The regulation of the Income Tax of the Physical Persons (IRPF), corresponding to the 1998 financial year is mainly contained in Law 18/1991, of 6 June ("Official State Gazette" of 7), and in the Regulation of the Tax approved by Article 1 of Royal Decree 1841/1991 of 30 December 1991 (Official Gazette of the State of 31).

Article 96 of that Law determines in paragraphs one, two and three the subjects required to make a declaration for this Tax and provides in paragraph four that such a declaration shall be made in the form, time and form establishing the Minister for Economic Affairs and Finance, who may approve the use of simplified or special forms of declaration and determine the places of presentation thereof, as well as the supporting documents and documents which they must accompany them.

Likewise, the aforementioned Law in Article 97 states that taxable persons, while filing the tax return, must determine the corresponding tax liability and enter it in the place, form and time limits. In addition, the Minister for Economic Affairs and Finance has stated that the amount of the amount resulting from the self-settlement may be split into the form that it is determined to regulate.

The Income Tax Regulation of the Physical Persons provides in Article 39 that the income of the amount resulting from the self-settlement may be split, without interest or surcharge, in two parts: The first, the 60 per 100 of its amount, at the time of filing the declaration and the second, of the remaining 40 per 100, within the time limit determined by the Minister of Economy and Finance, where necessary, in order to enjoy this benefit, that the declaration is presented within the time limit set.

For the financial year 1998, the regulation of the Income Tax of the Physical Persons has undergone certain modifications that must have its proper reflection in the models of declaration of said Tax, and that In Law 65/1997 of 30 December 1997, the General Budget of the State for 1998 ("Official State Gazette" of 31), in Law 66/1997 of 30 December 1997, of Fiscal, Administrative and Social Order Measures ("Official Journal of the European Communities"). State " of 31), and its corresponding regulatory developments.

As part of the amendments made by the above mentioned rules, it is important to note in particular those operated by Law 66/1997 in the field of taxation of small and medium-sized enterprises with a view to promoting the creation of employment and incentives for business investment, while ensuring better control of fraud.

These measures affect the systems for determining the net income of small and medium-sized entrepreneurs and professionals, and take concrete form in the creation of a simplified modality within the framework of the direct estimation and in the new regulation of the objective estimation regime of which the mode of coefficients disappears.

According to the regulatory development of these legal changes, which are contained in Royal Decree 37/1998 of 16 January, amending the Regulations on the Income Tax of the Physical Persons, Tax on Value Added and Indirect General Tax Canarian, to incorporate certain measures on the taxation of small and medium-sized enterprises, as well as the Royal Decrees that regulate the census statements and the duty of to issue and deliver an invoice for employers and professionals ("Official State Gazette"). 17).

The new simplified mode of the direct estimation scheme is characterised by the reduction of registration obligations and the simplification of the procedure for determining net return. For these purposes, net income is determined by difference between full income and tax deductible expenses. However, the calculation of some of them, especially those which, according to the general accounting principles and rules, would have higher registration requirements, are replaced by the application of a certain percentage. In particular, the set of deductible provisions and difficult-to-justify expenses will be quantified in this modality by applying the 5% per 100 percentage on net yield, excluding these concepts and increases and decreases. of assets derived from affections.

As far as the objective estimation regime is concerned, it can be highlighted as more important novelties, in addition to the already commented disappearance of the modality of coefficients, the consideration in the calculation of the net yield of the depreciation of the fixed assets. In this regard, the Order of 13 February 1998, for which the provisions of Articles 22 (1) and (28) of the Rules of Procedure on the Income of Physical Persons and 37, 38, 39 and 42 of the Regulation are complied with for 1998 and 1999 of the Value Added Tax ("Official State Gazette" of the 14), contains the Table of Simplified Amortization to be applied for the determination of the depreciation of the immobilized affection to the business activities included in (a)

In relation to the withholding and income from the Income Tax of the Physical Persons, the Royal Decree 113/1998 of January 30, for which certain articles of the Regulations of the Tax on the Income of the Physical Persons and the Tax on Societies concerning withholding and other payments on account ("Official State Gazette" of 31), has declared subject to withholding or income to account certain income from the leasing of urban real estate, which requires the inclusion of this new mode of retention within payments on account of the Income Tax of the Physical Persons.

On the other hand, the autonomic aspects referred to in Articles 73a, 74a and 75a of Law 18/1991 of 6 June of the Income Tax of the Physical Persons apply, as in the previous year, to all taxpayers, regardless of whether or not the Autonomous Community in which it resides has assumed or not jurisdiction in matters relating to the Income Tax of the Physical Persons.

Now, within the aforementioned autonomic aspects, the novelty of the fact that certain Autonomous Communities of which they have assumed normative competences in the field of the Income Tax must be emphasized. Natural persons, in accordance with the provisions of Article 13 (1). (b) of Law 14/1996 of 30 December 1996 on the transfer of taxes from the State to the Autonomous Communities and the Complementary Tax Measures ("Official State Gazette" of 31), have approved autonomous deductions which may be applied by the (a) contributing to the implementation of the financial year 1998; However, since none of the Autonomous Communities have assumed regulatory powers in this area for the approval of the autonomous tariff, all taxable persons, whether resident in the territory of the latter, are not Communities or those that have not taken on board of laws, shall apply the general and complementary scale of the tax referred to in Articles 74 and 74a of the Law on the Income Tax of the Physical Persons, respectively.

The Autonomous Communities that have approved autonomous deductions for the 1998 financial year are as follows:

Autonomous Community of Aragon. Law 4/1998, of 8 April, of Tax, Financial, Heritage and Administrative Measures ("Official Gazette of Aragon" of the 13th and "Official Gazette of the State" of 7 May).

Autonomous Community of Balearic Islands. Law 9/1997, of 22 December, of various Tax and Administrative Measures ("Official Gazette of the Autonomous Community of the Balearic Islands" of the 30th and "Official Gazette of the State" of 17 April 1998).

Autonomous Community of Castilla y León. Law 11/1997, of 26 December, of Economic, Fiscal and Administrative Measures ("Official Gazette of Castilla y León" of the 31st and "Official Gazette of the State" of 10 March 1998).

Autonomous Community of Catalonia. Law 16/1997 of 24 December 1997 on the Government of Catalonia ("Official Journal of the Generality of Catalonia" of 31 and "Official Gazette of the State" of 4 February 1998, correction of errors "Official State Gazette" of 13 of ).

Autonomous Community of Galicia. Law 2/1998, of 8 April, of Tax Measures, of Budget Regime, Civil Service, Heritage, Organization and Management ("Official Journal of Galicia", 9 and "Official State Gazette" of 8 January 1999).

Autonomous Community of Madrid. Law 28/1997 of 26 December 1997 on Tax and Administrative Measures (Official Gazette of the Community of Madrid of 2 January 1998 and "Official Gazette of the State" of 27 August).

Autonomous Community of the Region of Murcia. Law 13/1997, of 23 December, of Fiscal, Budgetary and Administrative Measures ("Official Gazette of the Region of Murcia" of 30, as amended by Law 7/1998, of 4 December, "Official Gazette of the Region of Murcia" of 5).

Autonomous Community of La Rioja. Law 9/1997, of 22 December, of Fiscal and Administrative Measures, ("Official Gazette of La Rioja" of 27 and "Official Gazette of the State" of 27, correction of errors "Official State Gazette" of 2 April 1998).

Autonomous Community of Valencia. Law 13/1997 of 23 December 1997 regulating the autonomous section of the Income Tax of the Physical Persons and other taxes transferred ("Official Journal of the Valencian Government" of 31, corrigendum "Official Journal of the European Union") Generalidad Valenciana "of 18 February 1998 and" Official State Gazette " of 7 April.)

According to the legal enablement contained in Article 96.4 of the Tax Law and in order to simplify the formal obligations to be completed by the taxable persons, it has been considered appropriate to proceed to the approval of single declaration models, although the autonomic aspects are duly differentiated in these models. In this sense, all the autonomic deductions applicable in the 1998 financial year consist in each of the forms of declaration, grouped by Autonomous Community, in order to facilitate the identification and completion of the is applicable, if applicable, by the taxpayer.

Finally, in order to make it easier for taxpayers to submit their declarations, the obligation to accompany the declarations in which the original withholding and revenue is requested is abolished. account for the financial year which is the subject of a declaration. With the same purpose, it is also abolished for taxpayers who have carried out business and professional activities in the form of split payments on the Income Tax of the Physical Persons, corresponding to the financial year 1998, the obligation to accompany the declaration of the present financial year the copies for the annual envelope of the said split payments, models 130 and 131.

With regard to the Tax on Heritage, Law 19/1991, of 6 June ("Official State Gazette" of 7), of the Tax on Heritage, determines in its article 37 the subjects required to submit a declaration by Article 38 provides that such a declaration shall be made in the form, deadlines and forms established by the Minister of Economy and Finance, who may, in the same manner, determine the places of presentation thereof.

The required Law 14/1996 establishes that the Autonomous Communities may regulate the minimum exempt and the rate of the Tax on the Heritage. Since the 1998 financial year has not changed the regulation of these matters by any of the Autonomous Communities which have assumed regulatory powers in this tax, all taxable persons, without exception, both residents of the the territory of these Autonomous Communities as in the territory of which they have not taken such regulatory powers, they shall apply the minimum exempt and the tariff covered by Law 19/1991 of 6 June.

For all the above, it is necessary to lay down the precise rules for the application of the said provisions, concerning the persons required to submit a declaration for the Income Tax of the Physical Persons and for the Tax on the Heritage, as well as the references to the approval of the models of these declarations and the determination of the places, deadlines and form of presentation and realization of the income or of the application of the returns, in their case, resulting from them.

Finally, we specify the data that must contain the proof of income in the Public Treasury that the collaborating entities have to send to the taxpayers who have chosen to house in these entities the second The term of the Income Tax of the Physical Persons.

In its virtue and making use of the authorizations it has conferred, this Ministry has been served:

First. Forced to declare by the Income Tax of the Physical Persons.

1. In accordance with the provisions of Article 96 of Law 18/1991 of 6 June 1991 and Article 38 of the Tax Regulation, taxable persons shall be required to submit and sign a declaration for this Tax. actual obligation.

2. However, they shall not be required to declare taxable persons under a personal obligation to contribute to the income of less than 1,200,000 gross annual pesetas from one of the following sources:

(a) Work projects and similar ones that do not have the character of business or professional returns.

b) Capital flows and capital increases subject to the tax that do not exceed the 250,000 gross annual pesetas together.

For the purposes of the limit of the obligation to declare no account shall be taken of the income of the house itself which constitutes the habitual residence of the taxable person or, where applicable, of the family unit.

Dealing with pensions and liabilities the limit referred to in the first paragraph of this number shall be 1,250,000 pesetas.

In joint taxation, the limit of the obligation to declare referred to in the first paragraph of this number shall be 1,250,000 pesetas.

3. Notwithstanding the foregoing, they must also make a statement, if they wish to exercise their right to return, those natural persons who are entitled by reason of the payments to be made to account or by the deduction corresponding to the PREVER programme The law of 8 October 1997 ("Official State Gazette" of the 10).

4. Any taxable person who is a real obligation operating in Spain by way of permanent establishment shall pay for the entire income attributable to that establishment, obtained in Spanish or abroad, and must submit the a declaration in the model corresponding to those approved in this Order.

Second. Modalities of declaration for the Income Tax of the Physical Persons.-The declarations for the Income Tax of the Physical Persons are of three modalities:

1. Abbreviated declaration which, in accordance with the model approved in the fourth paragraph of this Order, may be used exclusively by taxable persons whose income, irrespective of their value, comes from some of the following sources and concepts:

a) Regular business ventures.

b) Regular property capital flows:

Exclusively derivatives of the usual dwelling and other urban properties at the disposal of their owners or users who are not leased or subleased.

c) Regular capital flows:

Exclusively interest on accounts, deposits and other explicit returns, dividends and equity interests of entities and positive returns from Treasury Letters and other non-taxable income retention or on account.

On the other hand, they will not be able to present an abbreviated declaration:

taxable persons who have obtained income of different kinds from those listed above.

The taxable persons who intend to regularise tax situations arising from previously submitted statements.

taxable persons who have obtained exempt income which, however, must be taken into account for the purposes of calculating the rate of charge applicable to the other income.

Any taxable person who is entitled to make compensation for negative items from previous years.

taxable persons who have the right to practice deductions for investments or expenses in goods of cultural interest, for incentives and incentives for business investment or for international double taxation.

2. A simplified declaration which, in accordance with the model approved in the fourth paragraph of this Order, may be used by taxable persons who, irrespective of whether or not they have obtained the returns referred to in the preceding number, have Any of the following rents:

(a) Regular capital flows of real estate derivatives of urban or rustic leased or sub-leased buildings.

(b) Regular capital flows other than interest on accounts, deposits and other explicit returns, dividends and shares in profit of entities and positive returns from Letras of the Treasury and other income not subject to withholding or income on account.

(c) Regular business activities, including ancillary professionals, as well as agricultural and livestock farms to which the estimate of the net yield is applicable for the determination of the net yield objective.

(d) Equity increases resulting from the transmission of the usual dwelling, provided that they are exempt in their entirety by reinvestment of the amount obtained in that transmission in the acquisition of a new home the conditions laid down in Article 10 (1) and (2) of the Tax Regulation are met.

On the other hand, they will not be able to use the simplified declaration:

taxable persons who have obtained income of different kinds from those listed above.

taxable persons who have obtained exempt income which, however, must be taken into account for the purposes of calculating the rate of charge applicable to the other income.

The taxable persons who, in the course of business activities, including agricultural or livestock farming, under the objective estimation scheme, are required to declare increases or decreases in assets attributable to the financial year 1998 from items affected to their respective activities not included in the net performance of modules, or where those activities have been affected by exceptional circumstances, which determine the minorings of net performance as consequence of extraordinary expenses outside the normal process of the exercise of those.

3. Ordinary declaration which, in accordance with the model approved in the fourth paragraph of this order, is applicable in general to all taxable persons, and the use of which is compulsory for those who cannot use the abbreviated models or simplified.

Third. Obliged to declare for the Tax on the Heritage.-In accordance with the provisions of article 37 of Law 19/1991, of June 6, they will be obliged to submit a declaration for this Tax:

(a) taxable persons subject to the personal obligation tax, where their taxable amount, determined in accordance with the rules governing the tax, is greater than 17,000,000 pesetas or when, not giving The value of their property or rights, determined in accordance with the rules of the tax, is greater than 100,000,000 pesetas.

(b) taxable persons subject to the real obligation tax, whatever the value of their net worth.

Fourth. Approval of the models of declaration for the Tax on the Income of the Physical Persons and for the Tax on the Heritage.

1. The models of abbreviated, simplified and ordinary income tax on the Income Tax on the Physical Persons, and the Tax on Heritage and the income or return documents, are approved, consisting of:

(a) Declarations for Taxes on the Income of Physical Persons and on Heritage, as Annex I:

Model D-103: Short Statement of Income Tax on Physical Persons.

Model D-101: Simplified Declaration of Income Tax on Physical Persons.

Model D-100: Ordinary Income Tax Statement of Physical Persons.

Model D-714: Heritage Tax Declaration.

b) Income or return documents, as Annex II:

Model 100: Document of entry or return of the abbreviated, simplified and ordinary income tax on the Income of the Physical Persons.

Model 102: Second-term income document of the abbreviated, simplified, and ordinary income tax declaration of the Physical Persons.

Model 714: Income Document of the Declaration of the Tax on Heritage.

2. The return envelopes set out in Annex III are approved and listed below:

(a) On the return of the income tax returns of the Physical Persons.

b) The parent return of the Income Tax returns of the Physical Persons generated by the printing module developed by the State Tax Administration Agency.

c) On the return of the declaration of the Tax on Heritage.

d) The parent return of the Heritage Tax returns generated by the printing module developed by the State Tax Administration Agency.

Fifth. Deadline for the presentation of the income tax returns of the Physical Persons and the Tax on the Heritage.

1. The time limit for the submission of declarations shall be between 3 May and 21 June 1999 inclusive.

By way of derogation from the foregoing paragraph, the declarations of the Income Tax of the Physical Persons entitled to refund and those in which the tax is to be waived shall be filed between 3 May and the June 30, 1999, inclusive.

2. The declaration for the Tax on the Heritage must be presented, if necessary, in conjunction with that of the Tax on the Income of the Physical Persons, within the same period of the latter.

Sixth. Place of presentation and income of the declarations of the Income Tax of the Physical Persons and the Tax on the Heritage.

1. The taxable persons required to declare by the Income Tax of the Physical Persons or by the Tax on the Heritage must determine the tax liability corresponding to these taxes and, if necessary, enter the amounts At the time of filing the respective declarations, the Treasury.

2. The filing and realization of the income resulting from the autoliquidations for the Income Tax of the Physical Persons may be made in the deposit entity that provides the cash service in the Delegation of the State Agency Tax administration or Administrations of the same in whose territorial demarcation the declarant has its registered office, as well as in any collaborating entity (banks, savings banks or credit unions) of the province corresponding to your tax address.

3. In those cases in which the declarations for the Income Tax of the Physical Persons are to be returned, the presentation of the same may be carried out both in the Delegation of the State Agency of Tax Administration or Administrations of the same, in whose territorial demarcation the tax domicile has the declarant, as in any office located in the national territory of the collaborating entity in which you want to receive the amount of the refund, making In both cases, the Customer Account Code (CCC) that identifies the account to which the transfer. In the event that the filing takes place in a working party located outside the province of the declarant's tax domicile, the statements must necessarily bear the identifying labels provided to the effect of the State Tax Administration Agency.

When the taxpayer does not have an open account with a contributing entity, this circumstance may be indicated by accompanying the written statement addressed to the Administrator or Delegate of the State Administration Agency. Tax applicable, who, in the light of the same and prior to the relevant checks, may order the carrying out of the refund that proceeds through the issuance of the Banco de España's nomination.

You may also order the return to be made by issuing a cross-check or a nominee from the Banco de España when it cannot be made by bank transfer.

4. The negative statements of the Income Tax of the Physical Persons and those in which the return is waived will be presented either directly, or by registered mail, to the Dependency or Tax Management Section of the Delegation or Administration of the State Administration of Tax Administration corresponding to the tax domicile of the declarant.

5. The declaration of the Tax on the Heritage must be presented, if necessary, in conjunction with that of the Income Tax of the Physical Persons in the same place as the latter.

Notwithstanding the foregoing, in the cases in which the declaration for the Income Tax of the Physical Persons is negative or the return is waived and the one corresponding to the Tax on the Heritage is positive, both must be presented at the place where the entry of the latter is made, in accordance with the provisions of paragraph 2 of this paragraph.

In cases where no declaration is made for the Income Tax of the Physical Persons, the declaration for the Tax on the Heritage must be presented in the places listed in the number 2 of the present paragraph if the result of this declaration is positive, or directly, or by registered post, before the Dependence or Tax Management Section of the Delegation or Administration of the State Administration of Tax Administration the tax domicile of the declarant, if the result is negative.

6. Taxable persons resident abroad and those who are outside the national territory during the period referred to in the fifth paragraph of this Order may, in addition, make the entry or request the refund for the Income Tax of the Physical Persons as well as the income for the Tax on the Heritage in the offices located abroad of the deposit entities authorized by the State Administration Agency Tax to act as collaborators for the performance of these operations. These declarations shall be addressed to the Delegation of the State Tax Administration Agency in whose demarcation they were habitually resident prior to their residence abroad.

Seventh. Form of presentation of the declarations of the Income Tax of the Physical Persons and the Tax on the Heritage.

1. The declarations of the Income Tax of the Physical Persons and the Tax on the Heritage shall be presented according to the models corresponding to those approved in this Order, signed by the declarant and duly completed all data that affects you from the data collected in the same.

In the case of a joint declaration for the Income Tax of the Physical Persons, the declaration will be signed and presented by the members of the family unit of age who will act on behalf of the minors and of the most disabled judicially integrated in it, in the terms of Article 44 of Law 230/1963, of December 28, General Tax ("Official Gazette of the State" of 31).

2. Also, the declarations and their corresponding income or return documents entered into by the declarant in the models which, adjusted to the contents approved for the same in the fourth paragraph of this paragraph, shall be valid. Order, they are generated exclusively through the use of the printing module developed, for these purposes, by the State Agency of Tax Administration.

3. The declarations for the Income Tax of the Physical Persons shall be accompanied by the copy for the Administration of the document of entry or return, model 100 and, if applicable, of the following documents, duly completed:

(a) Notifications of claims made by transparent companies that the taxable persons have included in their tax base.

(b) taxable persons who include in the tax base certain positive income obtained by non-resident entities, as provided for in Article 2 of Law 42/1994 of 30 December 1994 on Tax Measures, Administrative and Social Order ("Official State Gazette" of 31), they shall also provide the following data relating to each of the non-resident entities whose income is included in the declaration:

Name or social reason and place of the registered office.

Administrators relationship.

Balance and Profit and Earnings Account.

Amount of positive income to be included in the tax base.

Justification of the satisfied tax on the positive income to be included in the tax base.

Eighth. Fractionation of the payment resulting from the Income Tax declaration of the Physical Persons.-The taxpayers who so wish may distribute the payment of the differential fee resulting from their self-settlement for the Income Tax. of the Physical Persons in two parts: The first, 60 per 100 of its amount, at the time of filing the declaration, and the second, of the remaining 40 per 100, until 5 November 1999.

To enjoy this benefit it will be necessary for the declaration to be filed within the time limit set forth in the fifth paragraph of this Order.

Ninth. Domicile of the second term.

1. Taxpayers who have broken down the payment resulting from the Income Tax declaration of the Physical Persons may carry out the domicile of the 40 per 100 corresponding to the second term in the contributing entity in which they carry out the entry of the first term, completing to this effect the space corresponding to the domicile of the second term of the document of entry or return, model 100.

This fulfillment will serve as a justification for the debit order for the contributing entity, which will, if necessary, take into account the amount entered into the account on 5 November 1999. immediately in the restricted account of collaboration with the collection of the taxes.

Subsequently, the contributing entity shall transmit to the taxpayer supporting the income made, in accordance with the specifications set out in Annex IV of this Order, which will serve as an income-supporting document carried out at the Treasury.

2. Taxpayers who do not wish to house the second term in a contributing entity will have to directly effect the income of that period in any of these entities or in the deposit entity that provides the service of the box in the Delegation or Administration of its tax office, until 5 November 1999, including, by means of the presentation of the duly completed model 102.

10th. Use of identifying labels.

1. The taxpayer for the Income Tax of the Physical Persons and for the Tax on the Heritage that must subscribe the respective declaration, must adhere the identifying labels in the spaces reserved to the effect.

When identifying labels are not available, the number of fiscal identification (NIF) must be entered in the space reserved for the purpose, accompanying the "Copies for Administration" photocopy of the card or document proving the number.

2. If the taxpayer does not have identifying labels or the tax identification number (NIF), it must appear in the space for the purpose of the national identity document (DNI), accompanying the "Copies". for the Administration " photocopy of such document.

3. In the case of a joint declaration for the Income Tax of the Physical Persons formulated by a family unit composed of both spouses, if any one of them has no tax identification number (NIF), it must be entered in the space for the purpose of the national identity document (DNI), accompanying the "Copy for Administration" photocopy of the document.

Single end disposition.

This Order shall enter into force on the day following that of its publication in the "Official State Gazette".

What I communicate to VV. II. for their knowledge and effects.

Madrid, 12 March 1999.

HANGING OUT AND FIGAREDO

Ilmos. Mr Director-General of the State Tax Administration Agency and Director General of Taxation.

Attachments

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