Advanced Search

Royal Decree 2717 / 1998, December 18, Whereby Governing Payments To Account For Physical Persons Income Tax And The Tax On The Income Of Non-Residents And Regulation Of The Tax Modified In M...

Original Language Title: Real Decreto 2717/1998, de 18 de diciembre, por el que se regulan los pagos a cuenta en el Impuesto sobre la Renta de las Personas Físicas y en el Impuesto sobre la Renta de no Residentes y se modifica el Reglamento del Impuesto sobre Sociedades en m...

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.

TEXT

Law 40/1998, of December 9, of the Tax on the Income of the Physical Persons and other Tax Rules, introduces important new developments in the management of this Tax, among which it is important to emphasize the the limits that define the obligation to declare (Article 79 of the Law), the possibility for these persons to request the return of excess withholding and income on account that they may have incurred (Article 81 of the Law) and the effects of the provisional liquidations which the Administration may turn to these taxpayers (Article 84 of the Law).

The new tax management system that the previous rules define, especially for all taxpayers excluded from the obligation to make a declaration, requires a profound transformation of the withholding tax system. and income on account, especially in relation to income from work.

On the other hand, there are also significant developments in the system of withholding taxes on capital income, lowering the withholding rate to 18 per 100 for the financial products most used by small businesses. savers, including by introducing a withholding tax for income derived from investments in collective investment institutions.

Consequently, the Government considers it appropriate to advance the approval of this Royal Decree prior to that of the Income Tax Regulation of the Physical Persons, with the aim that the The use of withholding taxes and income on account can be known in good time to the operation of the new system, thus providing the necessary security and information for the correct fulfilment of its obligations as retainers.

In order to provide a comprehensive and systematic regulation of the new regime applicable to payments on account of the Income Tax of the Physical Persons since the date of entry into force of the new Law on the Law of the Tax, this Royal Decree contains all the necessary regulations, both in terms of withholding and income on account, as well as the fractional payments to be filled by taxpayers with economic activities.

Also, the Corporate Tax Regulation is also amended to adapt it to the changes in the Income Tax on the Income of the Physical Persons in respect of the income of the capital.

Finally, the regulatory rules on the configuration of the non-resident Income Tax payment scheme are included in this Royal Decree.

This Royal Decree is structured in three Titles, the I regulates the entire system of payments to account of the Income Tax of the Physical Persons and is developed in 39 articles, the II, which comprises a single article, the 40, amend certain articles of the Corporate Tax Regulation on withholding and income on account of this Tax and the III, consisting of 9 articles, regulates payments on account in the Income Tax of non-residents, four transitional provisions, a derogation provision and an end.

The most important modifications relate to the scope of the income of the work.

Article 79 of the Law on the New Income Tax on the Income of the Physical Persons has configured in a different way, with respect to that provided for by Law 18/1991, the obligation to declare for the recipients of income with the aim of excluding from the obligation to make a declaration and the consequent self-settlement to a high number of taxpayers with sufficient economic capacity to contribute to this tax.

To this end, the total amount of annual work yields that determine the exclusion of the obligation to declare and reverse the tax has been significantly increased, with a general character of 3,500,000 pesetas, compared to the amount of 1.250,000 pesetas previously operated.

Consequently, the taxpayers who are within that limit and comply with the other circumstances required by the Law, and who, because of their economic capacity, must contribute to the tax, will be subject to the same by way of supported holds and revenue.

Hence, with the withholding tax and income on account of the income tax paid to be paid, it is necessary to achieve the greatest possible adjustment between the liquid quota that can be derived from a self-settlement to the tax administration and the amount of withholding and income to account supported by these taxpayers, reducing, at the same time, the large number of returns that were produced with the previous regulations.

The adjusted adjustment or balance is also justified for reasons of horizontal equity, so that it is avoided that, on the basis of equality of income and personal and family circumstances, two taxpayers who are not obliged to present The declaration is subject to retention in a different manner.

In order to make this possible, this Royal Decree provides for a system of quantification of the deductions similar to the scheme that follows the Law to determine the liquidable base and the tax quota. The procedure can be summarised as follows: first, the total amount of the remuneration of the work is reduced by the amount of certain deductible expenses, the reductions provided for in Article 18 of the Law, as well as the minimum personal and family members by descendants provided for in Article 40 of the same, in order to obtain a basis for calculating the type of withholding tax similar to the tax-liquidable basis. Subsequently, the tax scale is applied to that base, obtaining a retention fee, which must correspond to the liquid share of the declaration. Finally, the retention rate is obtained, applicable to the total amount of the satisfied job returns, by dividing that retention fee between the latter.

This scheme is in line with the requirements of Article 83.1 of the Law, when it states that " withholding taxes and income on account of income from labor or statutory and pension relationships or liabilities shall be determined by reference to the amount that would result from the application of the fees to the withholding or entry-to-account basis ", and to the additional twelfth provision of the same legal body, which indicates that the The Commission will be able to take account of the fact that the Commission will be able to take account of the rate and the personal and family circumstances of the recipient.

Thus, it is established, as a general rule, a scheme of determination of the type of retention for each taxpayer based on the application of the scale of the tax, including both the state and the supplementary, although with two exceptions, 20 per 100 as a fixed rate for remuneration for the provision of courses, conferences and seminars, as well as for giving up the right of exploitation of literary, artistic or scientific works, and 40 per 100 for the remuneration of the Members of the Boards of Directors, for the characteristics of these activities do not can be included in the general mechanism described above. In the first case, therefore, the same type of retention is applied as for professional income, given the obvious connection between the two, whereas in the case of the members, the same type of retention is continued as in the case of the previous regulations.

The retention scale is obtained by aggregation of the two (state and complementary) scales in the Tax Law, in order to respect the legally established mandate to which it was previously mentioned. As rules for its implementation, some of the rules already included in the current Regulation, such as the volume of remuneration to be taken into account (fixed and foreseeable variables), are included in the form of determination of the volume of remuneration in the Case of daily peonings or jornals, the special scheme of fishermen, as well as maintaining the application of the minimum of 2 per 100 for contracts of shorter duration per year or sporadic and 20 per 100 for certain industrial relations which may be confused with self-employed professional activities.

However, the purpose of the withholding tax at the end of the year is as adjusted as possible to the definitive tax and the logical necessity for the foreseeable remuneration of the year, obliging the establishment of a process of regularisation of the type of withholding tax which prevents changes in the economic, personal or family circumstances of the recipient of work income from being translated into a mismatch between withholding and tax. This process of regularisation is an important part of this new system and will apply in cases of modifications or extensions of contracts, new hires, changes in general rules or applicable sectoral rules, promotion, promotion or fall of category of workers, as well as significant changes in the volume of remuneration initially taken into account for the calculation of the rate of retention. It also provides for regularisations at the request of the employee, if the personal and family circumstances of the worker vary in the course of the financial year, for which he will present a data communication to his company in which he or she is present. their variation.

The consequence of the lack of disclosure of the expressed circumstances is the non-consideration of the same by the payer to determine the applicable withholding rate, without prejudice to the effects which, in other orders -liquidatory and sanctioning-are derived from those omissions, falsehoods or improprieties that determine withholding or income lower than those from these grounds.

It must be emphasized, with regard to the system of calculating the withholding taxes on the income of the work described, that there are two rules that aim to relieve companies in the tasks of implementing these new developments so quickly. The first of these permits to accumulate on a quarterly basis the regularisations of the type of retention that may occur due to variations of the economic or personal circumstances of the worker in the first nine months of the year. The second, of a transitional nature, will allow companies to hold the holds of the months of January and February 1999 using the data on their employees for 1998, without the need for them to capture the whole of the information that you need before you make these payslips.

In terms of economic activity yields, the current withholding tax scheme is basically maintained, i.e. 20 per 100 for professional income in general (10 per 100 for some singular cases) and 2 per 100 for agricultural or livestock activities (1 per 100 for some livestock activities).

With regard to the withholding tax and income scheme applicable in the area of taxation of savings, both in the Income Tax of the Physical Persons and in the Corporate Tax, they should be highlighted the following developments in relation to the previous rules:

1. The rate of retention that falls on the return on capital proceeds from the transfer to third parties of equity from the 25 per 100 to 18 per 100 is reduced. This reduction does not reach the rest of the income derived from capital, which, as a general rule, remain subject to withholding tax at the general rate of 25%.

The retention basis will be calculated taking into account the reductions provided for in the Tax Act according to the deadline for generating these returns.

The purpose of this amendment is to exclude the obligation to declare a high number of taxpayers who supplement the income of the work below the limit laid down for the obligation of to declare with capital returns subject to small-scale retention.

Therefore, the rate of retention for these yields is equal with the lower rate of the tax scale, since it is the derivatives of the transfer to third parties of own capital that have the highest incidence in the declarations. of taxpayers of lower economic capacity.

2. Withholding Tax Exemption, where they are exclusively obtained by taxable persons in the Corporate Tax, returns from marketable securities of fixed income, which are traded on official secondary markets of Spanish securities, which are issued on the basis of the entry into force of the Royal Decree and are represented by means of annotations on account.

This measure aims to improve the efficiency of organised fixed income markets, which should lead to an improvement in the financing of Spanish companies and public administrations.

For the same reason, it is also excluded from withholding tax on the Income of the Physical Persons to the income derived from the transmission of financial assets with explicit performance, with the same requirements as in the Corporate Tax.

3. The mechanism of withholding taxes is incorporated into the capital gains generated in the transmission or redemption of shares or shares representing the capital or equity of investment institutions collective, subject to a withholding of 20 per 100, which applies both to the derivatives of collective investment institutions domiciled in Spanish territory and to the derivatives of institutions domiciled outside the same obtained by the partners or members of these residents in Spain.

The retention basis will coincide in these cases with the amount to be included in the tax base of the Income Tax of the Physical Persons or the Corporate Tax, depending on who is the recipient of the income.

This measure aims to achieve greater fiscal neutrality between the different savings instruments and a greater adjustment between the supported withholding taxes and the definitive tax to be met by the The Commission is of the view that it is necessary to achieve the objective of the whole new system of retentions, such as the exclusion of a large number of employees from the obligation to declare a large number of number of contributors.

Considering the novelty of this retention, its practical application is delayed until February 1, 1999.

4. The income derived from life insurance contracts is subject to retention of 25 per 100, in accordance with the qualification of capital returns which, in any case, gives the same the Law of the Tax on the Income of the Physical Persons, although taking into account the favorable treatment granted to them through the applicable reductions according to their period of generation.

For the same reason as stated above, its application is delayed until 1 February 1999.

5. The obligation to make income on account of explicit returns whose settlement frequency is greater than twelve months is not displayed.

Some other new features of this Royal Decree are summarized below:

The percentage of retention for leases and subleases of real estate in the Income Tax of the Physical Persons is unifies, in the same way that it already occurs in the Tax on Societies, and is fixed in the 18 by 100, also applicable to current account yields and time deposits.

The retention percentage is fixed on the prizes under this obligation and they constitute a property gain in 20 per 100 of their amount.

A single retention percentage of 20 per 100 is established for the preceding yields of intellectual and industrial property, technical assistance, leasing of movable property, business or mining and the sale of the the right to the exploitation of the right of image, irrespective of the qualification that these rents have for the recipient.

In terms of the formal obligations of the retainer and the obligation to enter into account, those that have traditionally been demanded are maintained, although, in the case of the annual withholding summary, there is a higher degree of information requirement, in line with the circumstances under consideration for the application of the new withholding system.

Finally, in the matter of split payments, the current scheme is basically maintained, and compliance with the additional provision of the Tax Law is provided for in addition to the additional provisions of the Tax Law. develop economic activities under objective estimation, the rate of the split payment at 4 per 100, as a general rule, and a 3 or 2 per 100, where one or no salaried person is available, respectively.

Title III contains the rules of the system of payments on account of the Tax on Non-Resident Rentade, regulating in its two chapters the corresponding income obtained by taxpayers with and without mediation of permanent establishment, in accordance with the characteristics of their forms of taxation.

In its virtue, on the proposal of the Second Vice President of the Government and Minister of Economy and Finance, in agreement with the Council of State and after deliberation of the Council of Ministers at its meeting on 18 December 1998,

DISPONGO:

TITLE I

Payments to the Income Tax of the Physical Persons

CHAPTER I

Holds and Income to Account. General rules

Article 1. 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 3 of this Royal Decree who satisfy or pay the income provided for in Article 2 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 Royal Decree.

There shall also be an obligation to retain in the operations for the transmission of financial assets and for the transmission or redemption of shares or units of collective investment institutions, under the conditions set out in this Royal Decree.

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 Royal Decree.

3. For the purposes of this Royal Decree, 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 2. Rents subject to withholding or income to 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.

Yields of agricultural and livestock activities.

(d) The property gains obtained as a result of the transmissions or repayments of shares and shares 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, the references to the lease are also understood to be 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 offering, 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) Conversion premiums on shares.

(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 are represented by annotations in account.

2. º 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 inform the holder as well as the tax administration, which shall also provide the data for the persons involved in the operations listed above.

The Minister for Economic Affairs 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 that the acquirer is a person or entity not resident in Spanish territory or is a liability of the Company Tax.

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

g) 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 When it is a business lease for your employees.

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

3rd When the lessor is obliged to pay for any of the headings in group 861 of the Section First of the Tax Rates on Economic Activities, approved by the Royal Legislative Decree 1175/1990, of 28 (a) September, and does not result in a zero quota or any other item which may be used for the leasing or subleasing of urban immovable property, when applying to the cadastral value of the buildings intended for the lease or subleasing the rules for determining the quota set out in the headings of that group 861, no zero quota results.

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 3. 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 owners ' communities and entities under the income allocation scheme.

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

(c) Natural persons, legal entities and other non-resident entities on Spanish territory, who operate in the Spanish 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 payment mediation means the payment of an amount per account and order of a third party.

They do not have the consideration of simple payment mediation operations as specified below. Accordingly, the persons and entities mentioned above will be required to retain and enter the following assumptions:

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

2nd When they satisfy their staff for Social Security benefits.

3rd When they satisfy their staff amounts disbursed by third parties in terms of tip, service fee, or similar.

4th Traton of agricultural cooperatives, when they distribute or market the products from the farms of their partners.

2. In particular:

(a) They are required to retain resident entities or permanent establishments in which the taxpayer provides services when these income from work is satisfied by another entity, resident or non-resident. resident, linked to those in the terms provided for in Article 16 of Law 43/1995, of December 27, 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 involved in their filing for recovery.

2. º In the returns obtained 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 listed 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 retained.

(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.

3rd 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, subsidiary, the entity or entities in charge of the placement or distribution of the securities among the potential subscribers, when they make the reimbursement.

Article 4. Amount of the withholding or income on 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 20 for the capital income and in Article 24 for the property gains arising from the transfers or reimbursements of shares or units of collective investment institutions.

2. The amount of the income to account that corresponds to the remuneration in kind will be the result of applying to the value of the same, determined according to the norms contained in this Royal Decree, the percentage that corresponds, according to the provided for in Chapter III.

Article 5. 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 21 and 25 of this Royal Decree.

Article 6. Temporary imputation of holds or income to 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 when they were practiced.

CHAPTER II

Calculating Holds

Section 1. Work Res

Article 7. Amount of holds 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 that is based on Article 13 of this Royal Decree.

2. º 40 per 100 for the remuneration that is collected 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 work income obtained in Ceuta and Melilla benefiting from the deduction provided for in Article 55.4 of the Tax Act.

Article 8. Quantitative limit excluding the obligation to retain.

1. No retention shall be made on the income of the work, the amount of which, as provided for in Article 10.2 of this Royal Decree, does not exceed the annual amount corresponding to the following table:

Taxpayer situation

Number of children and other descendants

0

1

2 or more

1. Single Contributor, widowed, divorced, or separated legally

-

1.675,000

1,850,000

2. Partner with spouse in charge

1.675,000

1,850,000

2,025,000

. spouse in charge and other situations

1,250,000

1.350,000

1,450,000

For the purposes of the application as provided in the table above, children and other descendants are understood to be those who are entitled to the family minimum provided for in Article 40.3 of the Tax Act.

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 number of staff he or she is referring to. Article 70.2.3. of the Law of the Tax for Single-Parental Family Units.

2. Taxpayer with spouse in charge: This is the legally-separated, married taxpayer 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 of more than 100,000 pesetas, including those exempt.

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

c) Taxpayers who do not manifest to be in any of the previous 1 and 2 situations.

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

3. The provisions of the preceding paragraphs shall not apply where the fixed rates of retention, in the cases referred to in Article 7 (1), (2) and (3), and where there are the minimum rates of retention for which the refers to Article 13.2 of this Royal Decree.

Article 9. General procedure for determining the amount of the hold.

In order to calculate the deductions on income from work, as referred to in Article 7.1.1. of this Royal Decree, the following operations will be performed successively:

1. The basis for calculating the rate of retention shall be determined in accordance with the provisions of Article 10 of this Royal Decree.

2. The retention fee shall be determined in accordance with the provisions of Article 12 of this Royal Decree.

3. The type of retention shall be determined in the manner provided for in Article 13 of this Royal Decree.

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 the regularisations that come according to Article 14 of this Royal Decree. The above arrears will be applied to the fixed rate of 18 per 100.

Article 10. Base to calculate the hold type.

1. The basis for calculating the rate of retention shall be the result of undermining the total amount of the remuneration of the work, as 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 Article 44 of the Tax Act, without including the amount of income on account.

The total annual amount shall include both fixed remuneration and foreseeable variables. The amount of the latter may not be less than that of the amounts 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 remuneration. Multiply by 100 the amount of the daily pawn or day.

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 rules. 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:

Category

Coefficient

Person, with or without title, that meets the Fishing Practice function, also called the Fishing Pattern

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 its headquarters)

3.00

of Officers with titration required for ship dispatch

2.00

crew on board

2 If the wage structure is made up exclusively of a share in the value of the catch caught, on the basis of the annual remuneration estimated for the purposes of Decree 2864/1974, of 30% 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 institutions, as referred to in the paragraphs (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 Article 40 (3.2) of the Tax Law.

2nd 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 allowances, 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 shall inform the payer, in the manner provided for in Article 15 of this Royal Decree, of such circumstances, accompanied by a literal testimony of the judicial decision determining the pension.

Article 11. Annual income limits that allow 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 paragraphs (b) and (c) of Article 40.3.1. of the Tax Act, shall be 1,000,000 pesetas, including those exempted.

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 exempt pesetas.

Article 12. 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:

Base for calculating retention type

-

Up to pesetas

Retention quota

-

Pesetas

Rest base to calculate retention type

-

To pesetas

Percentage

0

0

600,000

600,000

108,000

1,500,000

24.00

468,000

468,000

28.30

4.100,000

1.034,000

1.004,000

2.500,000

37.20

6.600,000

1,964,000

45.00

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 inform the payer, in the manner provided for in Article 15 of this Royal Decree, of this circumstance, accompanied by 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 10.2 of this Royal Decree, not exceeding 3,500,000 pesetas per year, the withholding fee, calculated in accordance with the provisions of the paragraphs above, you will have the maximum limit of the following two quantis:

(a) 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, according to their situation, the minimum excluded retention provided for in Article 8 of this Royal Decree.

(b) Where regularisations occur, the result of applying the percentage of 48 per 100 to 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 13. Type of retention.

1. The rate of retention, 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 10.2 of this Royal Decree. 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 or of remuneration for daily or daily wage or salary, not less than 20 per 100 where the performance 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 special employment relationships affecting the disabled.

Article 14. Regularization of the hold type.

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 paragraph 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 would continue to provide his services to the same employer or to do so within the calendar year.

2. º If after the suspension of the recovery of unemployment benefits the right to the 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 that has been taken into account for the determination of the rate of retention that has been applied up to that time.

4. º If in the course of the calendar year the pensioner started to receive new pensions or liabilities that were added to those that he already received, or increase 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 Act, 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 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 7.1.1. of this Royal Decree.

(c) The new rate of retention shall be obtained by multiplying by 100 the ratio obtained from dividing the difference resulting from the preceding letter by the total amount of the remuneration referred to in Article 10.2 of this Royal I decree 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, it shall not refund 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 letter shall be without prejudice to the retention minima provided for in Article 13.2 of this Royal Decree.

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 the numbers 5, 6, 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 applicable in the terms provided for in 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 15. 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 regularisations of the withholding tax, and the paying-in- keep the communication properly 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, in the terms of 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 are not varied.

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 14 of this Royal Decree 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 prior to 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 resign 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 type 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.

Article 16. Accreditation of the disability status 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, it shall be deemed 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 assessment of the disability, based on the opinion delivered by the assessment teams and dependent orientation of the same.

Section 2. Capital Res of Furniture

Article 17. Amount of withholding tax on capital income.

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

1. With a general character, 25 per 100.

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

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

Article 18. Concept and classification of financial assets.

1. They have the consideration of financial assets for marketable securities representing the collection and use of foreign capital, regardless of how 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 returns.

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 colocator, acting in the issue and putting 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 supplier or supplier credit.

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 concept of implied returns in terms of 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 case of higher-term assets. In the event that the reference rate cannot be determined for a period of time, it shall be applicable to the deadline closest to that of the planned issue.

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 returns 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 periodically fixed.

Article 19. 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 to which the transaction was made.

When a turning instrument becomes a financial asset after its entry 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 holder 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.

From 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 return to the title of the title.

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 that 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 transmittal, as long as sufficient justification of the cost is provided.

Article 20. Retention basis on capital returns.

1. In general terms, it shall constitute the basis of withholding tax on capital goods for the full consideration required 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 further transmission of the title, excluding depreciation.

3. Where the obligation to retain has its origin as provided for in the last paragraph of Article 2.3.f) of this Royal Decree, the withholding tax shall be the part of the price equivalent to the run-off coupon of the value transmitted.

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 21. 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 are.

Section 3. Economic activity events

Article 22. 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:

a) Guaranteed representatives of "Tabacalera, Sociedad Anonima".

b) Municipal recauders.

(c) Insurance agents and insurance brokers using the services of sub-agents or business partners.

(d) Territorial delegates from the late Patronate of Mutual Sports Bets integrated into the National Body of Lotteries and Gambling of the State 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 the Second and Third Sections of the Tariff of the Tax on Economic Activities, approved by the Royal Legislative Decree 1175/1990, of 28 of 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.

2nd The Commists. It is understood that it is comionists that 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 will be included among those for business activities.

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

2nd Remaining cases: 2 per 100.

These percentages will be applied on 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 services of livestock.

Section 4.

Article 23. Amount of withholding tax on property 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 24. Basis of retention on 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 and 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. For these purposes, the ancillary costs shall not be reduced to the operation.

Article 25. 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 formalised, whatever the agreed charging conditions.

Article 26. Amount of holds on prizes.

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

Section 5. Other Income

Article 27. 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 VAT.

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 28. Amount of retentions on image rights and other income.

The withholding tax on yields from the concepts provided for in Article 2.2.b) of this Royal Decree, whatever its qualification, will be the result of applying the 20 per 100 withholding rate. on full and satisfied income.

CHAPTER III

Revenue to account

Article 29. Income on account of remuneration in kind of work.

1. The amount of the income to account which corresponds to 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, the rate corresponding to those provided for in Article 7 of this Royal Decree.

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

Article 30. Income on account of remuneration in kind of capital.

The amount of the income to account that corresponds to the remuneration paid in kind shall be calculated by applying the percentage provided for in Section 2. a of Chapter II of this Royal Decree to the result of increasing the value of purchase or cost to the payer by 20 per 100.

Article 31. Income on account of remuneration in kind of economic activities.

The amount of the revenue to be taken in respect of the remuneration paid in kind shall be calculated by applying to its market value the percentage resulting from the provisions of Section 3 of Chapter II of this Regulation. Royal Decree.

Article 32. Revenue to account for prizes.

The amount of the income to account that corresponds to be made by the prizes satisfied in kind, which constitute property gains, will be calculated by applying the percentage provided for in article 26 of this Royal Decree to the result of increasing the acquisition or cost value for the payer by 20 per 100.

Article 33. Income on account of other income.

The amount of income on account of the income in kind referred to in Articles 27 and 28 of this Royal Decree shall be calculated by applying to its market value the percentage provided for therein.

Article 34. Income to account on image rights.

The percentage for calculating the income on account to be applied in the case referred to in Article 76 (9) of the Tax Act shall be 15 per 100.

CHAPTER IV

Obligations of the retainer and the obligation to enter into account

Article 35. 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 entering its amount into the 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 right of the Member State to which the Court of Judgment of the European Court of Law of 29 March 1992 is to be held, where the circumstances referred to in Article 71 (3.1) of the Value Added Tax Regulation, approved by Royal Decree 1624/1992, of 29 May 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 to be withheld and/or income shall not be 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) Name and last name.

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 the reason for its value, 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 Act.

(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.

h) Practiced retention or account entry.

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

In the event that the relationship is present on a directly computer-readable medium, 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 value rents.

4. Payers shall report to the taxpayer the withholding or income at the time they meet 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 which the Minister for Economic Affairs and Finance may establish for each class of income, who may also determine the data to be included in the declarations, 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.

CHAPTER V

Fractional payments

Article 36. Obligated to split payment.

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 income.

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 to withholding or income to account.

4. For the purposes of paragraphs 2 and 3 above, account shall be taken of the percentage of revenue which has been the subject of retention or income for the period referred to in the split payment in the event of the start of the activity.

Article 37. 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 the last day of the quarter to which the split payment refers.

The amount resulting from the application of this letter will be deducted from the split payments entered in the previous quarters of the same year.

(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 fractious or, in the event of the start of activities, the day on which they had begun.

However, in the case of activities that have only one person who is salaried, the percentage above will be 3 per 100, and in the event that there is no salaried staff, that 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 or revenue volume.

(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 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.

2nd Urban Real Estate Lease that constitutes economic activity.

3rd Transfer 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 2.2.b) of this Royal Decree.

(b) Withholding taxes and income on account effected in accordance with Articles 22 and 31 of this Royal Decree for the quarter, in the case of:

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

2nd Agricultural or livestock activities.

4. Taxpayers may apply in each of the split payments percentages higher than those indicated.

Article 38. 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 day 1 and 20 of the months of April, July, and October.

b) The fourth quarter, between day 1 and 30 of January.

When the application of the provisions of the previous article does not result in amounts to be entered, the contributors 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 taxpayer shall submit the declarations to the competent authority of the tax administration and shall enter the amount of the tax into the Treasury.

The declaration shall be in accordance with the conditions and requirements and the revenue shall be in the form and place to be determined by the Minister for Economic Affairs and Finance.

Article 39. 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 entity.

TITLE II

Modification of the Company Tax Regulation on withholding and income on account

Article 40. Amendment of Chapter II of Title IV of the Corporate Tax Regulation.

As of 1 January 1999, Chapter II of Title IV of the Company Tax Regulation, as approved by Article 1 of Royal Decree 537/1997 of 14 April 1997, will be read as follows:

" CHAPTER II

Obligation to retain and enter into account

Article 56. Income subject to withholding or income on account.

1. Withholding tax shall be carried out in respect of the Company Tax on the recipient in respect of:

(a) The income derived from the participation in own funds of any kind of entity, the transfer to third parties of own capital and the other income falling within the meaning of Article 23 of Law 40/1998 of 9 December 1998. Tax on the Income of Physical Persons and other Tax Standards.

(b) prizes resulting from participation in games, contests, raffles or random combinations, whether or not they are linked to the supply, promotion or sale of certain goods, products or services.

(c) The consideration given to the attribution of charges of administrator or counsellor in other companies.

(d) Income from the transfer of the right to the exploitation of the image or the consent or authorisation for use, even if they constitute income derived from economic holdings.

(e) Income from the lease or sub-lease of urban buildings, even if they constitute income derived from economic holdings.

(f) Income obtained as a result of transmissions or repayments of shares or shares representing the capital or equity of collective investment institutions.

2. Where the same contract includes the provision of services or the transfer of immovable property, together with the transfer of goods and rights to the goods covered by Article 23 (4) of the Income Tax Act Physical, you will need to practice hold on the total amount.

When the same contract includes the lease, sublease or assignment of rustic estates, together with other movable property, the retention shall not be practiced except in the case of the lease or assignment of business or mines.

3. An income from the Company Tax corresponding to the recipient shall be made in respect of the income of the preceding paragraphs, when they are satisfied or paid in kind.

Article 57. Exceptions to the obligation to retain and to enter into account.

There shall be no obligation to retain or to enter into account with respect to:

(a) 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 formalise with their clients contracts of accounts based on Treasury bills, will be required to retain their returns on returns. obtained by the holders of those accounts.

(b) Interest constituting the right to the Treasury as a consideration of the State's loans to the official credit.

(c) The interest and commission of loans constituting the income of credit institutions and credit institutions registered in the special registers of the Banco de España, resident in Spanish territory.

The above exception shall not apply to the interest and income of bonds, bonds or other securities issued by public or private entities, domestic or foreign, which make up the securities portfolio of those securities. entities.

(d) The interest of the loan, credit or advance operations, both active and passive, to be carried out by the State Company of Industrial Participations with companies in which it has a majority stake in the capital, This derogation may not be extended to the interests of the same or similar securities, bonds, bonds or other similar securities.

e) Interest received by securities companies as a result of loans granted in connection with transactions in the purchase or sale of securities referred to in Article 63.2.c of the Law 24/1988, 28 (a) July, the Securities Market, as well as the interest received by companies and securities agencies in respect of the active operations of loans or deposits referred to in Article 21 (2) of Royal Decree 276/1989 of 22 March 1989, on companies and securities agencies.

There shall also be no obligation to practise retention in relation to the interest received by securities companies or agencies, in consideration of the guarantees formed to operate as members of the futures and trading markets. financial options, in the terms referred to in Chapters III and IV of Royal Decree 1814/1991 of 20 December 2001 on the official markets for futures and options.

f) Conversion premiums on shares.

g) The income derived from the distribution of the share or equity issue premium.

(h) The profits received by a parent company resident in Spain of its subsidiary companies resident in other Member States of the European Union, in relation to the retention provided for in Article 58 (2) of the this Regulation, where the requirements laid down in Article 13 (1) (g) of the Non-Resident Income Tax Act are met.

i) Yields from the lease and sublease of urban real estate in the following assumptions:

1 When it comes to home leases by companies for your employees.

2nd When the rent satisfied by the tenant to the same landlord does not exceed 150,000 pesetas per year.

3rd When the lessor is obliged to pay for any of the headings in group 861 of Section 1 of the Tax on Economic Activities approved by 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 the said group 861, Zero quota results.

For these purposes the lessor must prove to the tenant the fulfilment of the above obligation, in the terms established by the Minister of Economy and Finance.

It shall be understood as falling within the previous assumption that the lessors and sub-lessors, meeting the requirements laid down therein, enjoy exemption from the Economic Activities Tax.

4th When the returns derive from the leasing contracts referred to in paragraph 1 of the seventh additional provision of Law 26/1988 of 29 July 1988 on the discipline and intervention of the institutions of the credit, as soon as they have for the purpose of urban real estate.

(j) Yields that are payable between a Spanish or European economic interest group and its partners, as well as those that are payable between a temporary union and its member companies.

k) The returns on mortgage holdings, loans or other credit claims constituting the income of the securitisation funds.

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

m) Yields satisfied to entities that are exempt from the tax under the provisions of an international treaty signed by Spain.

n) dividends or shares in profit, interest and other satisfied income between companies that are part of a group that is taxed in the corporate group scheme.

n) dividends or shares in profits that come from tax periods during which the entity that distributes them is subject to tax transparency.

or) The income obtained by the exempt entities referred to in Article 9 of the Tax Law.

The condition of an exempt entity may be credited by any of the eligible means of proof. By resolution of the Department of Management of the State Administration of Tax Administration, the means and form can be established to accredit the condition of an exempt entity.

The Minister of Economy and Finance may, by Order, determine the procedure to be able to make the exemption from the obligation of withholding or income to account in relation to the income derived from the securities of the public debt of the State received by the exempt entities referred to in Article 9 of the Tax Act.

p) The dividends or shares in profits as referred to in Article 28 (2) of the Tax Act.

For the purposes of this letter, the entity shall inform the entity required to retain that the requirements laid down in that Article are met. The communication shall contain, in addition to the identification data of the recipient, the documents justifying compliance with the requirements.

q) The income obtained by taxable persons from the Corporate Tax from financial assets, provided that they meet the following requirements:

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

2. º) To be traded on an official secondary market of Spanish securities.

However, credit institutions and other financial institutions that formalise with their clients contracts of accounts based on transactions in financial assets shall be obliged to retain their income from the income obtained by the holders of those accounts.

Financial institutions through which the interest payment is made on the securities referred to in this letter or which are involved in the transmission, redemption or redemption of the securities shall be required to calculate the performance attributable to the holder of the value and inform the holder and the tax administration of the value, which shall also provide the data for the persons involved in the operations listed above.

The Minister of Economy and Finance shall also establish the intermediation and information obligations relating to the separations, transmissions, reconstitutions, repayments or redemptions of the debt securities public for which the separate negotiation of the principal and the coupons has been authorised. In such cases, the managing entities of the Public Debt Market in Annotations shall be obliged to calculate the performance attributable to each holder and report it, both to the holder and to the tax administration, to which, provide the information for the persons involved in the operations on these values.

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

r) The prizes referred to in paragraph 1 (b) of the previous article, where the retention base does not exceed 50,000 pesetas.

Article 58. Subjects required to retain or make an entry into account.

1. They shall be required to retain or enter into account when they meet or pay rents as provided for in Article 56 of this Regulation:

(a) Legal persons and other entities, including the communities of property and property owners and entities on the basis of income allocation.

(b) Taxpayers for the Income Tax of Physical Persons engaged in economic activities, when they meet income in the exercise of their activities.

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

2. A person or entity shall not be deemed to satisfy or pay an income when it is limited to a simple payment mediation, where the payment of an amount per account and order of a third party is understood, except in the case of entities (a) Depository of foreign securities owned by residents in Spanish territory or who are in charge of managing the collection of the income of such securities. The aforementioned depository entities shall practice the corresponding retention provided that such rents have not been subject to prior retention in Spain.

3. In case of awards, the person or entity who satisfies them shall be obliged to retain or to take into account.

4. In transactions on financial assets, they shall be obliged to retain:

(a) In the income earned on the redemption or redemption of financial assets, the person or entity. 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 the filing for recovery.

(b) 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 number, 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.

(c) In cases not listed in the preceding paragraphs, the public purse must intervene in the operation.

5. 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.

6. In the case of transfers or repayments of shares or shares representing the capital or assets of collective investment institutions, the following persons or entities shall be subject to the following persons or entities:

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

2 In the case of the transfer of shares representative of the equity of variable capital investment companies, when they act as a counterpart, the managing entities or, failing that, depositories.

3rd 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, subsidiary, the entity or entities in charge of the placement or distribution of the securities among the potential subscribers, when they make the reimbursement.

7. The persons obliged to retain the obligation to make the entry into the Treasury, without the failure of that obligation to excuse them from this obligation.

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

Article 59. Rating of financial assets and tax requirements for the transmission, redemption and amortization of financial assets

1. 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 returns.

Implicit return is excluded from the concept of return on placement bonuses or bonuses, provided that they fall within the market practices and that they constitute income in their entirety. for the mediator, intermediary or financial colocation, acting in the issuance and entry into circulation of the financial assets covered by this rule.

A financial asset with implicit performance shall be considered to be any instrument of rotation, including those originating in commercial transactions, from the time it is made or transmitted, unless the endorsement or transfer is made. as payment of a supplier or supplier credit.

2. 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 concept of implied returns in terms of the terms set out in the previous paragraph.

3. 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, it shall be applicable to the deadline closest to that of the planned issue.

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 returns 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 periodically fixed.

4. 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 to which the transaction was made.

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

5. 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.

From 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.

6. 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.

7. The persons or entities issuing the financial assets referred to in paragraph 4 shall not be able to repay the same when the holder fails to accredit their prior acquisition by means of appropriate certification, as set out in paragraph 4. 5 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 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 return to the title of the title.

8. 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 that document.

9. In cases of lucrative transmission, the acquirer shall be deemed to be subrogated in the acquisition value of the transfer, as long as sufficient justification of the cost is provided.

Article 60. Basis for the calculation of the obligation to retain and enter into account.

1. In general terms, it shall form the basis for the calculation of the obligation to retain the full or satisfied consideration.

2. In the case of depreciation, repayment or transfer of financial assets, it shall be the basis for the calculation of the obligation to retain the positive difference between the redemption, redemption or transfer value and the acquisition value or subscription of such assets. 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 shall be practiced. of further transmission of the title, excluding depreciation.

3. Where the obligation to retain their origin pursuant to Article 56 (1) (b) of this Regulation shall constitute the basis for the calculation of the amount of the prize.

4. Where the obligation to retain has its origin as provided for in Article 56 (1) (f) of this Regulation, the retention basis shall be the difference between the transmission or redemption value and the acquisition value of the the shares or shares.

5. Where the obligation to enter into account has its origin as provided for in Article 56 (3) of this Regulation, it shall constitute the basis for the calculation of the market value of the good.

For these purposes, the result of increasing the acquisition or cost value for the payer by 20 per 100 shall be taken as a market value.

6. Where the full consideration cannot be proved to be enforceable or satisfied, the tax administration may compute as such an amount of which, subtracted from the withholding tax, the tax administration shall be charged.

Article 61. Birth of the obligation to retain and to enter into account.

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 income, cash or in kind, subject to withholding or income, respectively, or in that of their payment or delivery if it is previous.

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 returns arising from the redemption, repayment or transfer of financial assets, the obligation to retain or to enter into account shall be incurred at the time the transaction is formalised.

3. In the case of income obtained as a result of transfers or repayments of shares or shares representing the capital or assets of collective investment institutions, the obligation to retain or to take account of the income shall be borne by the time when the operation is formalized, whatever the agreed charging conditions are.

Article 62. Percentage of retention and income on account.

1. The percentage to which the withholding tax is to be made or the revenue to be taken into account shall, in general, be 25 per 100.

2. In the case of returns obtained by the transfer to third parties of own capital referred to in Article 23.2 of the Income Tax Act of the Physical Persons, this percentage shall be 18 per 100.

3. In the case of leasing and subleasing of urban buildings this percentage will be 18 per 100.

This percentage shall be divided by two in the case of income from urban buildings located in Ceuta, Melilla or its premises, obtained by entities domiciled in or operating in those territories. establishment or branch.

4. In the case of transmissions or repayments of shares or units of collective investment institutions shall be 20 per 100.

Article 63. Amount of the withholding or income on account.

The amount of the withholding or income on account shall be determined by applying the percentage referred to in the previous article to the calculation basis.

Article 64. Obligations of the retainer and the obligation to enter into account.

1. The retainer and the obliged to enter into account must present in the first twenty calendar days of the months of April, July, October and January, before the competent organ of the tax administration, declaration of the quantities retained and the income on account that corresponds to the previous immediate calendar quarter and enter its amount in the 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 following, in the case of retainers or obliged to whom the circumstances referred to in paragraph 3.1. of Article 71 of Royal Decree 1624/1992 of 29 December 1992 are met. 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.

No negative statement shall be made where the income to be withheld or income-to-account would not have been satisfied in the reporting period.

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) The name of the entity.

b) Tax identification number.

(c) Income obtained, with indication of the identification, description and nature of the concepts, as well as of the financial year in which the income was due.

d) Practiced retention or account entry.

In the event that the relationship is presented by directly readable computer support, 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 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.

3. The holder or obliged to enter into account shall issue in favour of the taxable person certifying evidence of the withholding tax, or of the revenue to be paid, and of the other data relating to the taxable person who must be included in the annual summary referred to in the previous paragraph.

This certification must be made available to the taxable person prior to the start of the deadline for declaring 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 value rents.

4. The payers shall report to the taxable persons the withholding or entry into account at the time they satisfy the income, indicating the percentage applied.

5. The declarations referred to in this Article shall be made in the models which the Minister for Economic Affairs and Finance may establish for each class of income, who may also determine the data to be included in the declarations, 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 shall be made in the form and place to be determined by the Minister for Economic Affairs and Finance. "

TITLE III

Non-Resident Income Tax Payments

CHAPTER I

Rents obtained by permanent establishment

Article 41. Payments on account of permanent establishments.

1. Income from non-resident income tax which is obtained through permanent establishment mediation shall be subject to withholding tax or income, and such permanent establishments shall be obliged to make payments to the account or fractionated, in the same assumptions and conditions as those laid down in the Corporate Tax Regulatory Regulation for taxable persons.

There shall be no obligation to retain or to enter into account, in addition to cases resulting from the application of the provisions of the preceding paragraph, in respect of interest and commissions constituting an income of a permanent establishment of a non-resident financial institution in Spanish territory, which develops the activities of the entities referred to in paragraph (c) of Article 57 of the Corporate Tax Regulation, where they are (a) the amount of the amount of the revenue to be paid by the permanent establishment, except in the case of income referred to in the second subparagraph of paragraph (c) above.

2. Permanent establishments shall be obliged to carry out withholding and income on the same terms as the entities resident in Spanish territory.

CHAPTER II

Rents obtained without permanent establishment mediation

Article 42. Obligation to practice withholding and income on account.

1. Withholding tax on non-resident income shall be applied in respect of income subject to this tax levied by taxpayers without permanent establishment, in accordance with Article 30 of Law 41/1998, 9 December, the Income Tax of Non-Residents and Tax Rules, and in this Royal Decree.

2. An income shall be made in respect of the income from the Income Tax of non-residents corresponding to the recipient when the income referred to in the previous paragraph is satisfied or paid in kind.

Article 43. Exceptions to the obligation to retain and to enter into account.

1. There shall be no obligation to practise withholding or income in the cases referred to in Article 30 (4) of Law 41/1998 of 9 December of the Income Tax on Non-Resident Income and Tax Rules.

2. For the purposes of applying the provisions of Article 30 (4) of Law 41/1998 of 9 December 1998 on the Income Tax of Non-Residents and Tax Rules, the accreditation of the payment of the tax or the origin of the exemption shall be carried out, as appropriate:

(a) In the case of payment, by means of the tax return corresponding to the income paid, presented by the taxpayer or his representative.

(b) In the case of exemptions, by means of documents supporting the fulfilment of the circumstances determining the origin of their application, without prejudice to the obligation to declare provided for in paragraph 5 of the Article 30 of Law 41/1998 of 9 December of the Income Tax of Non-Residents and Tax Rules.

When the obligated to retain or enter into account would not have practiced withholding or income to account for understanding any of the above circumstances, and after that is determined the improvenance of the exemption or the non-existence of payment of the tax, the liabilities that correspond to him as a retainer for the withholding or the non-practiced income shall be payable to him.

3. For the purposes of paragraph 4 (c) of Article 30 (4) of Law 41/1998 of 9 December 1998 on the Income Tax of Non-Residents and Tax Rules, no withholding tax or income shall be applied in respect of the following rents:

a) The property gains.

Notwithstanding the above, if there is an obligation to practice retention or income on account of:

1. The prizes derived from 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.

2. The transmission of real estate located in Spanish territory referred to in Article 47 of this Royal Decree.

3. The income derived from transmissions or repayments of shares or shares representing the capital or equity of collective investment institutions.

(b) The income referred to in paragraphs (b), except those obtained through countries or territories that are regulated as tax havens, (c), (f) and (g) of Article 2 (3) of this Royal Decree.

Article 44. Subjects required to retain or to make income on account.

1. The persons referred to in Article 30 (1) of Law 41/1998 of 9 December of the Income Tax on Non-Resident Income and Tax Rules shall be required to retain or to enter into account.

2. In the case of transactions in financial assets, in the transmission of securities of the State Debt, and in the transmissions and repayments of shares or units representing the capital or equity of collective investment institutions, they shall be subject to the retention or entry into account of the subjects required to retain or to enter into account in accordance with Article 3.2 (b), (c) and (d) of this Royal Decree.

3. In the case of prizes, the person or entity who satisfies them shall be required to retain or to take into account.

4. The persons obliged to retain the obligation to make the entry into the Treasury, without the failure of that obligation to excuse them from this obligation.

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

Article 45. Birth of the obligation to retain and to enter into account.

1. As a general rule, the obligation to retain and enter into account shall be incurred at the time of the tax accrual, in accordance with Article 26 of Law 41/1998 of 9 December of the Income Tax of Non-Residents and Standards Tax.

2. In the case of capital income and capital gains assumptions, the provisions of Articles 21 and 25 of this Royal Decree, respectively, shall be dealt with.

Article 46. Basis for the calculation of the obligation to retain and enter into account.

1. As a general rule, the basis for the calculation of the obligation to retain will be determined in accordance with the provisions of Article 30 (2) of Law 41/1998 of 9 December 1998 on the Income Tax of Non-Residents and Standards Tax.

2. Where the retention is to be carried out on the prizes referred to in Article 43.3 (a). 1. of this Royal Decree, will constitute the basis for the calculation of the same amount of the prize.

3. In the case of transmissions or repayments of shares or shares representing the capital or equity of collective investment institutions, the retention basis shall be the difference between the value of transmission or redemption and the value of acquisition of shares or shares.

4. Where the income is satisfied or paid in kind, the basis for the calculation of the income shall be determined in accordance with the provisions of Chapter III of Title I of this Royal Decree.

Article 47. Withholding or income to account in the acquisition of real estate.

1. In the case of transfers of immovable property located in Spanish territory by taxpayers of the Income Tax of non-residents acting without permanent establishment mediation, the acquirer shall be obliged to retain and enter the 5 per 100, or make the corresponding income, of the agreed consideration, as a payment on account of the Income Tax of non-residents corresponding to those.

2. The acquirer shall not have the obligation to retain or to make the entry into account in the following cases:

(a) When the owner of the property transmitted was a natural person and, at 31 December 1996, the property had remained in his estate for more than ten years, without having been subject to improvements during that time.

(b) When the transmitte accredits its attachment to the Income Tax of the Physical Persons or the Company Tax by certification issued by the competent authority of the tax administration.

(c) In cases of the contribution of immovable property, in the constitution or increase of capital of resident companies in Spanish territory.

3. The obligation to retain or to enter into account must present a declaration to the Delegation or Administration of the State Administration of Tax Administration in whose territory the property is located and the amount of the a corresponding withholding tax or income in the Public Treasury, within one month of the date of the transfer.

4. The non-resident taxpayer in Spanish territory must declare, and enter into his case, the definitive tax, compensating in the quota the amount retained or entered into account by the acquirer, within three months from the date of the term term for the entry of the retention.

The tax authorities shall, if necessary, make prior the necessary checks, to the taxpayer of the excess withheld or to be admitted.

5. If the withholding or income referred to above has not been entered, the goods transmitted will be affected to the payment of the amount that is less between said retention or income to account and the corresponding tax, and the Registrar of the Property so it will be stated by note to the margin of the respective inscription, indicating the quantity of the property to answer. This notice shall be cancelled, where appropriate, by expiry or by the lodging of the letter of payment or administrative certification attesting to the non-subjection or the prescription of the debt.

6. The Minister for Economic Affairs and Finance shall establish the models for the declaration to be used for compliance with the provisions of this Article.

Article 48. Obligations of the retainer and the obligation to enter into account.

1. The retainer or the obligation to enter into account for the Income Tax of non-residents must present in the first twenty calendar days of the months of April, July, October and January, before the competent organ of the Administration tax, statement of the amounts withheld and of the income to account made corresponding to the previous immediate calendar quarter and enter the amount of the amount in the 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 made corresponding to the the previous immediate month, in the case of retainers or obligors in which the circumstances referred to in paragraph 3.1. of Article 71 of Royal Decree 1624/1992 of 29 December 1992 are met. 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 retainers and those forced to enter into account will submit a negative statement when they have satisfied income from those mentioned in Article 30 (4) of Law 41/1998, of December 9, of the Income Tax. of non-residents and tax rules, except in cases where the Minister of Economy and Finance so establishes.

2. The retainer and the obligation to enter into account shall, within the same period of the last declaration for each year, submit an annual summary of the withholding and income to account. In this summary, in addition to their identification data, a nominative relationship of the recipients of the income subject to the tax paid or paid by the retainer or obliged to enter into account, including those to whom have been satisfied with income in respect of which no withholding tax would have been made in accordance with Article 30 (4) of Law 41/1998 of 9 December 1998 on the Income Tax on non-residents and tax rules. The ratio of recipients shall contain the data to be determined by the Minister for Economic Affairs and Finance.

In the event that the relationship is presented by directly readable computer support, the filing period shall be between 1 January and 20 February of the following year.

The same obligations set out in the preceding paragraphs are subject to the entities domiciled, resident or represented in Spain, which pay for income from income subject to withholding or income depository or manage the collection of the income of 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 made available, as well as of the other data relating to the taxpayer to be paid be included in the annual summary referred to in the previous paragraph.

To the same obligations set out in the previous paragraph are the entities domiciled, resident or represented in Spain, who pay for income other income that is subject to withholding or income depository or manage the collection of the income of securities.

4. Payers shall report to the taxpayer the withholding or income to be paid at the time they meet the income, indicating the percentage applied.

5. The declarations referred to in this article shall be made in the models established by the Minister of Economy and Finance, being obliged to fill in the retainer or obliged to take into account the totality of the data contained in the statements that affect you.

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

Article 49. Returns.

1. Where a withholding tax has been incurred or has been incurred in excess of the tax quota, the tax authorities may be asked to refund the excess over the said fee.

To this effect, the self-settlement of the tax will be practiced in the model determined by the Minister of Economy and Finance, which will be presented in the form, place, deadlines and with the documentation that the same establishes.

2. In accordance with Article 3 of Law 41/1998 of 9 December 1998 on the Income Tax of Non-Residents and Tax Rules, the tax administration shall make such refunds in accordance with the terms laid down in Article 85 of the Treaty. Law 40/1998 of 9 December of the Tax on the Income of Physical Persons and other Tax Rules.

3. In addition to taxpayers, they may request declarations with a request for return of the severally responsible and the subjects required to withhold.

4. Where the Treasury has entered into amounts, or withholdings of withholding tax, in excess of those resulting from the application of a double taxation convention, such application may be requested and the refund accordingly, within a period of two years, or as provided for in the Order of the Development of the Convention, from the date of entry or retention. The Minister for Economic Affairs and Finance may declare, on condition of reciprocity, that the term is four years.

First transient disposition. Application of the retention type of 18 per 100.

1. The 18 per 100 withholding rate referred to in Article 17 of this Royal Decree and Article 62 of the Company Tax Regulation shall apply:

(a) In relation to transmissions, redemptions or repayments of financial assets with implicit performance formalised since 1 January 1999.

(b) In respect of explicit returns that are payable since that date.

2. The obligation to retain in the transmissions or repayments of shares or shares representing the capital or assets of collective investment institutions shall apply to transmissions or reimbursements formalised from 1 February of 1999.

3. The exclusion of the obligation to retain as referred to in Article 57 (q) of the Company Tax Regulation shall result from the application of the emissions made since 1 January 1999.

There shall be no obligation to practise withholding or income in relation to income arising from the transmission or reimbursement of financial assets with explicit return issued prior to 1 January 1999. comply with the requirements laid down in Article 57 (q) of the Company Tax Regulation.

The income from emissions prior to 1 January 1999 will be applicable to the above rules, and in particular Articles 56.1 (c), (d) and (e), 57 (w), (x) and (z), (5) and (6) and (6) and (4) of the Regulation. Corporation tax in force until 31 December 1998. No retention shall be made in relation to the transmissions by the collecting societies of the official futures and options markets, which correspond to the normal functioning of those markets.

4. The obligation to retain in relation to the income derived from life or invalidity insurance contracts which were previously not subject to retention shall be applicable to the performance required since 1 February 1999.

5. The obligation to retain in transmissions, redemptions or repayments of financial assets with explicit performance shall be applicable to operations formalised from 1 January 1999.

In the transmissions of financial assets with explicit return issued with anteriority1deJanuary 1999, in the event of failure to accredit the purchase price, the retention shall be made on the difference between the value of the issue of the asset and the transmission price.

No retention shall be made for the returns arising from the transmission, exchange or redemption of securities issued prior to 1 January 1999, issued prior to the entry into force of this Royal Decree, not subject to retention.

6. Where, on the basis of the entry into force of this Royal Decree, explicit returns are received for which, because of the frequency of the liquidations exceeding 12 months, income has been made on account, the final withholding shall be shall apply at the rate in force at the time of enforceability and shall be regularised on the basis of realised revenue.

Second transient disposition. Determination of retentions for personal and family circumstances communicated in the preceding 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 corresponding to the month of March 1999, as a general rule, or up to the month of April 1999 in the case of pensions or liabilities under the Social Security or Passive Classes scheme.

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.

When, in accordance with the above, a separate withholding rate has been applied, a retention rate shall be regularised as provided for in Article 14 (3) of this Royal Decree.

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 28 of February 1999.

Transitional provision third. Deadline for the publication of the Order of approval 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 the Income Tax Regulation of the Physical Persons.

Transitional disposition fourth. Waiver and revocations to the objective estimate of the Income Tax of the Physical Persons, to the special simplified regime and to that of the Agriculture, Livestock and Fishing of the Value Added Tax for 1999.

The waiver of the objective estimates of the Income Tax of the Physical Persons, the simplified special and the agriculture, livestock and fishing of the Value Added Tax for the year 1999, as well as the (a) to be revoked in the month following the publication of the "Official State Gazette" of the Ministerial Order regulating the objective of the objective estimation of the Income Tax of the Physical Persons and the simplified special value added tax.

Single repeal provision. Regulatory repeal.

1. The following provisions shall be repealed with the entry into force of this Royal Decree:

(a) Chapter II of Title VI of the Income Tax Regulation of the Physical Persons, approved by Royal Decree 1841/1991 of 30 December.

(b) Article 68 of Royal Decree 537/1997 of 14 April 1997 on the Law on Corporate Tax.

(c) The third article of Royal Decree 1909/1997 of 19 December 1997 amending certain articles of the Regulations on the Income Tax of the Physical Persons and the Tax on Societies, as well as the Royal Decree on the return of undue income, in the case of company canteens, image rights and returns by cheque.

2. The lower-ranking rules of the present Royal Decree that do not object to the present Royal Decree will continue in force as long as the ratings are not used.

Single end disposition. Entry into force.

The provisions of this Royal Decree will enter into force on January 1, 1999.

Given in Madrid to December 18, 1998.

JOHN CARLOS R.

The Second Vice President of the Government and Minister of Economy and Finance,

RODRIGO DE RATO Y FIGAREDO