This Royal Decree-Law contains a number of fiscal measures to support businesses and encouraging savings and investment. In particular, they affect the taxation of small and medium enterprises, the tax treatment of contributions to pension plans and the taxation of capital gains and losses.
These building measures are necessary in the current economic climate, to ensure the stable growth of the Spanish economy and avoid inflationary pressures outcrop. Achieving this goal is essential, also, the implementation of the measures immediately.
In addition, the risk that the announcement of reforms of this nature can cause paralysis in investment decisions as well as the need for citizens to know with certainty and in good time the tax consequences that those decisions will require the use of the pathway of Royal Decree-law, thus their effects the measures described below occur immediately.
First, it manifests a strong commitment to supporting small and medium enterprises and innovation initiatives and business internationalization, as a way to improve their competitiveness and, therefore, to guarantee their survival in an environment globalized and rapidly changing.
As regards the measures to support small and medium-sized enterprises, which are the real backbone of our economy and which are so important in the growth and innovation of it first expands significantly the scope of the special income tax regime, bringing a large number of companies will enjoy the fiscal incentives established there and the regime of reinvestment of corporate profits improved.
Moreover, given the importance of new technologies and the willingness to support the innovative and entrepreneurial spirit of our businesses, a tax incentive for those actions aimed at improving access and Internet presence is established as well as the development of electronic commerce and improved in general, its processes by incorporating information technology and communications.
Similarly, through new tax incentives in the corporate income tax or by improving existing ones, staff training in the use of new technologies and investment in technological innovation of enterprises is encouraged. In the same line of support for new businesses, entrepreneurial and innovative, we must contemplate improvements in venture capital regime, as a formula for financing initiatives.
As regards the tax treatment of contributions to pension plans, remember that the promotion of complementary social welfare systems was one of the main issues raised in the so-called Pact of Toledo. In this line, this Royal Decree-Law introduces improvements to the taxation of pension and consequently the mutual welfare, as set forth below:
First, a rise in the overall limits is carried reduction in the tax base for contributions to pension plans and mutual provident, as well as those applicable in the case of participants older and disabled people .
In particular, the general limits are at 1,200,000 pesetas and 25 100 of net income from employment and economic activities, which implies a rise in the absolute limit at 100,000 pesetas and 5 percentage points relative . In the case of older people, the maximum contribution limit rises by 300,000 pesetas and by 20 percentage points, being located respectively at 2,500,000 pesetas and 40 100. Finally, in the case of people with disabilities , the absolute limit at 300,000 pesetas, I being located in 2,500,000 pesetas rises.
Second, an extension of the tax treatment of pension to those spouses who do not work outside the home occurs. The measure incorporated into the project involves facilitation of family savings and responds to a social demand today.
Regard it should be noted that the reduction limits for contributions to pension plans are applied on income earned by each contributor individually. This raises the problem of the impossibility that made reducible contributions to pension plans spouses who do not work outside the home, although, in many cases, contribute, through domestic work, obtaining yields by the cónguye.
The amendment incorporated is allowed to contributions made to pension plans that are holders spouses who obtain employment income and lower economic activities 1,200,000 pesetas, can be subject to reduction in the base taxable income of the other spouse, with a maximum limit of 300,000 pesetas annually.
Consistent with improvements in the tax treatment of pension schemes, taxation of benefits arising from life insurance, increasing the correction coefficients applicable for the determination of the corresponding net yield is improved.
With regard to treatment in the Income Tax of Individuals of profits and losses, first inclusion stated in the special part of the tax base of those derived from transmission assets acquired more than a year in advance, which means a reduction of two years so far in force.
The main purpose of this measure is to avoid making investment decisions for the citizen is conditioned by the influence drastically the time specified in the current regulations. Indeed, maintaining investments for more than two years to get the application from taxation provided for this type of income can be a term too lengthy, so its reduction contributes to greater efficiency in investment decisions of individuals.
At the same time, in line with the tax cuts carried out by Law 40/1998 of December 9, Income Tax of Individuals and other tax rules, the tax applicable time boils down to this type of income from 20 to 18 per 100, thus equating it with the minimum rate at which the general part of the taxable income is taxed. The basis of this measure is twofold: On the one hand, it will certainly help to make it more attractive alternative savings over consumption and, secondly, ensure that no taxpayer can see subjected rents are integrated in the special part of the base taxable corresponding to a higher tax on that are integrated into the general part of the base.
In line with the new tax rate is lowered to 18 100 the percentage applicable to income obtained as a result of the transfer or reimbursement of shares or units in collective investment retention.
In order to support the initiatives of internationalization of our companies, the regime is modified to avoid international double taxation by business activities abroad through subsidiaries or permanent establishments located abroad . The application of the exemption method for these
Income favors the internationalization of Spanish companies to improve their competitive position in the international arena. However, the amendment to the rules to prevent double taxation is accompanied by anti-abuse measures intended to prevent artificial relocation of business activities.
In addition, a new tax incentive in the income tax that complements the measures to promote the implementation of Spanish companies abroad, allowing to defer payment of that tax in cases where investments are made in the set abroad by taking equity stakes in non-resident companies engaged in business activities. In particular, it allows the taxpayer to reduce your taxable income by the amount of the investment, forming part of taxable income the amount deducted subsequent tax periods.
Finally, this Royal Decree-Law other measures also of great economic and social importance are addressed.
First, with the aim of completing the reform of income tax of individuals with respect to treatment of the residence and taking into account the complementary nature of who should have the tax heritage, the exemption set out in the latter tax residence of the taxpayer, at least to the extent that its taxable value does not exceed 25,000,000 pesetas.
Second, the regime set out in the Income Tax of Individuals and corporate income tax of securities lending in order to facilitate completion of these operations in the Spanish financial markets.
By virtue, in use of the authorization contained in Article 86 of the Constitution, and after deliberation by the Council of Ministers at its meeting on June 23, 2000,
Measures on small and medium enterprises and innovative enterprises
Article first. Scope of the special scheme for small companies in the corporate income tax.
With effect for tax periods beginning on or after the entry into force of this Royal Decree Law, Article 122 of Law 43/1995 of December 27, the income tax, shall read follows:
"Article 122. Scope:.. Turnover
1 tax incentives set out in this chapter shall apply provided that the net amount of the turnover in the period given immediately preceding tax is less than 3 million euros (499.158 million pesetas).
2. When the newly created entity regardless of the amount of the turnover shall cover the first tax period . which is effectively develop the activity If the immediately preceding tax period having had a shorter duration than a year, or any activity developed during a period also lower, the net amount of the turnover will rise a year
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3. When the entity is part of a group of companies within the meaning of Article 42 of the Commercial Code, the net amount of the turnover will refer to the set of entities belonging to that group. he also applies this criterion when an individual alone or jointly with other individuals linked by ties of kinship direct or collateral, consanguineous or by affinity up to the second degree inclusive, are relative to other entities that are partners in some of the cases that Article 42 of the Commercial Code refers to.
For the purposes of the provisions of this paragraph, you will understand that the cases of Article 42 of the Commercial Code are those referred to in section 1a of the first chapter of the standards for the preparation of consolidated annual accounts approved by Royal Decree 1815/1991 of 20 December. "
Article second. Incentives for reinvesting in small companies.
with effect for periods tax beginning on or after the entry into force of this Royal Decree law, Article 127 of law 43/1995 of December 27, the income tax, shall read as follows:
"Article 127. Amortization of assets subject to reinvestment.
1. Property, plant and equipment to economic operations in which the reinvestment of the total amount obtained from the onerous transfer of tangible assets materializes, also subject to economic exploitation, made in the tax period in which the conditions of Article are met 122 of this Act may be amortized based on the coefficient obtained by multiplying by three the maximum coefficient of linear depreciation provided in officially approved amortization tables. The reinvestment must be made within that Article 21.1 of this Law.
2. When the amount invested is higher or lower than in the transmission, depreciation to which the preceding paragraph shall apply only on the amount of such transmission is subject to reinvestment.
3. The resulting excess deduction depreciable amount of the provisions of this article with respect to the depreciation actually given, will not be subject to it being recorded in the profit and loss account. "
Third Article. Deduction to promote the use of new technologies by small companies.
With effect for tax periods beginning on or after the entry into force of this Royal Decree-Law, a new Article 33a is added in the
Law 43/1995 of December 27, the income tax, which shall read as follows:
"Article 33a. Deduction for the promotion of information technology and communication.
1. The entities that meet the requirements of section 122 of this Act shall be entitled a deduction in the total tax liability 10 100 the amount of investment and period expenses related to improving their ability to access and manage information from commercial transactions over the Internet, as well as improving their internal processes through the use of information technology and communication, as specified below:
a) Internet access, including:
Acquisition equipment and terminals, with its "software" and associated peripherals for the Internet connection and access to email facilities.
Acquisition of communications equipment to connect specific internal computer networks to the Internet.
Installation and implementation of such systems.
Training company personnel to use.
B) Presence on the Internet, including:
Acquisition of equipment, with "software" and associated peripherals for the development and publication of pages and portals "Web".
Performing tasks, internal or outsourced, for the design and development of sites and portals "Web".
Installation and implementation of such systems.
Training company personnel to use.
C) e-commerce, including:
Acquisition of equipment, with its "software" and associated peripherals for the implementation of e-commerce over the Internet with adequate guarantees of security and confidentiality of transactions.
Acquisition of equipment, with its "software" and associated peripherals for the implementation of e-commerce through closed networks of clusters customers and suppliers.
Installation and implementation of such systems.
Training company personnel to use.
D) Incorporation of information technology and communications business processes, including:
Acquisition of equipment and packages specific "software" for interconnecting computers, voice and data integration and creating Intranet configurations.
Packages Acquisition "software" for applications to specific management processes, design and production.
Installation and implementation of such systems.
Training company personnel to use.
2. This deduction is incompatible for the same investments or other expenses provided for in this chapter. The share of investment or expenditure financed by grants shall not entitle to deduction. "Fourth article. Deduction for training staff in the use of new technologies.
With effect for periods tax beginning on or after the entry into force of this Royal Decree-law, a new paragraph 3 is added to Article 36 of law 43/1995 of December 27, the income tax, with the following wording:
"3. The deduction also applies to those costs incurred by the entity in order to accustom employees in the use of new technologies. Included among these expenses are made to finance your Internet connection and equipment for access to it, even when the use thereof by employees can perform off-site and working hours. The expenditure referred to in this section shall be treated, for tax purposes, training expenses and will not give obtaining performance of work for the employee. "
Fifth. Article Amendment of the tax credit for scientific research and technological innovation in corporate income tax.
with effect for tax periods beginning on or after the entry into force of this Royal Decree-law, Article 37 of Law 43/1995 of December 27, the income tax, shall read as follows:
"Article 37. common to the deductions provided for in this chapter Standards.
1. The deductions provided for in this chapter will practice once made deductions and bonuses Chapters II and III of this title.
The amounts corresponding to the tax period deducted shall not apply to the settlement of the tax periods ending in the five immediate and subsequent years.
However, the corresponding deductions under Articles 33 and 33a of this Act, quantities may apply to the settlement of the tax periods ending in the following ten years.
The calculation of deadlines for the implementation of the deductions provided for in this chapter may be deferred until the first year in which, within the limitation period, positive results occur in the following cases:
A) In the newly created entities.
B) entities sanitized prior year losses by effective contributions of new resources, without being considered as such the application or capitalization of reserves.
The amount of the deductions provided in this chapter to which this paragraph, applied in the tax period may not exceed 35 100 together from the whole amount, reduced by deductions to avoid double taxation and internal international and bonuses. However, the limit will rise to 45 100 when the amount of the deduction under Articles 33 and 33a corresponding to expenses and investments incurred in the tax period itself, exceed 10 per 100 of the total tax liability, minus in deductions to avoid domestic and international double taxation and bonuses.
2. The same investment may not lead to the application of the deduction in more than one entity.
3. The assets assigned to the deductions provided for in the preceding articles shall remain in operation for five years or for life if it is less.
Conjunction with the corresponding to the tax period in which the breach of this requirement is manifested fee, the amount deducted shall be paid, plus default interest. "
Article sixth. Reduction to a year after the deadline for bonus capital gains realized by companies and venture capital funds.
with effect for tax periods beginning on or after the entry into force of this Royal Decree law, Article 69 of law 43/1995 of December 27, the income tax, shall read as follows:
"Article 69. Companies and venture capital funds.
1. Companies and venture capital funds, regulated by Law 1/1999 of 5 January, regulating venture capital entities and their management companies, enjoy partial exemption for income obtained in the transfer of shares and equity investments in companies that Article 2.1 of that law refers to, involving, depending on the year of transmission computed from the time of acquisition. This exemption will be 99 100 from the beginning of the second year until the twelfth, inclusive.
may be allowed an extension of this deadline until the seventeenth year, inclusive. Regulations assumptions, conditions and requirements to enable this extension will be determined.
With the exception of the case referred to in the preceding paragraph, in the first year and from the twelfth not the exemption applies.
2. Dividends and, in general, shares perceived benefits of the companies companies and funds venture capital promote or encourage enjoy the deduction provided for in Article 28.2 of this Act regardless of the percentage of ownership and time possession of the shares.
3. Dividends and, in general, holdings in perceived corporate profits and capital funds venture enjoy the deduction provided for in Article 28.2 of this Act regardless of the percentage of participation and holding period of the shares . "
TITLE II Measures relating to pension plans and life insurance
Article seventh. lift limits reduction in the tax base Income tax of Individuals for contributions to pension plans. Extension of the tax treatment of pension plans spouses of income earners.
It rewords the number two new numbers 4th and 5th and 6th paragraph 1 of Article 46 of Law 40/1998 of December 9, Income Tax of Individuals and other are added Tax regulations, as follows:
"4th The contributions made by participants in pension plans, including contributions promoter that had been charged to them in respect of work performance.
Grades 5 As ceiling set these reductions the lesser of the following amounts shall apply:.
a) 25 100 of the sum of net income from work and received individually in exercising economic activities
for these purposes, be considered earned income imputed by transparent societies governed by Article 75, paragraph 1 b) and c) of Law 43/1995 of 27 December, Tax companies, their partners effectively exercise their activity through them as professionals, artists or athletes.
However, in the case of participants over fifty-two years, the percentage This will be 40 100.
b) 1,200,000 pesetas (7,212.15 euros) per year.
However, in the case of participants over fifty-two, the previous limit will increase by 100,000 pesetas (601.01 euros) additional for each year of age of the participant exceeding fifty-two, taking in 2,500 .000 pesetas (15,025.30 euros) for unitholders of sixty-five years or more.
6th addition to the reductions made in accordance with the above limits, taxpayers whose spouse obtain net income from work and lower economic activities 1,200,000 pesetas (7,212.15 euros) may reduce the tax base Contributions to pension plans which the spouse is a participant, with the maximum annual limit of 300,000 pesetas (1,803.04 euros). "
eighth article. Raising the limits for plans pension and mutual provident societies constituted in favor of people with disabilities.
the amounts of 1,100,000 pesetas (6,611.13 euros) and 2,200,000 pesetas (13,222.27 euros) to the seventeenth additional provision of Law 40/1998 of December 9, Income Tax of Individuals and other Tax Regulations refers amounted to 1,200,000 pesetas (7,212.15 euros) and 2,500,000 pesetas (15,025.30 euros) respectively.
Article ninth. Raising the contribution limits to pension plans.
Is reworded to paragraph 3 of Article 5 of Law 8/1987, of June 8, Regulatory Plans and Pension Funds, which reads as follows:
. "3 The maximum annual contributions to plans covered by this Act, including, where appropriate, of the promoters of these plans charged to unitholders pension may not exceed in any circumstances 1,200,000 pesetas (7,212.15 euros).
However, in the case of participants older than fifty-two years of age that this amount will be insufficient, the previous limit will increase by 100,000 pesetas (601.01 euros) additional for each year of age of the participant exceeding fifty-two, taking in 2,500,000 pesetas (15,025.30 euros) for unitholders of sixty-five years or more.
the ceiling laid down in this section apply individually to each integrated participant in the family unit. "
Tenth article. Elevation of the correction coefficients apply to income derived from life insurance contracts.
Articles 17.2, c) and d), and 24.2, b) and c) of Law 40/1998 of December 9, Income Tax of Individuals, the percentages 60 100 and 70 100 become, respectively, 100 and 65 100.
Measures on capital gains and losses
Eleventh article. Reducing to one year the deadline for integrating capital gains and losses in the special part of the tax base.
Paragraph 1 of Article 39 of Law 40/1998 of December 9, Income Tax of Individuals and other Tax Rules, shall read as follows:
. "1 The special part of the tax base will consist of the positive balance resulting from adding and offsetting exclusively with each other in each tax period, gains and losses that becomes apparent during transmission elements property acquired or improvements therein, more than one year prior to the date of transfer or subscription rights corresponding to securities acquired also in the same time. "
Twelfth article. Reduction Special rates for the determination of the state total tax liability.
Article 53 of Law 40/1998 of December 9, Income Tax of Individuals and other Tax Rules, shall read as follows:
"Article 53. Special rates.
1. The special taxable income is taxed at the rate of 15,30
100. 2. The special taxable income taxpayers referred to in Article 9, paragraphs 2 and 3 of this Act, it shall be taxed at the rate of 18 per 100. "
Thirteenth article. Reduction Special rates for the determination of the regional total tax liability.
Article 63 of Law 40/1998 of December 9, Income Tax of Individuals and other Tax Rules, shall read as follows:
"Article 63. Type special charge.
The special taxable income will be taxed at the rate of 2.70 per 100."
Fourteenth article. Reduced retention rate and payment on account applicable to income obtained as a result of the sale or redemption of shares or units in collective investment.
The applicable to income obtained as a result of the sale or redemption of shares or units in collective investment, for calculating withholding and other payments of Income Tax of Individuals or tax rate Corporation, will be 18 100.
Reglamentariamente this percentage may be modified.
Measures to support the internationalization of companies
Fifteenth article. Measures to avoid double taxation on income tax.
With effect for tax periods beginning on or after the entry into force of this Royal Decree Law, two new articles, 20a and 20b, the Law 43/1995 of December 27 are incorporated, corporate income tax, with the following wording:
"Article 20a. Exemption to avoid international double taxation on dividends and capital gains from foreign sources.
1. Be exempt dividends or shares in profits of non-resident entities in Spanish territory when the following conditions are met:
a) the percentage of participation, direct or indirect, in the capital or equity of non-resident entity is at least 5 per
100. the corresponding participation must have continuously for the previous day becomes due the profit distributed or, failing that, should be maintained subsequently for the time required for year complete that period. for calculating the period the period will also consider that the holding was owned by other entities that meet the circumstances that Article 42 of the Commercial Code refers to form part of the same group of companies .
B) The investee has been subject to a tax identical or substantially similar to this tax in the year in which they have obtained the benefits are shared or in which participates nature.
For this purpose, be taken into account those foreign taxes which have been aimed at the taxation of income obtained by the investee, even partially, regardless of whether the object of what constitutes income tax itself, revenue indiciario or any other element of it.
Fulfilled this requirement shall be presumed, unless proven otherwise, if the investee is resident in a country with which Spain has signed an agreement to avoid double taxation, which is applicable and contain exchange clause information.
C) That the benefits are distributed or those involved come from conducting business activities abroad.
it shall be deemed to meet this requirement when at least 85 100 of income for the year correspond to:
A ') Rents have been obtained abroad and are not included among those classes of income referred to in paragraph 2 of Article 121 is referred to as likely to be included in the tax base by applying the system of fiscal transparency international.
In any case the provisions of this Article shall apply when the investee to obtain such income is resident in a country or territory classified as a tax haven.
In particular, for these purposes, they shall be deemed obtained abroad the income from the following activities:
Wholesale, when the goods are made available to purchasers in the country or territory in which the investee resides or in any other country or different from Spanish territory where operations are conducted through the organization of human and material resources available to the investee.
Services, when used in the country or territory in which the investee resides or in any other country or different from Spanish territory, provided they are effected through the organization of human and material resources available to the entity investee.
Credit and financial, when loans and credits are granted to individuals or entities resident in the country or territory in which the investee resides or in any other country or different from Spanish territory where operations are conducted through the organization of human and material resources available to the investee.
Insurers and reinsurers when risks are insured in the country or territory in which the investee resides or in any other country or different from Spanish territory, provided they are made through personal media organization and materials available to the investee.
B ') Dividends or shares in profits of other non-resident entities for which the taxpayer is the percentage share referred to in point a), when the aforementioned benefits meet the requirements of this section. In addition, gains from the transfer of participation in such non-resident entities, where the requirements of this paragraph are fulfilled.
Shall not be included in the tax base of the entity receiving the dividends the depreciation of the share distribution derived thereof, in the terms provided in paragraph 5 of Article 30 of this Law.
For the purposes of this article, in the case of distribution of reserves will be addressed to the designation contained in the social agreement and, failing that, be deemed applied the latest sums paid to these reserves.
2. It shall be exempt the positive income obtained from transfer of participation in a non-resident entity in Spanish territory, where the requirements set out in the preceding paragraph are met. The same rules apply to the income obtained in the cases of separation partner or dissolution of the entity.
The requirements referred to in subparagraphs b) and c) must be fulfilled in each and every one of the exercises tenecia of participation. The requirement in point a) shall relate to the day when the transfer takes place.
Exemption shall not apply when the purchaser is resident in a country or territory classified as a tax haven.
In the following cases, the application of the exemption shall specialties listed below:
A) When the market value of holdings in entities resident in Spanish territory and assets located in the territory held by the non-resident entity directly or indirectly, more than 15 per 100 of the market value of its assets total.
In this case, the exemption will be limited to that part of the income obtained corresponding to the net increase in undistributed profits generated by the investee during the holding period of participation.
B) When the taxpayer had made a correction value on the transmitted participation it would have been tax deductible.
In this case, the exemption is limited to the excess of income obtained on the transfer of the amount of the correction.
C) When participation in the non-resident entity is acquired to another entity that meets the circumstances that Article 42 of the Commercial Code refers to form part of the same group of companies, apply the following specialties:
A ') The negative income obtained on the transfer of participation in the non-resident entity will be reduced by the amount of positive income obtained in the transmission of the same share to which the exemption had been applied.
B ') The positive income obtained from transfer of participation in the non-resident entity will be taxed up to the amount of negative income obtained in previous transmissions it had been included in the tax base of this tax.
3. the arrangements provided for in this article shall not apply:
A) In those tax periods in which the taxpayer is treated as a transparent society.
B) dividends or capital gains in respect of which the entity applies the deduction provided for in Articles 29 or 30 of this Act.
C) In relation to those subsidiaries develop their activity abroad with the main purpose of enjoying the tax regime provided therein. Shall be presumed to be the case when the same activity in which the foreign subsidiary, in relation to the same market had developed
Previously in Spain by another entity which has ceased that activity and keep with it some of the relationships that Article 42 of the Commercial Code, unless the existence of other valid economic reason concerns proven. "Article 20 b. Exemption of certain income obtained abroad through a permanent establishment.
1. be exempt the income obtained abroad through a permanent establishment situated outside the territory Spanish when the following conditions are met:
a) the income of the permanent establishment of appropriate corporate activities abroad, under the terms provided in subparagraph c) of paragraph 1 of Article 20 bis of this Act.
b) the income derived by the permanent establishment has been taxed by a tax identical or substantially similar nature to this tax under the terms of the previous article, and not it is situated in a country or territory classified as a tax haven.
2. When in previous tax periods the permanent establishment had obtained negative net income that would have been included in the tax base of the entity, the exemption provided in this article only apply to income obtained after from the moment that exceed such negative income.
3. For these purposes, shall be considered as an entity operates through a permanent establishment abroad when, for any reason, provided outside the Spanish territory, continuously or habitually, facilities or workplaces where do all or part of their activity. In particular, it is deemed to constitute permanent establishments those letter a) of paragraph 1 of Article 12 of Law 41/1998, of December 9, the Income Tax Nonresident concerns.
4. the rules provided in this article when you give respect the taxpayer or the income earned abroad, the circumstances described in the last paragraph of the previous article shall not apply. The option letter b) of that paragraph to be exercised by each establishment outside the Spanish territory, even if there are several in the territory of one country. "
sixteenth article. Extension of deadline for calculating deductions to avoid double taxation.
with effect for tax periods beginning on or after the entry into force of this Royal Decree-law , within seven years referred to in Article 29, paragraph 4 and 30, paragraph 4, of Law 43/1995, of 27 December, Corporation Tax, it becomes ten years.
seventeenth article. Deduction in tax credits for establishment of companies abroad.
with effect for tax periods beginning on or after the entry into force of this Royal Decree-law, a new article, 20c, law 43/1995, of December 27, the income tax, with the following wording is added:
"Article 20c. Deduction for investments for the establishment of companies abroad.
1. It will be deductible in the tax base the amount of the investments actually made in the period to acquire of shares in the equity of non-resident companies in Spanish territory that achieve the majority of the voting rights therein, provided that the following conditions are met:
A) The investee company engaged in business activities abroad, under the terms established in the letter c) of paragraph 1 of Article 20a of this Act. No deduction will fit when the main activity of the investee is real financial or insurance, or if it consists in providing services to residents in Spanish territory related entities.
B) That the activities of the investee do not previously prosecuted under different ownership.
C) The Company is not resident in the territory of the European Union or in any of the countries or territories statutorily qualified as tax havens.
This deduction will not be subject to its accounting implementation in the profit and loss account.
2. The maximum annual amount of the deduction shall be 5,000 million pesetas, not exceeding 25 per 100 of the tax base of the tax period before calculating it.
The amount of the deduction is reduced by the amount of the depreciation of the value of the stake held in non-resident companies that had been tax deductible.
The amount deducted in the tax base does not entitle to the deduction provided for in Article 34 of this Law.
3. The amounts deducted shall be included in the taxable amount equally in the tax periods ending in the next four years. If any of these tax periods in the depreciation of the value of participation in those societies were to occur, will be included in the tax base of the addition, the amount of the depreciation that had been tax deductible, to complete the amount of the deduction.
The degree of participation and other requirements for the deduction must be met for at least four years. If it were not so, in the tax period in which the failure occurs will be integrated in the taxable amount deducted the entire amount of such integration was pending.
4. The provisions of this article shall not apply in relation to those subsidiaries develop their activity abroad with the main purpose to enjoy the deduction provided for therein. Shall be presumed to be the case when the same activity in which the foreign subsidiary, in relation to the same market had developed to riority in Spain by another entity that has ceased such activity and keep with it some of the relationships that Article 42 of the Commercial Code, unless the existence of other valid economic reason proven means. "
eighteenth article. Modification of the system of entities holding foreign securities.
with effect for tax periods beginning on or after the entry into force of this Royal Decree law, articles 129 to 132 of law 43/1995 of 27 December, the Corporate tax shall read as follows:
Regime for entities holding foreign securities
Article 129. Entities holding foreign securities.
1. the system shall be eligible under this chapter whose purpose entities understand the activity of management and administration of securities representing the equity of non-resident entities in Spanish territory, through the organization of material and human resources.
The securities representing shares in the capital of these entities must be nominative. Transparent companies may not benefit from the scheme of this chapter.
2. The option for the regime entities holding foreign securities should contact the Ministry of Finance. The scheme will apply from that tax period ends after that communication.
Article 130. Income derived from the holding of securities representing the equity of non-resident entities in Spanish territory.
Be exempt dividends or shares in profits of non-resident entities in Spanish territory, as well as positive income derived from the transfer of the corresponding share, in the conditions and with the requirements of Article 20a of this Act.
For the purposes of applying the exemption, the minimum participation requirement under point a) of paragraph 1 of Article 20a shall be deemed fulfilled when the value of acquisition of the stake exceeds 6 million euros refers ( 998 316 000 pesetas).
Article 131. Distribution of profits.
Transmission of participation.
1. Distributed profits exempt under the preceding article refers to income receive the following treatment:
A) Where the recipient is an entity subject to this tax, the perceived benefits will be entitled to the deduction for double taxation of dividends under the terms established in Article 28 of this Law.
B) Where the recipient is taxpayer Income Tax of Individuals, distributed benefit not entitle to the deduction for double taxation of dividends, but may apply the deduction for international double taxation under the terms provided in Article 67 of Law 40/1998 of December 9, income tax of Individuals, for taxes paid abroad by the entity holding securities and correspond to the exempt income that have contributed the formation of the perceived benefits.
C) Where the recipient is an individual not resident in Spanish territory or entity, distributed benefit need not be obtained in Spanish territory. In the case of a permanent establishment situated in Spanish territory, the provisions shall apply in the letter a). The distribution of the share premium will have the treatment provided in this letter to the distribution of profits.
For this purpose, it is understood that the first benefit comes from exempt income distributed.
2. Income derived in the transmission of participation in the entity holding securities or in cases of separation from partner or liquidation of the entity will receive the following treatment:
A) Where the recipient is an entity subject to this tax or a permanent establishment situated in Spanish territory, apply the exemption under Article 20a of this Act, in relation to the value differences attributable to shares in non-resident entities that meet the requirements in paragraph 1 of this article refers to, and the rest of the income received will entitle the deduction for internal double taxation of capital gains, in the terms set out in Article 28 of this Law. | ||
B) Where the recipient is an individual not resident in Spanish territory or entity, need not be obtained in Spanish territory income that corresponds with reservations equipped exempt under Article refers to income 20a or differences in value attributable to holdings in non-resident entities that meet the requirements in paragraph 1 of this article refers to.
3. The entity holding securities shall state in memory the amount of exempt income and taxes paid abroad corresponding to them, and provide its members with the information necessary for them to comply with the provisions of the preceding paragraphs.
4. The provisions in point c) of paragraph 1 and point b) of paragraph 2 of this Article shall not apply when the annuitant is resident in a country or territory classified as a tax haven.
Article 132. Application of this regime.
1. The enjoyment of the scheme will be subject to compliance with the factual circumstances relating thereto, which shall be tested by the taxpayer at the request of the tax authorities.
2. Nonmonetary contributions of securities representing the equity of entities not resident in Spanish territory will enjoy the arrangements provided for in Article 108 of this Act, regardless of the percentage interest in the entity holding securities that those contributions confer, provided that the income from such securities can enjoy the arrangements provided for in Article 20a of this Act. "
nineteenth article. tax consultations regarding the status of entities holding foreign securities .
a new letter g) is incorporated in paragraph 4 of Article 107 of Law 230/1963 of 28 December, General Tax, with the following wording:
"g) Interpretation and application of the scheme for entities holding foreign securities in the Corporate Income Tax Law."
Article twenty. Exemption Tax Income Physical for income received for work performed abroad people.
With effect for tax periods beginning on or after the entry into force of this Royal Decree Law, the letter p) of Article 7 of Law 40/1998 of December 9, Income Tax of Individuals and other Tax Regulations, it reads as follows:
"P) yields salary income for work effectively performed abroad, with the following requirements:
1st The work must be done for a company not resident in Spain or permanent establishment situated abroad.
2nd in the territory in the work carried out a tax identical or substantially similar to the nature of this tax is applied and no question of a country or territory which has been classified as a tax haven.
The exemption will have a maximum annual limit of 10,000,000 pesetas (60,101.21 euros).
Reglamentariamente that amount may be modified.
this exemption is incompatible, for taxpayers posted abroad, with the regime of excluded excesses of taxation provided for in Article 8.A.3.b) of Regulation this tax, approved by Royal Decree 214/1999, of February 5th, whatever the amount.
The taxpayer may opt for the application of the system of excesses in replacement of this exemption. "
Twenty-first article. Option to pay tax liability in the Wealth Tax of displaced workers .
abroad letter a) of paragraph 1 of Article 5 of Law 19/1991 of June 6, the wealth tax would read as follows:
"a) personal obligation, individuals who have their habitual residence in Spanish territory, requiring the tax on all of its net assets regardless of where the goods are located or rights may be exercised .
When a resident in Spanish territory pass to have their residence in another country may choose to continue paying tax liability in Spain. The option must exercise by submitting the declaration liability in the first year in which had ceased to be resident in the Spanish territory. "First additional provision. Exemption from the residence in the Capital Gains Tax.
January 1 new number 9 to Article 4o of Law 19/1991 of June 6, with the following content is added. The residence of the taxpayer, as defined in Article 55.1.3.o of Law 40/1998 of December 9, Income Tax of Individuals, up to a maximum amount of 25,000,000 pesetas ( 150,253.03 euros) "
2 a new number 3 to Article 25 of Law 19/1991 of June 6, with the following content is added:..
"3. In no case shall be subject to deduction debts incurred for the acquisition of goods or exempt rights. When partial exemption, be deductible, if applicable, the proportion of debt. "
Second additional provision. Taxation on income tax and the income tax of individuals of certain securities lending.
in the terms established by regulation, will not lead to alterations of heritage in the Income Tax of individuals or related corporation tax the lender, the securities lending transactions that meet the requirements set out in Article 36.7 of Law 24/1988 of 28 July on the securities Market and its implementing regulations.
|| | third additional provision transfers between spouses to make contributions to pension plans in accordance with Article 46.1.6.o of the Law on Income Tax of Individuals
transmissions between.. spouses that occur as a result of the provisions of Article 46.1.6.o of Law 40/1998 of December 9, Income Tax of Individuals and other Tax Regulations shall not be subject to inheritance tax and donations to the limit laid down in that provision.
First transitional provision. applicable to outstanding offset losses in the Income Tax of Individuals, generated between one and two years regime.
Net Article 38, letter b) of Law 40/1998 of December 9, Income Tax of Individuals and other Tax Regulations, for the tax period refers to capital losses 1999 that are pending compensation to January 1, 2000 and had been revealed during the transmission of acquired assets or improvements therein, more than one year and up to two years before the date transmission, will continue compensated in accordance with the provisions of the said Article 38, letter b).
Second transitional provision. unused tax credits from applying Articles 29a and 30a of the Corporate Income Tax Law.
The deductions referred to Articles 29a and 30a of Law 43/1995 of December 27,
Corporate income tax, pending practice after completion of the current tax period after the entry into force of this Royal Decree-Law shall be deducted in the tax periods concluded after that date under the conditions and requirements of the same.
Third transitory provision. Adaptation to the new regime entities holding foreign securities.
1. Entities that the entry into force of this Royal Decree-Law had granted the status of entities holding foreign securities may not waive the regime of Chapter XIV of Title VIII of Law 43/1995 of December 27, Corporate Income Tax, under the terms established by this Royal Decree law, informing the Ministry of Finance before the end of the first fiscal period ending after its entry into force.
2. The conversion into nominative securities representing shares in the capital of the entities that the entry into force of this Royal Decree-Law had granted the status of entities holding foreign securities must be made within the first tax period in which is applied the new regime.
Repealing provision one. Repeal of sections 29a and 30a of the Corporate Income Tax Law.
With effect from January 1, 2001, are repealed Articles 29a and 30a of Law 43/1995 of December 27, the income tax.
However, it shall apply the provisions of those articles to determine the deduction on income corresponding to tax periods commencing prior to the entry into force of this Royal Decree Law, even when obtained after that date.
First final provision. regulatory development.
The Government is authorized to issue any provisions necessary for the development and implementation of this Act.
Second final provision. Entry into force.
This Royal Decree-Law shall enter into force on the day following its publication in the "Official Gazette" day.
Given in Madrid on 23 June 2000.
JUAN CARLOS R.
The Prime Minister, Jose Maria Aznar Lopez