not related to economic activities will be which be deducted from accounting, provided that this accurately reflects the true patrimonial situation of the society.

For the determination of the part of the asset that is made up of securities or assets not affected: 1 do not put the following values: the possessed to comply with legal and regulatory obligations.

Which incorporate credit rights born of contractual relations established as a result of the development of economic activities.

Those possessed by securities as a result of the exercise of the constitutive activity of its object.

Los_que grant, at least, 5% of the voting rights and possess in order to lead and manage the participation provided that, for these purposes, the corresponding organization of personal and material resources available, and the investee entity is not included in this paragraph a).

2nd not be computed as values or as elements not pertaining to economic activities those whose purchase price does not exceed the amount of the undistributed profits obtained by the entity, provided that such benefits may arise from the realization of economic activities, with the limit of the amount of the profits obtained in the same year as in the last 10 years prior. To these effects, are assimilated to the benefits from economic activities dividends derived from the values referred to in the last subsection of the previous paragraph, where the revenues obtained by the investee entity obtained, at least at 90 percent, of the realization of economic activities.

(b) that more than 50 percent of the capital stock belong, directly or indirectly, to 10 or less partners or a family group, understanding these effects is constituted by the spouse and others United by ties of kinship, to direct or collateral, inbred line or by affinity, up to the fourth degree inclusive.

The circumstances referred to in this paragraph shall attend for more than 90 days of the fiscal year.

2. does not apply this scheme to societies in which all partners are legal persons who, at the same time, non-property companies or when a legal person of public law is holder of more than 50 percent of the capital. Neither applies in the tax periods in which securities of the society participation were admitted to trading on any of secondary markets officials expected values in law 24/1988, of July 28, the stock market.

3 heritage societies will be taxed by this tax in accordance with the following special rules: to) the tax base will be divided into two parts, the general part and special part, and quantified according to the provisions of the revised text of the law tax on physical persons income, excluding provisions of chapter III of title II and in his article the 95.1. to) , second paragraph, and taking into account the following: 1 the determination of the NET performance of economic activities will be made by the direct estimation method normal mode.

2nd in the calculation of the amount of capital gains will not be applicable in the ninth transitional provision of the consolidated text of the law on personal income tax.

3rd not shall apply the reductions laid down in the articles 21.2, 21.3, 24.2, 30, and 94.2 of the revised text of the law on personal income tax, when one of the partners of the company is taxable corporate income tax or the tax on the income of non-residents.

4th the carryforwards from prior years be compensated pursuant to the regulations of the tax on the income of physical persons.

(b) the tax rate will be 40 per cent for the general part of the tax base. The special part of the tax base will be taxed at 15 percent.

(c) the total tax can only be lower by application of the following items: 1 deductions provided for individuals in paragraphs 2, 3, 4 and 5 of article 69 of the consolidated text of the law of the tax on physical persons income, under the terms established in article 70 of the Act.

2. deductions for double taxation set out in articles 81 and 82 of the consolidated text of the law on personal income tax.

3rd payments provided for in articles 45 and 140 of this law.

(d) in the calculation of the amount of the instalments carried out pursuant to paragraph 2 of article 45 of this law, the only retailers to perform will be from the deductions provided for in paragraphs 2, 4 and 5 of article 69 and in articles 81 and 82 of the consolidated text of the law on personal income tax , as well as of withholdings and payments on account associated with that.

If this calculation is made by applying the provisions of paragraph 3 of article 45 of this law, will only take into account the deduction provided for in paragraph 4 of article 69 of the consolidated text of the law on personal income tax, as well as withholdings and payments on account practiced on the taxable incomes , and fractionated payments made for the tax period.

Article 62. Distribution of profits gained in exercises in which has been application the regime of economic societies and transmission of shares or interests in companies that have been subject to the regime of economic societies.

1. the distribution of profits in periods in which has been implementing the special regime of the patrimonial companies, anyone that is the entity that distributed the profits obtained by the heritage societies, the moment in which the distribution is carried out and the special tax arrangements applicable to institutions at that time, you will receive the following treatment ((: to) whenever the beneficiary taxpayer's tax on physical persons income, dividends and shares in profits referred to in paragraphs 1 and 2 of paragraph a) of paragraph 1 of article 23 of the revised text of the law of the tax on the income of the physical persons, coming from tax periods during which the entity that distributes them is found in the regime of economic societies not will they be integrated into the income of the tax period of such a tax.

(b) where the recipient is a taxable person for this tax or a taxpayer of the tax on the income of non-residents with a permanent establishment, the perceived benefits will be integrated, in any case, the taxable and shall be entitled to the deduction for double taxation of dividends in the terms laid down in paragraphs 1 and 4 of article 30 of this law.

(c) where the recipient is a contributor to the tax on income of non-residents without a permanent establishment, the perceived benefits will have the treatment that corresponds to them in accordance with the revised text of the law on the income of non-resident tax, for these taxpayers.

2. the incomes obtained in the transmission of participation in companies which hold reserves from profits that would have been them application regime heritage societies, either that is the entity whose shares are transmitted, when which make the transmission and the special tax arrangements applicable to entities that currently you will receive the following treatment:
((a) where the transferor is contributor to tax the income of the physical persons, for the purpose of determining gain or loss equity provisions shall apply in article 35.1. c) of the consolidated text of the law on personal income tax.

(b) where the transferor is an institution subject to this tax, or a contributor to the tax on income of non-residents with a permanent establishment, in any case you can apply the deduction to avoid double taxation on capital gains from internal source in the terms established in article 30 of this law.

In the determination of these revenues, the transmission to compute value will be, at a minimum, the resulting closed last balance theoretician, once replaced the accounting value of assets not by the value they would have for the purposes of the tax on capital, or by the normal market value if lower.

The first paragraph will also apply in the cases referred to in paragraph 3 of article 30 of this law.

c) where the transferor is a contributor to the tax on income of non-residents without a permanent establishment, will have the treatment that apply to you in accordance with the revised text of the law of the tax on the income of non-residents, for these taxpayers.

Article 63. Identification of participants.

1. heritage societies shall keep or convert to personal values or representative participation in their capital holdings.

2. the failure to comply with this requirement will be considered serious tax offense. The sanctions consist of fixed pecuniary fine of 3,000 euros, for each tax period in which the breach, has given whenever not reque administrative rimiento had been made to the effect. If had mediated administrative requirement, the sanction will be 6,000 euros for each tax period in which the breach persists.

Of this offence shall be liable for subsidiary administrators of society, except those who have proposed expressly the measures necessary to comply with the provisions of the preceding paragraph, unless they had been accepted by the remaining directors.

The sanction imposed in accordance with this section shall be reduced pursuant to paragraph 3 of article 188 of the law 58/2003, of December 17, General tax.

Chapter VII article 64 tax consolidation system. Definition.

1. the tax groups may choose to the tax regime laid down in this chapter. In such a case the entities that they integrate will not be taxed in individual regime.

2 it means individual regime of taxation which would correspond to each entity should not be applied the tax consolidation system.

Article 65. Taxable person.

1. the tax group will be considered taxable.

2. the parent company will have the representation of the tax group and will be subject to the compliance of the material and formal tax obligations arising from the regime of fiscal consolidation.

3. the parent company and the subsidiaries are also subject to tax obligations arising from the regime of individual taxation, except for the payment of the tax debt.

4. administrative actions of verification or research carried out front of the parent company or any entity in the tax group, with the formal knowledge of the dominant society, shall interrupt the limitation period of tax which affects the tax group.

Article 66. Tax responsibilities arising from the application of the system of fiscal consolidation.

Societies of the tax group will respond jointly and severally liable for payment of the tax debt, excluding sanctions.

Article 67. Definition of the tax group. Parent company. Subsidiaries.

1 means tax group the set of companies audited by shares resident in Spanish territory formed by a dominant company, limited and anonymous and all the subsidiaries of this.

2 refers to dominant society that meets the following requirements: to) have one of the legal forms set forth in the preceding paragraph or, failing that, have legal personality and be subject and not exempt to corporation tax. Permanent establishments of entities not resident in Spanish territory can be considered dominant societies with regard to societies whose holdings are affected to the same.

(b) have a direct or indirect holding at least of 75 per cent of the share capital of one or more other companies the first day of the tax period in which is this tax regime.

(c) that such participation is maintained during the entire tax.

The requirement of maintenance of participation during the entire tax will not be payable in the event of dissolution of the investee entity.

(d) that is not dependent on any other resident in Spanish territory, which meets the requirements to be considered dominant.

(e) it is not subject to the special regime of economic interest groupings, Spanish and European, and temporary unions of companies or of economic societies.

(f) that, in the case of permanent establishments of non-resident in Spanish territory entities, such entities are not dependent on any other resident in Spanish territory which meets the requirements to be considered dominant and reside in a country or territory with which Spain has signed an agreement to avoid double international taxation containing clause of exchange of information.

3 subsidiary the means on which the parent owns a participation that meets the requirements contained in paragraphs b) and (c)) of the previous paragraph.

4 may not be part of the tax groups entities in which any of the following circumstances concur: to) who are exempt from this tax.

(b) that at the end of the tax period are in a situation of competition, or falling on the patrimonial situation referred to in article 260.1.4. of the text revised corporations law, approved by Royal Legislative Decree 1564 / 1989, of December 22, even though they did not have the form of joint-stock companies, except that prior to the conclusion of the year in which annual accounts are approved this last situation had been surpassed.

(c) the subsidiaries that are subject to corporate income tax at a rate of assessment different from the dominant society.

d) the subsidiaries whose participation is achieved through another company that it does not meet the requirements to form part of the tax group.

5. the Group shall terminate when the parent company loses that character.

Article 68. Inclusion or exclusion of companies in the tax group.

1 societies on which a holding as defined in paragraph 2.b is acquired) of the preceding article, will be obligatorily integrated in the tax group with effect from the next tax period.

In the case of newly created companies integration will occur from the moment of its establishment, subject to the remaining requirements to become part of the tax group.

2. the subsidiaries who lose such status shall be excluded of the tax group with effect of the own tax period in which such circumstance occurs.

Article 69. Determination of the indirect domain.

1 when a society have at least 75 percent of its share capital in another company and, at the same time, this second is in the same situation with respect to a third, and so on, to calculate the indirect participation of the first about other societies, the percentages of participation in share capital, will multiply, respectively, so that the result of such products shall be at least 75 per cent indirectly owned society can and should be integrated in the tax group and, in addition, must be that all intermediate societies integrated the tax group.

2. If a tax group coexist participation, direct and indirect relationships, to calculate the total participation of one company in another, directly and indirectly controlled by the first, the percentage of direct and indirect participation will be added. So the investee can and should be integrated in the tax group of companies, this sum must be, at least 75 percent.

3. If there are relations of reciprocal, circular or complex participation, proof must be supplied, where appropriate, objective data participation, at least 75 per cent of the share capital.

Article 70. Application of the system of fiscal consolidation.

1. the tax consolidation regime shall apply where agreed by each and every one of the companies that need to integrate the tax group.

2. the agreements referred to in the preceding paragraph shall be taken by the Board of shareholders or equivalent body does not have commercial form, on any date of the immediate tax period previous to fiscal consolidation procedure which is application, and shall have effect when they have not been contested or not susceptible to challenge.
3. the societies which are inserted in the tax group hereinafter shall comply with the obligations referred to in the preceding paragraphs, within a period that will end the day in which completed the first tax period in which must file returns in the tax consolidation system.

4. the lack of agreements which referred to in paragraphs 1 and 2 of this article will determine the impossibility to implement the regime of fiscal consolidation.

The lack of the relevant agreements to companies which need to integrate in the tax group hereinafter shall constitute serious tax offense of the parent. The sanction will consist of fixed pecuniary fine of 2,000 euros for the first tax period in which the regime has been applied without fulfilling this requirement and 4,000 euros per second, and will not prevent the effective integration into the Group of the societies concerned, determine the impossibility to implement the regime of fiscal consolidation, if within two years from the day that concludes the first tax period in which they must file returns in the tax consolidation system, persist the lack of agreement referred to in this article.

The sanction imposed in accordance with this section shall be reduced pursuant to paragraph 3 of article 188 of the law 58/2003, of December 17, General tax.

5 exercised the option, the tax group will be linked to this scheme indefinitely during the following tax periods, as long as the requirements of article 67, and while not you renounce your application through the Census Declaration, which must be exercised, where appropriate, in the period of two months counted from the end of the last tax period of its application.

6. the parent shall communicate the agreements referred to in paragraph 1 of this article to the tax administration prior to the beginning of the tax period in which this procedure is of application.

Also, before the end of each tax period, the parent shall notify the tax administration the composition of the group for that period, identifying companies that are integrating in it and which have been excluded from it.

Article 71. Determination of the taxable income of the tax group.

1 the taxable income of the tax group shall be determined by adding: a) individual taxable bases corresponding to each and every one of the companies making up the group, excluding in these individual negative taxable compensation.

(b) deletions.

(c) additions deletions carried out in previous years.

(d) the compensation of the negative taxable the tax group, when the amount of the sum of the preceding paragraphs would be positive, as well as the carryforwards referred to in paragraph 2 of article 74 of this law.

2. deletions and additions will be made in accordance with the criteria laid down in the Royal Decree 1815 / 1991, of 20 December, laying down the rules for the formulation of consolidated annual accounts.

3. do not you will be considered fiscally deductible starting from the base of the tax group the positive difference between the book value of the participations in capital of the subsidiaries that owns, directly or indirectly, the parent company and the proportion that these values represent in relation to the equity of such subsidiaries.

Negative will not be considered taxable income.

The difference referred to in the two preceding paragraphs is the existing at the date in which the company or subsidiaries be included first in the tax group.

Article 72. Eliminations.

1. for the determination of the consolidated tax base eliminations results all will practice for internal operations carried out during the tax period.

You will understand by internal operations made between companies in the tax group in the tax periods in which both part of it and apply the tax consolidation system.

Eliminations results, positive or negative, by internal operations, 2 practice as soon as the mentioned results are included in individual tax bases of the entities that form part of the tax group.

3. not included in the individual taxable dividends which has failed the deduction by double internal taxation provided for in article 30.4 of this law will be deleted.

Article 73. Incorporations.

1. deleted results will be incorporated into the taxable income of the tax group when they are made to third parties.

2. when a society has intervened in internal operation and subsequently ceases to be part of the tax group, the eliminated result of this operation will be incorporated into the taxable income of the tax group for the tax period previous to the one that has taken place this separation.

3 the incorporation of the Elimination of correction of the share of the companies of the group be practiced when they cease to be part of the tax group and assume the right to compensation of the negative tax base corresponding to the loss which determined the value correction.

The reversal of the value adjustments in tax periods in which the investee entity was not part of the tax group will not be incorporated.

Article 74. Carryforwards compensation.

1. If by virtue of the applicable rules for the determination of the taxable income of the tax group this is negative, the amount may be offset with positive taxable bases the tax group in the terms provided for in article 25 of this law.

2. the taxable negative of any outstanding compensation at the time of its integration in the tax group will be compensated in the tax base, with the limit of the individual tax base of society, were excluded from the taxable income, this single purpose, dividends or shares in the benefits referred to in paragraph 2 of article 30 of this law.

Article 75. Reinvestment.

1. the societies of the Group may apply the deduction by reinvestment of windfall profits, and can make the reinvestment society obtained the extraordinary profit, or another belonging to the tax group. Reinvestment will materialize into an item purchased from another company, the tax group provided that the item is new.

2. the deduction for reinvestment of windfall profits will not proceed in the course of transmissions made between entities of the tax group.

Article 76. Tax period.

1. the tax period of the tax group will coincide with the dominant society.

2. when any of the subsidiaries concludes a tax period in accordance with the rules governing taxation in individual regime, this conclusion will not determine the tax group.

Article 77. Total tax of the tax group.

The resulting amount refers to total tax of the tax group apply the type of assessment of the parent company to the taxable income of the tax group.

Article 78. Deductions and allowances of the full share of the tax group.

1. the full share of the tax group will be reduced by the amount of the deductions and allowances provided for in chapters II, III and IV of title VI of this law.

The requirements for the implementation of the above-mentioned deductions and allowances refer to the tax group, as well as for applying the exemption regime established in article 21 of this law.

2 deductions of any pending application at the time of its inclusion in the tax group may be inferred in the full share of the tax group with a limit that has corresponded to that society in the single tax regime.

Article 79. Information obligations.

1. the parent must formulate, for tax purposes, balance and account bound, applying the method of global integration to all the companies that make up the tax group profit and loss.

2. the consolidated annual accounts refer to the same closing date and period that the annual accounts of the parent company, and the subsidiaries must close its fiscal year on the date that the parent company to do so.

3 a the documents referred to in paragraph 1, will accompany the following information: a) deletions in earlier tax periods pending incorporation.

(b) the eliminations practiced in the tax period duly justified in their source and amount.

(c) additions made in the tax period, equally justified in their source and amount.

(d) differences, properly explained, that may exist between deletions and additions made for the purpose of determining the taxable income of the tax group and those made for the purposes of the preparation of the documents referred to in paragraph 1.

Article 80. Determining causes of the loss of the tax consolidation system.

1 the regime of fiscal consolidation will be lost for the following reasons: to) in any concurrency or some of the companies in the tax group of any of the circumstances that determine the application of the method of indirect estimation in accordance with provisions of the General tax law.
(b) non-compliance with reporting obligations referred to in paragraph 1 of the preceding article.

2. the loss of the regime of fiscal consolidation will occur with effects of the tax period in which if one or more of the causes referred to in the preceding paragraph, and the companies making up the tax group taxed by the individual regime in that period.

Article 81. Effects of the loss of the regime of fiscal consolidation and the extinction of the tax group.

1 in the assumption that existed, in the tax period in which occurs the loss of the regime of fiscal consolidation or the extinction of the tax group, deletions pending incorporation, carryforwards of the tax group or pending compensation fee deductions, proceed as follows: to) pending incorporation deletions will be integrated into the taxable income of the tax group for the last tax period in procedure which is applicable from fiscal consolidation.

(b) the companies that integrate the tax group in the tax period in which occurs the loss or extinction of this regime will assume the right to compensation of the negative taxable in the tax group offset earrings, in the proportion that have contributed to its formation.

The compensation will be done with positive taxable bases to be determined in individual regime of taxation in the tax periods remaining until the deadline set in article 25.1 of the Act, from the following or following to that or those in which determined carryforwards of the tax group.

(c) the companies that integrate the tax group in the tax period in which occurs the loss or extinction of this regime will assume the right to compensation of the deduction of the share of the tax group, in the proportion in which have contributed to its formation.

The compensation shall be intact quota to be determined in the tax periods that they are remaining until the deadline of this Act for the pending deduction, from the following or following to that or those in which the amounts were determined to deduct.

2. companies that integrate the tax group in the tax period in which occurs the loss or extinction of this regime, will assume the right to the deduction of the instalments that would have made the tax group, in the proportion that had contributed to them.

3. the provisions of the preceding paragraphs shall apply when one or more of the companies which make up the group are no longer belong to this.

Article 82. Declaration and autoliquidación of the tax group.

1. the parent shall be bound, at the time of filing of the tax group, to pay off the tax debt owed to this and enter it in the place, form and time limits to be determined by the Minister of finance. The dominant company must meet obligations with respect to the instalments.

2. the Declaration of the tax group must be made within the period corresponding to the statement in regime of individual taxation of the parent company.

3. supplementary statements which should be practiced in case of extinction of the tax group, loss of the regime of fiscal consolidation or separation of fiscal group companies, shall be submitted within the twenty-five calendar days after the six months following the day in which the determining causes of extinction, loss or separation occurred.

Chapter VIII special regime for mergers, divisions, transfers of assets and exchanges of values article 83. Definitions.

1 will be considered melting operation whereby: to) one or several entities transmitted en bloc to another entity already exists, as a result and at the time of its dissolution without liquidation, their respective social heritage, by attribution to their members of securities in the capital stock of the other entity and, where appropriate, compensation in cash not exceeding 10 per cent of the value of nominal or in the absence of nominal value, of a value equal to the nominal value of these securities deducted from their accounts.

(b) two or more entities transmitted in block to another, as a result and at the time of its dissolution without liquidation, their social heritage, by attributing all their partners of the social capital of the new entity and, where appropriate, compensation in cash not exceeding 10 per cent of the value of securities rated o in the absence of nominal value, of a value equal to the nominal value of these securities deducted from their accounts.

(c) an entity transmits, as a result and at the time of its dissolution without liquidation, the whole of its assets to the entity that is the owner of all of its equity securities.

2 1st will be considered excision operation by which: a) an entity divided into two or more parts all of their social heritage and transmits them in block two or more entities existing and new, as a result of its dissolution without liquidation, by the attribution to its partners, according to a proportional rule, of the capital stock of the acquiring entities of the contribution securities and where appropriate, compensation in cash not exceeding 10 per cent of the nominal value or, in the absence of nominal value, of a value equal to the nominal value of these values deduced from its accounting.

(b) an entity segregates one or more parts of their social heritage that form branches of activity and transmits them in block one or more entities new or already existing, receiving in Exchange securities of the social capital of the latter, which should be attributed to its partners in proportion to their respective holdings, reducing the share capital and reserves in the required amount , and, where appropriate, compensation in money under the terms of the previous paragraph.

(c) an entity segregates a portion of its assets, consisting of shares in the share capital of other entities which confer social capital in these, most and transmits it to another entity, new or existing, receiving in Exchange securities representing the capital of the acquirer, which should be attributed to its partners in proportion to their respective holdings (, by reducing the share capital and reserves in the required amount and, where appropriate, compensation in money under the terms of paragraph to) above.

2nd in cases in which there are two or more acquiring entities, the attribution to the members of the entity that splits of securities representing the capital of the acquiring entities in a proportion different from where it was in which splits will require that assets acquired by those constitute branches of activity.

3 will be considered no cash for activity input operation by which an entity provides, without being dissolved, to another entity's newly created or existing all or one or more branches of activity, receiving in Exchange securities in the capital stock of the acquirer.

4 means branch of activity the set of assets that are likely to constitute an autonomous economic unit determinant of economic exploitation, i.e. a set capable of functioning by its own means. Debts incurred for the organization or operation of the elements that are transferred can be attributed to the acquirer company.

5 will be an exchange of equity securities considered the operation by which an entity acquires a stake in the share capital of another that allows you to obtain the majority of the voting rights in it, through the attribution to the partners, in Exchange for their values, others representing the social capital of the first entity and where appropriate, compensation in cash not exceeding 10 per cent of the nominal value or, in the absence of nominal value, of a value equal to the nominal value of these values deduced from its accounting.

6. the tax regime provided for in this chapter shall also apply to operations involving taxpayers this tax does not have the legal form of commercial company, which always produce results equivalent to the derivatives of the operations referred to in the preceding paragraphs.

Article 84. Income derived from the transmission system.

1 following income derived from operations referred to in the preceding article will not integrate tax base: to) that become manifest as a result of transmissions made by entities resident in Spanish territory of goods and rights in it located.

When the acquirer resides abroad only will be excluded from the taxable income derived from the transfer of those elements that are affected by a permanent establishment situated in Spanish territory.

The transfer of these items outside the Spanish territory will determine integration into the base of the permanent establishment, in the tax period in causing that, of the difference between the market value and the value to that referred to in the following article, discounting, where applicable, by the amount of depreciation and other value adjustments reflected for accounting purposes have been fiscally deductible.
(b) that become evident as a result of transmissions made by entities resident in Spanish territory, of permanent establishments situated on the territory of countries outside the European Union in favour of entities resident in Spanish territory.

(c) the put manifest as a result of transmissions made by non-resident entities in Spanish territory, the permanent establishments located.

When the acquirer resides abroad only will be excluded from the taxable income derived from the transfer of those elements that are affected by a permanent establishment situated in Spanish territory.

The transfer of these items outside the Spanish territory will determine the integration into the taxable income of the permanent establishment, in the exercise thereof that, of the difference between the normal market value and the value referred to in the following article, discounting, where applicable, by the amount of depreciation and other value adjustments reflected for accounting purposes that have been fiscally deductible.

(d) the put manifest as a result of transmissions made by entities resident in territory Spanish, permanent establishments located in the territory of Member States of the European Union, in favour of entities residing in them, shall take one of the forms listed in the annex of Directive 90/434/EEC of 23 July 1990 on the common tax system applicable to mergers, divisions and contributions of assets and exchanges of shares, are subject to and not exempt any of the taxes referred to in article 3.

Not will be excluded from the taxable income from the operations referred to in paragraphs a), b), c) above, where the acquirer is exempt by this imposed or subjected to the regime of income allocation.

Income from the operations referred to in this section even if the acquirer enjoy the application of a type of lien or a special tax regime will be excluded from the taxable. When the acquirer enjoy the application of a rate of levy or special tax arrangements other than the transferor, as a consequence of their different legal form, the income derived from the transfer of assets existing at the time of the operation, carried out after this, it means generated linearly, unless there is evidence to the contrary during all the time of holding of the transmitted item. The part of the income generated up to the time of completion of the transaction will be taxed using the tax rate and the tax system that would have corresponded to the transferring entity.

2 you can forgo the regime established in the preceding paragraph, by integrating the taxable income derived from the transmission of all or part of the assets.

3. in any case, income derived from ships or aircraft will be integrated into the tax base, or of movable property pertaining to their exploitation, put clear in entities engaged in international maritime and aviation navigation when the acquirer is not resident in Spanish territory.

Article 85. Tax assessment of the property acquired.

1. the property and rights acquired through transmissions resulting from operations that has been application the system provided for in the previous article will be valued, for tax purposes, by the same values that had in the transferring entity before undergoing the operation, also keeping the date of acquisition of the transferring entity for purposes of applying provisions in article 15.10 of this law.

These values will be corrected in the amount of income that have actually paid at the time of the operation.

2. in cases not application the procedure is laid down in the previous article the value agreed upon between the Parties shall be the limit of normal market value.

Article 86. Tax valuation of shares or shares received in Exchange for the contribution.

Shares received as a result of a contribution of branches of activity or actions will be assessed, for tax purposes, the accounting value of the autonomous economic unit, fixed in the amount of income that have integrated in the base of the transferring company at the time of the operation.

Article 87. Taxation of the exchange of values.

1 not will be integrated into the taxable income of physical persons income tax or tax incomes that are highlighted on the occasion of the exchange of values, provided that they meet the following requirements: to) that partners who carry out the exchange of values are resident in Spanish territory or in a Member State of the European Union or in any other State provided that , in the latter case, the received values are representative of the equity of an entity resident in Spain.

(b) the entity who acquires the values are resident in Spanish territory or falls within the scope of Directive 90/434/EEC.

2 the values received by the entity that performs the exchange of values is carried at the value that they had in the heritage of the partners who made the contribution, according to standards of this tax or the tax on the income of the physical persons, except that normal market value is lower, in which case will be assessed by the latter.

In those cases in which the incomes generated by the partners were not subject to taxation in Spanish territory, the agreed value between the Parties shall be the limit of the normal market value.

3. the values received by partners will be assessed, for tax purposes, by the delivered value, determined in accordance with the rules of this tax or the tax on the income of physical persons, as appropriate. This valuation shall be increased or reduced by the amount of additional compensation in money delivered or received.

The received values will retain the date of acquisition of the delivered.

4. in the event that the partner lost the quality of resident in Spanish territory, it will be integrated into the taxable income of physical persons income tax or the tax of the tax period in which occurs this circumstance, the difference between the normal market value of the shares or participations and the value referred to in the preceding paragraph corrected, where appropriate, the amount of the losses that have been fiscally deductible.

The part of debt tax corresponding to such income may defer, entering together with the corresponding declaration to the tax period in which are transmitted values, provided that the taxable person guaranteeing payment of that.

5. will be integrated into the taxable income of physical persons income tax or tax the incomes obtained from operations involving entities domiciled or established in countries or territories qualified by law as havens tax or obtained through them.

6. the operations of an exchange of values that do not comply with the requirements set out in paragraph 1 of this article may not be eligible to the regime laid down in this chapter.

Article 88. Taxation of the partners in the operations of merger, absorption, and partial or total excision.

1. not will be integrated into the taxable income that made manifest at the time of the allocation of values of the acquirer the entity transferring partners, provided that they are resident in Spanish territory or in a Member State of the European Union or in any another State provided that, in the latter case the values are representative of the equity of an entity resident in Spanish territory.

2. the values received under fusion, absorption and partial, or total excision operations are valued for tax purposes, by the delivered value, determined in accordance with the rules of this tax or the tax on the income of physical persons, as appropriate. This valuation shall be increased or reduced by the amount of additional compensation in money delivered or received. The received values will retain the date of acquisition of the delivered.

3. in the event that the partner lost the quality of resident in Spanish territory, it will be integrated into the taxable income of physical persons income tax or the tax of the tax period in which occurs this circumstance, the difference between the normal market value of the shares or participations and the value referred to in the preceding paragraph corrected, where appropriate, the amount of the losses that have been fiscally deductible.

The part of debt tax corresponding to such income may defer, entering together with the corresponding declaration to the tax period in which are transmitted values, provided that the taxable person guaranteeing payment of that.

4 will be integrated into the taxable income of physical persons income tax or tax the incomes obtained from operations involving entities domiciled or established in countries or territories qualified by law as havens tax or obtained through them.

Article 89. Shareholdings in the capital of the transferring entity and the acquirer.
1. when the acquirer participates in the capital of the transferring entity, at least 5 percent, not will be integrated into the taxable income of that positive income for the cancellation of participation, provided that matches the entity reserves transferring, nor negative revenues that are shown for the same cause.

Deduction the double internal taxation of dividends, with respect to the reservations referred to in the preceding paragraph shall not apply in this case.

2. when the amount of participation is less than indicated in the preceding paragraph cancellation will determine an income for the amount of the difference between the normal market value of the assets received proportionally attributable to the participation and the book value of this.

3. the acquired assets will be valued, for tax purposes, in accordance with article 85 of this law.

However, when the acquirer participates in the capital of the transferring entity, in at least five per cent, the amount of the difference between the acquisition price and its theoretical value will fall within property and acquired rights, in accordance with the criteria laid down in the Royal Decree 1815 / 1991, of 20 December (, whereby rules for the formulation of consolidated annual accounts are approved, and part of that difference that had not been liable will be fiscally deductible from the taxable income, up to the yearly maximum of the twentieth part of the amount, provided that the following requirements are met: to) that participation has not been acquired to persons or entities not resident in Spanish territory or to natural persons resident in Spanish territory , or a related entity when the latter, in turn, acquired the stake concerned persons and entities.

Requirement provided for in this subparagraph to) shall be fulfilled: 1 in the case of a share acquired from persons or entities not resident in Spanish territory, or an entity linked with the acquirer which, in turn, acquired the participation of concerned individuals or entities, when the amount of the difference referred to in the preceding paragraph has shown in Spain through any transmission of participation.

Likewise shall the deduction of the indicated difference where the taxable person proves that an amount equivalent to this has effectively paid in another Member State of the European Union, in respect of benefits obtained at the time of the transmission of participation, supporting a levy equivalent to that would have been to apply this tax, provided that the transferor does not reside in a country or territory qualified by law as a tax haven.

2. in the case of a participation acquired when the latter, in turn, acquired the participation of concerned individuals, when it is proven that the equity gain obtained by such natural persons has been integrated into the taxable income of physical persons income tax natural persons resident in Spanish territory or a related entity.

(b) that the acquirer of the participation is not subject of the entity who transmitted it in any of the cases provided for in article 42 of the code of Commerce. These purposes means that the cases of article 42 of the code of Commerce are those referred to in section 1 of chapter I of the rules for the formulation of the annual accounts consolidated, approved by the Royal Decree 1815 / 1991, of 20 December.

Requirement provided for in this paragraph b) shall not apply with respect to the price of acquisition satisfied by the person or entity transferring when, in turn, had acquired it unlinked entities resident in Spanish territory or people.

When the requirements a) and b) above, the assessment resulting from the imputed part to the assets of the acquired assets will have tax effects, being deductible from the taxable income, in the case of depreciable property, accounting depreciation of such part imputed, in the terms provided for in article 11.

When compliance with the requirement to), but non-observance established in paragraph b), allocations to amortisation of the difference between the acquisition price and its theoretical value will be deductible if it is proven that they respond to an irreversible depreciation.

4 when the transferring entity participates in the capital of the acquirer does not will be integrated into the tax base of the incomes that are highlighted on the occasion of the transfer of the participation, even if the entity had exercised the right to renouncement established in paragraph 2 of article 84 of this law.

Article 90. Subrogation in the rights and tax obligations.

1. when the operations referred to in article 83 conclude a succession to universal title, shall be transmitted to the acquirer rights and tax obligations of the transferring entity.

The acquirer will assume the fulfilment of the necessary requirements to continue to enjoy tax benefits or consolidate the enjoyed by the transferring entity.

2. where the succession is not a universal title, transmission occurs only with respect to rights and tax obligations relating to goods and rights transmitted.

The acquirer will assume the requirements derived from the tax incentives of the transferring entity, insofar as they are related to property and rights transferred.

3. the carryforwards pending compensation in the transferring entity may be compensated by the acquirer.

When the acquirer to participate in the capital of the transferring entity, or both are part of a group of companies referred to in article 42 of the code of Commerce, the negative taxable income liable to compensation shall be reduced by the amount of the positive difference between the value of the contributions of the partners, by any title corresponding to such participation or contributions that the companies of the group have about the transferring entity, and its book value.

In no event will be compensated the carryforwards for losses incurred by the entity transferring that have motivated the depreciation of the participation of the acquirer in the capital of the transferring entity, or depreciation of the participation of another entity in the latter when all of them are part of a group of companies referred to in that article 42 of the code of Commerce.

4. the subrogation will exclusively understand rights and obligations born under the protection of Spanish laws.

Article 91. Allocation of income.

Income from activities undertaken by entities extinguished because of the operations referred to in article 83 of this Act shall be charged in accordance with commercial standards.

Article 92. Losses of permanent establishments.

When you transmit a permanent establishment and may apply the system provided for in paragraph d) of paragraph 1 of article 84 of this law, the taxable entities resident transceivers in Spanish territory will increase in the amount of the excess of the losses on the benefits charged by the permanent establishment in the 10 previous years.

Article 93. Accounting obligations.

1 the acquirer shall include in the annual report the information then cited, unless the transferring institution has exercised the power referred to in article 84.2 of this Act in which case only shall be completed as listed in paragraph d): to) exercise in which the entity transferring acquired transmitted goods that are subject to amortization.

(b) last balance sheet closed by the transferring entity.

(c) relationship of acquired goods that have joined the accounting books by a different value to the one that appeared in the transferring entity prior to the completion of the transaction, expressing both values as well as funds amortization and provisions made in the books of account of the two entities.

(d) relationship of the tax benefits enjoyed by the entity transferring, regarding which entity should assume the fulfillment of certain requirements in accordance with paragraphs 1 and 2 of article 90 of this law.

For the purposes specified in this section, the transferring entity shall be obliged to communicate such data to the acquirer.

2 partners legal persons must mention in the annual report the following information: to) book value of supplied values.

(b) value which have been recorded in the received values.

3. the terms set out in the previous paragraphs must be carried out while remaining in the inventory values or acquired assets or the requirements derived from the tax incentives enjoyed by the transferring entity must be met.

The acquirer may choose, with reference to the second and subsequent annual reports, to include the mere indication that those terms are contained in the first approved annual report after the operation, which must be preserved while concur circumstance which the preceding paragraph refers.
4. the breach of the obligations set out in the preceding paragraphs shall be considered of serious tax offense. The sanction consist of fixed pecuniary fine of 200 euros for each omitted fact, in each of the first four years that do not contain the information, and 1,000 euros for each omitted fact, in each of the following years, with a limit of five per cent of the value by which the acquirer has reflected the assets and rights in its accounting.

The sanction imposed in accordance with this section shall be reduced pursuant to paragraph 3 of article 188 of the law 58/2003, of December 17, General tax.

Article 94. Non-monetary contributions.

1 the system provided for in this chapter shall apply, at the option of the taxpayer of this tax or the taxpayer of the tax on the income of the physical persons, to the non-monetary contributions that comply with the following requirements: to) that the entity that receives the contribution is resident in Spanish territory or carry out activities in this through a permanent establishment to which affect the provided goods.

(b) once the contribution, the contributor taxpayer's tax or the taxpayer of the tax on the income of the physical people, participate in the equity of the entity receiving the contribution, at least five percent.

((c) which, in the case of a contribution of shares or participation certificates by taxpayers of the tax on the income of physical persons, shall be taken to comply in addition to the requirements listed in paragraphs a) and b), as follows: 1 that the entity of whose share capital are representative is resident in Spanish territory and that that entity non you-application the special regime of economic interest groupings Spanish or European, and temporary unions of companies or societies heritage, provided for in this law.

2nd representing a participation of at least five per cent of the own funds of the entity.

3rd having uninterrupted by the contributor during the year prior to the date of the public document that formalize the contribution.

((d) that, in the case of a contribution of assets other than those referred to in paragraph (c)) by taxpayers of the tax on the income of physical persons, these elements are related to economic activities whose accounting is carried in accordance with provisions of the commercial code.

2. the arrangement provided for in this chapter shall also apply to the contributions of branches of activity, carried out by the taxpayers of the tax on the income of physical persons, provided that they carry their bookkeeping in accordance with the commercial code.

3. the contributed assets can not be valued, for tax purposes, by greater than normal market value.

Article 95. Rules for avoidance of double taxation.

1 a the effects of double taxation which might result from application of the valuation rules laid down in the articles 86, 87.2 and 94 of this Act, the following rules shall apply: a) benefits distributed without charge to contributed assets attributable income shall be entitled to deduct the double internal taxation of dividends referred to in article 30.2 of the Act whichever the percentage of participation of the partner and its antiquity. Equal criteria applies with respect to the deduction for the double internal taxation of capital gains referred to in article 30.5 of this law by the income generated in the transmission of participation.

(b) the benefits distributed charge attributable income contributed goods entitled to exemption or deduction to avoid international double taxation of dividends matter what the degree of participation of the partner.

The depreciation of participation for the distribution of the benefits referred to in the preceding paragraph shall not be fiscally deductible, except that the amount of these benefits had been paid in Spain through the transmission of participation.

2. when on the way in as he counted the acquirer would not be possible to avoid double taxation by application of the rules laid down in the preceding paragraph that entity shall, at the time of its extinction, settings of opposite to which they had practised by application of the valuation rules laid down in the articles 86, 87.2 and 94 of this law. The acquirer can practice referred settings opposite prior to their extinction, whenever you test that it has been transmitted by the partners their participation and with the limit of the amount that is incorporated into the tax base of these at the time of such transfer.

Article 96. Application of the tax system.

1 the application of the regime provided for in this chapter shall require will opt for it in accordance with the following rules: to) operations of merger or demerger option will be included in the project and the social arrangements of merger or demerger of the entities transceivers and purchasers who have their fiscal residence in Spain.

For operations that may apply the regime provided for in article 84 of this law and in which the transferring entity or the acquirer have their fiscal residence in Spain, the option will be exercised by the acquirer and shall indicate in writing that is documented transmission.

(b) in non-cash contributions option shall be exercised by the acquirer and shall indicate in the corresponding social agreement or, failing that, in the public deed that will document the appropriate act or contract.

For operations in which the acquirer does not have their fiscal residence or a stable permanent Foundation in Spain, the option will be exercised by the transferring entity.

(c) in the operations of an exchange of values the option shall be exercised by the acquirer and shall indicate in the corresponding social agreement or, failing that, in the public deed that will document the appropriate act or contract. In public offerings of shares option shall be exercised by the competent social organ to promote the operation and shall indicate in the explanatory brochure.

For operations in which the acquirer of the values nor the investee entity whose securities are redeemed are resident in Spain, the partner who transmits these values must demonstrate that the acquirer has been the regime of Directive 90/434/EEC.

In any case, the option should contact the Ministry of finance in the form and time limits to be determined by regulation.

2. does not apply the regime established in this chapter when the operation performed has as main objective the fraud or tax evasion. In particular, the regime will not apply when operation is not carried out for valid economic reasons, such as the restructuring or rationalization of the activities of the entities involved in the operation, but with the mere purpose of getting a tax advantage.

Under the terms provided for in articles 88 and 89 of the law 58/2003, of December 17, General tax, interested parties may formulate queries to the tax administration on the implementation and enforcement of this requirement in specific operations, whose answer will be binding for the application of the special arrangements for this chapter in this and any other taxes.

3. the regime of deferral of rent contained in this chapter shall be, in the terms established in article 21 of this law, with the application of the exemptions provided for income derived from the transfer of shares in non-resident entities in Spanish territory.

Chapter IX article 97 mining tax regime. Mining entities: accelerated depreciation.

1 institutions that develop activities of exploration, research and exploitation or benefit from mineral deposits and other geological resources classified in section C), paragraph 1, article 3 of the law 22/1973, of 21 July, mine, or in section D), created by law 54/1980, of 5 November, amending the law of mines ((as well as that implementing regulations shall determine in general among those included in the sections A) and B) of the aforementioned article, can enjoy, in connection with their investments in active mining and with the amounts paid in fees from surface, accelerated depreciation for 10 years counted from the beginning of the first tax period whose taxable integrates the operating result.

2 it will be considered among the activities mentioned in the previous paragraph, the mere provision of services for the making or development of the aforementioned activities.

Article 98. Depletion factor: scope and modalities.

1 will reduce taxable income, in the amount of the sums which, in concept of exhaustion factor, intended for taxable persons carrying out, under cover of law 22/1973, of 21 July, mines, the use of one or more of the following resources: to) falling within section C) of article 3 of the law 22/1973 21 July, mines, and in section D) created by law 54/1980, of 5 November, amending the law of mines.
(((b) obtained from sites of non-natural origin belonging to the B section) of the referred article, he always be recovered or processed products are classified in section C) or in section D) created by law 54/1980, of 5 November, amending the law of mines.

2. the exhaustion factor shall not exceed 30 per cent of the portion of taxable income corresponding to the uses set out in the previous section.

3 entities that make use of one or more mineral raw materials declared priority in the national supply Plan, eligible, in the activity concerning these resources, by which the exhaustion factor is of up to 15 percent of the value of minerals sold, also considering as such the consumed by the same companies for further treatment or processing. In this case, the Endowment for the exhaustion factor shall not exceed the part of taxable income corresponding to the treatment, processing, marketing and sale of the substances obtained from the designated uses and products incorporating such substances and others derived from them.

4. in the event that several natural or legal persons have partnered to mining activities without constituting an independent legal personality, each of the participants may be, in proportion to their participation in the common activity, the corresponding amount of factor of exhaustion with the obligations set out in the following articles.

Article 99. Depletion factor: investment.

Quantities that reduced the tax base on concept of depletion factor just may be reversed in expenditures, work and immobilized directly related to mining activities listed below: to) exploration and research of new ore deposits and other geological resources.

(b) research that can improve recovery or quality of the products obtained.

((((((c) subscription or acquisition of the share capital of companies dedicated exclusively to the activities referred to in paragraphs securities to), b) and d) of this article, as well as the exploitation of mineral deposits and other geological resources classified in section C) of article 3 of the law 22/1973, of 21 July, mines, and section D). created by the Law 54/1980, of 5 November, amending the law of mines, in regard to radioactive minerals, geothermal resources, bituminous rocks and any other mineral deposits or geological resources of energy interest which the Government agreed to include in this section, provided that, in both cases values are continuously maintained in the assets of the entity for a period of 10 years.

Companies that subscribed the shares or participations, subsequent to subscription, to undertake activities other than those listed, the taxable person must be completed the settlement referred to in article 101.1 this law, or to reinvest the amount corresponding to that subscription, in other investments that meet the requirements. If the new reinvestment in securities referred to in the first subparagraph, these must be kept during the period that it extend to complete within 10 years.

(d) research that allow to obtain a better understanding of the reserve of the deposit exploitation.

(e) laboratory and research equipment applicable to the company's mining activities.

(f) actions included in restoration plans provided for in Royal Decree 2994 / 1982, of 15 October, on restoration of natural areas affected by extractive activities.

Article 100. Depletion factor: requirements.

1. the amount that concept of depletion factor reduce the taxable base in each tax period should invest in within 10 years, counted from its conclusion.

2 investment shall be carried out when made expenses or work referred to in article above or received assets.

3. in each tax period must increase reserves of the entity accounts in the amount that reduced the tax base on concept of exhaustion factor.

4. the taxable person should collect in the memory of the 10 years following the day in which corresponding reduction was the amount of this, investments made through this and made repayments as well as any decrease in accounts of reserves which increased as a result of the provisions in the preceding paragraph and the fate of that. These facts may be subject to verification during this same period.

5. only you can freely dispose of the reserves formed in accordance with the provisions of paragraph 3, to the extent that investments are amortized, or once after 10 years since signed the relevant shares or participations financed with these funds.

6. investments financed by application of the exhaustion factor may not be eligible to the deductions provided for in chapter IV of title VI.

Article 101. Depletion factor: failure to meet requirements.

1 after 10 years without having invested or having been invested improperly the corresponding amount, will be integrated into the taxable income of the tax period concluded at the expiration of that period or exercise that is done the improper disposal, having settled the interest of delay which is shall accrue from the day in which end of the period for voluntary payment of the debt owed to the tax period in which the correlative reduction was made.

2. in the case of liquidation of the entity, the pending application of the exhaustion factor amount will be taxable in the manner and with the effects laid down in the preceding paragraph.

3. in the same way proceed in cases of assignment or alienation total or partial mining and in the merger or transformation of entities, except that the entity arising, continuation of the mining activity, assume the fulfilment of the necessary requirements to consolidate the benefit enjoyed by the transferring entity or transformed, in the same terms that had been appearing in the previous entity.

Chapter X taxation of research and exploitation of hydrocarbons article 102. Exploration, investigation and exploitation of hydrocarbons: exhaustion factor.

Societies whose social object is exclusively exploration, research and exploitation of sites and underground storage of hydrocarbons natural, liquid or gaseous, existing in the Spanish territory and subsoil of the territorial sea and seabed that are under the sovereignty of the Kingdom of Spain, under the terms of the law 34/1998, of October 7 (, the hydrocarbons Sector, and with complementary nature, transportation, storage, purification and sale of extracted products, shall be entitled to a reduction in their tax base, in concept of exhaustion factor, which may be, at the choice of the entity, either of the following two: to) 25 per cent of the amount of the consideration for the sale of hydrocarbons and the provision of storage services , with a limit of 50 per cent of the taxable income prior to this reduction.

b) the 40 per cent of the amount of the taxable income prior to this reduction.

Article 103. Depletion factor: requirements.

1. the quantities that reduced the tax base on concept of depletion factor will need to invest by the concessionaire in the activities of exploration, research and exploitation of deposits or underground storage of hydrocarbons that will develop in the Spanish territory and subsoil of the territorial sea and seabed that are under the sovereignty of the Kingdom of Spain as well as the abandonment of fields and in the dismantling of offshore platforms, within the period of 10 years counted from the conclusion of the tax period in which reduce the taxable base on concept of exhaustion. The same consideration will be the activities of exploration, research and exploitation in the four years prior to the first tax period in which reduce the taxable base on concept of exhaustion.

For these purposes, refers to exploration or research the preliminary studies of geological, geophysical or seismic nature, as well as all expenses made in the area of a permit exploration or research, such as the drilling of exploration, as well as the assessment and development, if they are negative, the costs of works for access and preparation of the land and location of these probes.

Also be considered exploration or research expenses in a concession and that relate to work on location and drilling of a structure able to contain or store hydrocarbons, other than that contained in the site that gave rise to the granting of exploitation granted. It means abandonment of fields and decommissioning of offshore platforms works necessary to dismantle production facilities terrestrial or marine platforms leaving free and expedited soil or marine space those occupied in the form established by the Decree of granting.
Means, to these effects, investments in exploitation in the area of a concession for the exploitation, such as design, drilling and the construction of wells, facilities operation, and any other investment, tangible or intangible, which is necessary to carry out tasks of explo tation, always that do not correspond to investments made by the concessionaire in the exploration or research activities referred to above.

Evaluation and development surveys that are positive will be included as exploitation, to these effects.

2 in each tax period must increase reserve of the company accounts in the amount that reduced the tax base on concept of exhaustion factor.

3. only available is freely of the reserves established pursuant to the preceding paragraph, insofar as will be amortized assets financed with these funds.

4. the taxable person should collect in the memory of the 10 years following the day in which held corresponding reduction the amount of this, investments made through this and made repayments as well as any decrease in accounts of reserves that were increased as a result of the provisions in paragraph 2 and the destination of the.

These facts may be subject to verification during this same period, for which the taxable person must provide the accounting and timely documentary stands showing compliance with the requirements to the exhaustion factor.

5. investments financed by application of the exhaustion factor may not be eligible to the deductions provided for in chapter IV of title VI.

Article 104. Depletion factor: failure to meet requirements.

1 after 10 years without having invested or having been invested improperly the corresponding amount, will be integrated into the taxable income of the tax period concluded at the expiration of that period or exercise that is done the improper disposal, having settled the interest of delay which is shall accrue from the day in which end of the period for voluntary payment of the debt owed to the tax period in which the correlative reduction was made.

2. in the case of liquidation of the entity or of change of its corporate purpose, the pending application of the exhaustion factor amount will be taxable in the manner and with the effects laid down in the preceding paragraph.

3. in the same way will proceed in cases of transfer or total or partial disposal, merger or transformation of the entity, except that the resulting continuation activity, institution as social object exclusively, laid down in article 102 of this law and assume the fulfilment of the necessary requirements to consolidate the benefit enjoyed by the transferring entity or transformed , in the same terms that had been appearing in the previous entity.

Article 105. Shared ownership.

In the event that several societies have shared ownership of a research or a granting of exploitation permit, will be attributed to each of the entities partners, revenues, expenses, income derived from the transmission assets and investments, that are attributable, in accordance with their level of participation.

Article 106. Amortization of intangible investments and research costs. Carryforwards compensation.

1. intangible assets and expenses of research nature made to permissions and existing concessions, expired or extinguished, shall be regarded as intangible asset, from the time of its completion, and can pay for itself with a maximum of 50 per cent annual fee. Previous geological, geophysical and seismic work and works of access and preparation of land as well as the drilling of exploration, evaluation and development and workover of wells and reservoir conservation operations are included in this concept.

There is no maximum period for amortization of intangible assets and research costs.

(2. the tangible elements of the asset may be written down, following the criterion of "production unit", in accordance with a plan agreed to by the administration under the terms of paragraph d) of paragraph 1 of article 11 of this law.

3. the entities referred to in article 102 of this law will compensate the carryforwards under the procedure to reduce the taxable bases of the following exercises in an annual maximum amount of 50 per cent of each of those.

This procedure of compensation of carryforwards replaces that provided for in article 25 of this law.

Chapter XI international fiscal transparency section 107. Inclusion in the tax base of certain positive income derived by non-resident entities.

1 taxable persons included in its taxable positive income obtained by a non-resident entity in Spanish territory, insofar as such income strength belongs to one of the classes provided for in paragraph 2 and the following circumstances are fulfilled: to) alone or in combination with persons or entities related in the sense of article 16 of this law have a participation equal or superior to 50 percent in the capital own funds, results or voting rights of the non-resident entity in Spanish territory, on the date of the closing of the business year of the latter.

Participation that have linked entities not resident in Spanish territory shall be calculated by the amount of the indirect participation determined by people or entities linked resident in Spanish territory.

The amount of positive to include income shall be determined in proportion to the participation in results and, failing that, in proportion to the participation in the capital, the equity or voting rights.

(b) that the amount paid by the non-resident entity in Spanish territory, attributable to some kinds of income provided for in paragraph 2 because of nature identical or analogous to this tax assessment, is less than 75 percent which would have corresponded in accordance with standards that.

2 only will be included in the tax base the positive income that comes from each of the following sources: a) ownership of rural and urban real estate or rights in rem which fall on these, unless they are pertaining to a business activity in accordance with the provisions of articles 25 and 27 of the revised text of the law on personal income tax , or in use are transferred to entities not resident, belonging to the same group of companies of the holder, in the sense of article 42 of the code of Commerce.

(b) participation in own funds of any type of entity and transfer to third parties of capital themselves, in the terms provided for in article 23.1 and 2 of the revised text of the law on personal income tax.

Means not included in this paragraph b) positive income that comes from the following financial assets: the dyed 1 to comply with legal and regulatory obligations caused by business activities.

2nd embodying claims of contractual relations established as a result of the development of business activities.

3rd the dyed as a consequence of the exercise of intermediation activities in official securities markets.

The dyed by credit institutions and insurers 4th as a consequence of the exercise of its activities, without prejudice to the provisions of paragraph (c)).

Positive income derived from the transfer to third parties of capital means that it comes from credit and financial activities referred to in paragraph (c)), when the assignor and the assignee belong to a group of companies within the meaning of article 42 of the code of Commerce and the income of the transferee will come, in at least 85 percent , in the pursuit of business activities.

(c) activities credit, financial, insurance and service provision, except those directly related to export activities, directly or indirectly, with persons or entities resident in Spanish territory and linked in the sense of article 16, as determined tax deductible expenses in resident entities.

Positive income where more than the 50 percent of the income derived activities, credit, financial, insurance or provision of services, except those directly related to export activities, carried out by the non-resident entity come from operations carried out with persons or entities not linked in the sense of article 16 is not included.

((d) transmission of the assets and rights referred to in paragraphs a) and b) that generate income.

Does not include pensions provided for in paragraphs to), b) and d) earlier, obtained by the entity non-resident, as soon as it is obtained or derived from entities in which to participate, directly or indirectly, by more than five percent, when the following two conditions are met: 1 that the non-resident entity, direct and manage shares, through the corresponding organization of personal and material resources.

2. income of entities that obtained income derived, at least in the 85 per cent, of the pursuit of business activities.
These purposes means that they come from the exercise of business income provided for in paragraphs a), b) and d) that had their origin in entities that meet the requirement of paragraph 2 above, and are owned, directly or indirectly, by more than five percent by the non-resident entity.

3 does not include pensions provided for in paragraphs to), b) and d) of the preceding paragraph where the sum of the amounts is less than 15 per cent of total income or to four per cent of the total income of the non-resident entity.

The limits laid down in the preceding paragraph may refer to income or income earned by the Group of the non-resident entities in Spanish territory belonging to a group of companies within the meaning of article 42 of the code of Commerce.

In no event will include an amount greater than the total income of the non-resident entity.

4. does not include income referred to in paragraph 2 of this article, when you match expenses tax non-deductible of entities resident in Spain.

5 will be required to include the entities resident in Spanish territory covered by paragraph a) of paragraph 1 to participate directly in the entity not resident either indirectly through one or more other entities not resident. In the latter case the positive income amount shall be the corresponding indirect participation.

6. the inclusion will be held in the tax period including the day in which the entity not resident in Spanish territory completed its fiscal year that, for these purposes, you can not understand more than 12 months duration, unless the taxable person chooses to perform the inclusion in the tax period that includes the day that approved the accounts for the year , provided that had not spent more than six months from the date of its conclusion.

The option will manifest itself in the first tax return that should take effect and should be kept for three years.

7. the amount of the positive to be included in the taxable income is calculated according to the principles and criteria established in this law and the remaining provisions relating to this tax for the determination of the tax base. Total income means the amount of the tax base resulting from implementing these same criteria and principles.

For these purposes, the exchange rate prevailing at the end of the fiscal year of the non-resident entity will be used in Spanish territory.

8. do not will be integrated into the taxable dividends or shares in benefits in the part that corresponds to the positive income that has been included in the tax base. The same treatment applies to dividends into account.

In the case of distribution of reserves it attend the designation contained in the social agreement, understanding applied the latest amounts paid to such reservations.

Same positive income can only be inclusion only once, any object that is the shape and the entity that occurs.

9 will be deductible from the total tax the following concepts: to) taxes or assessments of nature identical or analogous to this tax actually satisfied, in the part that corresponds to the positive income included in the tax base.

Shall be considered as tax actually satisfied, those paid by the non-resident entity and its affiliates alike, having on these that the participation rate established in article 32.2 of this Act.

b) tax or tax actually satisfied overseas because of the distribution of dividends or shares in benefits, be subject to an agreement for avoidance of double taxation or in accordance with the domestic legislation of the country or territory concerned, in the part that corresponds to the positive income included earlier in the tax base.

When the participation of the non-resident entity is indirectly through one or more other entities non-residents, shall be deducted the tax or assessment of natu nature identical or analogous to this tax actually satisfied by that or those in the part that corresponds to the positive income included earlier in the tax base.

These deductions are practiced even though taxes corresponding to tax periods different to the one that was included.

In no event shall be deducted taxes satisfied in countries or territories qualified by law as tax havens.

The amount of the deductions of the paragraphs a) and b) does not exceed the total tax that corresponds to pay for the positive income included in the tax base in Spain.

10. in order to calculate the income derived from the transfer of the participation, direct or indirect, the acquisition value will increase by the amount of positive income that, without effective distribution, had been included in the tax base of partners as income from their shares or participations in the period of time between their acquisition and transmission.

In the case of companies which, according to the provisions of this law, should be considered as heritage, the transmission to compute value will be, at a minimum, the resulting closed last balance theoretician, once replaced the accounting value of the assets by the value as they would have for the purposes of the tax on capital or by normal value market if this is less.

11 taxable persons who may apply as provided in this article must submit together with the statement by this tax the following data relating to the non-resident entity in Spanish territory: a) name or corporate name and place of domicile.

(b) relation of administrators.

(c) balance sheet and profit and loss account.

(d) positive income that should be included in the taxable amount.

(e) justification of taxes satisfied with respect to the positive income that should be included in the tax base.

12 when the investee entity resident in a country or territory described as a tax haven will be presumed that: a) met the circumstance referred to in paragraph b) of paragraph 1.

(b) the income obtained by the investee entity comes from sources of income referred to in paragraph 2.

(c) the income obtained by the investee entity is 15 per cent of the acquisition value of participation.

The assumptions contained in the foregoing paragraphs shall permit evidence to the contrary.

The assumptions contained in the foregoing paragraphs shall not apply when the investee entity consolidate their accounts, in accordance with the provisions of article 42 of the code of Commerce, with one or more of the entities obliged to inclusion.

13. the provisions of this article shall be without prejudice in articles 3 and 7.2 of this law.

14. for the purposes of this article means that the Group of companies referred to in article 42 of the code of Commerce is provided in sections 1 and 2 of the first chapter of the rules for the formulation of consolidated annual accounts approved by the Royal Decree 1815 / 1991, of 20 December.

15. the provisions of this article shall not apply when the entity resident in Spanish territory is not resident in another Member State of the European Union, unless you reside in a territory qualified by law as a tax haven.

Chapter XII tax incentives for enterprises of small size article 108. Scope: turnover.

1. tax incentives set out in this chapter shall apply provided that the net amount in the immediate preceding tax period turnover is less than EUR 6 million.

2. when the entity is newly created, the amount of turnover shall refer to the first tax period in which activity to develop effectively. If the immediate preceding tax period had less than a year, or activity has been developed during also less, the net amount of the turnover will rise a year.

3. when the entity is part of a group of companies within the meaning of article 42 of the code of Commerce, the net amount of the turnover shall refer to the set of entities belonging to the group. This criterion shall also apply when an individual alone or in conjunction with other individuals United by ties of kinship in the direct or collateral, inbred line or by affinity, up to the second degree inclusive, are in relation to other entities that are partners in one of the cases referred to in article 42 of the code of Commerce.

For the purposes of this paragraph, means that the cases of article 42 of the code of Commerce are those included in section 1 of chapter I of the rules for the formulation of the annual accounts consolidated, approved by the Royal Decree 1815 / 1991, of 20 December.

Article 109. Accelerated depreciation.

1. the new tangible elements, made available to the taxpayer in the tax period in which the conditions of the previous article, are met may be amortized freely provided that, during the twenty-four months following the date of the beginning of the tax period in which the acquired assets come into operation, the total average enterprise template will increase with respect to the average of the previous 12 months template , and this increase is maintained for an additional period of other twenty-four months.
The amount of investment that may benefit from the accelerated depreciation regime will be the result of multiplying the figure of 90.151,82 euros by the concerned increase calculated to two decimal places.

For the calculation of the total average template of the company and of its increase will take the persons employed, in terms which provided for in labour legislation, taking into account the day engaged in relationship to the whole day.

Accelerated depreciation shall apply from the entry into operation of the elements which are eligible to it.

2. the arrangement provided for in the preceding paragraph also shall apply to items charged under a work contract signed in the tax period, whenever making it available within 12 months of its conclusion.

3. as provided for in the two preceding paragraphs shall also apply to tangible elements built by the company itself.

4 accelerated depreciation will be incompatible with the following tax benefits: to) the bonus for export activities, on elements that will invest the benefits subject to that.

(b) extraordinary profits reinvested, the exemption for reinvestment and the deduction for reinvestment of windfall profits, on elements where you reinvest the amount of transmission.

5. in the case of transmission elements that have enjoyed accelerated depreciation, only may qualify for exemption for reinvestment income obtained by the difference between the value of transmission and its accounting value, once corrected by the amount of monetary depreciation.

6. in the event you fail to fulfil the obligation to increase or maintain the template must proceed to enter the total tax that has corresponded to the deduction amount in excess more interest on late payments.

The total tax and interest income will be made jointly with the autoliquidación for the tax period in which has breached one or other obligation.

7. the provisions of this article also shall apply to new items of tangible object of a financial lease, provided that they exercise the purchase option.

Article 110. Accelerated depreciation for investments of little value.

New items of plant and equipment made available to the taxpayer in the tax period in which conditions of article 108 of this law, whose unit value does not exceed 601,01 euros, can pay for itself free, up to the limit of 12.020,24 euros to the tax period.

Article 111. Depreciation of new tangible and intangible assets.

1 new tangible elements, as well as elements of intangible assets, made available to the taxpayer in the tax period in which met the conditions of article 108 of this law, can pay for itself according to the coefficient resulting from multiplying by 1.5 the maximum straight-line depreciation coefficient provided for in officially approved depreciation tables.

2. the arrangement provided for in the preceding paragraph also shall apply to items charged under a work contract signed in the tax period, whenever making it available within 12 months of its conclusion.

3. as provided for in the two preceding paragraphs shall also apply to the elements of tangible or intangible constructed or produced by the company itself.

4. the depreciation regime provided for in this article shall be compatible with any tax benefit that could proceed on the basis of the assets subject to the same.

5. the elements of intangible assets to that referred to in paragraphs 4 and 5 of article 11 of this law, provided that the requirements laid down therein, acquired in the tax period in which the conditions of article 108 of this law, are met can pay for itself in a 150 percent depreciation resulting from applying those paragraphs.

6. the deduction of the excess of the depreciable amount resulting from the provisions of this article with respect to effectively taking depreciation will not be conditioned to its accounting charges to the profit and loss account.

Article 112. Provision for possible bad debts of debtors.

1. in the tax period in which the conditions of article 108 this law are fulfilled, will be deductible to an endowment to cover the risk of possible bankruptcies up to the limit of 1 per cent over the existing debtors at the end of the tax period.

2. borrowers that the provision for bad debts established in article 12(2) of this law and those of others whose endowments do not have the character of deductible pursuant to that article, has been endowed with will not be included among the debtors referred to in the preceding paragraph.

3. the balance of the provision endowed as laid down in paragraph 1 may not exceed the limit referred to in that paragraph.

4. provisions for the coverage of the risk of possible insolvencies of debtors, made in the tax periods in which no longer fulfil the conditions of article 108 of this law, shall not be deductible up to the amount of the balance of the provision referred to in paragraph 1.

Article 113. Amortization of assets subject to reinvestment.

1 elements of tangible subject to economic exploitation in which materializes the reinvestment of the amount obtained in onerous transmission of tangible elements, also subject to economic exploitation, carried out in the tax period in which the conditions of article 108 of this law, are met may pay for itself based on the coefficient resulting from multiplying by 3 maximum straight-line depreciation coefficient provided for in officially approved depreciation tables. The reinvestment must be made within the time limit referred to in paragraph 4 of article 42 of this law.

2 when the invested amount is higher or lower than that obtained in the transmission, the repayment referred to in the preceding paragraph shall apply only on the amount of such transmission that is the subject of reinvestment.

3. the deduction of the excess of depreciable amount resulting from the provisions of this article with respect to effectively taking depreciation, is not conditioned to its accounting charges in the profit and loss account.

Article 114. Type of assessment.

Entities that comply with the provisions laid down in article 108 of this law will be taxed according to the following scale, except in accordance with the provisions of article 28 of this Act must file returns with a different kind of general: to) for the part of taxable income of between 0 and 90.151,81 euro, at the rate of 30 percent.

(b) for the part of remaining taxable at the rate of 35 percent.

When the tax period lasts less than a year, the part of the tax base that will be taxed at the rate of 30 per cent will be the result of applying the proportion which the number of days in the tax period by 365 days, or the taxable income of the tax period are present when this was lower to 90.151,81 euros.

Chapter XIII taxation of certain article 115 leasing contracts. Leasing contracts.

1. the provisions of this article shall apply to contracts of lease referred to in paragraph 1 of the additional provision seven of law 26/1988, of July 29, on discipline and intervention of credit institutions.

2. the contracts referred to in the preceding paragraph shall have a minimum duration of two years when relate to movable and 10 years when relate to real estate or industrial establishments. However, by law, to prevent abusive practices, may be other minimum periods of duration depending on the characteristics of different goods that may constitute its object.

3. the lease fees shall appear expressed in the respective contracts, differentiating the part that corresponds to the recovery of the cost of the property by the leasing entity, excluding the value of the purchase option and the financial burden required by it, all without prejudice to the application of indirect assessment that corresponds.

4. the annual amount of the part of financial lease for the recovery of the cost of the asset shall remain the same or be increased throughout the contractual period.

5 will be, in any case, considered fiscally deductible expense the satisfied financial burden to the leasing entity.

6. the same consideration will have the part of satisfied leasing fees corresponding to the recovery of the cost of the good, except in the case that the contract is intended to land, lots, and other non-depreciable assets. In the event that such a condition if only a part of the good object of the operation, may deduct only the proportion corresponding to the elements subject to depreciation, which must be differentially expressed in the respective contract.
The amount of the deductible amount in accordance with the provisions of the preceding paragraph shall not exceed the result of applying the double of the coefficient of linear depreciation according to officially approved depreciation tables that correspond to the aforementioned well at the cost of good. The excess will be deductible in the tax periods thereafter, respecting equal limit. The calculation of this limit shall be given into account the time of sunset in good working condition.

In the case of taxable persons who referred to chapter XII of the title VII, shall be duplo of straight-line depreciation according to officially approved depreciation tables coefficient multiplied by 1.5.

7. the deduction of the quantities referred to in the preceding paragraph is not conditioned to its accounting charges in the profit and loss account.

8. the leasing entities must amortize the cost of all and each of property acquired for its leasing, deducted the value contained in each contract for the exercise of the purchase option, in the term stipulated for the respective contract.

9. as provided for in article 11.3 of this law shall not apply to leasing contracts regulated by this article.

10. the new tangible elements which are the subject of a financial lease can enjoy the tax incentive provided in paragraph 2 of the third final provision, in terms which provide for the corresponding law of the State budget.

11. the Ministry of finance may determine, according to the procedure established by regulation, the temporary time referred to in paragraph 6, according to the peculiarities of the period of recruitment or the construction of the well, as well as the peculiarities of their economic use, provided that such a determination does not affect the calculation of the tax base for the effective use of good or income derived from its transmission to be determined according to the rules of the general scheme of the tax or the special scheme provided for in Chapter VIII of title VII of this Act.

Chapter XIV the holdings of foreign securities article 116 entities regime. Holdings of foreign securities institutions.

1 entities whose corporate purpose understand the activity of management and administration of the own funds of entities not resident in Spanish territory, through the corresponding organization of personal and material resources securities shall benefit from the envisaged regime in this chapter.

Representative participation in the capital of the entity's holdings of foreign securities holdings or values must be registered.

Entities subject to special regimes, economic interest groupings, Spanish and European, and temporary unions of companies or equity companies may not be eligible to the regime of this chapter.

2. the choice by the regime of holdings of foreign securities institutions must report to the Ministry of finance. The system shall apply to the tax period that ends after this communication and the successive that concluded before that communicate to the Ministry of finance the waiver regime.

According to the rules the communication requirements and the content of the information may be to supply with it.

Article 117. Income derived from the holding of securities of the own funds of non-resident entities in Spanish territory.

Dividends or shares of profit from entities not resident in Spanish territory, as well as income derived from the transmission of the corresponding participation, enjoy the exemption to avoid double international economic taxation in the conditions and with the requirements laid down in article 21 of this law.

For the purposes of applying the exemption, the requirement of minimum participation referred to in paragraph a) of paragraph 1 of article 21 shall be deemed fulfilled if the acquisition value of the participation exceeds 6 million euros. The indirect participation of the entity's holding of foreign securities on its subsidiaries of second or subsequent level, for the purpose of applying the provisions of article 21.1. c). 2nd of this law, shall comply with the minimum rate of five percent, except that such subsidiaries meet the circumstances referred to in article 42 of the code of Commerce to form part of the same group of companies with the directly owned foreign entity and formulate consolidated accounting statements.

Article 118. Distribution of benefits. Transmission of participation.

1 the benefits distributed charge exempt income referred to in the preceding article will receive the following treatment: to) when the beneficiary institution subject to this tax, the perceived benefits to give right to the deduction for double taxation of dividends in the terms established in article 30 of this law.

(b) where the beneficiary is taxpayer of the tax on the income of physical persons, distributed profit will not give right to the deduction for double taxation of dividends, but the deduction may apply for international double taxation under the terms provided for in article 82 of the consolidated text of the law on personal income tax in respect of taxes paid abroad by the institution's holdings of securities and which correspond to exempt income which have contributed to the formation of the perceived benefits.

(c) where the recipient is an entity or natural person not resident in Spanish territory, the distributed benefit non means retrieved in Spanish territory.

In the case of a permanent establishment situated in Spanish territory, shall apply the provisions of paragraph a). The distribution of the share premium will be the treatment provided for in this paragraph for the distribution of benefits. For these purposes, means that the first distributed profit comes from exempt income.

2 income derived in the transmission of the participation in the institution's holdings of securities or in the case of separation of the partner or liquidation of the entity will receive the following treatment: to) when the beneficiary institution subject to this tax or a permanent establishment situated in Spanish territory, and meet the requirement of participation in the institution's holdings of foreign securities established in paragraph 5 of article 30 of this law You can apply the deduction by double internal taxation in the terms laid down in that article. In the same event, you can apply the exemption provided for in article 21 of this law that part of the obtained income corresponding to differences in value attributable to the participating interests in non-resident entities in relation to which the holdings of foreign securities entity satisfying the requirements in the cited article 21 for the exemption of foreign source income.

(b) where the recipient is an entity or individual not resident in Spanish territory, not means obtained in Spanish territory the income that corresponds with reservations with charge exempt income referred to in article 21 or differences in value attributable to the shares in entities non-residents who meet the requirements to that referred to in that article for the exemption of foreign source income.

3. the entity's holdings of securities shall mention the amount of exempt income and taxes paid abroad corresponding to these in the memory, as well as partners provide necessary information so that these comply with the provisions of the preceding paragraphs.

4 paragraph c) of paragraph 1 and in paragraph b) of paragraph 2 of this article shall not apply where the beneficiary of the income is resident in a country or territory qualified by law as a tax haven.

Article 119. Application of this regime.

1. the enjoyment of the regime will be conditioned to the fulfillment of the assumptions of fact relating to it, which should be tested by the taxable person at the request of the tax administration.

2. the non-cash contributions of securities of the own funds of institutions not resident in Spanish territory will enjoy the arrangements laid down in article 94 of this law, which is the percentage of participation in the institution's holdings of securities that confer these contributions, provided that the income derived from these values can enjoy the regime established in article 21 of this law.

Chapter XV Article 120 partially exempt entities regime. Scope of application.

This scheme applies to the entities referred to in article 9, paragraph 3, of this law.

Article 121. Exempt income.

1 the following income obtained by the entities referred to in the preceding article shall be exempt: to) that coming from activities that constitute its corporate purpose or specific purpose.

For the purposes of this regime to the entity of law public ports of the State and the port authorities, it shall be deemed that they not derived from the realization of economic holdings nature tax revenues and from the exercise of powers to impose penalties and administrative activity carried out by the port authorities, as well as those coming from the activity of coordination and control of efficiency of the port system carried out by the entity public ports of the State.
(b) the resulting from acquisitions and transmissions as lucrative, ones and others obtained or carried out in fulfilment of its purpose or specific purpose.

(c) that matching revealed the onerous transfer of assets pertaining to the accomplishment of the object or specific purpose when the total product obtained is intended for new investments related to that object or specific purpose.

New investments must be made within the period between the year prior to the date of delivery or put at the disposal of the asset and the three subsequent years and staying in the heritage of the institution for seven years, except that its useful life according to the method of depreciation of students admitted in article 11(1) of this Act to be enforced is less.

If not to make the investment within the designated period, the portion of total tax corresponding to the obtained income enter, plus interest, together with the fee for the tax period in which he beat.

The transmission of these elements before the end of the mentioned term will determine integration into the tax base of the part of income not taxed, unless the amount obtained is the subject of a new reinvestment.

2. the exemption referred to in the preceding paragraph will not reach yields economic holdings, the incomes derived from the heritage, or to income derived in transmissions, other than those listed in it.

3. shall be deemed yields one economic exploitation all those that proceeding from personal work and capital together, or one only of these factors, pose management on their own the means of production and human resources or one of the two in order to intervene in the production or distribution of goods or services by the taxable person.

Article 122. Determination of the tax base.

1. the taxable income shall be determined by applying the rules laid down in title IV of this law.

2 not shall be regarded as tax deductible expenses, in addition to those laid down in article 14 of this law, the following: a) expenses attributable exclusively to exempt income. Partially attributable costs non-exempt income will be deductible in the percentage representing the income obtained in the exercise of non-exempt economic holdings regarding the income of the entity.

((b) the quantities which constitute implementation of results and, in particular, which are intended to support the exempt activities referred to in paragraph a) of paragraph 1 of the preceding article.

Chapter XVI regime of neighborhood montes in article 123 common hand holders communities. Turnkey common holders communities of montes neighborhood system.

1 the common tax base corresponding to headlines communities of montes neighborhood in hand shall be reduced by the amount of the benefits of exercise a: applied to) investments for conservation, improvement, protection, access and services to the social use to which the mount is intended for.

(b) financing of infrastructure and public services, of social interest.

The application of the benefit to the indicated purposes must be carried out in the own tax period or in the next three. If not to make the investment within the designated time, the part of the total tax corresponding to the benefits not effectively applied to described investments, together with interest on late payments, will enter together the amount corresponding to the tax period in which overcame this period.

The tax administration, on checking the destination of investments indicated, request reports requiring the competent regional and local administrations.

2 neighborhood montes in common hand holders communities will be taxed at the rate of duty laid down in paragraph 2 of article 28 of this law.

3. holders communities of montes neighborhood in common hand will not be forced to submit Declaration by this tax in those tax periods that do not receive income subject to this, incur any expense or the investments referred to in paragraph 1.

4. holders or holders communities of montes neighborhood in common hand be integrated based on physical persons income tax amounts that are effectively distributed them by the community. Such income will have treatment under paragraph 1 of article 23 of the revised text of the law on personal income tax for shareholdings in entities benefits and gain them applicable percentages corresponding to article 28.2 of this law entities.

Chapter XVII the shipping entities on the basis of article 124 tonnage regime. Scope of application.

1 the entities registered in any of the records of shipping companies concerned in law 27/1992, of November 24, State ports and merchant marine, whose activity understand the operation of own or leased ships shall benefit from the special arrangements provided in this chapter.

2 vessels which allows the application of the aforementioned scheme must meet the following requirements: to) be managed strategically and commercially from Spain or the rest of the European Union.

For these purposes, means strategic and commercial management the assumption by the ship owner or the tenant, of control and risk of the activity of shipping or work at sea.

b) be fit for navigation in high seas and be ships intended exclusively for any of the following activities: transport of goods.

Transport of passengers.

Salvage, towage and other services necessarily offshore activities.

3 intended for ships, not be eligible to the present regime directly or indirectly, to fishing, sports, dredging activities and recreation.

Article 125. Determination of the tax base by the method of objective estimation.

1. the entities benefiting from this regime will determine the part of taxable base corresponding to the exploitation or ownership of vessels that meet the requirements of the preceding article, applying the following scale to tons of record net of each of such vessels: daily amount per each 100 tons net registered tonnes - Euros between 0 and up to 1,000 0.90 between 1001 and up to 10,000 0.70 between 10.001 and up to 25,000 from 0.40 25.001 0.20 for the application of the scale will be taken the day of the tax period in which the ships are available to the taxable person, excluding the days that are not operating as a result of ordinary or extraordinary repairs.

The application of this regime should cover all vessels of the applicant meeting the requirements of the one, and vessels that are acquired or rented after the authorization, provided that they comply with these requirements, eligible to ship taken in chartering, provided that the sum of its net tonnage does not exceed 75 per cent of the total of the fleet of the entity or , where appropriate, the tax group subject to the regime. In the case of entities that pay tax in the tax consolidation system the application must be referred to all entities of the group which meet the requirements of article 124.

2. the positive or negative income gets highlighted as a result of the transmission of a ship on this regime, where appropriate, shall be considered integrated in the taxable basis calculated in accordance with the preceding paragraph.

However the provisions of the preceding paragraph, in the case of ships whose ownership had when it agreed to this special scheme, or used ships purchased once started its application, proceed as follows: in the first year the procedure is of application, or which have been acquired used vessels an unavailable reserve of an amount corresponding to the positive difference between the market value and the net book value of each of the vessels affected by this rule will be provided, either specify the abovementioned difference, separately for each of the vessels and during all exercises that will keep ownership of these , in the notes on their accounts. In the case of ships acquired through a transaction that has been applied the special scheme in Chapter VIII of title VII of this Act, the net book value shall be determined on the basis of the acquisition value that appear in the accounts of the entity transferring.

The breach of the obligation of provision of reserve or of the obligation to mention in the memory shall not constitute tax serious infringement, sanctioning a proportional pecuniary fine of five percent of the amount of the aforementioned difference.

The sanction imposed in accordance with this section shall be reduced pursuant to paragraph 3 of article 188 of the law 58/2003, of December 17, General tax.
The amount of the aforementioned positive reserve, together with the positive difference existing on the date of the transmission between accounting and tax depreciation of the alienated ship, it will be added to taxable referred the first rule of this article when the aforementioned transmission has occurred. In the same way will proceed if the vessel is transmitted, directly or indirectly, on the occasion of an operation that results from application the special scheme in Chapter VIII of title VII of this Act.

3. the part of the tax base determined according to paragraph 1 of this article may not be compensated with carryforwards arising from the rest of the activities by the shipping entity, or of the current financial year or of the previous nor with the taxable basis pending compensation at the time of application of the present regime.

4. the determination of the part of taxable base corresponding to the remaining activities of the taxable person will be applying the general regime of tax, taking into account only income from them.

That part of the tax base will be integrated by all revenue that does not come exclusively from the exploitation or ownership of vessels included in this regime, for expenses directly related to obtaining these, as well as on the part of the General administrative expenses proportionally corresponding to the turnover generated by these activities.

For the purposes of compliance with this regime, the entity must have the necessary accounting records to determine income and expenses, direct or indirect, for each ship with this, as well as its operating assets.

Article 126. Type of assessment and fee.

1. in any case, the general tax rate referred to in the first paragraph of article 28 of this law will apply.

2. the part of the total tax attributable to the part of taxable income determined in accordance with paragraph 1 of article 125 may not be reduced by the application of any deduction or bonus.

Also, the acquisition of vessels affecting the present regime does not imply the application of any incentive or tax deduction.

The portion of total tax which results from the rest of the tax base may not lower by application of deductions generated by the acquisition of vessels concerned prior to their involvement regime regulated in this chapter.

Article 127. Instalments.

Taxpayers that the present arrangements must make payments fractionated according to the modality established in paragraph 3 of article 45 this law applied to the taxable income calculated in accordance with the rules laid down in article 125 and applying the percentage to that referred to in article 126, without computing any deduction on the part of fee for the part of taxable income determined in accordance with paragraph 1 of the article 125 article 128. Application of the scheme.

1 the tax system laid down in this chapter shall apply in the following way: to) your application will be conditioned to authorization by the Ministry of finance, upon request of the taxable person. This authorisation shall be granted for a period of 10 years from the date that establishes the authorization, being able to request its extension for another 10 years additional periods.

(b) the application must specify the tax period from which it will be valid and will be presented at least three months before the beginning of the period.

(c) the application must resolve within a maximum period of three months, elapsed which may be rejected.

The granting of the regime, the Ministry of Finance shall take into account the existence of an effective contribution to the objectives of the Community policy of maritime transport, particularly as regards the technological level of vessels that ensures the safety of navigation and the prevention of the pollution of the environment and the maintenance of both Community employment aboard as in auxiliary tasks to maritime transport. To this end, be sought prior report of the competent bodies.

(d) the breach of the conditions of the regime or the renunciation of its application will prevent formulating a new application until a minimum of five years has elapsed.

(e) the tax authorities can verify the correct application of the regime and the attendance in each year of the requirements for its application.

2 non-compliance with the requirements established in the present scheme will involve the cessation of the effects of the authorization and the loss of all of the tax benefits derived from it, and must enter, along with the share of the tax period in which occurred the breach, intact quotas corresponding to the amounts that had been due entered by applying the general regime of tax in all of the exercises that resulted from application authorization, without prejudice to the interests of delay, penalties and sanctions which, in his case, result from.

3. the application of the tax system laid down in this chapter shall be, for a same vessel, with the implementation of the fifth additional provision of this law.

Chapter XVIII regime of sports entities article 129. Regime of sports entities.

1 there will be integrated into the taxable income of the tax increases of assets which can be manifest as a result of the secondment of the professional team a sports Corporation of new creation, provided that fully conform to the standards provided for in the Act 10/1990 of 15 October, sport, and the Royal Decrees 1084 / 1991 July 5, and 1251 / 1999, July 16, about sports corporations.

2. the sports Corporation will calculate, tax purposes, increases and decreases of heritage, as well as depreciation corresponding to the property and rights object of ascription, on the same values and the same conditions that would have been applicable to the sports club that ascribe the professional team.

3 sports Corporation is subrogated in the rights, obligations and responsibilities of a tax nature that was incumbent sports club which has seconded the professional team on the basis of the assets and liabilities assigned and will assume compliance burdens and requirements necessary to continue in the enjoyment of tax benefits or consolidate the enjoyed by the sports club which has seconded professional team.

In no event shall mean transmitted right to offset losses.

Title VIII chapter I the index of entities article 130 tax management. Index of entities.

1. in each delegation of the State tax administration agency will be an index of entities in which shall be entered which have their fiscal domicile within its territorial scope, except for the entities referred to in article 9.

2. by regulation procedures high, enrollment and low will be established in the index of entities.

Article 131. Low on the index of entities.

1 the State tax administration agency shall, after hearing of the interested parties, agreement provisional low in the following cases: to) when the tax debts of the entity with the Treasury of the State be declared failed in accordance with the provisions of the General Regulation of fundraising.

(b) when has the entity failed to the Declaration by this tax corresponding to three consecutive tax periods.

2. the low provisional agreement will be notified to the corresponding public record, which must proceed to extend the blade open the entity affected a marginal note which shall be recorded, hereinafter, may not be any entry concerning that without submission of certification of high index of entities.

3. the low provisional agreement does not exempt the affected entity of any tax obligations that may concern you.

Article 132. Obligation of collaboration.

Holders of public records be sent monthly to the State Agency for tax administration of their fiscal domicile a relationship of the entities whose Constitution, establishment, modification or extinction registered during the previous month.

Chapter II accounting obligations. Property and rights not recorded. Article 133 voluntary revaluations. Accounting obligations. Powers of the tax administration.

1. taxable persons of the tax must bear its accounting as laid down in the code of Commerce or with the provisions of the rules by which they are governed.

In any case, the taxable persons referred to in Title VII, Chapter XV, this law will carry its accounting so that you identify income and expenditure relating to pensions and non-exempt economic holdings.
2. the tax administration can perform verification and investigation by examining the accounting, books, correspondence, documentation and jus tificantes concerning the taxable businesses, including accounting programs and files and magnetic media. Tax administration can directly analyze the documentation and the other elements referred to in the preceding paragraph, and may note through their agents of accounting entries that may be accurate and copy in his office, even in magnetic storage media, of any of the information or documents referred to in this section.

3. the entities key groups of companies of article 42 of the code of Commerce shall be obliged, at the request of the inspection of the tributes made in the course of the verification procedure, to facilitate the profit and loss account and the balance sheet of the Group entities that are not resident in Spanish territory. Also must provide supporting documents and other background concerning the accounting documentation when they could have significance in relation to this tax.

Article 134. Property and rights not accounted or not declared: presumption of obtaining of incomes.

1. it shall be presumed that they have been acquired charged to income not declared the assets whose ownership corresponds to the taxable person and are not recorded in its books of account.

The presumption will proceed likewise in the case of partial concealment of the acquisition value.

2. it shall be presumed that the assets not recorded in accounting are owned by the taxable person when it holds possession over them.

3. it shall be presumed that the amount of unreported income is the value of acquisition of the property or rights not recorded in accounting books, discounting in the amount of effective debts incurred to finance such acquisition, likewise not accounted for. In any case the net amount may be negative.

The amount of the purchase price will be tested through the supporting documents or, if not possible, applying the valuation rules laid down in the General tax law.

4 the existence of undeclared income will be presumed when they have been registered in the books of account of the taxable non-existent debts.

5. the amount of income because of the assumptions contained in the foregoing paragraphs will fall within the tax period oldest from among the non-prescribed, unless the taxable person test which corresponds to another or others.

6. the value of the assets referred to in paragraph 1, insofar as it has been incorporated into the tax base, will be valid for all tax purposes.

Article 135. Voluntary accounting revaluations.

1. the taxable persons who carry out accounting revaluation amount had not included in the tax base must mention in memory the amount of those, the affected items and period or tax periods in which it is practiced.

The cited mentions must be performed on each of the reports relating to the years that revalued elements are present in the heritage of the taxable person.

2 shall constitute serious tax violation the breach of the obligation established in the preceding paragraph.

Such violation shall be punished, only once, with a proportional pecuniary fine of five percent of the amount of the revaluation, the payment will not determine that the amount be incorporated for tax purposes, the value of the asset subject to the revaluation.

The sanction imposed in accordance with this section shall be reduced pursuant to paragraph 3 of article 188 of the law 58/2003, of December 17, General tax.

Chapter III Declaration, autoliquidación and provisional liquidation article 136. Statements.

1. the taxable person will be required to submit and sign a statement by this tax in place and the form to be determined by the Minister of finance.

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

If at the beginning of the indicated period the way of presenting the Declaration of that tax period has not had determined by the Minister of finance, the statement will occur within 25 calendar days of the date of entry into force of the rule which determines the form of presentation. However, in such event the taxable person may elect to submit the Declaration within the period it referred to in the preceding paragraph fulfilling the formal requirements which had been established for the Declaration of the previous tax period.

2. the exempt taxable persons referred to in article 9 of this law are not obliged to testify.

3. the taxable persons referred to in Chapter XV of the title VII of this law shall be obliged to declare all of their income, exempt and non-exempt.

Still, these taxpayers will not required to file a declaration when they meet the following requirements: to) that their total income does not exceed 100,000 euros a year.

(b) that the revenue from non-exempt income subject to withholding does not exceed 2,000 euros a year.

(c) that all non-exempt incomes that are subject to retention.

Article 137. Autoliquidación and income of the tax debt.

1 taxable persons, at the time of filing your return, shall determine the corresponding debt and enter it in the place and in the form determined by the Minister of finance.

2. the payment of the tax debt may be through delivery of part of Spanish historical heritage assets that are registered in the inventory of movable property or in the general register of assets of cultural interest, in accordance with article 73 of the law 16/1985, of 25 June, the Spanish historical heritage.

3. the right to enjoy exemptions, deductions or any tax incentive in the tax base or the total tax will be conditioned to the fulfilment of the requirements in the applicable legislation.

Unless specifically provided otherwise, when subsequent to the application of the exemption, deduction or tax incentive there is the loss of the right to enjoy this, the taxable person shall enter together with the share of the tax period in which failure to comply with the requirements take place or conditions the total tax or deduction exemption amount deduction or incentive applied in previous periods, as well as the interests of delay.

Article 138. Provisional liquidation.

Tax management bodies may turn the provisional liquidation which proceed in accordance with the provisions of articles 133 and 139 of the law 58/2003, of December 17, General tax, without prejudice to subsequent verification and investigation that can perform the inspection of the tributes.

Chapter IV refund of trade article 139. Return of trade.

1 where the amount of withholdings and payments on account and the instalments exceeds the amount of the resulting share of the autoliquidación, the tax administration shall, in its case, practice provisional liquidation within six months at the end of the period laid down for the submission of the Declaration.

When the statement had been presented after the deadline, the six months referred to in the preceding paragraph should be computed from the date of its presentation.

2. when the resulting share of the autoliquidación or, where appropriate, of the provisional liquidation is less than the sum of the quantities actually retained, payments on account and instalments, the tax administration shall return of trade the excess over the quoted fee, notwithstanding the practice of further settlements, provisional or definitive, which come.

3. If the provisional liquidation had not practiced within the time limit set in paragraph 1 above, the tax administration shall return the excess over the resulting share of the autoliquidación, without prejudice to subsequent provisional or definitive settlements resulting from practice nursing.

4 after the time limit set in paragraph 1 of this article unless it has ordered the payment of the refund for reasons imputable to the tax administration, shall apply to the outstanding repayment amount the interest of delay referred to in the article 26.6 of the Act 58/2003, of December 17, General tax, from the day following the end of that period and up to the date of your payment management , without that the taxable person as well claim it.

5. regulations will be determined the procedure and the method of payment for the completion of the return of trade referred to in this article.

Chapter V obligation to retain and access account.
Obligations in relation to the registered Attorney article 140. Withholdings and payments on account.

1. the authorities, including the communities of goods and owners, who will meet or paid income subject to this tax, shall be obliged to withhold or to make payments on account in respect of payment, the amount resulting from applying the retention percentages indicated in paragraph 6 of this article to base retention determined by regulation , and enter the amount in the Treasury in the cases and forms established.
They will also be required to retain and enter individual entrepreneurs and professionals with respect to pensions that meet or paid in the course of their business or professional activities as well as natural persons, legal and other entities not resident in Spanish territory which operate on it through permanent establishment.

It is also obliged to practice retention or deposit to account representative appointed 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 insurance, acting on behalf of the insurance company operating in the regime of free provision of services, in connection with operations carried out in Spain.

2. the subject required to retain must submit in terms, form and places established regulations Declaration of the retained amounts or negative statement when the practice of these not occurred. It will also present a yearly overview of retentions with content to be determined by regulation.

Corresponding statement models shall be approved by the Minister of finance.

3. the subject required to retain shall be required to issue, under conditions to be determined according to the rules, supporting certification practiced retention or other payments on account.

4. by law the cases in which there is no retention will be established. En_particular, shall not be retention in: to) income derived by the entities referred to in article 9(1) of this law.

(b) dividends or shares in profits distributed by Spanish and European economic interest groupings, and temporary unions of companies corresponding to partners who need to support the allocation of the tax base and come from tax periods during which the entity has paid pursuant to the special regime of chapter II of title VII of this Act.

(c) dividends or shares in profits and interests satisfied among companies that are part of a group that tribute in the regime of the groups of companies.

(d) dividends or shares in the benefits referred to in paragraph 2 of article 30 of this law.

(e) income derived by the change of assets in which the provisions of the life insurance in which the policyholder assumes the risk of the investment are reversed.

5. when under judicial or administrative decision is must meet an income subject to retention or payment on account of tax, payer must practice it on the full amount required to meet coming and will need to enter the amount in the Treasury, in accordance with the provisions of this article.

6 the percentage of retention or payment on account shall be as follows: to) as a general rule, 15 percent.

In the case of income from the lease or sublease of urban buildings located in Ceuta, Melilla or their dependencies, obtained by entities domiciled in such territories or operate them through establishment or branch, that percentage will be divided by two.

(b) in the case of income from the transfer of the right of exploitation of the image or consent or authorization for use, 20 percent.

They may statutorily modified account entry and retention percentages provided for in this section.

Article 141. Rules on retention, transmission and formal obligations concerning financial assets and other securities.

1. of transmissions or redemptions 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 the cases and in the manner that is established by law, entities managing, administering, depository, marketers or any other responsible for the above mentioned operations, as well as the representative appointed pursuant to article 55.7 and the second additional provision of the law 35/2003 of 4 November, collective investment institutions, acting on behalf of the Fund management company operating in the regime of free provision of services.

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 mediate 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 them, will be obliged to inform such transactions to the tax administration list of involved subjects with indication of their domicile 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.

Article 142. Obligations of taxable persons in relation to the fiscal domicile.

1. taxable persons shall be obliged to put in knowledge of the State tax administration agency change its fiscal domicile.

2. the State tax administration agency may promote fiscal domicile change, after hearing the interested party, in the form determined by law.

Chapter VI powers of management to determine the taxable article 143. Powers of the Administration to determine the taxable base.

For the purposes of determining the tax base, the tax administration shall apply the rules referred to in article 10(3) of this law.

Title IX jurisdiction order article 144. Competent jurisdiction.

The Supreme jurisdiction, prior exhaustion of administrative track, will be the only competent to settle disputes in fact and law arising between the tax authorities and taxable persons in relation to any of the matters referred to in this law.

First additional provision. Restrictions on the deduction for double taxation of dividends.

Not have the right to the deduction provided for in article 30 of this law:
(a) the benefits distributed without charge to the reserves constituted with the results relating to increases of assets referred to in paragraph 1 of article 3 of the law 15/1992 of 5 June, on urgent measures for the progressive adaptation of the oil sector to the Community framework.

(b) distributed dividends charged to profits bonus yields as laid down by article 2 of law 22/1993 of 29 December, which approved tax measures, reform of the legal system of the civil service and unemployment protection, and yields from companies benefiting from the allowance established in article 19 of the Foral law 12/1993 15 November, and the fifth additional provision of law 19/1994, July 6, or societies that is applicable to the exemption provided for in rules regional law 5/1993, 24 June, Vizcaya, 11/1993, 26 June, Guipúzcoa, and 18/1993, of 5 July, Alava.

In the case of distribution of reserves it attend the designation contained in the social agreement, understanding applied the first amounts paid to such reservations.

Second additional provision. References to the law 29/1991, of December 16, adaptation of certain tax concepts to the directives and regulations of the European communities contained in various provisions. Regime of the tax on the increase of the value of the land of urban nature in certain operations.

(1. the references to article 7.1. ° b) of the law 37/1992 of 28 December, value added tax, does article 1 operations and the definition of branch of activity of the article 2, paragraph 4, of law 29/1991, of December 16, adaptation of certain concepts of taxation to directives and regulations of the European communities , whenever the operations are entitled to the tax regime regulated under Title I of the Act, shall be made to the special scheme for mergers, divisions and contributions of branches of activity and an exchange of values defined in article 83 of this Act.

2 the references to article 21 and article 45.1. b).10 of the law on property transfer and stamp tax made to the definitions of mergers and spin-offs of article 2, paragraphs 1, 2 and 3, of the Act 29/1991, of 16 September, adaptation of certain concepts of taxation to directives and regulations of the European communities They construed as references to article 83, paragraphs 1, 2, 3 and 5, and article 94 of this law and references to the special regime of the title I of law 29/1991, of December 16, be construed as references to Chapter VIII of title VII of this Act.

3. not the tax on the increase of the value of the land of urban nature is accrued on the occasion of the transmissions of land in urban nature arising from operations to which the special regime regulated in Chapter VIII of title applicable VII of this Act, with the exception of those relating to lands that contribute to the protection provisions of article 94 of this law when they are not integrated into a branch of activity.

In the subsequent transmission of mentioned land means that the number of years over which it has become clear increase in value has not been halted because of the transmission for the operations provided for in Chapter VIII of title VII.

Shall not apply the provisions of article 9(2) of the Act 39/1988, of 28 December, regulating local treasuries.

Third additional provision. Subsidies of the Community agricultural and fisheries policy and public aid.

1 not will be integrated into the taxable income for corporation tax the positive incomes that are highlighted as a result of: to) the perception of the following AIDS of Community agricultural policy: 1 permanent abandonment of cultivation of the vineyard.

Premium 2nd start of Apple plantations.

Premium 3rd start of banana plantations.

4th permanent abandonment of milk production.

5 permanent abandonment of the cultivation of pears, peaches and nectarines.

6 start of plantations, of pears, peaches and nectarines.

(b) the perception of the following AIDS of the common fisheries policy: the permanent cessation of fishing activities of a vessel and its transmission for the establishment of ventures in third countries, as well as the permanent abandonment of fishing activity.

(c) the perception of public assistance designed to repair the destruction, by fire, flood or collapse of assets pertaining to the exercise of economic activities.

(d) the perception of AIDS for the abandonment of the road transport activity fulfilled by the Ministry of public works to carriers who meet the requirements set out in regulatory of the granting of such aid.

(e) the perception of public compensation, because of the compulsory slaughter of livestock, in the framework of actions aimed at the eradication of epidemics or diseases.

This provision only affect animals intended for reproduction.

2. to calculate the income which will not integrate in the tax base be taken into account both the amount of aid perceived as economic losses which, if any, occur in the elements pertaining to the activities. When the amount of this aid is less than the losses produced in the abovementioned elements, you can integrate the taxable negative. When there are no losses, only shall be excluded from assessment the amount of aid.

Fourth additional provision. Taxation of assets transmissions carried out in compliance with provisions with range of law and with the rules of competition.

Transmissions of assets referred to in article 42 of this law that are carried out in compliance with obligations under provisions of legal rank, published from January 1, 2002, or by the European Commission or the Council of Ministers resolutions adopted from that same date, in application of the rules of the competition processes of concentrated business ing (, they will have the following treatment in tax: a) positive income obtained will not be taxable, if the amount obtained in the transmission is reinvested in the conditions laid down in article 42 of this law.

(b) the positive income will be, without any exemption or reduction, in the taxable income of the period in which they are transmitted, or for any other reason will unsubscribe in the balance sheet, the assets and law subject to reinvestment.

c) the assets that materializes the reinvestment will be valued, for the exclusive purpose of calculation of the positive income, amounting to the same who had property and rights transferred. In the case of partial reinvestment, that value will increase in the amount of integrated in the taxable income.

(d) the taxable person may submit questions about the interpretation and application of this provision, whose answer will be binding for the tax administration, in the terms laid down in articles 88 and 89 of the Act 58/2003, of December 17, General tax.

Fifth additional provision. Tax incentives for the renewal of the merchant fleet.

1 can pay off quickly ships, vessels and naval artifacts, which fulfil the following conditions: to) which concerned vessels, boats or new naval artifacts that are made between January 1 of the year 1999 and 31 December of the year 2003 the purchaser or which have been charged under a construction contract signed within that period It is always to be delivered to the purchaser prior to 31 December of the year 2006, or even that in the case of used ships purchased after January 1, 1999 which have been subject to improvements, whose amount exceeds 25 per cent of acquisition cost and that are made before 31 December of the year 2003.

(b) that the ship, boat or naval artifact is inscribable in first, second or fifth lists of article 4.1 of the Royal Decree 1027 / 1989, of 28 July, on registration, enrollment, and maritime register of vessels.

(c) that the taxable person acquiring explode the ship, boat or naval artifact through its own activity, or through his tenure bareboat, provided that, in the latter case, the leasing entity is a Spanish or European economic interest grouping and the following requirements are met: 1 that the tenant is a natural or legal person having routine activity is the exploitation of vessels , boats or craft and element affecting the activity.

2 at least 75 percent of the tax benefit is transferred by the lessor to the user.

For this purpose, the tax advantage will be valued in the update, the type is determined by the Ministry of finance, the differences in tax revenues that would occur with and without the application of this regime.

3rd the leasing entity members shall maintain participation in it during at least two-thirds of the term of the lease.

4th to the purchase price of the vessel, boat or naval artifact, the used financing interest rate and the amount of the rent, are the normal market between independent parties.
5 when there is no link between the seller of the asset and the lessee of this.

6 at least 20 per cent of the resources needed to finance the purchase of the vessel, boat or naval artifact comes from own funds of the group.

(d) that is requested and obtained the grant of the benefit of the Ministry of Finance prior to construction or improvement of the element. The granting of the benefit, the Ministry of Finance shall take into account, from the point of view of the general interest, that the project has a significant economic and social interest, particularly in the field of employment. To this end, will be necessary the report in advance of the ministries of science and technology and development, depending on whether new elements or used respectively; the application must resolve in the maximum period of 3 months, after which will be rejected.

2 the amortization shall be in accordance with the following standards: to) limit fiscally deductible annual amortization will be 35 per cent of the price of acquisition of the vessel or the value of the improvement.

(b) the depreciation may be prior to the implementation of the ship, vessel, or naval artifact, in terms of performance or the onset of improvement, with the limit of the amounts paid.

(c) the deduction of amounts which exceed the amount of the effective depreciation is not conditioned to its accounting charges to the profit and loss account. These quantities will increase the tax base on the occasion of the repayment or transmission of the item that enjoyed that.

3. vessels, vessels or naval artifacts acquired under financial leases shall benefit, Alternatively, special depreciation provided for in this standard or to the provisions of article 115 of this Act.

4 If the requirements sessions later, the taxpayer will lose the benefit of accelerated depreciation and shall pay the sum of the quotas corresponding to the periods during which had enjoyed this tax incentive, along with sanctions, penalties and interest on arrears resulting from.

Sixth additional provision. Incidence of the reserve for investments in the Canary Islands in the calculation of the instalments.

Effect of the provisions of paragraph 3 of article 45 of this law, you can reduce the tax base the amount of the reserve for investments in the Canary Islands, regulated in article 27 of law 19/1994, of 6 July, modification of the economic regime and Canarias Attorney, if intended to be carried out, prorated in each of the three periods , nine or 11 first months of the tax period and with a maximum limit of 90 per cent of the taxable income of each of them.

If the amount of the reserve which is actually lower by more than 20 percent of the amount of the reduction in the tax base made to calculate the amount of each of the instalments elevated a year, the entity shall be obliged to regularise such payments for the difference between the initial forecast and effective staffing without prejudice to the settlement of the interest and surcharges, if any, are coming.

Seventh additional provision. Depreciation rates applicable to acquisitions of assets made between 1 January 2003 and 31 December 2004.

For new asset purchases made between January 1, 2003 and December 31, 2004, the maximum linear depreciation rates set out in the official tables of depreciation rates shall be replaced, in all mentions to them have been made, the result of multiplying those for 1.1. The new coefficient shall be applicable during the lifetime of the new assets purchased during the above period.

First transitional provision. Regularization of balance adjustments.

Unaffiliated, positive and negative adjustments performed to determine the taxable basis of corporation tax for tax periods that are initiated prior to the entry into force of law 43/1995, of 27 December, is taken into consideration for the purposes of the determination of the taxable basis corresponding to the tax periods in which is this law , in accordance with the rules which regulated them.

In no event shall be admissible that same income do not take into consideration or is it two times for the purposes of the determination of the tax base for corporate income tax.

Second transitional provision. Taxation of research and exploitation of hydrocarbons and mining development.

1. the provisions laid down in this law for the activities of research and exploitation of hydrocarbons shall apply to institutions with research permits and concessions of exploitation that continue to be governed by the law 21/1974, June 27, on the legal system for the investigation and exploitation of hydrocarbons.

2. the assets that the entry into force of law 43/1995, of 27 December, were amortized in accordance with the maximum depreciation rates set out in paragraph B.1 of article 47 of the Royal Decree 2362 / 1976, of 30 July, which approved the regulation of the law on research and exploitation of hydrocarbons June 27, 1974, may pay for itself by applying the above coefficients, and must be fully depreciated within a maximum period of 20 years, counted from the above date of entry into force.

3. the carryforwards which were outstanding compensation, in accordance with the special scheme in chapter X of title VIII of law 43/1995, of 27 of December, in the first tax period started from January 1, 1999, will be compensated in the way established in article 106 of this law.

4. the taxable persons that, prior to December 31, 2000, had the right to apply the "regime Prosecutor of the research and exploitation of hydrocarbons" established in chapter X of title VIII of law 43/1995, of 27 December, may choose to continue to apply that system, in its current wording on 31 December 2002 , during the tax periods completed until 31 December 2005.

The outstanding balances of investment, as the date of the first tax period starting from January 1, 2003, and on January 1, 2006, have opted for the application of the system in accordance with the provisions of the preceding paragraph, of allocations to the exhaustion factor carried out under cover of law 21/1974 , June 27, legal regime for exploration, investigation and exploitation of hydrocarbons, and chapter X of title VIII of law 43/1995, of 27 December, will apply in the way established in article 103 of this law.

The deadline referred to in article 103 of this law, shall not apply when the quantities intended for the abandonment of fields or the dismantling of offshore platforms provided that they correspond to existing holdings to the entry into force of the law 53/2002, of 30 December.

5. the outstanding balances investment allocations to the exhaustion factor carried out under cover of law 6/1977 of 4 January, of promotion of mining, prior to the entry into force of law 43/1995, of 27 December, must invest under the conditions and with the requirements established by law, for the purpose of consolidating the deduction once practiced.

Third transitional provision. Reinvestment of windfall profits.

1 heritage increases charged in tax periods regulated by Act 61/1978, of 27 December, corporate income tax, subject to exemption by reinvestment provided for in its article 15.8, shall be regulated by the the established, even though the reinvestment occurs subsequent to the entry into force of law 43/1995, of 27 December , of the tax.

2 income benefiting from the exemption for reinvestment provided for in article 127 of law 43/1995, of 27 December, according to its original wording, shall be regulated by the the established, even when the reinvestment in tax periods started as of January 1, 1999.

3 income benefiting from reinvestment of extraordinary benefits provided for in article 21 of law 43/1995, of 27 December, according to their wording valid until January 1, 2002, shall be regulated by it in the established and its implementing rules, even though the reinvestment and other requirements occur in tax periods started from January 1, 2002.

4. Notwithstanding the provisions of the preceding paragraph, if the reinvestment is made in a tax period started from January 1, 2002, the taxable person may apply the deduction referred to in article 42 of this law, provided that all of the deferred income is integrated in the base of the tax period.

5. the taxable persons who, in the first tax period starting from January 1, 2002, were rents outstanding integrate into the tax base, for hosting the reinvestment of extraordinary benefits provided for in article 21 of law 43/1995, of 27 December, according to their wording valid until January 1, 2002 they may include in the tax base of the first statement by this tax arising from the 1 January 2002, total or partially, such income, also applying the deduction provided for in article 42 of this law by such integrated the taxable incomes.
Fourth transitional provision. Tax benefits of reconversion and reindustrialization.

Taxpayers affected by the Royal Decrees of reconversion will enjoy tax benefits established by law 27/1984, of 26 July, reconversion and reindustrialization, in terms that those expected.

Fifth transitional provision. Tax benefits of law 12/1988, of 25 may, law 5/1990 of 29 June, and law 30/1990 of 27 December.

Entities that referred to in articles 2 and 16 and the available additional first law 12/1988, of 25 may, tax benefits relating to the Universal Exposition of Seville 1992 and the acts commemorative of the V centenary of the discovery of America and the Barcelona 1992 Olympic Games, as well as those refers to which the law 5/1990-Fifth additional provision 29 June, on measures in budgetary, financial and tax matters, and the provision additional fourth of law 30/1990, of 27 December, Madrid Capital European of the culture 1992-related tax benefits, they will retain the tax regime referred to in the above-mentioned standards during the period necessary for its complete liquidation.

The entity referred to in article 2 of the law 30/1990 of 27 December, will retain the tax regime that is set during the period necessary for its liquidation in accordance with provisions in their second final provision.

Sixth transitional provision. Financial leasing.

They shall be governed through total fulfillment by the rules laid down in the additional provision seven of law 26/1988, of July 29, on discipline and intervention of credit institutions, leasing contracts entered into prior to the entry into force of law 43/1995, of 27 December, related to goods whose delivery to the user had been equally prior to its entry into force , or real property whose delivery is made within the period of two years subsequent to the date of entry into force.

Seventh transitional provision. Funds of Commerce, trademarks, rights of transfer and other elements of intangible assets acquired prior to the entry into force of law 43/1995, of 27 December, the corporate income tax. Effects of the difference between the acquisition price and its theoretical value in operations carried out by the special regime for mergers, divisions, transfers of assets and exchanges of values.

1. the provisions of paragraphs 4 and 5 of article 11 of this law shall apply with respect to the acquisition value of the funds of Commerce, trademarks, rights of transfer and other elements of intangible assets acquired prior to the entry into force of law 43/1995, of 27 December, had not been deducted for the purposes of the determination of the tax base even when they were depreciated for accounting purposes.

2. as provided for in the second subparagraph of article 89.3 of this law will also be applicable to the transactions covered in article 10 of law 29/1991, of December 16, of suitability of certain tax concepts to the directives and regulations of the European communities, even though the depreciation for accounting purposes had occurred.

3. the resulting valuation of imputation to the assets of the fixed assets corresponding to the difference between the acquisition price and its theoretical value, referred to in paragraph 3 of article 89 of this law, will have tax effects for those operations that have registered from January 1, 2002.

The difference between the acquisition price and its theoretical value referred to in paragraph 3 of article 89 of this law which is not attributable to the property and rights acquired, derived from operations registered before January 1, 2002 which was deductible according to the wording of article 103 of law 43/1995 27 December, then existing, will continue to be deductible up to the annual maximum of the twentieth part of the amount.

4. in any case the amortisation of trade arising in operations covered by the Act 76/1980, of 26 December, on Fiscal regime of mergers of enterprises, will be considered deductible expenses, except that the amount of these funds trade has integrated into the tax base and the corresponding quota had not been subsidized.

Eighth transitory provision. Deductions pending apply in corporation tax.

1. the amounts outstanding of deduction corresponding to the benefits tax established in article 26 of the law 61/1978, of 27 December, tax, law 12/1988, of 25 may, in law 30/1990, of 27 of December, in the law 31/1992, of 26 November, and the additional provision seven of the law 39/1992 29 December, will be applied in the liquidation corresponding to the tax periods starting from the commencement of this Act, entry into the conditions and requirements provided for in the above-mentioned laws.

If the taxable person, in accordance with article 218.3 of the Royal Decree 2631 / 1982, of 15 October, which approves the regulation of the tax, would have opted to apply the deduction for investments in new tangible fixed assets in the tax periods in which payments are made, the deduction will apply in the liquidation of the tax periods starting from the entry into force of the Act 43/1995, of 27 December, at which stage is referral payments, on the conditions and requirements provided for in the above-mentioned standard.

The deductions referred to in the preceding paragraphs shall be deducted while respecting the limit on liquid share provided in related laws and the corresponding laws of the State budget.

These effects mean liquid share the resultant lower the total tax on deductions and allowances provided for in chapters II and III of title VI of this law.

Deductions from different modalities or tax periods of article 26 of law 61/1978, of 27 of December, except for the creation of employment, may not exceed a set limit of 35 percent of the liquid share.

The deductions referred to in the preceding paragraphs is practiced once made the deductions and allowances set out in chapters II and III of title VI of this law, then, the deductions laid down in chapter IV of title VI, which limit shall be calculated independently of the established in the previous paragraph.

2. deductions which referred to articles 29 bis and 30 bis of law 43/1995, of 27 December, pending practice after the end of the tax period in course to the entry into force of the Royal Decree Law 3/2000 of 23 June, laying down urgent fiscal stimulus to fami-saving bundle and the small and medium enterprise They shall be deducted in the tax periods completed after that date on the conditions and requirements provided for in the above-mentioned articles.

3. the deductions provided for in chapter IV of title VI of the law 43/1995, of 27 December, pending apply to the beginning of the first tax period starting from June 25, 2000, may offset the term and with the requirements established in the wording of article 37 of the cited law of the tax period counting from the end of the tax period in which such deductions were credited.

The deductions provided for in chapter IV of title VI of the law 43/1995, 27 December, pending apply to the beginning of the first tax period starting from January 1, 2002, may offset the term and with the requirements established in article 44 of this law, counting from the end of the tax period in which such deductions were credited.

Ninth transitional provision. Carryforwards pending compensation in corporation tax.

The carryforwards pending compensation at the beginning of the first tax period that had started from January 1, 2002, may offset the term and with the requirements laid down in paragraph 1 of article 25 of this law, from the end of the tax period in which these carryforwards were determined.

Tenth transitional provision. Balance of the provision for bad debts covered by article 82 of the Royal Decree 2631 / 1982, of 15 October.

Taxpayers that the entry into force of law 43/1995, of 27 December, had established a Fund for provision of loan losses through the system regulated in paragraph 6 of article 82 of the Royal Decree 2631 / 1982, of 15 October, which approves the regulation on companies, apply your balance to the coverage of existing at that date and the excess appropriations for doubtful debts , in your case, go is producing that subsequent to total extinction. Meanwhile will not be deductible allowance carried out for coverage of these credits.

Eleventh transitional provision. Transitional regime of the profits on financial operations.
The concessionary companies of toll roads that would have recognized this tax benefits on January 1, 1979, for financing and refinancing operations depending on their specific laws and provisions in the third transitional provision, paragraph 2, of the law 61/1978, of 27 December, and its implementing rules, shall retain such right acquired in its current terms. In addition, taxable persons who at the date of entry into force of law 43/1995, of 27 December, enjoy the bonus referred to: article 25.c) of law 61/1978, 27 December; Article 1 of the Royal Decree Law 5/1980, of 29 may, on bonus shares tax, corresponding to interests that have to meet local corporations, autonomous and State, on the basis of certain loans or loans; the articles 6.5. th and 20 of the Act 12/1988, on 25 may, tax benefits relating to the Seville 1992 Universal exhibition, the memorials of the V centenary of the discovery of America and the Olympic Games in Barcelona 1992 and article 6.5. ode law 30/1990, of 27 December, Madrid Capital European of the culture 1992 concerning tax feneficios pursuant to resolution agreed by the Ministry of economy and finance, will continue applying it in the terms established in the respective norms.

Twelfth transitional provision. Tax value of shares of collective investment institutions.

For the purposes of calculating the excess of the net asset value referred to article 60 of this law, be taken as value acquisition the net asset value of the first day of the first tax period to which has been applied law 43/1995, of 27 December, with respect to shares and shares at that had possessed the taxable person. The difference between that value and the actual value of acquisition shall be taken as the value of acquisition for the purposes of the determination of the income derived from the transfer or refund of the shares or participations.

Dividends and shares in profits distributed by collective investment institutions that come from profits prior to the entry into force of law 43/1995, of 27 December, will be integrated into the base of partners or participants from the same. For these purposes, means that the first distributed reserves have been equipped with the first earned benefits.

Thirteenth transitional provision. Update accounts.

1. from the entry into force of law 43/1995, of 27 December, the balances of the accounts 'Update budgets Act 1979', "Update active abroad, Budget Act of 1980" and "Updating 1983 budgets Act", passed on to the legal reserve and the remainder, if any, to unrestricted reserves.

2. the rules governing the amortization of the updated elements will continue to be applicable until the expiry of their useful life.

Fourteenth transitory provision. Transitional regime for the intensification of competition.

In the fourth additional provision of this law shall apply to assets that transmissions, having been carried out under cover of the provisions of the Royal Decree Law 6/2000 of 23 June, concerning urgent measures for intensification of competition in markets for goods and services, agreement of the Council of Ministers on the application of rules competition or processes business concentration or decisions European Union of the same material they had not botched the entry into force of the law 24/2001, of 27 December, or with the same protection are carried out from January 1, 2002.

Fifteenth transitional provision. Transparent societies.

1. the positive taxable bases of transparent societies that correspond to tax periods in which has been implementing those arrangements, as well as other concepts pending charge that they come from such tax periods, shall be charged in accordance with the rules governing the fiscal transparency regime applicable in such periods.

2. in the transmission of shares and participations in the capital of companies who have had the consideration of transparent in earlier tax periods, the acquisition value will increase by the amount of social benefits in such periods that, without effective distribution, had been charged to partners as income from their shares or participations in the period of time between their acquisition and transmission.

3. dividends and shares in profits of these companies coming from tax periods during which the company that distributes them was subject to the fiscal transparency regime, will not be taxed in the tax on physical persons income in tax. The amount of these dividends or shares in profits will not be integrated the acquisition value of the shares of the shareholders who had been charged.

For partners who acquired the shares or shares subsequent to the allocation, the purchase price of those in these amounts shall be reduced.

4. not be subject to retention or entry into account dividends or shares in the benefits referred to in paragraph 3 above.

5. the carryforwards pending compensate for transparent societies that go to pay for the special regime of economic societies, may be compensated, within the term that extend to the transparent society, and in the conditions laid down in article 23 of law 43/1995, of 27 December, with the general or special part of the positive tax base of the heritage society , to option.

6. deductions for double-taxation set out in chapter II of title VI of law 43/1995, 27 December, pending deduct for insufficiency of fee may be deducted within the time limits laid down in the said legislation.

Sixteenth transitional provision. Dissolution and liquidation of transparent societies.

1 may agree to its dissolution and liquidation, with application of the tax system laid down in this provision, the societies in which there are the following circumstances: to) that would have consideration of companies transparent, in accordance with paragraph 1 of article 75 of law 43/1995, of 27 December, in the last tax period completed prior to January 1, 2003 , or that they qualify to this date to have the above-mentioned consideration, and that, in both cases, they keep to date in which agree to its dissolution.

(b) during the year 2003 validly adopt the dissolution with settlement agreement and carried out subsequent to the agreement, within the six months following that period, all acts or necessary legal business, according to commercial rules, until the registration cancellation of the company in liquidation.

2 dissolution with such liquidation shall have the following tax regime: to) tax exemption on property transfer and stamp, "corporate operations" concept, made taxable "dissolution of societies", of article 19.1.1. º of the text revised tax, approved by Royal Legislative Decree 1/1993, 24 September.

(b) not be accrued tax on the increase of value of land in urban nature on the occasion of the awards to members of real estate of urban nature. In the subsequent transmission of listed real estate means that these were acquired on the date they were by society it is extinguished.

(c) for the purposes of the corporation tax of the company dissolved, is not accrued income at the time of the allocation of assets or rights to members, individuals or legal, resident in Spanish territory.

(d) for the purposes of the tax on the income of the physical persons, corporation tax or the tax on the income of non-resident members of the society that is dissolved: 1 the value of acquisition and, where appropriate, of ownership of the shares or participations in the capital of the company that dissolves will increase by the amount of allocated debts and shall be reduced by the credits and money or sign to represent it awarded.

2nd if the result of the operations described in the preceding paragraph is negative, said results will be considered income or capital gain, depending on whether the partner is a legal or physical person respectively.

In this case, each of the remaining elements of active awarded different credits, money or sign that represents it, shall be deemed having a value of zero purchase.

3rd if the result of the operations described in paragraph 1 above is zero or positive, be deemed that income or capital gain or loss there is no.

When the outcome is zero, each of the remaining elements of active awarded different credits, money or sign that represents it, will be zero purchase price.

If the result is positive, the value of acquisition of each of the remaining awarded active elements other than credits, money or sign that represents it, is the result of distributing the positive result among them on the basis of the net book value resulting from the final balance of liquidation of the society that extinguishes.
4th items awarded to the partner, other than appropriations, money or sign that represents it, shall be considered acquired by it at the date of its acquisition by society, while, in the calculation of the amount of capital gains obtained by application to the ninth transitional provision of the consolidated text of the law of personal income tax.

3. during the tax periods that have been concluded until the end of the dissolution process with settlement deadlines indicated in paragraph b) of paragraph 1 of this transitional provision will continue to apply, both transparent societies and its partners, the regulations in force at December 31, 2002.

In the tax periods are completed once finished the quoted term, shall apply heritage societies regime or under the general scheme, as appropriate.

Seventeenth transitory provision. Transitional regime of the deduction for the double internal taxation of dividends at the corporate tax.

In the case of dividends and shares in profit on the capital or equity securities, acquired before the entry into force of the Royal Decree Law 8/1996, of 7 June, they shall not apply restrictions on the deduction to avoid double internal taxation of dividends contained in paragraph 4 of article 30 of this law.

In this case apply to the restrictions contained in article 28 of law 43/1995, 27 December, in its original wording, prior to the entry into force of the Royal Decree Law 8/1996, of 7 June.

18th transitional provision. Pursuant to paragraph 11 of article 115 of the law on assets whose construction period completed prior to December 31, 2002.

The temporary time determined by the Ministry of finance, referred to in paragraph 11 of article 115 of the law, may be made to coincide with the sunset in operating conditions, in the case of assets whose construction period completed prior to December 31, 2002 and whose application to the Ministry of Finance has been submitted before that date.

First final provision. Entities benefiting to the law 49/2002, of 23 December, tax regime of non-profit entities and tax incentives to sponsorship.

The entities that meet the characteristics and comply with the requirements laid down in title II of law 49/2002, of 23 December, tax regime of non-profit entities and tax incentives to sponsorship, will have the tax regime which it is set.

Second final provision. Entities under law 20/1990 of 19 December, on Fiscal regime.

1. the cooperatives will be taxed in accordance with provisions of law 20/1990, of 19 December, on Fiscal regime.

2. the groups of cooperative societies can pay in diet of statement consolidated in accordance with the provisions of the Royal Decree 1345 / 1992, of November 6, whereby the rules for adaptation of the provisions regulating the taxation on profit consolidated groups of cooperative societies.

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

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

(b) modify the quantitative limits and fixed percentages.

(c) modify the exemptions.

(d) enter and modify the precise rules to meet the obligations of the Treaty on European Union and the right to be derived.

(e) modify the tax management and procedural aspects.

(f) modify the deadlines for submission of statements.

(g) establish the coefficients to apply as provided in article 15.10 of this law.

2. the law of the State budget will establish relevant in relation to this tax fiscal incentives, when he is so suitable for the implementation of economic policy. In particular, the investment will stimulate through the total tax deductions based on the acquisition of new tangible elements.

Fourth final provision. Enabling legislation.

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

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