Law 40/1998, of December 9, of the Tax on the Income of the Physical Persons and other Tax Rules, has addressed a reform of the Income Tax of the Physical Persons in depth. To this end, following the model in force in the countries of our environment, it establishes a minimum personal and family exempt from taxation, introduces greater equity in the distribution of taxes, and improves the treatment of income from work and taxes. people with greater family burdens.

For the purpose of having the obligation to practice withholding and revenue to be known as soon as possible, the corresponding legislation, Royal Decree 2717/1998, of 18 December, governing the payments to Account in the Income Tax of the Physical Persons and in the Income Tax of Non-Residents and the Regulation of the Tax on Societies in the field of withholding and income is amended to account, I anticipate, to the approval of the Regulation of the tax, all the rules on payments to account.

According to the recommendation made by the State Council, the Tax Regulation incorporates the regulation of payments on account of the Income Tax of the Physical Persons, which was collected in the Royal Decree 2717/1998 of 18 December 1998. This allows for the full regulatory development of Law 40/1998 to be included in a single text.

This Royal Decree is structured in an article, an additional provision, three transitional provisions, a derogation provision and a final provision.

The sole article approves the Income Tax Regulation of the Physical Persons.

The rules contained in this Regulation are subject to both the specific referrals that the Law itself makes, and the general enablement contained in the sixth final provision of Law 40/1998, 9 of December.

The Regulation, in its structure, conforms to the law's systematic.

For exempt income, the following aspects are developed:

Compensation for dismissal or termination of the worker, establishing a presumption for the cases of new employment of the worker in the same company or other related in similar terms to those of the Tax Law Companies; the exemption of certain literary, artistic and scientific awards, which, substantially, maintain the same requirements for granting the exemption as at present. The requirements to benefit from the new exemption for aid to high level sportsmen and women with a limit of 5 000 pesetas and the causes for which the exemption is granted to extraordinary rewards for participation are fulfilled. on peacekeeping or humanitarian missions; and lastly, the requirements of the exemption for income received from work carried out abroad, where the effectiveness of the work carried out in these countries is important, is laid down. territories such as, on the other hand, the effective taxation abroad and its amount, as well as a Maximum exempt amount of 3.500,000 pesetas.

In the matter of temporary imputation, the imputation of the copyright and the income of economic activities is regulated. To the latter, the imputation criteria laid down in Law 43/1995 of 27 December 1995 on the Company Tax and its implementing rules shall apply, without prejudice to the application of the criterion of cash to which the in certain circumstances.

In terms of working income, the allowance and allowance for expenses and expenses for normal maintenance and subsistence expenses are regulated; an annual ceiling for deductible expenses is set (a) a comprehensive list of the assumptions or concepts which are perceived to be perceived in a notoriously irregular manner over time and, on the other hand, certain rules of application to the Member States. returns with a period of generation exceeding two years which are collected in a split manner; and, finally, the development of the reductions applicable to the income derived from the social security systems.

In terms of real estate returns, deductible expenses are specified, as well as the definition of returns of this nature that should be considered as having been obtained in a notoriously irregular manner in the time.

With regard to the taxation of financial transactions, it should be noted that the rules on the taxation of insurance contracts, both collective and individual, have sought to integrate referrals. regulations contained in the Tax Law seeking as much simplicity as possible, in order to avoid controversies. In this way, what is to be understood as income and capital benefits, in terms similar to those laid down in the rules governing pension schemes and pension funds, is limited to the average period of In order to determine when it is understood that the premiums meet the requirements of continuity and regularity, a linear rule is used to distribute, between the terms of the income, the profitability generated up to the moment of the establishment of the income.

Regarding economic activities, the property assets are defined, the values of affectation and disaffection of these elements and the performance of economic activities that are considered obtained in a notoriously irregular manner over time.

Likewise, the rules contained in Royal Decree 37/1998 of 16 January, which developed the tax regime of small and medium-sized enterprises, incorporating, as the most important novelty, a limit of 75,000,000 for the a set of activities that can determine their performance by the objective estimation scheme, by computing those transactions for which they are obliged to invoice and for which they are required to carry books.

As far as property gains and losses are concerned, the impact of the write-downs on the determination of the acquisition value and the conditions to be met in order to benefit from the reinvestment exemption is regulated. in regular housing. In this same area of property gains and losses, but already in relation to taxpayers who develop economic activities, the effects of non-compliance with requirements in relation to reinvestment of profits are included. In the case of the transfer of intangible fixed assets to the activity of transport by autocabs, reduction from Law 42/1994 and the Law of the Tax is still in force.

In the chapter on income in kind, the conditions that must be met by certain assumptions that do not constitute remuneration in kind, as well as the rules of valuation, are specified.

For its part, the chapter devoted to the general liquidable base incorporates formal and regularisation aspects when the right to reductions in the general liquidable base corresponding to the contributions to the (a) social security schemes, as well as the transfer to the next five financial years of the excess of contributions to pension schemes and social welfare insurance schemes which are not reduced in the financial year itself.

The Title dedicated to the deductions of the quota, consists of three chapters that regulate, respectively, the deduction for investment in habitual dwelling, the deduction for income obtained in Ceuta and Melilla and the regularization in case of loss of the right to deduct.

With regard to the deduction for investment in habitual housing, the concept of habitual housing is collected, assimilating the construction and extension to the acquisition, the conditions and the determining requirements for the application of the (a) the rate of deduction increased in the case of foreign funding, the requirements to be met by the housing accounts and, finally, the works of adequate housing for disabled persons who are entitled to deduct.

In terms of the deduction for income obtained in Ceuta and Melilla, the regulatory text specifies the income from work, economic activities and capital that are considered to be obtained in those cities.

In the Differential Quota Title, the effective average rate is defined for the purposes of the application of the deduction limit for payments on account and for the contributions of the Company Tax to certain companies transparent and that it is necessary to practice in the liquidation of the Income Tax of the Physical Persons of the partner.

In the Title dedicated to the management of the tax all aspects related to the obligation to declare, self-validation and income, fractionation-in general and in the presumed death and loss of residence-, communication of data of the non-obliged to declare and returns. At the same time, the regulation of external collaboration in the presentation and management of declarations and communications is also included. Finally, the formal, accounting and registration obligations are regulated, which are binding on taxpayers and certain entities, in particular: entities granting mortgage loans, entities receiving donations, and entities managing collective investment institutions.

There is also a procedure for the attainment of prior agreements for the valuation of remuneration in kind, for the purposes of determining the corresponding income on account of the tax. Those who are obliged to make an income on account may ask the tax authorities to assess the income of the work in kind which they satisfy, in order to quantify the income for them.

The transitional provisions of the Income Tax Regulation of the Physical Persons concern the validity of the rules for the presentation of declarations and communications; the previous housing accounts1 January 1999; transfers of affections made prior to 1 January 1998 (reinvestment of extraordinary profits and exemption from reinvestment); the definition of non-economic activities for the implementation of the the percentages of reduction; the application of the new method of calculation of deductions on the performance of the work according to the data that the recipients are required to provide in the relevant communication, the adaptation of Article 3 of Royal Decree 660/1996 of 19 April, which regulates the tax benefits in the Tax on the Income of the Physical Persons to the transmission of rural estates and agricultural holdings, to the new rules of the Tax and the obligation to declare for the year 1999.

The single final provision authorizes the Minister of Economy and Finance to make provisions for the development of the Income Tax Regulation of the Physical Persons.

Finally, the transitional provisions of the Royal Decree regulate the following:

The first, sets the deadline for publication of the Order of Development of the objective estimate of the Income Tax of the Physical Persons and the simplified special regime of the Tax on the Value Added for 1999.

The second, for 1999, provides for special deadlines for waiving and revoking the objective estimation regime and for the simplified special regimes and for the agricultural, livestock and fisheries of the Value Added Tax.

The third, extension for 1999 the compatibility between the regime of direct estimation of the Income Tax of the Physical Persons and the special regime of the agriculture, livestock and fishing of the Tax on the Value Added and the Indirect General Tax Canarian.

In the sole derogating provision of the Royal Decree, the previous Regulation on the Income Tax of the Physical Persons and certain precepts, the regulation of which has been incorporated into that Regulation, is repealed.

The Royal Decree's sole final provision establishes its entry into force on the day following the publication in the "Official State Gazette".

In its virtue, on the proposal of the Deputy Prime Minister of the Government and Minister of Economy and Finance, in agreement with the State Council, and after deliberation by the Council of Ministers at its meeting on 5 February 1999,

DISPONGO:

Single item. Approval of the Income Tax Regulation of the Physical Persons.

The Income Tax Regulation of the Physical Persons, which is annexed to this Royal Decree, is approved.

Single additional disposition. Regulatory referrals.

The references contained in Title III of Royal Decree 2717/1998 of 18 December on the payment of account in the Income Tax of the Physical Persons and in the Income Tax of non-residents and the Regulation of the Tax on Societies in the field of withholding and income to account, to Title I of the same Royal Decree, shall be understood to be made to the corresponding articles of the Regulation of the Tax on the Income of the Individuals, approved by this Royal Decree.

First transient disposition. Deadline for the publication of the Order for the Development of the Objective Estimate of the Income Tax for Physical Persons and the Simplified Special Scheme of Value Added Tax for 1999.

The Ministerial Order regulating the objective estimation of the Income Tax of the Physical Persons for 1999 and the simplified special regime of the Value Added Tax should be published. in the "Official Gazette of the State" within 15 days of the publication of this Royal Decree.

Second transient disposition. Application for the year 1999 of the simplified special schemes and of the agricultural, livestock and fisheries of the value added tax, the objective estimation scheme and the simplified mode of the direct estimate of the Tax on the Income of the Physical Persons.

1. The waiver of the application of the simplified special schemes and of agriculture, livestock farming and fishing for the year 1999, as well as the revocation of the same as it must have effects in that financial year, may be effected from the day following the date on which the application was made. of the publication in the "Official Gazette of the State" of the Ministerial Order until 31 March 1999.

The provisions of the foregoing paragraph must be without prejudice to the provisions of the third subparagraph of Article 33 (2) of the Value Added Tax Regulation, approved by Royal Decree 1624/1992 of 29 June 1992. December.

Any taxable person who has renounced the application of the simplified special scheme or of agriculture, livestock and fisheries may revoke such a waiver within the same period of time as referred to in the first subparagraph of this paragraph, although the three-year period laid down in Article 33 (2) of the Value Added Tax Regulation would not have elapsed.

2. The waiver of the objective estimation scheme for 1999 may be made from the day following the date of publication in the "Official State Gazette" of the Ministerial Order until 31 March 1999.

The provisions of the foregoing paragraph should be without prejudice to the provisions of Article 31 (1) (b) of the Financial Income Tax Regulation, approved by this Royal Decree.

Taxpayers who have renounced the application of the objective estimation regime may revoke such a waiver by 1999 within the same period of time indicated in the first subparagraph of this paragraph, even if the Three years ' period laid down in Article 31 (3) of the Income Tax Regulation of the Physical Persons.

3. The waiver of the simplified mode of the direct estimation scheme for 1999 should be made within the period laid down in the preceding paragraph.

Taxpayers who have renounced the application of this simplified modality may revoke such a waiver by 1999 within the same time limit as set out in paragraph 1, even if the three-year period has not elapsed. Article 27 (1) of the Rules of Procedure of the Tax on the Income of Physical Persons.

4. The resignations submitted, for 1999, to the simplified special schemes and to the agriculture, livestock and fisheries of the value added tax, the objective estimation scheme or the simplified mode of the direct estimation scheme of the Tax on the Income of the Physical Persons, or the revocations thereof, before the date of publication of the Order for which the objective of the objective estimation of the Income Tax of the Physical Persons is approved for 1999 the simplified special scheme of value added tax shall be construed as period of business.

However, the taxable persons affected by the provisions of the preceding paragraph may change their option within the period laid down in paragraphs 1 and 2 above.

Transitional provision third. Effects of the waiver for 1999 on the objective estimate of the Income Tax for the Physical Persons, the special arrangements for agriculture, livestock and fisheries of the value added tax and the special arrangements for agriculture and Direct Indirect Canarian General Tax.

1. For the year 1999, the waiver of the objective estimate of the Income Tax of the Physical Persons will not imply the renunciation of the special regime of the Agriculture, Livestock and Fishing of the Value Added Tax or the renunciation of the Special regime for the agriculture and livestock of the Indirect General Tax Canarian.

2. For the year 1999, the waiver of the special regime for the agricultural, livestock and fishing of the value added tax or the waiver of the special regime of agriculture and livestock of the Indirect General Tax will not mean the resignation of the the objective estimation of the Income Tax of the Physical Persons.

Single repeal provision. Regulatory repeal.

1. The entry into force of this Royal Decree shall be repealed with all provisions which are contrary to the provisions of this Royal Decree, except as regards the taxation of non-residents. In particular, they shall be repealed:

(a) The Income Tax Regulation of the Physical Persons, approved by Article 1 of Royal Decree 1841/1991, of December 30.

(b) Chapters VIII and IX of the Pension Plans and Funds Regulation, approved by Royal Decree 1307/1988 of 30 September 1988, with the exception of Articles 56.1, 60, 62, 63.2, 72 and 73.2.

(c) Title III of the Regulation of Law 46/1984 of 26 December 1984, regulating the institutions of collective investment, approved by Royal Decree 1393/1990 of 2 December 1990 in respect of the Income Tax of the Physical Persons.

(d) Article 1.4 of Royal Decree 1814/1991 of 20 December on the rules governing the official markets for futures and options.

e) The additional first provision of the Company Tax Regulation, approved by Royal Decree 537/1997 of 14 April 1997,

(f) The first and second provisions of Royal Decree 37/1998 of 16 January amending the Regulations on the Income Tax of the Physical Persons, the Value Added Tax and the Indirect General Tax, to incorporate certain measures on the taxation of small and medium-sized enterprises, as well as the Royal Decrees which regulate the census declarations and the duty to issue and deliver an invoice employers and professionals.

(g) Title I and the second, third and fourth transitional provisions of Royal Decree 2717/1998 of 18 December 1998 governing the payments to be made to the Income Tax of the Physical Persons and the Tax on the Income of Non-Residents and the Regulation of the Tax on Societies in the field of withholding and income is amended.

2. The regulations of lower rank to the present Royal Decree will continue in force that they do not object to the same one in so far do not make use of the ones in the previewed ones.

Single end disposition. Entry into force and application.

1. The provisions of this Royal Decree shall enter into force on the day following that of its publication in the "Official Gazette of the State".

2. The rules of the Income Tax Regulation of the Physical Persons shall apply to the tax periods in respect of which the Law 40/1998, of 9 December of the Income Tax of the Physical Persons and others applies. Tax rules, except as provided for in Article 8, which shall apply from the date of entry into force provided for in the preceding paragraph.

Madrid, 5 February 1999.

JOHN CARLOS R.

The Second Vice President of the Government and

Minister of Economy and Finance,

RODRIGO DE RATO Y FIGAREDO

ANNEX

TITLE I

Subject to Tax: Material, Personal and Temporary Aspects

CHAPTER I

Exempt income

Article 1. Compensation for dismissal or termination of the worker.

The enjoyment of the exemption provided for in Article 7.e) of the Tax Law will be conditional on the actual effective disengagement of the employee with the company. Unless proof to the contrary, it is presumed that such a disconnection is not given when, within three years of the dismissal or termination of the worker, the same company or another company is provided with the same company or other company in accordance with the terms laid down in Article 3 (1) of the Treaty. Article 16 of Law 43/1995 of 27 December 1995 on Corporate Tax, provided that in the case where the link is defined according to the socio-societal relationship, the participation is equal to or greater than 25 per 100, or 5 per 100 if deals with securities traded on official secondary markets of Spanish securities.

Article 2. Exemption from certain literary, artistic and scientific awards.

1. For the purposes of the exemption provided for in Article 7.l) of the Tax Law, the consideration of a relevant literary, artistic or scientific award shall be the granting of goods or rights to one or more persons, without consideration, in reward or recognition of the value of literary, artistic or scientific works, as well as the merit of their activity or work, in general, in such matters.

2. 1. The grantor of the prize may not make or be interested in the economic exploitation of the works or works awarded.

In particular, the prize may not imply or require the assignment or limitation of property rights over those, including intellectual or industrial property derivatives.

This requirement shall not be considered to be in breach of the mere public disclosure of the work, for a non-profit purpose and for a period of not more than six months.

2. In any case, the prize must be awarded in respect of executed works or activities carried out prior to its convocation.

No award consideration shall be given to grants, grants and, in general, to amounts intended for the prior or simultaneous financing of works or works relating to the materials referred to in paragraph 1 above.

3. The Call must meet the following requirements:

a) Having a national or international character.

b) Not to establish any limitation on the contestants for reasons other than the very essence of the prize.

c) That their announcement be made public in the "Official State Gazette" or the Autonomous Community and in at least one newspaper of great national circulation.

Prizes that are awarded abroad or by International Organizations will only have to meet the requirement referred to in (b) above to access the exemption.

4. The exemption must be declared by the competent authority of the tax administration, in accordance with the procedure approved by the Minister of Economy and Finance.

The above statement will need to be requested, with input from the relevant documentation, by:

(a) The person or entity convenor of the prize, in general.

(b) The award-winning person, in the case of awards called abroad or by International Organizations.

The application must be made prior to the award of the prize or, in the case of subparagraph (b) above, before the start of the regulatory period for the declaration of the financial year in which it was obtained.

For the resolution of the file, a report from the competent ministerial department may be requested for the matter or, where appropriate, the corresponding organ of the Autonomous Communities.

The declaration shall be valid for successive calls, provided that the terms of the file that prompted the file are not changed.

3. Where the tax administration has declared the award exemption, the persons referred to in point (a) of the preceding paragraph shall be obliged to report to the tax administration within the month following that of the tax administration. grant, the date of the award, the prize awarded and the data identifying those who have benefited from them.

Article 3. Exemption from aid to high level sportsmen and women.

For the purposes of Article 7 (m) of the Tax Law, the following requirements shall be exempt, subject to the limit of 5,000,000 pesetas per year, from the economic aid of training and sports technology:

(a) That its beneficiaries have a recognized status as high level athletes, as provided for in Royal Decree 1467/1997 of 19 September on high level athletes.

b) To be financed, directly or indirectly, by the Sports Council of the Olympic Sports Association, by the Spanish Olympic Committee or by the Spanish Paralympic Committee.

Article 4. Exemption from extraordinary rewards received for participation in peacekeeping or humanitarian missions.

For the purposes of Article 7 (o) of the Tax Law, the amounts paid by the Spanish State to members of international peacekeeping or humanitarian missions shall be exempt for the following reasons:

(a) Extraordinary gratifications of any nature that respond to the performance of the international peacekeeping or humanitarian mission.

(b) the compensation or benefits paid for the physical or mental damage suffered during the same period.

Article 5. Exemption for income received from work carried out abroad.

1. In accordance with Article 7 (p) of the Tax Law, income from work derived from work actually carried out abroad shall be exempt from the tax when the following conditions are met:

1. That such works are carried out for a company or a permanent establishment based abroad.

2. That the income of the work has been effectively taxed abroad by a tax of an identical nature or similar to the Income Tax of the Physical Persons. For these purposes, it will be understood that this circumstance will be present when the taxpayer has entered into this concept, at least, 50 per 100 of what it would be for him to pay in Spain by applying the effective average rate of the Income Tax. Natural persons to such income, calculated in accordance with Article 58 of this Regulation.

Effective taxation abroad as referred to in the preceding paragraph must be credited by means of a document, in which this circumstance is clearly stated.

2. The yields that can benefit from this exemption will be limited to 3,500,000 pesetas annually.

3. The income from this exemption shall not apply to the income tax exemption scheme provided for in Article 8 (3) (b) of this Regulation.

CHAPTER II

Temporary imputation

Article 6. Temporary imputation of yields.

1. Taxpayers who carry out economic activities shall apply to the income derived from such activities, exclusively, the criteria for temporary imputation provided for in Law 43/1995 of 27 December 1995 on the Tax on Societies and their implementing rules, without prejudice to the provisions of the following paragraph. Also, the provisions of Article 14 of the Law on the Tax in relation to the income to be charged in the cases provided for in those cases shall apply.

2. 1. Taxpayers who carry out economic activities and who are required to carry out their accounting and registration obligations in accordance with Article 65 (3), (4), (5) and (6) of this Regulation may opt for the criterion of charges and payments to temporarily impute the revenue and expenditure of all its economic activities.

This criterion is understood to be approved by the tax administration, for the purposes of Article 19 (2) of Law 43/1995 of 27 December 1995 on the Tax on Societies, for the sole purpose of to be expressed in the relevant declaration, and must be maintained for a minimum period of three years.

2. The option for the criterion indicated in this section will lose its effectiveness if, after that option, the taxpayer should complete its accounting and registration obligations in accordance with the provisions of the Article 65 of this Regulation.

3. The provisions of this paragraph shall not apply if the taxpayer develops any economic activity for which it is required to complete its accounting and registration obligations in accordance with paragraph 2. Article 65 of this Regulation or take accounting in accordance with the provisions of the Trade Code.

3. In the case of income arising from the transfer of the holding of copyright which is payable over a period of several years, the taxpayer may choose to impute the advance on account of the income as the result of the rights.

4. In any event, changes in the criterion of temporary imputation or of a net yield determination shall mean that some expenditure or revenue is left uncounted or charged again in another financial year.

TITLE II

Determination of the economic capacity under charge

CHAPTER I

General Rules

Article 7. Concept of homogeneous securities or units.

It shall be considered to be homogeneous securities or units which comply with the requirements set out in Article 4 of Royal Decree 291/1992 of 27 March on issues and public offers for the sale of securities.

CHAPTER II

Definition and determination of taxable income

SECTION 1. PERFORMANCE OF WORK

Article 8. Allowances and allowances for locomotion expenses and normal living and subsistence expenses.

A. -General Rules:

1. For the purposes of Article 16.1 (d) of the Tax Act, allowances shall be exempt from the charge for expenses for locomotion and for normal subsistence and subsistence expenses in catering establishments meeting the requirements and limits set out in this Article.

2. Allowances for locomotion expenses.

The amounts intended by the company to compensate for the expenses of the employee or employee who move out of the factory, workshop, office, or work centre are exempted from taxation to carry out their work in different place, under the following conditions and amounts:

(a) Where the employee or employee uses public means of transport, the amount of expenditure to be justified by invoice or equivalent document.

(b) In another case, the amount resulting from the calculation of 24 pesetas per kilometre travelled, provided that the reality of the displacement is justified, plus the toll and parking costs to be justified.

3. Allowances for living and subsistence expenses.

The amounts intended by the company to compensate for normal subsistence and subsistence expenses in restaurants, hotels and other hospitality establishments, payable for expenses in a different municipality, are exempt from taxation. of the place of the person's habitual work and of the place of residence.

Except in the cases provided for in point (b) below, in the case of displacement and permanence for a continuous period exceeding nine months, these allocations shall not be exempted from taxation. For these purposes, the time of holiday, sickness or other circumstances which do not involve alteration of the destination shall not be deducted.

(a) It shall be considered as allowances for normal subsistence and subsistence expenses in hotels, restaurants and other hospitality establishments, exclusively the following:

1. ° When the person has stayed overnight in a municipality other than the usual place of work and of the place of residence of the recipient, the following:

For expenses of stay, the amounts that are warranted.

For living expenses, 8,300 pesetas daily, if they correspond to displacement within the Spanish territory, or 14,000 pesetas daily if they correspond to displacement to foreign territory.

2. When not spent in a municipality other than the usual place of work and the residence of the recipient, the allowances for maintenance costs that do not exceed 4,150 or 8,000 pesetas per day, according to is a travel within the Spanish territory or abroad, respectively.

In the case of airline flight personnel, amounts that do not exceed 6,000 pesetas per day will be considered as allowances for normal maintenance expenses, if they correspond to displacement within the Spanish territory, or 11,000 pesetas daily if they correspond to travel to foreign territory. If both circumstances occur on the same day, the applicable amount shall be the same as per the largest number of flights performed.

For the purposes set out in the preceding paragraphs, the payer shall credit the day and place of the posting, as well as his reason or motive.

(b) The following amounts shall be considered as an excepted diet:

1. The excess that Spanish public officials with a foreign destination receive on the total remuneration that they would obtain in the case of being employed in Spain, as a result of the application of the (a) modules and the collection of allowances provided for in Articles 4 (5) and 6 of Royal Decree No 6/1995 of 13 January 1995 governing the remuneration scheme of officials employed abroad, and calculating that excess in the Article 26 (3) and (4) of the Royal Decree of the European Parliament and of the Council 236/1988 of 4 March 1988 on compensation for service reasons.

2. º The excess that the staff receives in the service of the State Administration with destination abroad on the total remuneration that it would obtain for salaries, trienes, supplements or incentives, in the case of being found destined in Spain. For these purposes, the competent authority in the field of remuneration shall agree on any remuneration which may correspond to such staff if it is intended in Spain.

3. The excess perceived by officials and staff at the service of other public administrations, in so far as they have the same purpose as those referred to in Articles 4, 5 and 6 of Royal Decree 6/1995, of 13 (a) January, by which the remuneration scheme of officials posted abroad is regulated or does not exceed the remuneration equivalent, respectively.

4. The excess that employees of companies, with a destination abroad, receive on the total remuneration they would obtain for wages, wages, seniority, extraordinary pay, even profit, family aid or any other concept, by reason of charge, employment, category or profession in the case of being employed in Spain.

This letter will be incompatible with the exemption provided for in Article 5 of this Regulation.

4. The arrangements provided for in the preceding paragraphs shall also apply to allocations for the costs of locomotion, maintenance and subsistence expenses incurred by workers hired specifically to provide their services in undertakings with centres of mobile or roaming work, provided that those allocations correspond to movements to a municipality other than that which constitutes the worker's habitual residence.

5. The tax-exempt amounts in this article will be subject to review by the Minister of Economy and Finance, in the proportion in which the daily allowances of civil servants are reviewed.

6. The allowances for the costs of locomotion, maintenance and stay exceeding the limits provided for in this article shall be subject to taxation.

B. -Special Rules:

1. Where the costs of locomotion and maintenance are not specifically compensated by the companies to whom they provide their services, the taxpayers who obtain income from the work resulting from special employment relationships dependent on their income, for the determination of their net income, in the following quantities, provided they justify the reality of their movements:

a) For locomotion expenses:

Where public means of transport are used, the amount of expenditure to be justified by invoice or equivalent document.

In another case, the amount that results from computing 24 pesetas per kilometer traveled, plus the toll and parking charges that are warranted.

b) For living expenses, the amounts of 4.150 pesetas or 8,000 pesetas per day, depending on the movement within the Spanish territory or abroad.

For these purposes, the costs of the stay must be in any case resented by the company and shall be governed by the provisions of paragraph 3 (a) of this article.

2. The amounts paid to the taxpayer on the occasion of the transfer of the job to a different municipality shall be exempt, provided that the transfer requires the change of residence and corresponds exclusively to expenditure incurred by the taxpayer. locomotion and maintenance of the taxpayer and his/her relatives during the transfer and the costs of moving their furniture and goods.

3. The amounts received by the candidates to the jury and the full and alternate juries shall be exempt from taxation as a result of the performance of their duties, in accordance with the provisions of Royal Decree 385/1996 of 1 March 1996. as received by the members of the Electoral Tables in accordance with the provisions of the Ministerial Order of 3 April 1991.

Article 9. Deductible expenses for fees paid to trade unions and professional colleges.

For the determination of net work performance, union-satisfied fees will be deductible. The fees paid to professional associations, where the tuition is compulsory for the performance of the work, in the part corresponding to the essential purposes of these institutions, with the limit of 50,000, shall also be deductible. Annual pesetas.

Article 10. Application of the reduction of 30 per 100 to certain income from work.

1. For the purposes of the application of the reduction provided for in Article 17 (2) (a) of the Tax Act, income from work obtained in a manner which is notoriously irregular over time is considered to be exclusively the following, when charged in a Single tax period:

(a) The amounts paid by the company to the employees on the occasion of the transfer to another working centre exceeding the amounts provided for in Article 8 of this Regulation.

(b) Indemnities arising from public social security schemes or Passive Classes, as well as benefits paid by orphans ' colleges and similar institutions, in the case of non-invalidating injuries.

(c) Benefits satisfied by non-invalidating injuries or permanent incapacity, in any of their grades, by companies and by public entities.

(d) the death and expenses of workers or civil servants, both public and public, as well as those provided by the bodies of orphans and similar institutions, undertakings and public authorities.

e) The amounts paid in compensation or reparation for salary supplements, pensions or annuities of indefinite duration or for the modification of the working conditions.

(f) Amounts paid by the company to the employees for the resolution of mutual agreement of the employment relationship.

g) Literary, artistic or scientific awards that do not enjoy exemption in this Tax. For these purposes, no prizes are considered to be awarded for economic purposes arising from or replacing intellectual or industrial property rights.

2. Where the income of the work with a period of generation of more than two years is collected in a fractional manner, only the reduction of the 30 per 100 provided for in Article 17.2.a) of the Tax Act shall apply, if the ratio is equal. resulting from dividing the number of years of generation, computed from date to date, between the number of tax periods of fractionation, is greater than two.

3. For the purposes of the reduction provided for in Article 17 (2) (a) of the Tax Act, performance of the work with a period of more than two years shall be considered to be the performance of the work, which is not obtained on a regular or recurring basis, the right of option to buy shares or shares in workers, where they can only be exercised more than two years after their granting, if, in addition, they are not granted annually.

Article 11. Reductions applicable to certain income from work.

1. The reductions provided for in Article 17.2 (b), (c) and (d) of the Tax Act shall apply to benefits in the form of capital consisting of a single payment collection.

In the case of mixed benefits, which combine rents of any kind with a single charge in the form of capital, the reductions referred to are only applicable to the collection made in the form of capital. In particular, when the recovery of benefits in the form of income is recovered once the income is recovered in advance, the yield obtained shall be reduced by application of the percentages corresponding to the age which had each premium at the time of the constitution of the income.

2. For the purposes of the application of the 70% reduction provided for in Article 17.2 (c) and (d) of the Tax Law, the premiums paid over the duration of the contract shall be understood to be regular and regular. (a) where, after more than 12 years after the payment of the first premium, the average duration of the premium has been more than six years.

The average period of stay of premiums will be the result of calculating the sum of premiums multiplied by their number of years of stay and dividing it between the total sum of the premiums paid.

3. The percentage reduction of 60 per 100, as provided for in Article 17.2 (d) of the Tax Act, shall be applicable to compensation for absolute and permanent invalidity for all work and for the invalidity of both cases in the established by the regulatory regulation of pension plans and funds.

4. In the case of recovery of benefits in the form of capital arising from the life insurance contracts referred to in Article 16.2.a). 5. (a) of the tax law, where they have periodic or extraordinary premiums, for the purpose of determining the part of the total yield obtained corresponding to each premium, that total yield shall be multiplied by the coefficient of weight resulting from the following quotient:

In the numerator, the result of multiplying the corresponding premium for the number of years since it was satisfied until the collection of the perception.

In the denominator, the sum of the products resulting from multiplying each premium for the number of years since it was satisfied until the collection of the perception.

5. For the purposes of Article 17 (2) of the Tax Act, the insurance undertaking shall break down the proportion of the amounts paid in respect of each of the premiums paid.

SECTION 2. CAPITAL RETURNS

Subsection 1. Th Real Estate Capital Yields

Article 12. Deductible expenses on returns on real estate capital.

They will have the consideration of deductible expense for the determination of the net income of the real estate capital, all the expenses necessary for its obtaining and the amount of the deterioration suffered by the use or the passage of time in the property or rights of which the income is derived.

In particular, they shall be considered to be included among the expenses referred to in the preceding paragraph:

(a) The interests of the foreign capital invested in the acquisition or improvement of the goods or rights and other financing expenses.

However, the deduction of the expenses provided for in this letter may not exceed, for each property or right, the amount of the full income.

(b) Non-State taxes and surcharges, as well as fees, surcharges and state special contributions, whatever their denomination, as long as they have an impact on the returns computed or on the goods or rights producers of the same and do not have a sanctioning character.

(c) The amounts accrued by third parties in direct or indirect consideration or as a result of personal services, such as administration, surveillance, goalkeeping or the like.

(d) Those caused by the formalization of the lease, sublease, transfer or constitution of rights and the legal rights relating to the goods, rights or yields.

e) The balances of doubtful recovery provided that this circumstance is sufficiently justified. This requirement shall be understood:

When the debtor is in a situation of suspension of payments, bankruptcy or other analogous.

When between the time of the first recovery management carried out by the taxpayer and the end of the tax period, more than six months had elapsed, and no credit renewal would have occurred.

When a doubtful balance is subsequently charged to its deduction, it shall be computed as income in the financial year in which such recovery occurs.

f) The costs of conservation and repair. To these effects they will have this consideration:

Those made regularly for the purpose of maintaining the normal use of material goods, such as the painting, revoking or arrangement of installations.

Item replacement, such as heating, elevator, security doors, or other.

The amounts destined for enlargement or improvement will not be deductible for this concept.

g) The amount of insurance contract premiums, whether they are civil liability, fire, theft, crystal break or other similar nature, on the goods or rights producing the returns.

h) The quantities for services or supplies.

(i) The amounts for depreciation under the conditions set out in the following Article of this Regulation.

Article 13. Depreciation expense of returns on real estate capital.

1. For the purposes of determining the net return on real estate capital, the amounts intended for the depreciation of the property and the other assets transferred to it shall be deducted as long as they are in accordance with their depreciation. effective.

2. Amortisation shall be deemed to meet the effectiveness requirement:

(a) In the case of real estate: where, in each year, they do not exceed the result of applying 2 per 100 to the cost of the acquisition, not including the cost of the land.

When the soil value is not known, the soil value shall be calculated by prorating the satisfied acquisition cost between the land and the construction of each year.

(b) Dealing with goods of a movable nature, which may be used for a period of more than one year and transferred jointly with the building: where, in each year, they do not exceed the result of applying to the costs of (a) the purchase of the capital of the European Union for the purposes of the first paragraph of Article 4 (1) of Regulation (EU) No 139/2014;

3. In the event that the yields come from the ownership of actual rights of use or enjoyment, it may be amortized, with the limit of the full yields of each right, its cost of acquisition satisfied.

Amortization, in this case, will result from the following rules:

(a) Where the right has a fixed term of duration, the right to divide the cost of acquisition satisfied by the right for the number of years of duration of the same.

(b) When the right was for life, the result of applying to the acquisition cost satisfied the percentage of 2 per 100.

Article 14. Income from real estate capital obtained in a notoriously irregular manner over time and income received in a fractionated manner.

1. For the purposes of the application of the reduction provided for in Article 21.2 of the Tax Act, income from real estate capital, which is notoriously irregular over time, is considered to be exclusively the following: in a single tax period:

(a) Importes obtained by the transfer or transfer of the lease of business premises.

(b) Indemnities received from the lessee, subtenant or transferee for damages or damage to the property.

(c) Importes obtained by the constitution or transfer of rights of use or enjoyment of a life.

2. Where the income of the real estate capital with a period of more than two years is collected in a fractional manner, only the reduction of the 30 per 100 referred to in the second paragraph of Article 21.2 of the Tax Law shall apply, where the quotient resulting from dividing the number of years corresponding to the generation period, computed from date to date, between the number of tax periods of fractionation, is greater than two.

Subsection 2. Th Capital Returns Article 15. Partial provision in insurance contracts.

In the case of a partial provision in insurance contracts, in order to calculate the return on capital, the amount recovered shall be deemed to correspond to the premiums paid in the first place including their corresponding profitability.

Article 16. Taxation of the profitability obtained up to the time of the creation of deferred income.

For the purposes of the first paragraph of Article 23.3.d) of the Tax Law, the profitability obtained up to the formation of deferred income shall be subject to taxation in accordance with the following rules:

1. Profitability will be determined by the difference between the current financial-actuarial value of the income that is constituted and the amount of the premiums paid.

2. This profitability will be distributed linearly during the first ten years of the recovery of life income.

If this is a temporary income, it will be distributed linearly between the years of duration of the same with the maximum of ten years.

Article 17. Requirements for certain insurance contracts with retirement and invalidity benefits received in the form of income.

For the application of the provisions of the second paragraph of Article 23.3.d) of the Tax Law, the following requirements must be met:

1. The contingencies for which the benefits may be collected shall be those provided for in Article 8.6 of Law 8/1987 of 8 June of the Regulation of the Pension Plans and Funds, in accordance with the terms laid down for them.

2. It is understood that there has been some kind of mobilisation of the provisions of the insurance contract when the limitations which, in relation to the exercise of the economic rights, establish the provision are infringed The first of the first of the Law 8/1987, of 8 June, of Regulation of the Pension Plans and Funds, and its rules of development, with respect to the collective insurances that implement commitments for pensions of the enterprises.

Article 18. Deductible expenses on certain income from capital.

For the purposes of determining the net return on capital of furniture arising from the provision of technical assistance, leases of movable property, business or mines and sub-leases referred to in Article 24.1.b) of the Tax law shall be considered as deductible expenses as provided for in Articles 12 and 13 of this Regulation. The intended limit for interest and other financing costs shall not apply.

Article 19. Reductions applicable to capital returns arising from insurance contracts.

1. The reductions provided for in Article 24 (2) (b) and (c) of the Tax Act shall apply to benefits in the form of capital consisting of a single payment collection.

In particular, in the case of perceptions arising from the exercise of the right to partial rescue of the policy, the reductions referred to in the previous paragraph shall be applicable except that, in view of the existence of the contract for the existence of the the order of the taker or insured to the insurance institution or for any other cause, amounts are met on a regular basis.

In the case of mixed perceptions, which combine rents of any kind with a single charge in the form of capital, the reductions referred to will only apply to the collection made in the form of capital. In particular, when the recovery of benefits in the form of income is recovered once the income is recovered in advance, the yield obtained shall be reduced by application of the percentages corresponding to the age which had each premium at the time of the constitution of the income.

2. The premiums paid over the duration of the contract shall be deemed to be of sufficient frequency and regularity when, after more than 12 years after the payment of the first premium, the average period of stay of the premiums have been over six years.

For these purposes, the average period of stay of premiums will be the result of calculating the sum of premiums multiplied by their number of years of stay and dividing it by the total sum of the premiums paid.

3. The percentage reduction of 60 per 100, as provided for in Article 24.2.c) of the Tax Act, shall be applicable to invalidity allowances received by those who have a degree of disability equal to or greater than 65 per 100.

4. In the case of recovery of benefits in the form of capital arising from life insurance contracts referred to in Article 23.3 of the Tax Act, where they have periodic or extraordinary premiums, for the purposes of determining the of the total yield obtained corresponding to each premium, this total yield shall be multiplied by the weighting coefficient resulting from the following ratio:

In the numerator, the result of multiplying the corresponding premium for the number of years since it was satisfied until the collection of the perception.

In the denominator, the sum of the products resulting from multiplying each premium for the number of years since it was satisfied until the collection of the perception.

5. For the purposes of Article 24 (2) of the Tax Act, the insurance undertaking shall break down the proportion of the amounts paid in respect of each of the premiums paid.

Article 20. Capital income obtained in a notoriously irregular manner in the time and income received in a split form.

1. For the purposes of the application of the reduction provided for in Article 24.2.a) of the Tax Act, capital income obtained in a manner that is notoriously irregular over time is considered to be exclusively the following, when charged in a single tax period:

(a) Importes obtained by the transfer or transfer of the lease.

(b) Indemnities received from the lessee or subtenant for damages or damages in the tenancies.

(c) Importes obtained by the constitution or transfer of rights of use or enjoyment of a life.

2. Where the returns on capital with a period of more than two years are levied in a split manner, only the reduction of the 30 per 100 referred to in the second paragraph of Article 24.2.a) of the Tax Act shall apply, where the quotient resulting from dividing the number of years corresponding to the generation period, computed from date to date, between the number of tax periods of fractionation, is greater than two.

SECTION 3. PERFORMANCE OF ECONOMIC ACTIVITIES

Subsection 1. General Rules

Article 21. Property assets affected by an activity.

1. The following shall be considered to be property assets affected by an economic activity carried out by the taxpayer, irrespective of whether their ownership, in the case of marriage, is common to both

:

a) The real estate in which the activity is developed.

(b) Goods for the economic and sociocultural services of the staff at the service of the activity.

c) Any other assets that are necessary to obtain the respective returns.

In no case shall the assets representative of the equity of an entity and of the transfer of capital to third parties and those intended for use be considered to be an economic activity. The Commission has also taken the view of the Commission.

2. Only those which the taxpayer uses for the purposes of the economic activity shall be considered to be of an economic activity.

They will not be affected:

1. Those that are used simultaneously for economic activities and for private purposes, except that the use for the latter is incidental and notoriously irrelevant in accordance with the provisions of paragraph 4 of the this article.

2. The persons who, being the property of the taxpayer, do not appear in the accounts or official records of the economic activity that the taxpayer is obliged to carry, unless proof to the contrary.

3. In the case of property assets which serve only partially for the purpose of the activity, the effect shall be limited to that part of the activity which is actually used in the activity in question. In this respect, only those parts of the assets that are susceptible to a separate and independent use of the rest shall be considered to be affected. In no case shall they be subject to partial affectation of indivisible assets.

4. Assets of fixed assets acquired and used for the development of economic activity which are intended for the personal use of the taxpayer in days shall be considered to be used for private purposes in an ancillary and notoriously irrelevant manner. or business hours during which the exercise of such activity is interrupted.

The provisions of the preceding paragraph shall not apply to passenger cars and their trailers, mopeds, motorcycles, aircraft or sports or recreational craft, except for the following cases:

(a) Mixed vehicles intended for the carriage of goods.

(b) Those intended for the provision of passenger transport services by way of consideration.

(c) Those intended for the provision of teaching services for drivers or pilots by way of consideration.

(d) Those intended for the professional movement of representatives or commercial agents.

e) Those destined to be the object of a transfer of use with habituality and onpayment.

For these purposes, motor cars, trailers, mopeds and motorcycles are considered to be those defined as such in the Annex to Royal Decree 339/1990 of 2 March 1990 on the text of the Law on Traffic, Vehicle Circulation to Motor and Road Safety, as well as those defined as mixed vehicles in that Annex and, in any case, so-called all-terrain vehicles or "jeep" type vehicles.

Article 22. Values of affectation and disaffection.

1. The affections to economic activities of property or rights of personal property shall be carried out by the acquisition value that according to the rules provided for in Articles 33.1 and 34 of the Law of the Tax had at the said time.

2. In the disaffection of goods or rights affected by economic activities to the personal property, it shall be taken for the purposes of this Tax to have its book value at that time, calculated in accordance with the write-downs that would have been fiscally deductibles, in any case the minimum depreciation.

Article 23. Allocation of income.

For the purpose of determining the outcome of the economic activities of the entities referred to in Article 10 of the Tax Law, the net amount of the business figure provided for in Article 122 of Law 43/1995, of 27 December, in the case of the Company Tax, shall take into account exclusively all the economic activities carried out by those entities.

Article 24. Income from economic activities, which are notoriously irregular in time and income received in a split form.

1. For the purposes of the application of the reduction provided for in Article 30 of the Tax Act, income from economic activities obtained in a manner which is notoriously irregular over time is considered to be exclusively the following, where in the single tax period:

(a) Capital grants for the acquisition of items of non-depreciable fixed assets.

(b) Compensation and aid for the cessation of economic activities.

c) Literary, artistic or scientific awards that do not enjoy exemption in this Tax. For these purposes, no prizes are considered to be awarded for economic purposes arising from or replacing intellectual or industrial property rights.

(d) The compensation received in replacement of economic rights of indefinite duration.

2. Where the income from economic activities over a period of more than two years is collected in a fractionated form, the reduction of the 30 per 100 provided for in Article 30 of the Tax Act shall apply only if the quotient resulting from dividing the number of years corresponding to the generation period, computed from date to date, between the number of fractionation tax periods, is greater than two.

Article 25. Schemes for the determination of income from economic activities.

1. In accordance with the provisions of Article 45.2 of the Tax Law, the following regimes for determining income from economic activities shall exist:

1. Direct Estimate, which will have two modes, normal and simplified.

2. Objective Estimation.

2. Taxpayers shall apply any of the above schemes taking into account the limits of application, the rules of incompatibility and the rules of renunciation contained in the following Articles.

Subsection 2. First simplified direct estimate Article 26. Scope of the simplified direct estimation scheme.

1. Taxpayers who engage in economic activities shall determine the net performance of all their activities by the simplified mode of the direct estimation scheme, provided that:

(a) Do not determine the net performance of these activities by the objective estimation scheme.

(b) The net amount of the turnover of all these activities, defined in accordance with Article 191 of the consolidated text of the Companies Act, does not exceed 100,000,000 annual pesetas.

c) Do not give up this mode.

2. The net amount of the turnover which is set as the limit for the application of the simplified mode of the direct estimation scheme shall be as the reference for the immediate year preceding the year in which this mode is to be applied.

When no activity has been carried out in the preceding year, the net performance shall be determined in this manner, unless the net yield is waived in the terms of the following article.

When an activity has started in the previous year, the net amount of the business figure will be raised per year.

3. Taxpayers who determine the net performance of any of their economic activities by the normal mode of the direct estimation scheme shall determine the net performance of all their activities in the normal mode.

However, when an economic activity is initiated during the year for which this modality is to be waived, the incompatibility referred to in the preceding paragraph shall not have any effect for that year in respect of activities which are were previously held.

Article 27. Waiver and exclusion from the simplified direct estimation scheme.

1. The waiver of the simplified mode of the direct estimate shall be made during the month of December preceding the beginning of the calendar year in which it is to take effect.

The waiver will have effects for a minimum period of three years. After that period, it shall be understood as a tacitly extended period for each of the following years in which the modality may be applicable, unless the time limit laid down in the preceding paragraph is revoked.

If in the immediate year preceding the one in which the waiver of the simplified mode of the direct estimate regime is to take effect, the limit that determines its scope will be exceeded, such waiver will be tabled.

The resignation as well as its revocation will be carried out in accordance with the provisions of Royal Decree 1041/1990 of 27 July, which regulates the census statements to be presented for tax purposes by businessmen. professionals and other tax authorities.

In case of start of activity, the waiver shall be made as provided for in the preceding paragraph.

2. The exclusion of the simplified mode of the direct estimation scheme will be a determining factor in the exclusion of the limit set out in the previous article.

The exclusion will produce effects in the immediate year after the year in which that circumstance occurs.

3. The waiver or exclusion of the simplified mode of the direct estimation scheme shall mean that the taxpayer shall determine the net performance of all its economic activities by the normal mode of this scheme.

Article 28. Determination of net performance in the simplified direct estimation scheme.

The net performance of economic activities, to which the simplified mode of the direct estimation scheme applies, shall be determined in accordance with the rules laid down in Articles 26 and 28 of the Tax Law, with the following specialties:

1. The write-downs of the fixed assets will be practiced in a linear manner, according to the table of simplified amortizations approved by the Minister of Economy and Finance. The amounts of depreciation resulting from these tables shall apply the rules of the special scheme for small-scale undertakings provided for in Law 43/1995 of 27 December 1995 on the tax on companies which affect the concept.

2. The set of deductible provisions and difficult-to-justify expenses will be quantified by applying the 5 per 100 percentage on net yield, excluding this concept.

Article 29. Entities under the allocation scheme.

1. The simplified mode of the direct estimation scheme shall be applicable for the determination of the net performance of the economic activities carried out by the entities referred to in Article 10 of the Tax Act, provided that:

1. All your partners, heirs, community members or members are natural persons.

2. The entity meets the requirements defined in Article 26 of this Regulation.

2. The waiver of the modality shall be carried out by all the partners, heirs, communes or members, in accordance with the provisions of Article 27 of this Regulation.

3. The application of this modality shall be carried out independently of the circumstances which are individually fulfilled in the members, heirs, communes or members.

4. The net yield shall be attributed to the partners, heirs, community members or unit-holders, according to the rules or covenants applicable in each case and, if they do not consist of the Administration in a feisty form, shall be attributed equally.

Subsection 3. Objective Estimation Article 30. Scope of application of the objective estimation scheme.

1. The objective estimation scheme shall apply to each of the economic activities, in isolation considered, to be determined by the Minister for Economic Affairs and Finance, unless the taxpayers give up or are excluded from their application, in the the terms provided for in Articles 31 and 32 of this Regulation.

2. This scheme may not be applied by taxpayers whose full volume of income, in the preceding year, exceeds any of the following amounts:

For all of its economic activities, 75,000,000 annual pesetas.

For the set of agricultural and livestock activities, in the terms determined by the Ministerial Order that develops the objective estimation regime, 50,000,000 pesetas.

For these purposes, they will only be computed:

The transactions to be recorded in the Book of Sales or Revenue as provided for in Article 65.7 of this Regulation or in the Book of Revenue provided for in Article 40.1 of the Value Tax Regulation Added, approved by Royal Decree 1624/1992, of 29 December.

The operations by which they are obliged to issue and retain invoices, in accordance with the provisions of Article 2 (3) of Royal Decree 2402/1985 of 18 December 1985 on the duty to issue and deliver The bill is for employers and professionals.

When an activity has started in the previous year, the revenue volume will be raised per year.

Article 31. Waiver of the objective estimation regime.

1. The waiver of the objective estimation scheme may be carried out:

(a) During the month of December preceding the beginning of the calendar year in which it is due to take effect.

In the event of the start of activity, the waiver will be made at the time of filing the censal declaration of activity.

(b) The waiver of the objective estimate shall also be deemed to have been made when the statement corresponding to the split payment of the first quarter of the calendar year in which it is due is submitted within the regulatory period. effects in the form laid down for the direct estimation scheme.

In the event of the commencement of activity, the waiver shall be deemed to be made when the split payment corresponding to the first quarter of the year of the activity in the form arranged for the scheme is effected within the regulatory period. Direct estimation.

2. The waiver of the objective estimation scheme shall mean the inclusion in the scope of the simplified mode of the direct estimation scheme, in accordance with the terms of Article 26 (1) of this Regulation.

3. The waiver shall have effect for a minimum period of three years. After that period, it shall be deemed to be tacitly extended for each of the following years in which the objective estimation system may be applicable, unless the time limit laid down in paragraph 1 (a) is revoked.

If, in the immediate year preceding the year in which the waiver of the objective estimation regime is due to take effect, the limits that determine its scope will be exceeded, such waiver shall be held for failure to be submitted.

4. The waiver referred to in paragraph 1.a) as well as the revocation, whatever the form of resignation, shall be effected in accordance with the provisions of Royal Decree 1041/1990 of 27 July 1990 on the basis of the census declarations which employers, professionals and other tax authorities have to present for tax purposes.

Article 32. Exclusion from the objective estimation scheme.

1. The exclusion of the objective estimation scheme shall be a determining factor in the exclusion of the limit laid down in Article 30.2 of this Regulation or the limits to be laid down in the Ministerial Order implementing it.

The exclusion will produce effects the immediate year after the year in which that circumstance occurs.

2. The incompatibility provided for in Article 33 and the exclusion from Article 34 (2) of this Regulation shall also be considered as grounds for exclusion from the scheme.

3. The exclusion of the objective estimation scheme shall mean the inclusion in the scope of the simplified mode of the direct estimation scheme, as provided for in Article 26 (1) of this Regulation.

Article 33. Incompatibility of objective estimation with direct estimation.

Taxpayers who determine the net performance of any economic activity by the direct estimate regime, in any of its modalities, shall determine the net performance of all its economic activities by that speed, in the corresponding mode.

However, when an economic activity is initiated during the year not included or where the objective estimation scheme is waived, the incompatibility referred to in the preceding paragraph shall not have an effect for that year. the activities that were previously carried out.

Article 34. Coordination of the objective estimation regime with the Value Added Tax.

1. The waiver of the simplified special scheme or the special scheme for the agricultural, livestock and fisheries sector of the value added tax shall mean that the system of objective estimation shall be waived for all economic activities carried out by the taxpayer.

2. The exclusion of the simplified special scheme in the value added tax shall mean the exclusion of the objective estimation scheme for all economic activities carried out by the taxpayer.

Article 35. Determination of net performance in the objective estimation scheme.

1. The taxpayers shall determine, with reference to each activity to which this scheme is applicable, the net yield in question.

2. The determination of the net yield referred to in the preceding paragraph shall be made by the taxpayer himself, by imputation to each activity of the signs, indices or modules that the Minister of Economy and Finance has set.

Where signs, indices or modules are approved for the calculation of the net yield, the amortisation of the fixed assets may be deducted. The amount deducted by this concept will be exclusively the one that results from applying the table which, for these purposes, will be approved by the Minister of Economy and Finance.

3. In the case of initiation after 1 January or the end of the day on 31 December of the operations of an activity received under this scheme, the signs, indices or modules shall, where appropriate, be applied in proportion to the period of time in which such activity has been exercised, by the taxpayer during the calendar year.

The provisions of this paragraph will not apply to the seasonal activities that will be governed by the corresponding ministerial order.

4. 1. Where the development of economic activities to which this scheme applies is affected by fires, floods or other exceptional circumstances affecting a particular sector or area, the Minister for Economic Affairs and Hacienda may, by way of exception, authorise the reduction of signs, indices or modules.

2. Where the development of economic activities to which this scheme applies is affected by fires, floods, sinks or major breakdowns in the industrial equipment, which lead to serious anomalies in the development of the activity, the persons concerned may request the reduction of the signs, indices or modules in the Administration or Delegation of the State Administration of Tax Administration corresponding to their tax domicile, within thirty days of counting from the date on which they are produced, providing the evidence they deem appropriate and making reference, where appropriate, the compensation to be paid on account of such anomalies. The effectiveness of such anomalies shall be credited, the reduction of the signs, indices or modules that apply shall be authorised.

You will also authorize the reduction of signs, indexes or modules when the activity holder is in a temporary disability situation and has no other staff employed. The procedure for reducing the signs, indices or modules shall be the same as that provided for in the preceding paragraph.

The reduction of the signs, indices or modules shall be taken into account for the purposes of the split payments due after the date of the authorisation.

3. Where the development of economic activities to which this scheme applies is affected by fires, floods, sinks or other exceptional circumstances which determine extraordinary expenses outside the normal process of the financial year, the persons concerned may undermine the net yield resulting from the amount of such expenditure. To this end, the taxpayer must bring that circumstance to the attention of the Administration or Delegation of the State Administration of Tax Administration corresponding to its tax domicile, within thirty days from the date of the the date on which it is produced, providing for that purpose the justification for the payment and making reference, where appropriate, of the compensation to be paid on account of such circumstances.

The tax administration will verify the certainty of the cause that motivates the reduction of the yield and the amount of the same.

5. The Ministerial Order under which the signs, indices or modules applicable to each activity are fixed shall contain the instructions necessary for its proper computation and shall be published in the Official Gazette before 1 December. prior to the applicable period.

The Ministerial Order may refer to a period of time higher than the year, in which case the method of calculating the yield for each of the years included shall be determined separately.

Article 36. Independent activities.

1. For the purposes of the application of the objective estimation scheme, independent activities shall be considered each of those specifically collected in the Ministerial Orders governing this scheme.

2. The determination of the economic operations included in each activity shall be carried out in accordance with the rules of the Economic Activities Tax, in so far as they are applicable.

Article 37. Entities under the allocation scheme.

1. The objective estimation scheme shall be applicable for the determination of the net performance of the economic activities carried out by the entities referred to in Article 10 of the Tax Act, provided that all of its partners, heirs, Community members are natural persons.

2. The waiver of the scheme, which shall be made in accordance with Article 31 of this Regulation, shall be made by all the members, heirs, members or members.

3. The application of this objective estimation scheme shall be carried out independently of the circumstances of the individual partners, heirs, members or members.

4. The net yield shall be attributed to the partners, heirs, community members or unit-holders, according to the rules or covenants applicable in each case and, if they do not consist of the Administration in a feisty form, shall be attributed equally.

SECTION 4. PROPERTY GAINS AND LOSSES

Article 38. Determination of the acquisition value.

1. The acquisition value of the transferred assets will be reduced in the amount of the tax deductible depreciation, in any event the minimum depreciation, regardless of the actual consideration of the expenditure.

For these purposes, the resulting minimum amortisation period shall be considered as the result of the maximum amortisation period or the corresponding fixed percentage, depending on each case.

2. In the case of the transfer of property assets to economic activities, the book value shall be deemed to be the value of the acquisition, taking into account the depreciation which would have been tax deductible, without prejudice to the minimum depreciation as referred to in the previous paragraph. Where the assets have been affected by the activity after its acquisition and before 1 January 1999, the date of acquisition shall be taken as the date of acquisition.

Article 39. Exemption from reinvestment in habitual housing.

1. Any property gains that are shown in the transfer of the taxpayer's usual dwelling may be waived where the total amount obtained is reinvested in the purchase of a new habitual dwelling, in the the conditions set out in this Article. Where, in order to acquire the home transmitted by the taxpayer, he has used foreign financing, it shall be considered, exclusively for these purposes, as a total amount obtained as a result of minoring the transfer value on the principal of the loan. which is not yet to be amortised at the time of transmission.

For these purposes, the acquisition of housing is assimilated to its rehabilitation, in the terms provided for in Article 52.5 of this Regulation.

For the housing rating as usual, it will be within the meaning of Article 51 of this Regulation.

2. The reinvestment of the amount obtained in the disposal shall be carried out at one time or in succession within a period not exceeding two years.

The reinvestment shall be deemed to be made within a period of time when the sale has been effected in instalments or with deferred price, provided that the amount of the time limits is intended for the purpose indicated within the tax period in question. that they are perceiving.

When, in accordance with the foregoing paragraphs, reinvestment is not carried out in the same year of disposal, the taxpayer shall be obliged to state in the tax return for the financial year in which he is obtain the wealth gain your intention to reinvest in the terms and conditions outlined above.

They will also be entitled to the exemption by reinvestment of the amounts obtained in the disposal which are intended to satisfy the price of a new habitual dwelling which would have been acquired within the two years preceding the that.

3. In the event that the amount of the reinvestment is less than the total amount obtained in the disposal, only the proportional portion of the wealth gain corresponding to the amount actually invested in the conditions shall be excluded. of this article.

4. Failure to comply with any of the conditions set out in this article will determine the subject matter of the portion of the corresponding property gain.

In such a case, the taxpayer shall impute the portion of the wealth gain not exempt from the year of its obtention, practicing supplementary settlement-settlement, including interest on late payment, and shall be filed within the period specified in the (a) between the date on which the non-compliance occurs and the end of the statutory period of return for the tax period in which the non-compliance occurs.

Article 40. Reinvestment of extraordinary profits.

1. Taxpayers who carry out economic activities and transmit property assets to them and choose to apply the provisions of Article 21 of Law 43/1995 of 27 December of the Corporate Tax will be integrated into each tax period the total amount of the wealth gain attributable to that period in the general part of the tax base.

2. If, during the reinvestment period, the taxpayer decides not to reinvest an amount equal to the amount of the transfer, or does not make the reinvestment within the time limit set for the transfer, or fails, in whole or in part, to reinvest the reinvestment, it must integrate the part of the rent not charged to the tax period of its obtaining, practicing the corresponding declaration-settlement, with the inclusion of the interest of delay, that will be presented in the period that Between the date on which the decision is taken, the time limit for reinvestment is due or the plan is broken and the (a) the time limit for the statutory period of the tax period in which any of those circumstances are met.

Article 41. Reduction of capital gains for certain property assets.

1. Taxpayers who carry out the activity of transport by self-taxis, classified under the heading 721.2 of the first section of the Economic Activities Tax rates, who determine their net performance by the estimation scheme (a) objective shall be to reduce the property gains resulting from the transmission of intangible fixed assets, where such transmission is motivated by permanent incapacity, retirement or cessation of activity by restructuring of the sector.

Also, the provisions of the preceding paragraph shall apply when, for reasons other than those mentioned therein, the intangible assets are transmitted to the family until the second degree.

2. The reduction, as provided for in the previous paragraph, shall be obtained by applying the following percentages to the property profit determined in accordance with Article 32 of the Tax Law:

(SEE TABLE. IMAGE PAGE 5744)

Elapsed time since the acquisition of the intangible fixed asset Percentage applicable Over twelve years ................................... 100 Over eleven years ................................... 87 More than ten years years .................................... 74 More than nine years ................................. 61 More than eight years ................................... 54 More than seven years ................................... 47 More than six years years .................................... 40 More than five years .................................. 33 Over four years ................................. 26 More than three years .................................... 19 More than two years .................................... 12 More than one year ....................................... 8 Until a year ......................................... 4

CHAPTER III

Income in kind

Article 42. Delivery of shares to workers.

1. They shall not have the consideration of income from work in kind, for the purposes of Article 43.2.a) of the Tax Act, the delivery of shares or units to workers in assets in the following cases:

1. The delivery of shares or units of a company to its employees.

2. Also, in the case of groups of companies in which the circumstances provided for in Article 42 of the Code of Commerce are met, the delivery of shares or units of a company of the group to the workers, taxpayers for this tax, of the companies that are part of the same subgroup.

In the case of shares or units of the group's dominant company, the delivery to the workers, taxpayers for this tax, of the companies that are part of the group.

In the two preceding cases, the delivery may be effected either by the company itself to which the worker provides its services, or by another company belonging to the group or by the public entity, state company or administration. public holding of the shares.

2. The application of the provisions of the above paragraph shall require compliance with the following requirements:

1. The offer is made within the general remuneration policy of the company or, as the case may be, the group of companies and which contributes to the participation of the workers in the company.

2. º That each worker, together with their spouses or relatives to the second degree, has no direct or indirect participation in the society in which they provide their services or in any other of the group, more than 5 per 100.

3. º that the titles are maintained, at least, for three years.

The non-compliance with the deadline referred to in issue 3. (a) the obligation to submit a supplementary declaration-settlement, with the corresponding interest on late payment, within the time limit between the date on which the requirement is not met and the completion of the regulatory period of the a statement corresponding to the tax period in which such non-compliance occurs.

Article 43. Study costs for the training or retraining of staff who do not constitute remuneration in kind.

They shall not have the consideration of remuneration in kind, for the purposes of Article 43.2.b) of the Tax Act, studies prepared by institutions, companies or employers and financed directly by them. for the updating, training or retraining of their staff, when they are required to carry out their activities or the characteristics of the posts, even where their actual performance is carried out by other persons or entities specialised. In these cases, the costs of locomotion, maintenance and stay shall be governed by the provisions of Article 8 of this Regulation.

Article 44. Expenditure by eaters of undertakings which do not constitute remuneration in kind.

1. For the purposes of Article 43 (2) (c) of the Tax Act, they shall be given the consideration of the delivery of products at discounted prices to be carried out in business canteens the direct and indirect formulas for the provision of the service. for labour law, in which the following requirements are met:

1. º That the service delivery takes place during business days for the employee or employee.

2. The provision of the service shall not take place during the days that the employee or employee accrues for living expenses other than tax in accordance with Article 8 of this Regulation.

2. Where the provision of the service is carried out through indirect formulas, the following shall, in addition to the requirements laid down in the preceding number, be fulfilled:

1. The amount of indirect formulas shall not exceed 1,300 pesetas per day. If the daily amount is higher, there shall be remuneration in kind for the excess.

This amount may be modified by the Minister for Economic Affairs and Finance in the light of economic developments and the social content of these formulas.

2. If the service delivery is delivered to the employee or employee vouchers-food or similar documents, the following shall be observed:

They must be numbered, issued in a nominative form, and must bear the nominal amount and the issuing company.

They will be untransmittable.

The reimbursement of the amount may not be obtained from the company or from the third party.

They can only be used in hospitality establishments.

The company that delivers them must carry and maintain a relationship between the employees and their employees, with the expression of the document number and the delivery day.

Article 45. Expenditure on sickness insurance which does not constitute remuneration in kind.

They will not have the consideration of income from work in kind, as provided for in Article 43.2.f) of the Tax Law, premiums or fees paid by companies to insurance companies for coverage disease, when the following requirements are met:

1. That the disease coverage reaches the worker himself, and can also reach his or her spouse, or descendants.

2. That the premiums or quotas paid do not exceed 60,000 pesetas per year. Where insurance also includes the spouse or descendants, the limit shall be 200,000 pesetas per year. The excess over such amounts shall constitute remuneration in kind.

Article 46. Rights of company founders.

The special rights of economic content reserved for the founders or promoters of a company as remuneration for personal services, when they consist of a percentage of the profits of the entity, shall be valued, at least 35 per 100 of the equivalent value of share capital which permits the same participation in the profits as the one recognised for those rights.

Article 47. Price offered.

For the purposes of Article 44.1.1 (f) of the Tax Law, the price shall be deemed to be offered to the public, in the form of remuneration in kind satisfied by undertakings which have as their usual activity the performance of the Article 13 of Law 26/1984 of 19 July 1984, General for the Defence of Consumers and Users, deducting, where appropriate, the discounts offered to other collectives of similar characteristics to that of the the employees of the company, as well as the general promotional discounts applied by the undertaking which are in force at the time of the payment in kind.

CHAPTER IV

Personal and family minimum

Article 48. Annual income limits for the application of the family minimum by descendants.

1. The amount of the maximum annual income for the application of the family minimum by descendants, including the disabled, as referred to in points (b) and (c) of Article 40.3.1. of the Tax Act, shall be 1,000,000 pesetas, including the exempt.

2. The amount of the maximum annual income, as referred to in Article 40.3.3. of the Law of the Tax, which allows the transfer of the right to the application of the family minima of relatives of degree closer to those of the next grade, shall be 1,000,000 pesetas, including those exempted.

CHAPTER V

General Liquidable Base

Article 49. Time limit for the submission of supplementary declarations in the provision of consolidated rights for social security contributions.

For the purposes of Article 46 (1) (b) of the Tax Act, the additional statements-liquidations to replace the reductions in the tax base unduly paid by the advance provision of the Consolidated entitlements in social security mutual funds shall be filed within the period between the date of such advance provision and the end of the statutory period of return for the tax period in which the make the provision in advance.

Article 50. Excess of contributions to pension plans and non-reducible social welfare insurance schemes in the financial year.

Members in pension schemes may request that the amounts provided, including the contributions of the sponsor who have been charged to them, for exceeding the quantitative limits laid down in the Article 46.1 of the Tax Law, they have not been able to be subject to reduction in the tax base, in the following five years.

The application shall be made in the statement of the Income Tax of the Physical Persons corresponding to the financial year in which the contributions made have exceeded the limits mentioned above.

The excess which, in accordance with the above, could not be reduced, will be charged to the first financial year, within the following five years, in which the contributions made do not reach the quantitative limits. established in Article 46.1 of the Tax Law.

Where contributions made in the financial year with contributions from previous years which have not been eligible for reduction for exceeding the limits laid down, they shall be reduced, in the first place, to the contributions for previous years.

TITLE III

Quota Deductions

CHAPTER I

Deduction for investment in habitual housing

Article 51. Concept of habitual housing.

1. In general, it is considered that the taxpayer normally houses the building which constitutes his residence for a continuous period of at least three years.

However, it will be understood that the dwelling was normal when, despite the absence of such a deadline, the taxpayer's death occurs or other circumstances that necessarily require the change of address, such as marriage, marriage separation, transfer of employment, first job, or change of employment, or other justified similar.

2. In order for the dwelling to constitute the habitual residence of the taxpayer it must be effectively and permanently inhabited by the taxpayer himself, within twelve months, counted from the date of acquisition or termination of the works.

However, it will be understood that housing does not lose the usual character when the following circumstances occur:

When the death of the taxpayer occurs or other circumstances that necessarily impede the occupation of the dwelling are present, in the terms provided for in paragraph 1 of this article.

When this enjoyment of habitual housing by reason of charge or employment and the acquired dwelling is not object of use, in which case the period indicated above will begin to be counted from the date of the cessation.

3. Where the exceptions provided for in the preceding paragraphs are applicable, the deduction for the purchase of housing shall be made up to the time when the circumstances which necessarily require the change of housing are to be given or prevent the occupation of the same, except where the taxpayer enjoys habitual housing on account of employment or employment, in which case he/she may continue to apply deductions for this concept as long as that situation is maintained and the dwelling is not subject to use.

Article 52. Acquisition and rehabilitation of the usual dwelling.

1. The acquisition of housing is treated as the construction or expansion thereof, in the following terms:

Expansion of housing, when the increase of its habitable surface occurs, by means of closure of part discovered or by any other means, permanently and during all times of the year.

Construction, where the taxpayer directly satisfies the costs arising from the execution of the works, or gives amounts to the promoter of the works, provided that they are completed within a period not exceeding four years from the start of the investment.

2. On the contrary, housing acquisition will not be considered:

(a) The costs of conservation or repair, as provided for in Article 12 of this Regulation.

b) Improvements.

c) The acquisition of garage spaces, gardens, parks, swimming pools and sports facilities and, in general, the annexes or any other element that does not constitute the housing itself, provided that they are acquired regardless of this. The parking spaces purchased with the houses will be treated as housing, with a maximum of two.

3. If, as a result of bankruptcy or suspension of payments, both judicially declared, the sponsor does not complete the construction works before the end of the four-year period referred to in the second indent of paragraph 1 of this Article or not It will be able to carry out the delivery of the houses within the same period of time, which will be extended in another four years.

In these cases, the twelve-month period referred to in Article 51.2 of this Regulation shall begin to be counted from the delivery.

In order for the extension provided for in this paragraph to take effect, the taxpayer who is obliged to file a tax return in the tax period when the initial period has been breached must accompany the the supporting documents showing their investments in housing, as well as any supporting documents relating to the occurrence of any such situation.

In the cases referred to in this paragraph, the taxpayer shall not be obliged to make any revenue due to the non-compliance with the general term of four years of completion of the construction works.

4. Where, for other exceptional circumstances, which are not attributable to the taxpayer and which involve the construction of works, they cannot be completed before the end of the four-year period referred to in the second indent of paragraph 1 of this Article. Article, the taxpayer may request the Administration to extend the deadline.

The application must be submitted to the Delegation or Administration of the State Administration of Tax Administration corresponding to its tax domicile for the thirty days following the non-compliance with the deadline.

The application must contain both the reasons for the failure to comply with the deadline and the period of time deemed necessary for the completion of the construction works, which may not exceed four years.

For the purposes of the above paragraph, the taxpayer shall provide the appropriate justification.

In the light of the documentation provided, the Delegate or Administrator of the State Tax Administration Agency will decide both on the origin of the extension requested and on the extension period, which it will not necessarily have to be adjusted to that requested by the taxpayer.

Applications for enlargement which are not expressly resolved within three months may be considered to be rejected.

The extension granted will begin to be counted from the immediate day following the one in which the non-compliance occurs.

5. For the purposes referred to in Article 55.1.1. or (a), the Tax Law shall be deemed to be housing rehabilitation works on it which meet any of the following requirements:

(a) That they have been qualified or declared as a protected action in the field of housing rehabilitation in accordance with the terms of Royal Decree 1186/1998 of 12 June 1998.

(b) The purpose of the reconstruction of the house by the consolidation and treatment of structures, facades or covers and other similar structures provided that the overall cost of the rehabilitation operations exceeds the 25 per 100 of the purchase price if it had been made during the two years prior to the rehabilitation or, in another case, the market value of the property at the time of its rehabilitation.

Article 53. Conditions for the financing of the usual housing for the application of the increased percentages of deduction.

The deduction percentages provided for in Article 55.1.1., b) of the Tax Law shall apply as follows:

1. In the case of housing acquisition or rehabilitation, in order to apply the increased percentages of 25 per 100 and 20 per 100, the following circumstances must occur:

(a) That the amount financed from the purchase or rehabilitation value of the dwelling shall be at least 50 per 100 of that value.

In the case of reinvestment for the disposal of the usual dwelling, the percentage of 50 per 100 shall be understood as referring to the excess investment that corresponds.

b) That the financing be made through a credit institution or insurance institution or through loans granted by the companies to their employees.

(c) For the first three years, no amounts exceeding 40 per 100 of the total amount requested shall be amortised.

These percentages shall in no case be applicable to the amounts intended for the construction or extension of the dwelling or to the housing deposits.

The percentage of deduction of 25 per 100 shall be applied exclusively for the two years following the purchase or rehabilitation of the usual dwelling and the quantities, respectively, for these purposes.

2. In the case of works and suitability facilities performed by the disabled, as referred to in Article 55.1.4. (c) of the Tax Law, the following circumstances shall be required:

(a) that the amount of the works or installations of adequacy is at least 30 per 100 of that investment.

(b) The financing shall be carried out through a credit institution or insurance institution or by loans granted by the companies to the disabled employee.

(c) For the first three years, no amounts exceeding 40 per 100 of the total amount requested shall be amortised.

The deduction percentages of 25 or 20 per 100 will apply, at most, to 1,000,000 pesetas, applying 15 per 100 over the excess, up to 2,000,000 pesetas.

The percentage of deduction of 25 per 100 shall be applied exclusively for the two years following the completion of the adequacy works or installations.

Article 54. Housing accounts.

1. The amounts which are deposited in credit institutions, in separate accounts of any other kind of taxation, shall be deemed to have been allocated to the acquisition or rehabilitation of the taxpayer's habitual dwelling, provided that the balances of they are intended exclusively for the first purchase or rehabilitation of the taxpayer's habitual dwelling.

2. The right to deduction will be lost:

(a) Where the taxpayer has amounts deposited in the housing account for purposes other than the first purchase or rehabilitation of his or her usual dwelling. In the case of a partial provision, the quantities laid down shall be deemed to be the first deposited.

(b) When four years elapse, from the date on which the account was opened, the housing has not been acquired or rehabilitated.

(c) When the subsequent acquisition or rehabilitation of the dwelling does not meet the conditions that determine the right to the deduction for that concept.

3. Each taxpayer will only be able to maintain a housing account.

4. The accounts shall be separately identified in the tax return, including at least the following data:

Entity where the account has been opened.

Branch.

Account number.

Article 55. Works of adaptation of the habitual dwelling by the disabled.

1. For the purposes of the deduction provided for in Article 55.1.4. of the Law of the Tax, it is understood by works and installations of adequacy of the habitual housing of the disabled those that involve a reform of the interior of the same, as well as the modification of the common elements of the building which serve as a necessary step between the urban property and the public road, such as staircases, elevators, corridors, portals or any other architectural element, or those necessary for the application electronic devices that serve to overcome sensory or de-communication barriers promotion of their security.

2. The accreditation of the need of the works and facilities for the accessibility and sensory communication that facilitates the dignified and adequate development of the person with disabilities, will be carried out before the tax administration certificate or judgment issued by the Institute for Migration and Social Services or the competent authority of the Autonomous Communities in respect of the assessment of disability, on the basis of the opinion delivered by the Valuation Teams and Guidance dependent on the same.

CHAPTER II

Deduction for income obtained in Ceuta or Melilla

Article 56. Income obtained in Ceuta or Melilla.

For the purposes of the deduction provided for in Article 55.4 of the Tax Law, the following shall be considered for income obtained in Ceuta or Melilla:

1. Income from work derived from unemployment benefits and from those referred to in Article 16.2.a) of the Tax Act.

2. In the course of economic activities, operations in Ceuta or Melilla shall be understood to mean those which close in these territories a business cycle which determines economic performance or provides for the provision of a service. The professional

It shall not be estimated to measure such circumstances in the case of isolated operations for the extraction, manufacture, purchase, transport, entry and exit of genera or effects on them and, in general, where operations are not determine on their own income.

3. In the case of fishing and maritime activities, the rules laid down in Article 31 of Law 43/1995 of 27 December 1995 on Corporate Tax shall apply.

4. Capital income from the lease of movable property, business or mine shall be deemed to constitute an income obtained in Ceuta or Melilla where the purpose of the lease is situated and is actually used in those territories.

CHAPTER III

Loss of right to deduct

Article 57. Loss of right to deduct.

1. Where, in the case of tax periods subsequent to that of their application, the right, in whole or in part, is lost to the deductions made, the taxpayer shall be obliged to add to the state liquid quota and the autonomous or complementary liquid quota. accrued in the year in which the requirements were not met, the amounts unduly deducted, plus the interest on late payment referred to in Article 58.2.c) of Law 230/1963 of 28 December, General Tax.

2. This addition will be applied as follows:

(a) In the case of the deductions provided for in Article 55 of the Tax Law, 85 per 100 of the unduly applied deductions and the autonomous or complementary liquid quota shall be added to the State's liquid quota. the remaining 15 per 100.

(b) In the case of deductions established by the Autonomous Community in the exercise of the powers provided for in Law 14/1996 of 30 December 1996, the transfer of taxes from the State to the Autonomous Communities and measures Additional taxes shall be added to the autonomous liquid quota or supplement all the deductions unduly paid.

TITLE IV

Differential fee

Article 58. Differential fee.

1. For the purposes of article 65.c) of the Tax Law, effective taxation of the Income Tax of the Physical Persons shall be understood as the result of applying the effective average rate of this Tax on the part of the base liquidable corresponding to the taxable amount charged.

The effective average rate of the Income Tax of the Physical Persons will be the result of multiplying by 100 the ratio obtained from dividing the part of the total liquid quota, which is reduced by double taxation dividends, corresponding to the general liquidable base, by the latter. This type shall be expressed with two decimal places.

2. Effective taxation of the Corporate Tax shall mean the result of applying the effective rate to the tax base.

The effective rate of the Company Tax shall be the result of multiplying by 100 the ratio obtained from dividing the difference between the full quota and the deductions referred to in Chapters II, III and IV of Title VI of Law 43/1995, of 27 December, of the Tax on Companies, by the tax base. This type shall be expressed with two decimal places.

TITLE V

Tax Management

CHAPTER I

Obligation to declare

Article 59. Obligation to declare.

1. Taxpayers will be required to file and subscribe for this Tax, in the terms provided for in Article 79 of the Tax Act.

2. The submission of the declaration, in cases where there is an obligation to carry out the declaration, shall be necessary to obtain refunds on account of the payments made.

3. The models of declaration shall be approved by the Minister for Economic Affairs and Finance, which shall establish the form and time limits for its presentation, as well as the assumptions and conditions for the submission of the declarations by means of telematic means.

The Minister of Economy and Finance will be able to establish, for justified reasons, special deadlines for a declaration for a certain class of taxpayers or for those territorial zones to be pointed out.

Taxpayers must complete all the data contained in the statements that affect them, and submit them accompanied by the documents and supporting documents to be established, in the places and deadlines to be determined by the the Minister for Economic Affairs and Finance.

4. In the case of a joint contribution, the declaration shall be signed and submitted by the members of the older family unit, who shall act on behalf of the children who are integrated into it, in accordance with Article 44 of the Law. 230/1963, dated December 28, General Tax.

Article 60. Self-validation and admission.

1. The taxpayers who are obliged to declare for this tax, at the time of filing their declaration, must determine the corresponding tax liability and enter it in the place, form and time limits determined by the Minister of Economy and Finance.

2. The amount resulting from the reverse charge may be split, without interest or surcharge, 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, in the the time limit to be determined as set out in the previous paragraph.

To enjoy this benefit it will be necessary for the declaration to be filed within the stated deadline.

It shall not be split, in accordance with the procedure laid down in the preceding paragraph, with the entry of supplementary statements.

3. The payment of the tax liability may be made by the delivery of goods belonging to the Spanish Historical Heritage that are registered in the General Inventory of Furniture or in the General Register of Goods of Cultural Interest, according to Article 73 of Law 16/1985 of 25 June of the Spanish Historical Heritage.

Article 61. Fractionation in the case of death and loss of residence in Spain.

1. In the case of the death of the taxpayer provided for in Article 14 (4) of the Tax Law, all outstanding income must be included in the tax base of the last tax period to be declared for this tax.

2. In the event that the taxpayer loses his/her status for a change of residence, as provided for in Article 14.3 of the Tax Act, all outstanding amounts of imputation must be integrated into the tax base corresponding to the the last period to be declared by this Tax, where applicable, where appropriate, a supplementary statement-settlement, without penalty, no interest on late payment or any additional charge, within three months of the taxpayer's loss of his/her status by change of residence.

3. In these cases, the successors of the deceased or the taxpayer may request the fractionation of the part of the tax liability corresponding to those income, calculated by applying the rate regulated in Article 67.2 of the Tax Law.

4. The division shall be governed by the rules laid down in Chapter VII, Title 1 of Book I of the General Rules of Collection, with the following specialties:

(a) Applications must be made within the regulatory period of the declaration.

(b) The applicant shall provide security in the form of a solidarity guarantee of a credit institution or a mutual guarantee company, in accordance with the terms of the General Tax Collection Regulation.

(c) In the event of the requested fractionation being granted, the amount and the time limit of each fraction shall be granted on the basis of the tax periods to which those rents would be charged in the event that the death or the loss of the condition of the taxpayer would not have occurred, with the limit of four years.

The part corresponding to periods exceeding that limit shall be imputed by equal parts during the fractionation period.

Article 62. Data communication by the taxpayer and return request.

1. However, taxpayers who are not required to make a declaration on the tax may, however, obtain a refund of the excess of the withholding tax and the income from the total of the total amount of the tax paid in the amount of the double taxation of dividends and international deductions, through, where appropriate, the presentation of a communication addressed to the tax administration, requesting the return resulting from it.

The communication models shall be approved by the President of the State Tax Administration Agency, who shall establish the time limit and the place of his presentation and the assumptions in which it is made.

It shall also determine the assumptions and conditions for the submission of communications by telematic means and the cases in which the data communicated shall be understood to be subsisting for successive years, if the taxpayer does not communicate variation in the same. The communication may be preceded by the submission to the taxpayer of the data previously held by the tax administration and affect the determination of the quota referred to in the preceding paragraph.

2. The tax authorities shall, where appropriate, in the light of the communication received, the data and the background in their possession and the supporting documents provided by the taxpayer with the communication or required for that purpose, shall, if necessary, carry out (a) the repayment of the excess of the withholding taxes and revenue incurred on the quota referred to in paragraph 1 above.

3. The refund shall be made within the average time between the submission of the communication, or the opening of the reporting period, where such presentation is not required, and the two months following the end of the said period. For information purposes only, the taxpayer shall be notified by ordinary mail or by means of telematics, the result of the calculations made for the determination of the amount of the refund.

Received the refund or, if appropriate, after the deadline for making it, the taxpayers may request, within the following three months, that the Administration practice a provisional settlement, in accordance with the provided for in Article 84.2 of the Tax Law and Law 230/1963 of 28 December, General Tax. The notification may not involve any obligation under the taxpayer other than the refund of the previously returned interest plus the interest on late payment referred to in Article 58.2.c) of the General Tax Act. This same regime will also be subject to taxpayers who have obtained returns in excess of those that correspond to them.

4. Without prejudice to the second subparagraph of paragraph 3 above, the time limit with which the tax administration has been given for the repayment without the payment of the payment has been made, for reasons attributable to the administration Tax shall apply to the amount of interest for late payment referred to in Article 58.2.c of Law 230/1963 of 28 December, General Tax, from the day following that of the end of that period and up to the date of the date of in which the payment is ordered, without the need for the taxpayer to claim it.

Article 63. Trade returns.

1. The refunds referred to in Articles 81 and 85 of the Tax Law shall be made by bank transfer.

2. The Minister for Economic Affairs and Finance may authorise the refunds referred to in the preceding paragraph by a cross-check or a nominee where circumstances warrant it.

Article 64. External collaboration in the presentation and management of declarations and communications.

1. The State Tax Administration Agency will be able to make effective the social collaboration in the presentation of declarations and communications by this Tax through agreements with the Autonomous Communities and other public administrations, with entities, institutions and bodies representing sectors or social, labour, business or professional interests, or directly with undertakings, in relation to the facilitation of such services to their employees.

2. The agreements referred to in the preceding paragraph may cover, inter alia, the following:

a) Information and dissemination campaigns.

b) Assistance in the making of statements and communications and in their correct and truthful fulfillment.

c) Issuance of statements and communications to the tax administration.

d) Subhealing of defects, subject to the authorization of the taxpayer.

e) Information on the status of the processing of returns of trade, subject to the authorization of the taxpayer.

3. The State Tax Administration Agency shall provide the necessary technical assistance for the development of the indicated actions, without prejudice to the provision of such services in general to the taxpayers.

4. The Order of the Minister for Economic Affairs and Finance shall lay down the conditions and conditions under which the entities which have subscribed to the said agreements may submit declarations, communications, statements and liquidations by means of telematic means. or any other documents required by the tax law, representing third parties.

This Order may also provide for other persons or entities to access such a system of presentation by telematic means on behalf of third parties.

CHAPTER II

Formal, accounting and registration obligations

Article 65. Formal, accounting and registration obligations.

1. The taxpayers of the Income Tax of the Physical Persons shall be obliged to keep, for the maximum period of limitation, the supporting documents and documents of the operations, income, expenses, income, reductions and deductions of any kind which must be stated in their declarations, to be provided in conjunction with the declarations and communications of the Tax, when so established and to be displayed before the competent authorities of the tax administration, when are required for this purpose.

2. Taxpayers who carry out business activities whose performance is determined in the normal mode of the direct estimation scheme shall be obliged to keep accounts in accordance with the provisions of the Trade Code.

3. By way of derogation from the above paragraph, where the business activity carried out is not of a commercial nature, in accordance with the Trade Code, the accounting obligations shall be limited to the keeping of the following books:

a) Book record of sales and revenue.

b) Book of purchases and expenses.

c) Book record of investment goods.

4. Taxpayers who carry out business activities whose performance is determined in the simplified mode of the direct estimation scheme shall be obliged to carry out the books referred to in the preceding paragraph.

5. Taxpayers engaged in professional activities whose performance is determined by direct estimation, in any of its forms, shall be obliged to carry out the following books:

a) Income record book.

b) Book of expenditure.

c) Book record of investment goods.

d) Book of funds and supply provisions.

6. Taxpayers who carry out economic activities which determine their net performance by means of the objective estimation scheme shall keep, numbered by order of dates and grouped by quarters, the invoices issued in accordance with the In the case of the Royal Decree No 2402/1985 of 18 December 1985, it regulates the duty to issue and deliver an invoice which is the responsibility of employers and professionals, and invoices or documentary evidence of any other type received. They shall also keep the evidence of the signs, indices or modules applied in accordance with the provisions of the Ministerial Order approving them.

7. Taxpayers under this scheme who deduct depreciation will be obliged to carry out a Book of Investment Goods. In addition, for activities whose net performance is determined taking into account the volume of transactions, a Book of Sales or Revenue shall be carried.

8. Institutions for the allocation of income which carry out economic activities shall carry a number of compulsory books corresponding to the activity carried out, without prejudice to the allocation of returns to be carried out in respect of relationship with their partners, heirs, community members or unit-holders.

9. The Minister for Economic Affairs and Finance is hereby authorised to determine the manner of conduct of the books referred to in this Article.

10. Taxpayers who carry accounting according to the provisions of the Trade Code shall not be required to carry the Books recorded in the preceding paragraphs of this Article.

11. Taxpayers carrying out economic activities may choose to express in euro the entries in the books recorded in the preceding paragraphs of this Article. This option shall be irrevocable.

Article 66. Other formal reporting obligations.

1. An institution which grants mortgage loans for the purchase of dwellings shall submit in the first 30 calendar days of January of the following year an information statement on such loans, with identification, by name and surname and number of tax identification, of the borrowers of the same, total amount of the loan, amounts which they have satisfied in the interest and amortisation of the capital and indication of the year of constitution of the loan and the duration of the loan.

2. In the first thirty calendar days of January of the following year, the entities receiving donations giving the right to deduction for this tax must submit an information declaration of donations, in which, in addition to their identification data and the indication of whether or not they are covered by the deductions scheme established by Law 30/1994 of 24 November of Foundations and of tax incentives for private participation in activities of interest The following data may be required to be found for donors:

a) First and last names.

b) Tax identification number.

c) The amount of the donation.

d) Inclusion or non-inclusion in the priority activities or programs of patronage that are indicated by the State General Budget Law.

3. In the first 30 calendar days of January of the following year, the managing entities of the Collective Investment Institutions shall submit a statement of information on the securities of shares or shares taken to by the partners or members, which may be required to contain the following information:

a) Name and surname and tax identification number of the partner or participate.

b) Value of acquisition and disposal of shares or units.

c) Period of stay of the shares/units held by the partner or participate.

4. The information declarations referred to in the preceding paragraphs shall be made in the form and place to be determined by the Minister for Economic Affairs and Finance, who may determine the procedure and the conditions in which his presentation is to be made. support directly readable by computer or by telematic means.

CHAPTER III

Accreditation of the disabled condition

Article 67. Accreditation of the condition of disabled person and the need for assistance from another person or the existence of mobility difficulties.

1. For the purposes of the Income Tax of the Physical Persons, those taxpayers with a disability degree equal to or greater than 33 per 100 shall have the consideration of disabled persons.

The degree of disability must be accredited by certificate or resolution issued by the Migration and Social Services Institute or the competent authority of the Autonomous Communities. However, they shall be considered to be of a disability equal to or greater than 33 per 100 Social Security Pensioners who are entitled to a permanent disability pension in the degree of total permanent incapacity, absolute or large invalidity.

2. For the purpose of reducing the income from the work provided for in the last paragraph of Article 18.1 of the Tax Act, disabled taxpayers must prove the need for assistance from third parties to move to their place of employment. working or to carry out the same, or reduced mobility to use collective means of transport, by means of a certificate or a decision of the Institute for Migration and Social Services or the competent authority of the Autonomous Communities in respect of for the assessment of the disability, based on the opinion delivered by the Valuation Teams and Orientation dependent on them.

CHAPTER IV

Complementary Statements

Article 68. Time limit for submission of supplementary declarations.

1. Where the taxpayer loses the exemption from the severance or termination allowance referred to in Article 1 of this Regulation, he shall submit a supplementary declaration-payment, including interest on late payment, within the time limit laid down in this Regulation. between the date on which it returns to provide services and the completion of the regulatory period of return for the tax period in which that circumstance occurs.

2. For the purposes of Article 31.5 (e) and (g) of the Tax Act, where the taxpayer makes the acquisition of the assets or of the homogeneous securities or units after the end of the tax (a) a regulatory period for the reporting of the tax period in which the loss of assets arising from the transfer is due, shall be required to present a supplementary settlement, including interest on late payment, within the period between the date of the acquisition and the end of the regulatory period for the declaration corresponding to the tax period in which the acquisition is made.

TITLE VI

Payments to account

CHAPTER I

Holds and Income to Account. General rules

Article 69. Obligation to practice deductions and income on account of the Income Tax of the Physical Persons.

1. The persons or entities referred to in Article 71 of this Regulation who satisfy or pay the income provided for in Article 70 shall be obliged to retain and enter the Treasury, as a payment on account of the Income Tax Physical Persons corresponding to the recipient, in accordance with the rules of this Regulation.

Likewise, there will be an obligation to retain in the operations of the transmission of financial assets and of the transmission or redemption of shares or units of collective investment institutions, under the conditions set out in This Regulation.

2. Where the abovementioned income is satisfied or paid in kind, the persons or entities referred to in the preceding paragraph shall be obliged to make an income on account of the payment of the income tax on the income of the persons concerned. Physical corresponding to the recipient, in accordance with the rules of this Regulation.

3. For the purposes of this Regulation, the references to the retainer shall also be construed as having to make an income on account, in the case of joint regulation of both payments on account.

Article 70. Income subject to withholding or income on account.

1. The following income shall be subject to withholding or income:

a) The returns of the job.

(b) The income of the capital.

c) The yields of the following economic activities:

The performance of professional activities.

The yields of agricultural and livestock activities.

(d) The property gains obtained as a result of the transmissions or repayments of shares and units representing the capital or assets of the collective investment institutions.

2. They will also be subject to withholding or income on account of the following income, regardless of their rating:

(a) Yields from the lease or sublease of urban buildings.

For these purposes, references to the lease shall also be construed as being made to the sublease.

(b) Income from intellectual property, industrial property, provision of technical assistance, lease of movable property, business or mine, sub-lease on previous goods and those from the transfer of the right to the exploitation of the right of image.

c) Prizes that are awarded as a result of participation in games, contests, raffles or random combinations, whether or not they are linked to the offer, promotion or sale of certain goods, products or services.

3. There shall be no obligation to hold or take account of the following income:

(a) exempt income and allowances and travel expenses other than lien.

(b) The income of the securities issued by the Banco de España which constitute a regulatory instrument for intervention in the money market and the returns of the Treasury bills.

However, credit institutions and other financial institutions that formalize with their clients contracts of accounts based on Treasury bills will be required to retain their income from income. obtained by the holders of those accounts.

(c) The conversion premiums for equity bonds.

d) The income of foreign accounts satisfied or paid by permanent establishments abroad of credit institutions and financial institutions resident in Spain.

e) dividends or shares in profits from tax periods during which the entity that distributes them is in the form of tax transparency.

(f) Yields derived from the transmission or redemption of financial assets with explicit performance, provided that they meet the following requirements:

1. o That they are represented by annotations in account.

2. or to be traded on an official secondary market of Spanish securities.

Financial institutions involved in the transmission, amortisation or redemption of such financial assets shall be required to calculate the performance attributable to the value holder and report the value to the holder and to the holder. the tax administration, which shall also provide the data relating to persons involved in the operations listed above.

The Minister of Economy and Finance is empowered to establish the procedure for making the retention exclusion regulated in this letter effective.

Notwithstanding this paragraph (f), credit institutions and other financial institutions that formalise with their clients contracts of accounts based on transactions on the above securities shall be obliged to retain in respect of the returns obtained by the holders of those accounts.

Similarly, the share of the price equivalent to the coupon in the transfers of financial assets effected within thirty days immediately preceding the maturity of the coupon shall be subject to retention, meet the following requirements:

1. º that the acquirer is a person or entity not resident in Spanish territory or is a taxable person of the Company Tax.

2. º That the explicit returns derived from the transmitted securities are excepted from the obligation to retain in relation to the acquirer.

g) The prizes to be awarded as a result of games organised under the provisions of Royal Decree-Law 16/1977 of 25 February, governing the criminal, administrative and tax aspects of the games of luck, send or chance and bets, as well as those whose retention base does not exceed 50,000 pesetas.

h) Yields from the lease or sublease of urban buildings in the following assumptions:

1. º When it comes to housing rental by companies for their employees.

2. When the rent paid by the lessee to the same landlord does not exceed 150,000 pesetas per year.

3. When the lessor is obliged to pay for any of the headings in group 861 of the First Section of the Tax Rates on Economic Activities, approved by the Royal Legislative Decree 1175/1990, of 28 September, and does not result from a zero quota, or any other heading which empowers the activity of leasing or subleasing of urban real estate, when, applying to the cadastral value of the buildings for the lease or sublease the rules for determining the quota set out in the headings of that group 861, no zero quota.

For these purposes, the lessor must prove in front of the lessee the fulfilment of the aforementioned obligation, in the terms established by the Minister of Economy and Finance.

Article 71. Required to retain or enter into account.

1. As a general rule, they shall be obliged to retain or enter into account, as soon as they meet the income of this obligation:

(a) Legal persons and other entities, including the owners ' communities and entities under the income allocation scheme.

(b) Taxpayers who engage in economic activities, when they meet income in the course of their activities.

(c) Natural persons, legal entities and other non-resident entities in Spanish territory operating in the territory by permanent establishment.

(d) Natural persons, legal entities and other non-resident entities in Spanish territory operating in the non-mediation of permanent establishment, in respect of the performance of the work they satisfy, as well as other income subject to withholding tax or income which constitutes deductible expenditure for the purpose of obtaining the income referred to in Article 23.2 of Law 41/1998 of 9 December of the Income Tax of Non-Residents and Standards Tax.

A person or entity shall not be deemed to meet income when it is limited to a simple payment mediation.

Simple mediation of payment means the payment of an amount for account and order of a third party.

They do not have the consideration of simple payment mediation operations as specified below.

Consequently, the persons and entities mentioned above will be required to retain and enter the following assumptions:

1. When they are foreign securities depositories owned by residents in Spanish territory or are responsible for the collection of income derived from such securities, provided that such income has not been retained prior to Spain.

2. When they satisfy their staff on behalf of Social Security.

3. When they satisfy their staff amounts paid by third parties for the purpose of tipping, remuneration for the service or similar.

4. Dealing with agricultural cooperatives, when they distribute or market products from the holdings of their partners.

2. In particular:

(a) They are required to retain resident entities or permanent establishments in which the taxpayer provides services when they are satisfied with the performance of the work by another entity, resident or non-resident, linked to those in the terms provided for in Article 16 of Law 43/1995 of 27 December 1995, of the Company Tax, or by the holder abroad of the permanent establishment based in Spanish territory.

b) In transactions on financial assets, they shall be required to retain:

1. º In yields earned on the amortization or redemption of financial assets, the person or entity issuing. However, in the event that a financial institution is entrusted with the materialisation of those transactions, the obligation to retain it shall be the financial institution in charge of the transaction.

In the case of turn instruments converted after their issuance in financial assets, at maturity they shall be obliged to retain the public purse or financial institution that intervenes in their filing for recovery.

2. º In the income earned in the transfer of financial assets, including the instruments of rotation referred to in the previous paragraph, when channelled through one or more financial institutions, the bank, cash or financial institution acting on behalf of the transferor.

For the purposes of this paragraph, it shall be understood that the bank, box or financial institution receiving the order for the sale of the financial assets shall act on behalf of the transferor.

3. In the cases not mentioned in the previous paragraphs, the public purse must intervene in the operation.

(c) In the transmission of securities of the State Debt, the management entity of the Public Debt Market in Annotations that intervenes in the transmission shall be held.

(d) In the transmission or redemption of shares or units representing the capital or assets of collective investment institutions, the following persons shall be required to carry out or take into account the following persons; entities:

1. In the case of repayment of the investment fund shares, the management companies.

2. In the case of the transfer of shares representing the capital of variable capital investment companies, where the equity is acting as a counterparty, the depositary institutions.

3. In the case of collective investment institutions domiciled abroad, the trading entities or the intermediaries empowered to market the shares or units of those institutions and, (a) the institution or entities responsible for the placement or distribution of the securities among potential subscribers, when they make the reimbursement.

4. In cases where the retention practice does not apply in accordance with the above paragraphs, you will be obliged to make a payment to the partner or participate in the transfer or obtain the refund. The said payment shall be made in accordance with the rules laid down in Articles 89, 90 and 91 of this Regulation.

Article 72. Amount of the withholding or income to be taken into account.

1. The amount of the withholding tax shall be the result of applying to the withholding tax the corresponding rate of retention, in accordance with the provisions of Chapter II below. The retention basis shall be the total amount to be satisfied or paid, without prejudice to the provisions of Article 86 for capital income and in Article 90 for the property gains arising from transfers or repayments of shares or units of collective investment institutions.

2. The amount of the income to account which corresponds to the remuneration in kind shall be the result of applying to the value of the same, determined in accordance with the rules contained in this Regulation, the percentage that corresponds, according to the provided for in Chapter III below.

Article 73. Birth of the obligation to retain or to enter into account.

1. As a general rule, the obligation to retain shall be born at the time when the corresponding income is satisfied or paid.

2. In the case of capital gains and capital gains arising from the transmission or redemption of shares and units of collective investment institutions, the items shall be treated as provided for in the Articles 87 and 91 of this Regulation.

Article 74. Temporary imputation of the withholding or income on account.

Withholding or income on account shall be charged by the taxpayer to the period in which the income is charged for withholding or taking into account, regardless of the time in which they were made.

CHAPTER II

Calculating Holds

SECTION 1. PERFORMANCE OF WORK

Article 75. Amount of withholding tax on income from work.

1. The withholding tax on income from work shall be the result of applying to the total amount of remuneration that is satisfied or paid for the type of retention corresponding to the following:

1. On a general basis, the type of retention resulting from Article 80 of this Regulation.

2. º 40 per 100 for the remuneration that is received by the status of administrators and members of the Boards of Directors, of the Boards that do their times and other members of other representative bodies.

3. º 20 per 100 for yields derived from teaching courses, conferences, colloquia, seminars and the like, or derivatives of the elaboration of literary, artistic or scientific works, provided that the right to their exploitation.

2. The rate of retention resulting from the above shall be divided by two in the case of income from work obtained in Ceuta and Melilla, which benefit from the deduction provided for in Article 55.4 of the Tax Act.

Article 76. Quantitative limit excluding the obligation to retain.

1. No retention shall be made on the income of the work, the amount of which, as determined in accordance with Article 78.2 of this Regulation, does not exceed the annual amount corresponding

the following table:

(SEE TABLE. PAGE 5753 IMAGE)

Number of children and other descendants Situation of the taxpayer 0 1 2 or more First single, widowed, divorced or legally separated taxpayer ......................... 1.675,000 1,850,000 Second taxpayer with spouse to Charge.......1.675,000 1,850,000 2,025,000 Third non-spouse-dependent taxpayer and other situations....1,250,000 1,350,000 1,450,000

For the purposes of the application as provided in the table above, it is understood by children and other descendants that they give the right to the family minimum provided for in Article 40.3 of the Tax Law.

As for the taxpayer's situation, this may be one of the following three:

1. Single contributor, widowed, divorced or legally separated. This is the single, widowed, divorced or legally separated taxpayer with descendants, when he is entitled to the minimum personal increase referred to in Article 70.2.3. or the Tax Act for single parent family units.

2. Contributor with spouse in charge. The taxpayer is married and not legally separated, whose spouse does not earn annual income exceeding 100,000 pesetas, including those exempt.

3. Non-spouse contributor in charge and other situations. Includes three types of situations:

(a) The married taxpayer, and not legally separated, whose spouse obtains annual income in excess of 100,000 pesetas, including those exempt.

(b) The single, widowed, divorced or legally separated taxpayer, without descendants or descendants of his or her dependants, where, in the latter case, he is not entitled to the increased amounts of the minimum staff to be given circumstances of coexistence referred to in Article 70.2.3. or of the Tax Law.

(c) Taxpayers who do not manifest themselves in any of the situations 1 and 2.

2. The amounts provided for in the above table will be increased by 100 000 pesetas, in the case of pensions or liabilities under the Social Security and Passive Classes scheme, and by 200,000 pesetas for unemployment benefits or allowances.

3. The provisions of the preceding paragraphs shall not apply where the fixed rates of retention correspond, in the cases referred to in Article 75 (1), (2) and (3), and where there are the minimum rates of retention to which the refers to Article 80.2 of this Regulation.

Article 77. General procedure for determining the amount of the retention.

In order to calculate the deductions on income from work, as referred to in Article 75.1.1. of this Regulation, the following operations shall be performed successively:

1. The basis for calculating the rate of retention shall be determined in accordance with Article 78 of this Regulation.

2. The retention fee shall be determined in accordance with the provisions of Article 79 of this Regulation.

3. The retention rate shall be determined in the manner provided for in Article 80 of this Regulation.

4. The amount of the withholding tax shall be the result of applying the withholding rate to the total amount of remuneration that is paid or paid, excluding any arrears corresponding to previous financial years and taking into account account for regularisations which come under Article 81 of this Regulation. The above arrears will be applied to the fixed rate of 18 per 100.

Article 78. Base to calculate the hold type.

1. The basis for calculating the rate of retention shall be the result of a reduction in the total amount of the remuneration of the work, determined in accordance with the following paragraph, in the concepts referred to in paragraph 3 of this Article.

2. The total amount of remuneration for the work shall be calculated in accordance with the following rules:

1. General Rule: in general, the total amount, in cash or in kind, shall be taken, which, in accordance with applicable contractual rules or stipulations and other foreseeable circumstances, is normally to be collected by the In the case of the taxpayer in the calendar year, with the exception of business contributions to pension schemes and social security schemes which reduce the tax base of the taxpayer, as well as the arrears to be charged to previous exercises.

For these purposes, the remuneration in kind shall be computed by its value, determined in accordance with the provisions of Article 44 of the Tax Law, without including the amount of the income on account.

The total annual amount shall include both fixed remuneration and foreseeable variables. The amount of the latter may not be lower than the amount obtained during the preceding year, unless circumstances permit an objective to be established in an objective manner.

2. Specific Rules:

(a) In the case of manual workers who receive their remuneration for daily wages or wages, the result of a sporadic and daily relationship with the employer, the remuneration shall be taken as the result of the multiply by 100 the amount of the daily or daily wage.

b) In the case of crews of fishing vessels, and their remuneration consists, in whole or in part, of a share in the value of the catch caught, the total amount of the remuneration shall be fixed in accordance with the following rules:

1. If minimum guaranteed wages are received and, in addition, a share of the value of the catch caught, depending on the annual amount of the guaranteed minimum wage provided for in the applicable sectoral regulations. The minimum guaranteed wages which are in force at each moment in the various fishing ports shall be multiplied by the coefficients which, according to their category, are shown in the following table:

(SEE TABLE. IMAGE PAGE 5754)

Coefficient category Person, with or without title, that meets the function of the Practice of Fishing, also called the Pattern of Fishing .............................. 4.00 Person who, with sufficient titration for the dispatch or command of the ship, bears the responsibility of the machines (Chief Naval Officer or Major Naval Mechanics with his/her head) ......................................... 3.00 Rest of Officers with necessary titration for the dispatch of the ship ................... 2.00 Rest crew on board .......................... 1.50

2. If the wage structure is made up exclusively of a share in the value of the catch caught, on the basis of the estimated annual remuneration for the purposes of Decree 2864/1974, of 30 June 1974, August, recast text of the Special Regime of the Sea Workers.

3. The total amount of remuneration for work, cash and in-kind, calculated in accordance with the preceding paragraph, shall be reduced by the following amounts:

(a) In the reductions provided for in Article 17.2 of the Tax Act, according to the time limit for the generation of income.

(b) In the case of social security contributions, compulsory general mutual funds of officials, shares for liabilities and contributions to colleges of orphans or similar entities to which the letters relate (a), (b) and (c) of Article 17.3 of the Tax Act.

(c) In the net yield reductions referred to in Article 18 of the Tax Act.

For the purposes of calculating such reductions, the payer shall take into account, exclusively, the amount of the net performance of the work resulting from the mini-sentences provided for in the preceding two letters.

(d) In the amount of the minimum personal and family minimum by descendants, including the case of the disabled, as referred to in Article 40 of the Tax Law, in the terms and conditions provided for therein, without (a) that none of the increased personal minimums referred to in Article 70.2 of the Tax Law are applicable. For these purposes, the age of the recipient and the descendants giving the right to a sentence shall be understood as referring to the date of the tax due, taking into account, in addition, the following specialties:

1. The retainer shall not take into account the circumstance referred to in number 2. or Article 40 (3) of the Tax Act.

2. º Descendants will be computed in any case by half.

e) In the amount that proceeds, according to the following circumstances:

In the case of taxpayers who receive pensions and liabilities under the Social Security and Passive Classes scheme or who have more than two descendants who are entitled to the application of the family minimum provided for in the Article 40.3 of the Tax Law, 100,000 pesetas.

When unemployment benefits or benefits, 200,000 pesetas.

These reductions are compatible with each other.

f) Where the recipient of income from work is obliged to satisfy by court judgment a compensatory pension to his spouse, the amount of the pension may decrease the amount resulting from the provisions of the letters previous. To this end, the taxpayer must, in the manner provided for in Article 82 of this Regulation, bring to the attention of its payer the circumstances, accompanied by a literal testimony of the decision determining the pension.

Article 79. Retention fee.

1. In general, the retention fee shall be obtained by applying to the basis for calculating the rate of retention, provided that the retention rate is positive, the percentages indicated on the following scale:

(SEE TABLE. PAGE 5755 IMAGE)

Base for calculating the type of retention Up to pesetas Retainer Cuota Pesetas Base to calculate the hold rate Up to pesetas Percentage 0 0 600,000 18,00 600,000 108,000 1,500,000 24,00 2,100,000 468,000 2,000,000 28,30 4,100,000 1,034,000 2,500,000 37,20 6,600,000 1,964,000 4,400,000 45,00 11,000,000 3,944,000 onwards 48.00

2. Where the recipient of income from work satisfies annuities for children by a court decision, provided that the amount is lower than the basis for calculating the rate of retention, the party shall determine separately the of the holding fee corresponding to the amount of such annuities and the amount referred to the rest of the base to calculate the rate of retention. To this end, the taxpayer must, in the manner provided for in Article 82 of this Regulation, bring to the attention of its payer the fact, accompanying a literal testimony of the judicial decision determining the annuity.

3. Where the taxpayer obtains a total amount of remuneration, as referred to in Article 78.2 of this Regulation, not exceeding 3,500,000 pesetas per year, the withholding fee, calculated in accordance with the provisions of paragraphs 1 and 2 of this Regulation, shall be above, you will have the maximum limit of the following two quantis:

The result of applying the percentage of the 35 per 100 to the positive difference between the amount of that amount and the amount corresponding to, depending on the situation, the minimum retention excluded provided for in Article 76 of this Regulation. Regulation.

When regularisations occur, the result of applying the percentage of 48 per 100 on the total amount of remuneration to be met until the end of the year.

4. The limit of 48 per 100 above will apply to any taxpayer.

Article 80. Type of retention.

1. The holding rate, which shall be expressed in two decimal places, shall be obtained by multiplying by 100 the ratio obtained from dividing the holding fee by the total amount of the remuneration referred to in Article 78.2 of this Regulation. When the base for calculating the hold type is zero or negative, the hold type will be zero.

2. The rate of retention resulting from the provisions of the preceding paragraph may not be less than 2 per 100 in the case of contracts or relationships of shorter duration than the year, and not less than 20 per 100 where the income of the work is derived from special working relationships of a dependent nature.

However, the minimum of 20 per 100 withholding tax referred to in the preceding paragraph shall not apply to yields earned by penados in prison institutions or to income derived from such holdings. special employment relationships affecting the disabled.

Article 81. Regularisation of the type of retention.

1. The type of retention shall be regularised in the cases referred to in paragraph 2 below and shall be carried out in the manner provided for in paragraphs 3 and following of this Article.

2. The retention rate shall be regularised in the following circumstances:

1. º If at the end of the period initially foreseen in a contract or relationship the worker continues to provide his services to the same employer or return to do so within the calendar year.

2. If after the suspension of the recovery of unemployment benefits, the right to unemployment benefit is resumed or the unemployment benefit is paid, within the calendar year.

3. When under general rules or the applicable sectoral rules, or as a result of the promotion, promotion or fall of the category of the worker, and, in general, when they occur during the year in the amount of the remuneration or deductible expenses which have been taken into account for the determination of the rate of retention which has been applied up to that time.

4. If in the course of the calendar year the pensioner began to receive new pensions or liabilities which were added to those which he already received, or increased the amount of the latter.

5. If in the course of the calendar year there is an increase in the number of descendants, the condition of the disabled person will be exceeded or the degree of disability will increase in the recipient of income from work or in his descendants, always that, in accordance with Article 40 of the Tax Law, those circumstances determine an increase in the minimum personal or family.

6. Where by judicial decision the recipient of income from work is obliged to satisfy a compensatory pension to his or her spouse, or annuities for food in favour of the children, provided that the amount of the is lower than the base to calculate the hold type.

7. If in the course of the calendar year the spouse of the taxpayer ceases to be considered as being in charge of the taxpayer, for annual income of more than 100,000 pesetas, including those exempt.

8. When in the course of the calendar year the taxpayer will change his habitual residence of Ceuta or Melilla, Navarra or the Historical Territories of the Basque Country, to the rest of the Spanish territory, or from the rest of the Spanish territory to the Cities of Ceuta or Melilla.

3. The regularisation of the retention rate shall be carried out as follows:

(a) A new withholding fee shall be calculated, taking into account the circumstances of the regularisation.

(b) This new withholding fee shall be reduced by the amount of withholding and income to account practiced up to that time, in accordance with the provisions of Article 75.1.1. or of this Regulation.

(c) The new rate of retention shall be obtained by multiplying by 100 the ratio obtained from dividing the difference resulting from the preceding point by the total amount of the remuneration referred to in Article 78.2 of this Regulation. Regulation to restore until the end of the year.

When the base for calculating the hold type is zero or negative, the hold type will be zero. In this case, no refund will be made for the deductions previously practised, without prejudice to the fact that the recipient subsequently requests, where appropriate, the refund in accordance with the provisions of the Tax Law.

The provisions of this subparagraph shall be without prejudice to the retention minima provided for in Article 80.2 of this Regulation.

4. The new rates of retention shall apply from the date on which the variations referred to in paragraphs 1, 2, 2, 3 and 4. of paragraph 2 of this Article and from the moment the recipient of the income of the (a) to inform the payer of the variations referred to in paragraphs 5, 6, 7, 7 and 8. of that paragraph, provided that such communications occur at least five days in advance of the preparation of the corresponding payrolls; without prejudice to the responsibilities in which the recipient may incur when the lack of communication such circumstances determine the application of a lower rate than that which corresponds to, in the terms of Article 89 of the Tax Act.

The regularisation referred to in this Article may be carried out, at the option of the payer, from day 1 of the months of April, July and October, in respect of the variations which, respectively, have occurred in the quarters immediately prior to these dates.

5. In the case of regularisation by increase in remuneration, the increase in the resulting retention fee shall be limited to the increase in remuneration. The above increases shall be calculated in relation to the first remuneration and retention fee provided for in the financial year.

Article 82. Communication of data from the income recipient of the work to its payer.

1. The taxpayer must inform the payer of the personal and family situation which affects the amount of the withholding tax, the determination of the type of retention or the adjustment of the withholding tax, and the paying-in keep the communication duly signed.

The content of the communications will be adjusted to the model approved by the Tax Management Department's Resolution of the State Tax Administration Agency.

2. The lack of communication to the payer of such personal and family circumstances or variation shall determine that the person applies the corresponding type of retention without taking into account those circumstances, without prejudice to the responsibilities of the the recipient may incur when the lack of communication of such circumstances determines the application of a lower rate than that which corresponds to the terms provided for in Article 89 of the Tax Act.

3. The data communication referred to in the preceding paragraph shall be made prior to the first day of each calendar year or the beginning of the relationship, taking into account the personal and family situation which is likely to exist in these two last dates, without prejudice to the fact that, in the absence of such a situation on the dates indicated, their variation to the payer is to be communicated.

It will not be necessary to reiterate in each exercise the communication of data to the payer, as long as the personal and family circumstances of the taxpayer do not vary.

4. Changes in personal and family circumstances occurring during the year and involving a lower rate of retention may be communicated for the purposes of the regularisation provided for in Article 81 of this Regulation and shall take place. effects from the date of the communication, provided that at least five days for the preparation of the corresponding payrolls are subtracted.

When these variations assume a higher rate of retention, they must be communicated within ten days after they occur and will be taken into account in the first payroll to be made after that communication, provided at least five days for the making of the payroll.

5. Taxpayers may at any time request the application of retention rates in excess of those provided for in the preceding Articles, in accordance with the following rules:

(a) The application shall be made in writing to the payers, who shall be obliged to take care of the requests made to them, at least five days in advance of the preparation of the corresponding payroll.

(b) The new rate of retention applied for shall be applied at least until the end of the year and, as long as it does not give up in writing to the said percentage or does not apply for a higher rate of retention, during successive financial years, unless a variation of circumstances that determines a higher rate occurs.

6. The payer shall keep, at the disposal of the tax administration, the documents provided by the taxpayer to justify the personal and family situation.

SECTION 2. CAPITAL RETURNS

Article 83. Amount of withholding tax on income from capital.

1. The retention to practice on capital returns shall be the result of applying to the retention basis the following percentages:

1. On a general basis, 25 per 100.

2. In the case of income obtained by the transfer to third parties of own capital referred to in Article 23.2 of the Tax Law, 18 per 100.

2. The rate of retention resulting from the foregoing shall be divided by two in the case of yields to which the deduction provided for in Article 55.4 of the Tax Act is applied, from companies operating effectively and materially in Ceuta or Melilla and with its registered office and social object in those cities.

Article 84. Concept and classification of financial assets.

1. Financial assets are considered to be transferable securities representing the collection and use of foreign capital, irrespective of the way in which they are documented.

2. They shall have the consideration of financial assets with implicit return where the yield is generated by difference between the amount satisfied in the issue, first placement or endorsement and the commitment to repay the the maturity of those operations whose performance is fixed, in whole or in part, implicitly, through any transferable securities used for the collection of foreign resources.

Emissions, amortization or redemption premiums are included as implied yields.

The implicit performance concept is excluded from the placement bonuses or bonuses, which are rotated on the issue price, provided that they are within the market practices and that they are fully income for the the mediator, intermediary or financial colocation, acting in the issuance and entry into circulation of the financial assets covered by this rule.

Any instrument of rotation, including those originating in commercial transactions, shall be deemed to be a financial asset with implicit return, from the time it is made or transmitted, unless the endorsement or transfer is made. as payment of a credit from suppliers or suppliers.

3. They shall have the consideration of financial assets with explicit performance, those that generate interest and any other form of remuneration agreed as consideration for the transfer to third parties of own capital and which is not included in the the concept of implied income in the terms set out in the previous paragraph.

4. Financial assets with mixed performance shall follow the scheme of financial assets with explicit return where the annual cash they produce of this nature is equal to or greater than the reference rate in force at the time of the issue, although in terms of issue, redemption or repayment, other additional performance would have been set out implicitly. This reference rate shall be, during each calendar quarter, 80 per 100 of the cash rate corresponding to the rounded weighted average price that would have resulted in the last auction of the preceding quarter corresponding to State-to-State bonds. three years, in the case of financial assets with a term of four years or less; a five-year government bond, if the term is a financial asset with a term of more than four years but equal to or less than seven years, and the obligations of the State to 10, 15 or 30 years, in the case of higher-term assets. In the event that the reference rate cannot be determined for a period of time, the deadline for the planned issue shall apply.

For the purposes of this paragraph, in respect of the issuance of financial assets with floating or floating performance, their domestic performance rate shall be taken as the effective interest of the transaction, considering only yields of an explicit and calculated nature, where applicable, with reference to the initial valuation of the parameter for which the final amount of the accrued income is fixed periodically.

Article 85. Tax requirements for the transmission, redemption and amortization of financial assets.

1. To proceed with the disposal or acquisition of the repayment of securities or financial assets with implicit performance and of financial assets with explicit performance to be withheld at the time of their transmission, amortisation or reimbursement, the prior acquisition of the same shall be credited with the intervention of the fedarios or financial institutions required to retain, as well as the price at which the transaction was carried out.

When a turning instrument becomes a financial asset after it is put into circulation, the first endorsement or transfer must be made through the public purse or financial institution, unless the same acquirer is a financial institution.

The fédliere or the financial institution shall indicate in the document its financial asset character, with the identification of its first acquirer or holder.

2. For the purposes of the preceding paragraph, the issuing person or entity, the financial institution acting on its behalf, the public purse or the financial institution acting or acting on behalf of the acquirer or depositor, As appropriate, they shall extend accreditative certification of the following:

a) Date of operation and identification of the asset.

(b) Denomination of the acquirer.

(c) The tax identification number of the acquirer or depositor.

d) Acquisition price.

Of the aforementioned certification, which will be extended in triplicate, two copies will be given to the acquirer, with another one being held by the person or entity that certifies.

3. Financial institutions or public servants shall refrain from mediating or intervening in the transmission of such assets where the transfer does not justify their acquisition in accordance with the provisions of this Article.

4. The persons or entities issuing the financial assets referred to in this Article shall not be able to reimburse them when the holder fails to accredit their prior acquisition by means of appropriate certification, as set out in paragraph 1. 2 above.

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

Repurchase, redemption, cancellation or early repayment shall require the intervention or mediation of a financial institution or public purse, leaving the entity or person issuing the asset as a mere acquirer in the event that put the title back into circulation.

5. The holder of the title, in case of loss of a certificate of proof of his acquisition, may request the issuance of the corresponding duplicate of the person or entity that issued such certification.

This person or entity shall record the duplicate character of that document, as well as the date of issue of the document.

6. For the purposes set out in this Article, in cases of lucrative transmission, the acquirer shall be deemed to be subrogated in the acquisition value of the transfer, as long as a sufficient justification of the cost is sufficient.

Article 86. Basis of retention on the returns on capital.

1. As a general rule, the withholding tax on capital returns shall constitute the full consideration payable or satisfied.

2. In the case of amortisation, redemption or transfer of financial assets, the positive difference between the redemption, redemption or transmission value and the acquisition or subscription value of such assets shall be the basis of retention. The acquisition value shall be the value of the accrediting certification of the acquisition. For these purposes, the ancillary costs shall not be reduced to the operation.

Without prejudice to the withholding tax, in the event that the issuing entity acquires a financial asset issued by it, the retention and income on the performance that it obtains in any form of subsequent transfer of the title, excluding depreciation.

3. Where the obligation to retain has its origin as provided for in the last paragraph of Article 70.3.f) of this Regulation, the share of the price equivalent to the run coupon of the transmitted value shall be the basis of withholding.

4. If the reductions referred to in Article 24 (2) of the Tax Act are applicable to the above yields, the retention basis shall be calculated by applying the reductions resulting from the full amount of such income. applicable.

5. In the case of perceptions arising out of insurance contracts and for life income and other temporary income resulting from the imposition of capital, the withholding tax shall be the amount to be included in the taxable amount calculated in accordance with the law of the Tax.

Article 87. Birth of the obligation to retain and to take into account the income of the capital.

1. As a general rule, the obligations to retain and to enter into account shall be due at the time of the enforceability of the capital returns, in cash or in kind, subject to withholding or income, respectively, or in that of its payment or delivery if above.

In particular, interest shall be deemed to be payable on the due dates indicated in the deed or contract for settlement or recovery, or otherwise recognised in other form, even if the recipient does not claim his/her recovery or returns are accumulated to the principal of the transaction, and dividends on the date set out in the distribution agreement or from the day following that of its adoption in the absence of the determination of that date.

2. In the case of capital returns arising from the transmission, amortisation or repayment of financial assets, the obligation to retain shall be incurred at the time of transmission, redemption or redemption.

The retention will be performed on the date the transmission is formalized, whatever the agreed charging conditions.

SECTION 3. PERFORMANCE OF ECONOMIC ACTIVITIES

Article 88. Amount of withholding tax on income from economic activities.

1. Where the income is offset from a professional activity, the rate of retention of 20 per 100 shall be applied to the full income.

However, the retention rate will be 10 per 100 in the case of satisfied returns to:

Guaranteed representatives of "Tabacalera, Sociedad Anonima".

Municipal Collectors.

Insurance agents and insurance brokers that use the services of sub-agents or business partners.

Territorial delegates from the extinct Patronato de Bets Mutos Deportivo Charities integrated into the National Lotteries and Gambling Agency by Royal Decree 904/1985 of 11 June.

These percentages will be divided by two when yields are entitled to the deduction in the quota provided for in Article 55.4 of the Tax Act.

2. For the purposes of the preceding paragraph, they shall be considered as being between the performance of professional activities:

(a) In general, the derivatives of the activities included in Sections 2 and 3 of the Tariff of the Tax on Economic Activities, approved by the Royal Legislative Decree 1175/1990 of 28 September.

(b) In particular, they shall be regarded as professional income obtained by:

1. The authors or translators of works, coming from intellectual or industrial property. When authors or translators directly edit their works, their performance will be understood among those corresponding to the business activities.

2. º The Commists. It is understood that it is comionists who are limited to bringing together or approximating the interested parties for the conclusion of a contract.

On the contrary, it is understood that they are not limited to the conduct of their own operations when, in addition to the function described in the preceding paragraph, they assume the risk and the sale of such commercial transactions, in which case the Performance shall be included among those for business activities.

3. The teachers, whatever the nature of the teachings, who exercise the activity, either in their home, private homes or in an open school or establishment. Teaching in academies or own establishments shall be considered as a business activity.

3. No income from professional activities shall be regarded as the amounts collected by the persons who, at the salary of an undertaking, are obliged to register in their respective professional colleges or, in the case of a company, by virtue of their duties. (a) a general approach, which is derived from a working or dependent relationship. These amounts shall be included in the performance of the work.

4. Where yields are offset from an agricultural or livestock activity, the following percentages of retention shall apply:

1. Animal fattening and poultry farming activities: 1 per 100.

2. º Restantes cases: 2 per 100.

These percentages will be applied on the basis of the full income, with the exception of current and capital grants and compensation.

For these purposes, agricultural or livestock farming activities shall be such as to ensure that natural, plant or animal products are obtained directly from holdings and do not undergo processing, manufacture or manufacture.

A process of transformation, production or manufacture shall be considered to be an activity for which the discharge in an item corresponding to industrial activities in the rates of the Tax on Activities is required. Economic.

It shall be understood as including agricultural and livestock activities:

(a) Independent livestock farming.

(b) The provision, by farmers or farmers, of ancillary works or services of agricultural or livestock nature, with the means which are ordinarily used on their holdings.

(c) The breeding, keeping and fattening of livestock services.

SECTION 4 HERITAGE GAINS

Article 89. Amount of withholding tax on capital gains arising from transfers or repayments of shares and units of collective investment institutions.

The retention to practice on the property gains arising from the transmissions or repayments of shares and units of collective investment institutions shall be the result of applying to the withholding percentage of 20 per 100.

Article 90. Basis of retention on the property gains arising from transfers or repayments of shares and units of collective investment institutions.

The retention basis on the property gains arising from transfers or repayments of shares or units of collective investment institutions shall be the amount to be included in the calculated tax base with the regulations of the Tax on the Income of the Physical Persons.

Article 91. Birth of the obligation to retain.

The obligation to retain shall be incurred at the time when the transmission or redemption of the shares or units of collective investment institutions is formalized, whatever the agreed charging conditions.

Article 92. Amount of holds on prizes.

The retention to practice on cash prizes will be 20 per 100 of your amount.

SECTION 5. OTHER RENTS

Article 93. Amount of holds on leases and subleases of real estate.

The retention to practice on income from the lease or sublease of urban buildings, whatever their qualification, will be the result of applying the 18 percent percentage to all of the concepts that are satisfied to the lessor, excluding Value Added Tax.

This percentage will be divided by two when the urban property is located in Ceuta or Melilla, in the terms provided for in Article 55.4 of the Tax Law.

Article 94. Amount of withholding tax on image rights and other income.

The withholding tax on yields from the concepts provided for in Article 70.2.b) of this Regulation, whatever the rating, will be the result of applying the withholding rate of 20 per 100%. on full and satisfied income.

CHAPTER III

Revenue to account

Article 95. Income on account of remuneration in kind of work.

1. The amount of the income to be taken into account for the remuneration paid in kind shall be calculated by applying to its value, determined in accordance with the rules of Article 44.1 of the Tax Law, and by the application, if any, of the the procedure provided for in the second provision of this Regulation, the rate corresponding to those provided for in Article 75 of this Regulation.

2. There shall be no obligation to make income on account of the contributions paid by the promoters of pension schemes and social security schemes which reduce the tax base.

Article 96. Income on account of remuneration in kind of capital.

The amount of the revenue to be paid by the remuneration in kind shall be calculated by applying the percentage provided for in Section 2 of Chapter II preceding the result of an increase of 20 per 100 the acquisition or cost value for the payer.

Article 97. Income on account of remuneration in kind of economic activities.

The amount of the income to account that corresponds to the remuneration paid in kind shall be calculated by applying to its market value the percentage resulting from the provisions of Section 3. a of Chapter II above.

Article 98. Revenue to account for prizes.

The amount of the revenue to be made by the awards in kind, which constitute a property gain, shall be calculated by applying the percentage provided for in Article 92 of this Regulation to the the result of increasing the purchase or cost value for the payer by 20 per 100.

Article 99. Income on account of other income.

The amount of income on account of income in kind referred to in Articles 93 and 94 of this Regulation shall be calculated by applying the percentage provided for in this Regulation to its market value.

Article 100. Income to account on image rights.

The percentage to calculate the income on account to be practiced in the case referred to in Article 76 of the Tax Law is 15 per 100.

CHAPTER IV

Obligations of the retainer and the obligation to enter into account

Article 101. Formal obligations of the retainer and the obligation to enter into account.

1. The subject obliged to retain and practice income on account must present in the first twenty calendar days of the months of April, July, October and January, declaration of the amounts withheld and the income to account corresponding to the immediate natural quarter prior to and enter its amount in the Public Treasury.

However, the declaration and entry referred to in the preceding paragraph shall be made in the first twenty calendar days of each month, in relation to the amounts withheld and the revenue to be borne by the (a) the date of the first of the preceding years, in the case of retainers or obligors in which the circumstances referred to in paragraph 3.1. or of Article 71 of the Value Added Tax Regulation, approved by Royal Decree 1624/1992, of 29 March 1992, are met. December. By way of derogation, the declaration and entry for the month of July shall be made during the month of August and the first twenty calendar days of the month of September.

The holder of the holding or obliged to enter into account shall submit a negative statement when, despite the fact that he has satisfied income which is subject to withholding or income, he has not, for the purposes of his/her amount, carried out the retention or income to any account. No negative declaration shall be made where the income for which the withholding tax has been withheld and the income on account has not been satisfied in the reporting period.

The corresponding retention and income, when the entity paying the performance is the State Administration, will be made directly.

2. The retainer or obliged to enter into account shall, within the same period of the last statement of each year, present an annual summary of the withholding and revenue to be made. In this summary, in addition to your identification data, you may be required to record a nominee relationship with the following data:

a) First and last names.

b) Tax identification number.

(c) Income obtained, indicating the identification, description and nature of the concepts, as well as the financial year in which the income was due, including income not subject to withholding or income reason for the amount, as well as the exempted allowances and the exempt income.

(d) Reductions applied in accordance with the provisions of Articles 17.2 and 24.2 of the Tax Law.

(e) deductible expenses referred to in Articles 17.3 and 24.1.a) of the Tax Law, with the exception of the fees paid to trade unions and professional associations and those of legal defence, provided that they have been deducted by the paying of the satisfied returns.

(f) Personal and family circumstances that have been taken into account by the payer for the application of the corresponding retention percentage.

g) Amount of compensatory pensions between spouses and annuities for foods that have been taken into account for the practice of withholding taxes.

h) Withheld or made-to-account retention.

(i) Reintegrated amounts to the payer from income earned in previous years.

In the event that the relationship is present in directly readable form, the filing period shall be between 1 January and 20 February of the following year.

The same obligations set out in the preceding paragraphs shall be subject to resident or resident domiciled entities in Spain, which pay for income which is subject to withholding tax or which are depository or manage the collection of income from securities.

3. The holder or the person to be admitted shall issue in favour of the taxpayer certifying evidence of the withholding tax or of the income to be paid, as well as of the other data relating to the taxpayer who must be included in the annual summary referred to in the previous paragraph.

This certification must be made available to the taxpayer prior to the opening of the notice or declaration for this tax.

The same obligations set out in the preceding paragraphs shall be subject to institutions domiciled, resident or represented in Spain, who pay for income which is subject to withholding tax or which are depository or manage the collection of income from securities.

4. The payers shall inform the taxpayer of the withholding or income at the time of the payment of the income, indicating the percentage applied, except in income from economic activities.

5. The declarations referred to in this Article shall be made in the models for each class of income established by the Minister for Economic Affairs and Finance, who may also determine the data to be included in the referred to in paragraph 2 above, the holder being obliged to enter into account to complete all the data so determined and contained in the statements that affect him.

The declaration and entry will be made in the form and place to be determined by the Minister of Economy and Finance.

6. The declaration and entry of the payment into account referred to in paragraph 4. or Article 71.2.d) of this Regulation shall be carried out in the form, place and time limit laid down by the Minister for Economic Affairs and Finance.

CHAPTER V

Fractional payments

Article 102. Forced upon payment by fractionation.

1. Taxpayers who carry out economic activities shall be obliged to self-abolish and enter the Treasury, as a payment on account of the Income Tax of the Physical Persons, the amount resulting from the provisions of the Articles next.

2. By way of derogation from the above paragraph, taxpayers who carry out agricultural or livestock farming activities shall not be obliged to make instalments in respect of such activities if, in the preceding calendar year, at least 70% of the the revenue from the holding, with the exception of current or capital grants and allowances, was the subject of a withholding tax or an entry into account.

3. Without prejudice to the provisions of paragraph 1 above, taxpayers who carry out professional activities shall not be obliged to make instalments in respect of such activities where, in the preceding calendar year, at least 70 per 100 of the income of the activity, were subject of withholding or income to account.

4. For the purposes of paragraph 2y3 above, in the event of the start of the activity, account shall be taken of the percentage of income which has been the subject of withholding or income for the period covered by the split payment.

Article 103. Amount of fractionation.

1. The contributors referred to in the previous Article shall, within each period, enter the following quantities:

(a) For activities that are under direct estimate, in any of its modalities, the 20 per 100 of the net yield corresponding to the period of time elapsed from the first day of the year to the last the day of the quarter to which the split payment refers.

Of the amount resulting from the application of the provisions of this letter, the fractional payments entered in the preceding quarters of the same year shall be deducted.

(b) For activities which are under objective estimation, the 4 per 100 of the net yields resulting from the application of that scheme on the basis of the data-basis of the first day of the year to which the payment relates or, in the event of the start of activities, on the day on which they were commenced.

However, in the case of activities with only one salaried person, the percentage above will be 3 per 100, and in the event that there is no salaried staff, this percentage will be 2 per 100.

When any of the base data cannot be determined on the first day of the year, it shall be taken, for the purposes of the split payment, for the preceding immediate year. In the event that no date-base could be determined, the split payment will consist of 2 per 100 of the quarter's sales volume or revenue.

(c) Dealing with agricultural, livestock, forestry or fisheries activities, whichever is the net yield determination scheme, 2 per 100 of the quarter's revenue volume, excluding capital grants and the compensation.

2. The percentages referred to in the preceding paragraph shall be divided by two for the economic activities which are entitled to the deduction in the quota provided for in Article 55.4 of the Tax Act.

3. Of the quantity resulting from the provisions of the preceding paragraphs, the following shall be deducted:

(a) Withholding taxes and income for account incurred for the period of time from the first day of the year to the last day of the quarter to which the split payment relates, in the case of from:

1. Professional activities that determine their net performance by the direct estimation regime, in any of its modalities.

2. The leasing of urban buildings that constitutes economic activity.

3. Cession of the right to the exploitation of the image or of the consent or authorization for its use which constitutes economic activity, and other income provided for in Article 70.2.b) of this Regulation.

(b) Withholding taxes and income on account effected in accordance with Articles 88 and 97 of this Regulation for the quarter, in the case of:

1. Professional activities that determine their net performance by the objective estimation regime.

2. Agricultural or livestock activities.

4. The taxpayers may apply in each of the payments broken down percentages higher than those indicated.

Article 104. Declaration and income.

1. Employers and professionals shall be required to declare and enter into the Treasury on a quarterly basis the amounts determined in accordance with the foregoing Article within the following time limits:

a) The first three quarters, between the day of April 20, July and October.

b) The fourth quarter, between the 1st and 30th of the month of January.

When the application of the provisions of the previous article does not result in amounts to be entered, the taxpayers will submit a negative statement.

2. The Minister for Economic Affairs and Finance may extend the time limits referred to in this Article, as well as to establish six-monthly income assumptions with the adjustments that come from the percentages determined in the previous article.

3. The tax payers shall submit the declarations to the competent authority of the tax administration and shall enter the amount in the public treasury.

The declaration will conform to the conditions and requirements and the income will be made in the form and place that the Minister of Economy and Finance determines.

Article 105. Entities on the basis of income allocation.

The split payment corresponding to the income of economic activities obtained by entities under the income allocation regime shall be made by each of the members, community members or unit-holders, in proportion to their income. participation in the benefit of the institution.

Additional disposition first. References made in the Regulation to monetary amounts expressed in pesetas.

The references in this Regulation to monetary amounts expressed in pesetas shall also be construed as being made to the corresponding monetary amount expressed in euro that is obtained in accordance with the conversion rate and, where appropriate, rounded up in accordance with Article 11 of Law 46/1998 of 17 December 1998 on the introduction of the euro, having some and all the same validity and effectiveness.

Additional provision second. Prior agreements for the valuation of remuneration in kind of personal work for the purpose of determining the corresponding income from the Income Tax of the Physical Persons.

1. Persons or entities required to make income on account as a result of the income of the work in kind which they satisfy may ask the tax administration to assess the income, in accordance with the rules of the Tax, to the exclusive effects of determining the corresponding income.

2. The application shall be submitted in writing before the delivery of goods or services to which it relates and shall be accompanied by a proposal for an assessment made by the applicant.

This written will contain at least the following:

a) Identification of the requesting person or entity.

(b) Identification and description of the supplies of goods and services in respect of which the valuation is requested.

(c) Proposed valuation, with reference to the applied valuation rule and the economic circumstances that have been taken into consideration.

3. The tax administration will examine the documentation referred to in the previous point, and may require the applicants to have any data, reports, background and supporting documents related to the proposal.

In addition, applicants may, at any time in the proceedings before the hearing proceedings, present the allegations and provide the documents and supporting documents they deem appropriate.

Applicants will be able to propose the practice of the evidence they understand relevant by any of the media admitted into law. The tax authorities may also carry out the necessary tests.

Both the tax administration and the applicants will be able to request the issuance of expert reports on the content of the valuation proposal.

Once the procedure has been instructed and prior to the drafting of the motion for a resolution, the tax administration will make it clear to the applicants, along with the content and conclusions of the tests. and the reports requested, who may make the allegations and present the documents and supporting documents which they consider relevant within 15 days.

The procedure must be completed within the maximum period of six months from the date on which the application has entered into any of the records of the competent administrative body or from the date of the same at the request of the tax administration. Failure to resolve the tax administration within the prescribed period shall imply acceptance of the values proposed by the applicant.

4. The resolution terminating the procedure may:

a) Approve the proposal initially formulated by the applicants.

b) Approve another alternative proposal formulated by the applicants in the course of the procedure.

c) Disestimate the proposal made by the applicants.

The resolution will be motivated and, if approved, will contain at least the following specifications:

a) Place and date of formalization.

b) Identification of applicants.

c) Description of the operations.

(d) Description of the valuation method, indicating its essential elements and the value or values deriving from it, as well as the economic circumstances to be understood as basic in order to its application; highlighting the fundamental assumptions.

e) Period referred to in the proposal. The maximum period of validity shall be three years.

(f) Reasons or reasons for which the tax administration approves the proposal.

g) Indication of the binding nature of the valuation.

5. The decision to be taken shall not be used, without prejudice to the remedies and complaints which may be brought against the acts of liquidation which are carried out as a result of the application of the values laid down in the resolution.

6. The tax administration and the applicants must apply the valuation of the income in kind from the work approved in the resolution during their term of validity, provided that the legislation is not changed or significantly changes economic circumstances that founded the valuation.

7. The competent body to report, instruct and resolve the procedure will be the Department of Financial and Tax Inspection of the State Tax Administration Agency.

First transient disposition. The validity of the rules for the submission of declarations and communications and those laying down formal obligations under this Regulation.

The rules concerning the presentation of statements and communications and those relating to the formal obligations contained in this Regulation shall apply to the tax periods starting with the from 1 January 1999, with the exception of the telematic presentation of declarations for the tax and the rules on external collaboration in the presentation and management of declarations and communications, which will be applicable to the financial year 1998.

Second transient disposition. Housing accounts set up with anteriority1deJanuary 1999.

The maximum period for allocating the amounts entered in the housing account to the purchase or rehabilitation of the account shall be five years for those who had opened the account before 1 January 1999.

Transitional provision third. Transfers of property assets previously carried out before 1 January 1998.

1. For the application of the provisions of Article 21.3 of Law 43/1995 of 27 December 1995 on Corporate Tax, in the transmission, before 1 January 1998, of property assets affected by the exercise of activities (a) the rate of depreciation shall be taken as a period of amortisation for the maximum period of amortisation according to officially approved tables in force in the Member States. moment of reinvestment.

2. The period of residence of the property assets affected by economic activities carried out by taxpayers who determined their net performance by means of the objective estimation scheme referred to in Article 21.4 of the Law 43/1995, of 27 December, of the Company Tax, shall be, where the reinvestment had been carried out before 1 January 1998, seven years, except that its useful life, calculated according to the maximum period of depreciation according to tables Officially approved at the time of reinvestment, it was lower.

3. Taxpayers who determine their net performance by the objective estimation scheme which would have received the reinvestment exemption provided for in Article 127 of Law 43/1995 of 27 December of the Company Tax will have to to maintain the economic activity of the heritage elements which are the subject of reinvestment in accordance with the following rules:

1. Where the transfer and reinvestment would have taken place before 1 January 1998, the period of stay of the assets will be determined according to the maximum period of depreciation according to official tables. approved at the time of the reinvestment. The retention requirement shall also be deemed to be fulfilled where the asset item had been retained for the seven years following the end of the tax period in which the period of three years after the date of delivery expired or making available the assets whose transmission originated the exempt income.

2. When reinvestment took place after 1 January 1998, the maximum repayment period referred to in the previous rule shall be determined in accordance with the amortisation table provided for in the Article 35.2 of this Regulation.

Transitional disposition fourth. Definition of assets not affected by economic activities for the application of the transitional provision of the Law of the Tax.

For the purposes of the application of the scheme provided for in the transitional provision of the Tax Law for certain property gains, they shall be considered to be non-economic assets. in which the disaffection of these activities has occurred more than three years in advance of the date of transmission.

Transient disposition fifth. Determination of retentions due to personal and family circumstances reported in the previous financial year.

1. The paying-income payers may determine the applicable withholding taxes, taking into account only the personal and family circumstances which the recipients have communicated to them in the preceding financial year, up to the date of the establishment of the (a) the amount of the amount paid in respect of the period of February 1999, in general, or up to the month of March 1999, in the case of the benefits referred to in Article 16.2.a) of Law 40/1998 of 9 December 1998 on the tax on The Income of the Physical Persons and other Tax Standards.

It will be a reduction of 100,000 for each of the first two, and 150,000 for each of the remaining descendants communicated to the company in order to calculate the holds for 1998.

Where, in accordance with the above, a rate of withholding tax has been applied, the rate of retention shall be regularised in accordance with Article 81 (3) of this Regulation. Regulation.

2. In the preceding case, the time limit for the submission of the model for the communication of the personal and family situation of the recipient of working income, or of its variation, to the payer, corresponding to the year 1999, shall be deemed to be extended to 1 of February 1999.

Transitional disposition sixth. Amendment of Article 3 of Royal Decree 660/1996 of 19 April.

As of January 1, 1999, Article 3 of Royal Decree 660/1996 of 19 April, which regulates the tax benefits in the Income Tax of the Physical Persons to the Transmission of Rustic Farms and agricultural holdings, as follows:

" Article 3. Taxation of the Income Tax of the Physical Persons.

When the conditions referred to in the above articles are met, the taxation of property gains and losses shall be in accordance with the following rules:

1. It shall be determined separately for each patrimonial element transmitted, the property gain or loss.

2. The property gains and losses shall follow the general regime provided for in Article 26.2 of the Tax Law.

3. However, the property gains will be reduced to 7.14 per 100 for each year of stay of the assets transferred in the taxpayer's assets that exceeds two.

The reduction referred to in the preceding paragraph shall be 100 per 100 if the transferred assets have remained in the taxpayer's assets for more than 15 years.

The number of years between the dates of acquisition and transmission, rounded up by excess, shall be taken as a period of permanence in the taxpayer's assets. "

Transitional disposition seventh. Obligation to declare by 1999.

They are obliged to make a declaration in 1999, in accordance with Articles 59 and 60 of this Regulation, of taxpayers who are entitled to the deduction for investment in habitual housing, by double (a) international taxation or making contributions to pension schemes or social security schemes which reduce the general part of the tax base.

Single end disposition. Authorisation to the Minister for Economic Affairs and Finance.

The Minister for Economic Affairs and Finance is hereby authorised to make the necessary provisions for the implementation of this Regulation.