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Law 40/1998 Of 9 December, The Tax On Physical Persons Income And Other Tax Rules.

Original Language Title: Ley 40/1998, de 9 de diciembre, del Impuesto sobre la Renta de las Personas Físicas y otras Normas Tributarias.

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TEXT

JOHN CARLOS I

KING OF SPAIN

To all who present it and understand it.

Sabed: That the General Courts have approved and I come to sanction the following Law.

EXPLANATORY STATEMENT

I

The Spanish Constitution, in its article 31.1, states that: " All will contribute to the maintenance of public expenditures according to their economic capacity through a fair tax system, inspired by the principles of equality and progressiveness which, in no case, will have confiscatory scope. "

As the Constitutional Court has pointed out, the Income Tax of the Physical Persons is one of the structural pillars of our tax system. It is a tribute in which the principle of economic capacity and its correlation, the principle of equality and progressive tax, find its most appropriate projection. That is why this tax is the most suitable instrument for achieving the objectives of redistribution of income and solidarity that the Constitution advocates and which provide content to the social and democratic State of Law, given its generality, As shown by the fact that 31 million Spaniards are affected in their annual declarations, and their capacity is collected.

The current model of the tax that was introduced in Spain with the tax reform begun in 1977 has undergone multiple modifications throughout its history, as no tribute, and less of the importance of it, can remain. Apart from the social, economic and even technological changes in which it is registered.

In particular, the last major legislative amendment of the Income Tax of the Physical Persons was produced by Law 18/1991 of 6 June, which sought to respond to the problems raised by the judgment of the Court of Constitutional Court 45/1989, of 20 February adapting the tax to constitutional requirements.

Now, the time since the modification in 1991 has aggravated the problems that the previous regulation presented. The excessive complexity of the tax with the indirect management costs involved; the dispersion, its lack of coherence and the lack of systematization of its regulations, due, in part, to the repeated adjustments, changes and modifications that the The tax has suffered since its entry into force; its unusual management burden, which has made it a tribute focused on the returns and payments anticipated and, in short, the functional deficiencies that make it difficult to fight against tax fraud, caused a significant loss of its retreading elasticity.

At present times, it is essential to adapt the tax to the model in force in the countries of our environment and, in particular, to certain figures that are used to it, such as the establishment of a minimum personal and family exempt from taxation.

Spain moves in the context of a single market in which fiscal policy decisions can determine undesirable consequences if they move away from the criteria followed by the rest of the Western countries in this area. Tax policy. In this context, the tax must be an effective instrument for the creation of jobs, the promotion of savings and, in short, the economic growth required by the Stability and Employment Pact and the Economic and Monetary Union. European.

Finally, the government's political commitment to introduce greater equity in the distribution of taxes, and to improve the tax treatment of income from work and people with greater family burdens, does The reform of the tax is all necessary.

II

At the beginning of this legislature, the government immediately initiated the necessary modifications to promote economic activity, favor the neutrality of the tax, and boost savings, through Real Decree-Law 7/1996, of 7 June, which submitted capital gains to tax, which were exempt from taxation under the Law of the year 1991 if the capital was immobilised within a specified period of time, thereby undermining the principle of tax justice and At the same time, economic growth is hampered.

A new system of taxation was established for small and medium-sized enterprises, which are at the heart of our economic and employment activity. At the same time, partial reforms were carried out on decisive aspects of the Income Tax of the Physical Persons, such as the tariff, whose parameters were clearly removed from those corresponding to a modern tax; support for families, with a substantial increase in family deductions, and the management of the tax was boosted.

from another point of view, the development of the State of the Autonomous Region has been consolidated with the new system of financing of the Autonomous Communities approved in 1996, which is based on the principle of Tax liability. To make this principle effective, it was introduced into the structure of the tax-a supplementary levy, the product of which is intended for the financing of the Autonomous Communities and which can be modified by them.

However, all these modifications were a step before the project of the global revision of the Income Tax of the Physical Persons, which is the one that incorporates this Law.

III

The reform of the Income Tax of the Physical Persons in a context of economic globalization, and after the success achieved by the Spanish society with our income in the third phase of Economic and Monetary Union, required a detailed study of its economic and social consequences. Furthermore, the impact of the tax and its generality need undoubted social support; hence, the greatest possible number of social partners should be involved in its reform.

Therefore, the elaboration of this Law has been the subject of a process of reflection and broad study, initiated since the beginning of the legislature, which has its most important manifestation in the creation by Resolution of the Secretary of State of Finance of 17 February 1997, of the "Commission for the Study and Proposal of Measures for the Reform of the Income Tax of Physical Persons".

The work of this Commission, presented on 13 February 1998, endorsed the need for the reform of the tax, while providing strong arguments for the tax reform, and the objectives and objectives of the tax reform are set out in the general characteristics. In this sense, the high technical quality of the Commission's work has been favoured by both the technical profile of its components (from the public administration, the University, experts in the public finances, the law-making sector). Financial and Tax, etc.) as well as valuable external opinions, carried out from different areas and received during their working sessions.

The results of this laborious process of public information, the economic studies carried out along with it, the reports and analyses received and the contrasting opinions are condensed into the Law, in which the The government has also taken into account the views of various social sectors in the light of the work of the Commission, as well as the reports produced by other bodies, and the Economic and Social Council.

IV

The Law is structured in a preliminary title, eleven Titles and 90 articles, together with the corresponding additional, transitional, repeal and final provisions.

In the Preliminary Title is defined as the object of the tax the disposable income and considers as such the income that the taxpayer can use after attending to his needs and those of the subjects that he depends on. To translate this principle, the exemption of a minimum income that varies according to the personal and family circumstances of the taxpayer is declared: this is one of the most important aspects of the reform.

It should be noted that the Law only regulates the supposed personal obligation to contribute. The regulation of the taxation of non-residents refers to a later law.

The general structure of the tax is designed from Title I, with the analysis of the taxable fact and exempt income, considering as a taxpayer the natural person, as required by the doctrine of the Court Constitutional. However, the law takes into account the fact that the taxpayer is part of a family whose protection merits a favourable tax treatment for what, in addition to the configuration of the family minimum referred to above, other measures are articulated to this end (joint declaration, exemption from pensions for food, deduction for investment in habitual housing, favourable taxation of pensions in favour of children). Similarly, the legislator has taken into account the costs of sickness and care or attention that may affect the taxpayer, to which effect a minimum personal and special family is established for those persons who are affected for a high degree disability or a non-essential state involving the help of third parties.

The Law defines taxable income and its form of integration and compensation.

The treatment of labour yields improves in a high degree compared to the previous situation by fixing further reductions and, in particular, with the creation of a specific reduction for these yields, which The European Commission has been in a position to make a significant contribution to the European Union.

In real estate returns, the estimated return on usual housing is suppressed. In the income of capital, a notable improvement in the taxation of savings is introduced, seeking a neutral treatment of the different forms of savings: the taxation of alternative systems to pension schemes is clarified, its current regulation is improved in the service of neutrality and a simple and unitary treatment, favourable to long-term savings, is given to returns from insurance contracts. In this field, a scheme of maximum simplicity has been chosen, avoiding the unjustified discrimination between the different forms of recruitment.

The determination of the performance of economic activities maintains the rules incorporated in the tax in 1998, in which the investment and employment capacity is based on this government's confidence.

In the profit and loss chapter, some changes are made to the current regulations. In this sense, the incorporation to such a concept of those derived from elements affected to economic activities, with the aim of not introducing differentiations with the rest of the natural persons, stands out.

On the other hand, the tax rate incorporates two new elements worth highlighting: the minorisation of the tax burden, with a general reduction of rates, including the minimum and maximum, and the reduction and redefinition of the This is the only way to achieve the objective of achieving the objectives of the European Community and of the European Union.

Together with this and with respect to the deductions of the quota, they are maintained and even improved those that either respond to a constitutional mandate, as is the case of the acquisition of habitual dwelling, or they favor the interest general, of course the donations, or are necessary for reasons of territorial balance, as is the case with the deduction for income obtained in Ceuta and Melilla.

since the reform is not intended to alter the autonomy financing model of the five-year period 1997-2001, the structure of the autonomous or complementary tax on the Income Tax of the Physical Persons is maintained. Law 14/1996, of December 30, of the Transfer of Tax of the State to the Autonomous Communities and of Complementary Fiscal Measures, with which the tax co-responsibility of the Autonomous Communities and the sufficiency of resources are guaranteed.

Finally, the rules on special schemes, the majority regulated so far outside the tax law, are incorporated into this Law for reasons of legislative coordination, such as those for the allocation of income and institutions for collective investment.

On the other hand, the regulatory regulation of the management of the tax is modified; in such a line the necessary measures are introduced to improve and to expedite it, the number of declarants are significantly reduced, and the excess of the payments on account of the tax differential. Finally, the requirements of the principle of the reserve of law are strengthened, and the conditions and limits for each form of the revenue-to-account system are set out.

PRELIMINARY TITLE

Nature, object, and scope of application

Article 1. Nature of the tax.

The Income Tax of the Physical Persons is a personal and direct tribute that taxes, according to the principles of equality, generality and progressiveness, the income of the natural persons according to their personal and family circumstances.

Article 2. Subject of tax.

1. The income of the taxpayer is the object of this tax, understood as the totality of its income, profits and property losses and the imputations of income that are established by the law, regardless of the place where they were produced and whatever the residence of the payer.

2. The tax will tax the economic capacity of the taxpayer, understood as his disposable income, which will be the result of decreasing the income in the amount of the minimum personal and family.

Article 3. Configuration as partially transferred to the Autonomous Communities.

1. The Tax on the Income of the Physical Persons is a partially transferred tax, in the terms established in Organic Law 8/1980, of 22 September, of Financing of the Autonomous Communities, and in the rules of the cession of State taxes on the Autonomous Communities.

2. The elements of the tax liable to be regulated by the Autonomous Communities are the rates corresponding to the autonomic charge and the deductions which fall exclusively on the latter, in the terms and limits laid down in the the laws.

3. The calculation of the autonomous liquid quota shall be carried out in accordance with the provisions of this Law and, where applicable, in the regulations issued by the respective Autonomous Community. In the event that the Autonomous Communities have not assumed or exercised the regulatory powers on this tax, the liquid quota shall be required in accordance with the supplementary tariff and the deductions established by the State.

Article 4. Scope of application.

1. The Tax on the Income of the Physical Persons will be applied throughout the Spanish territory.

2. The provisions of the preceding paragraph shall be without prejudice to the foral tax regimes of the Convention and the Economic Convention in force respectively in the Historical Territories of the Basque Country and in the Community of Navarra.

3. In the Canary Islands, Ceuta and Melilla will take into account the specialties provided for in their specific legislation and in this Law.

Article 5. Treaties and conventions.

The provisions of this Law shall be without prejudice to the provisions of international treaties and conventions that have become part of the internal order, in accordance with Article 96 of the Constitution. Spanish.

TITLE I

Subject to tax: material, personal and temporary aspects

CHAPTER I

Taxable income and exempt income

Article 6. Taxable fact.

1. It is the taxable fact to obtain income from the taxpayer.

2. They make up the income of the taxpayer:

a) The returns of the job.

b) The returns on capital.

c) The income from economic activities.

d) Property gains and losses.

e) The income taxes that are established by law.

3. The benefits of goods, rights or services liable to generate income from work or capital shall be presumed to be paid.

4. The income that is subject to the Tax on Successions and Donations shall not be subject to this tax.

Article 7. Exempt income.

The following rents will be exempt:

(a) Extraordinary public services for acts of terrorism.

(b) Aid of any kind perceived by those affected by the human immunodeficiency virus, regulated in Royal Decree-Law 9/1993 of 28 May.

(c) Pensions recognised in favour of persons who suffered injuries or mutilations on the occasion or as a result of the Civil War 1936/1939, either under the State Passive Classes or under the aegis of the special legislation dictated to this effect.

d) Compensation as a result of civil liability for physical or mental damages to persons, in the legal or judicially recognized amount.

(e) Compensation for dismissal or termination of the worker, in the amount laid down in the Staff Regulations, in his or her development rules or, where appropriate, in the rules governing the execution of judgments, without it being possible to be regarded as such as established under the terms of a convention, a pact or a contract.

(f) Benefits recognised to the taxpayer by the Social Security or by the entities that replace it-as a result of absolute permanent incapacity or great invalidity.

Also, the benefits recognised to professionals not included in the special social security scheme for self-employed or self-employed persons by means of social welfare insurance schemes acting as a alternatives to the special scheme of social security referred to above, provided that they are in situations identical to those provided for in the case of permanent incapacity for absolute or major invalidity of social security.

The exempt amount shall be limited to the amount of the maximum benefit that the Social Security recognises for the relevant concept. The excess shall be taxed as a performance of the work, in the case of a concurrency of benefits of Social Security and of the mutual societies mentioned above, in the performance of the latter.

g) Pensions for uselessness or permanent incapacity of the passive class system, provided that the injury or illness which would have been the cause of the pension will completely disable the recipient of the pension for any occupation or trade.

(h) Family benefits for dependent child under Chapter IX of Title II of the recast text of the General Law on Social Security, adopted by Royal Legislative Decree 1/1994 of 20 June.

i) The perceived amounts of public institutions for the reception of people with disabilities or over sixty-five years.

j) Public scholarships received to study studies at all levels and degrees of the educational system, up to that of a bachelor's degree or even equivalent.

k) Annuities for food received from parents by virtue of a court decision.

l) The literary, artistic, or scientific awards relevant, with the conditions that they regulate are determined.

m) Aid of economic content to high level athletes adjusted to the preparation programs established by the Superior Council of Sports with the Spanish Sports Federations or with the Spanish Olympic Committee, under the conditions to be determined by regulation.

n) The unemployment benefits recognised by the respective managing body when they are received in the single payment method set out in Royal Decree 1044/1985 of 19 June 1985 governing the payment of the benefit for unemployment in its single payment method, with the limit of 1,000,000 pesetas, provided that the amounts received are intended for the purposes and in the cases provided for in that standard.

The exemption provided for in the preceding paragraph shall be conditional on the maintenance of the action or participation over the five-year period, in the event that the taxpayer has been integrated into labour companies or worker cooperatives, or the maintenance, during the same period of time, of the activity, in the case of self-employed workers.

n) The lottery and betting prizes organized by the National Agency of Lotteries and Betting of the State and by the Autonomous Communities, as well as of the draws organized by the Spanish Red Cross and the Organization National of the Blind.

o) The extraordinary rewards satisfied by the Spanish State for the participation in international peacekeeping or humanitarian missions, in the terms that they regulate.

(p) The income from work received from work carried out abroad, in the amount and under the conditions which are regulated, provided that they have been effectively taxed abroad on the basis of a tax of a similar nature or identical to this tax.

CHAPTER II

Contributors

Article 8. Taxpayers.

They are taxpayers for this tax:

(a) The natural persons who have their habitual residence in Spanish territory.

(b) Natural persons who have their habitual residence abroad for one of the circumstances provided for in paragraphs 2 and 3 of the following Article.

Article 9. Habitual residence in Spanish territory.

1. The taxpayer shall be deemed to have his habitual residence on Spanish territory when any of the following circumstances apply:

a) That more than one hundred and eighty-three days remain, during the calendar year, in Spanish territory. In order to determine this period of stay in Spanish territory, sporadic absences will be computed, unless the taxpayer credits his tax residence in another country. In the case of countries or territories of qualified individuals as a tax haven, the tax administration may require that it be tested for one hundred and eighty-three days in the calendar year.

b) To radique in Spain the core core or the basis of its economic activities or interests, directly or indirectly.

It will be presumed, unless proof to the contrary, that the taxpayer has his habitual residence in Spanish territory when, according to the above criteria, the spouse not legally separated in Spain and the children under age who are dependent on the child.

2. 1. For the purposes of this Law, persons of Spanish nationality, their non-legally separated spouse and minor children who have their habitual residence abroad, shall be considered as taxpayers because of their status as:

(a) Members of Spanish diplomatic missions, comprising both the head of the mission and the members of the diplomatic, administrative, technical or service personnel of the mission.

(b) Members of the Spanish consular offices, comprising both the head of the Spanish consular offices and the official or staff of the departments assigned to them, with the exception of honorary viceconsules or consular agents; and of the staff dependent on them.

(c) Holder of official position or employment of the Spanish State as members of the delegations and permanent representations accredited to international bodies or which are part of delegations or missions of observers in the foreign.

(d) Active officials working abroad or official employment not having a diplomatic or consular status.

2. º The provisions of the preceding number will not apply:

(a) Where the persons referred to in No 1 of this paragraph are not civil servants-in active or official office or employment and have their habitual residence abroad prior to the acquisition of any of the conditions listed therein.

(b) In the case of spouses not legally separated or minor children, when they have their habitual residence abroad prior to the acquisition by the spouse, father or mother, of the listed conditions in the number 1. of this section.

3. Natural persons of Spanish nationality who credit their new tax residence in a country or territory qualified as a tax haven shall not be liable for this tax. This rule shall apply in the tax period in which the change of residence takes place and during the following four tax periods.

4. Where the application of specific rules resulting from international treaties in which Spain is a party does not apply, foreign nationals who have their habitual residence shall not be considered as taxpayers by way of reciprocity. Spain, where this is the result of any of the assumptions set out in paragraph 2 of this Article.

Article 10. Allocation of income.

1. The income corresponding to civil societies, whether or not they have legal personality, lies, communities of property and other entities referred to in Article 33 of Law 230/1963 of 28 December, General Tax, shall be attributed to the members, heirs, communes or unit-holders, respectively, according to the rules or covenants applicable in each case and, if they do not consist of the tax administration in a feisty form, shall be attributed equally.

2. The income attributed shall be of the nature derived from the activity or source from which it comes for each of the partners, heirs, community members or unit-holders.

3. The income allocation scheme shall not apply to agricultural processing companies which shall be taxed on the basis of the corporation tax.

4. Entities in the form of income allocation shall not be subject to corporation tax.

Article 11. Individualisation of income.

1. The income shall be understood as obtained by the taxpayer according to the origin or source of the income, whichever is the case, the economic regime of the marriage.

2. The performance of the work shall be attributed exclusively to the person who has generated the right to his/her perception.

However, the benefits referred to in Article 16.2 (a) of this Law shall be attributed to the natural persons in whose favour they are recognized.

3. The income of the capital shall be attributed to the taxpayers who, as provided for in Article 7 of Law 19/1991 of 6 June of the Tax on Heritage, are holders of the assets, property or rights, that they come from these yields.

4. Income from economic activities shall be deemed to have been obtained by those who perform in a regular, personal and direct manner the own-account management of the means of production and human resources affected by the activities.

It shall be presumed, unless proof to the contrary, that those requirements are met by those who are the holders of economic activities.

5. Property gains and losses shall be deemed to have been obtained by taxpayers who, as provided for in Article 7 of Law 19/1991 of 6 June of the Tax on Heritage, are the holders of the assets, rights and other elements the heritage that they come from.

Non-justified property gains shall be attributed to the ownership of the goods or rights in which they manifest.

The acquisitions of goods and rights that do not result from prior transmission, such as profits in the game, will be considered to be the property gains of the person to whom the right to obtain them corresponds or that livestock directly.

CHAPTER III

Tax period, tax accrual and temporary imputation

Article 12. General rule.

1. The tax period will be the calendar year.

2. The tax shall be payable on 31 December of each year, without prejudice to the provisions of the following Article.

Article 13. Lower tax period per calendar year.

1. The tax period shall be lower than the calendar year in the event of the death of the taxpayer on a day other than 31 December.

2. In such cases the tax period shall end and the tax shall be due on the date of death, without prejudice to the option for joint taxation provided for in Article 68.3 of this Law.

Article 14. Temporary imputation.

1. General rule.

The income and expenses that determine the income to be included in the tax base will be charged to the corresponding tax period, according to the following criteria:

(a) The income from work and capital shall be charged to the tax period in which they are payable by the recipient.

(b) The income from economic activities shall be charged in accordance with the rules governing the corporate tax, without prejudice to the specialties which may be established.

(c) The property gains and losses shall be attributed to the tax period in which the property alteration takes place.

2. Special rules.

(a) Where all or part of an income has not been satisfied, because the determination of the right to its perception or its amount is to be found pending a judicial decision, the unsatisfied amounts shall be charged to the period the tax on the firm.

(b) Where for justified circumstances not attributable to the taxpayer, the income derived from the work shall be collected in tax periods other than those in which they were payable, and shall be charged, where applicable, a supplementary settlement, without penalty or interest for late payment or surcharge. Where the circumstances provided for in point (a) above are met, yields shall be deemed to be payable in the tax period in which the judgment is final.

The declaration shall be filed within the period between the date on which the tax is collected and the end of the immediate next period of declarations.

(c) The unemployment benefit received in the form of a single payment in accordance with the provisions of the labour law may be charged in each of the tax periods in which, if the single payment was not the right to benefit.

Such an allocation shall be made in proportion to the time that in each tax period the benefit of the single payment had not been paid.

(d) In the case of time-bound or deferred-price transactions, the taxpayer may choose to impute proportionally the income obtained in such transactions, as the corresponding charges are made payable. Transactions shall be deemed to be in instalments or at a deferred price, the price of which is collected, in whole or in part, by successive payments, provided that the period between the delivery or the making available and the expiry of the last period is higher than the year.

When the payment of an operation in instalments or with deferred price has been implemented, in whole or in part, by the issuance of currency effects and these are transmitted in firm before maturity, the income shall be charged the tax period of its transmission.

In no case will they have this treatment, for the transmission, the operations derived from contracts of lifetime or temporary income. When goods and rights are transmitted in exchange for a lifetime or temporary income, the income or loss of property for the rentier shall be charged to the tax period in which the income is constituted.

e) Any positive or negative differences occurring in the accounts of foreign currency or foreign currency balances, as a result of the change in their contributions, shall be charged at the time of the respective payment or payment.

(f) The estimated income referred to in Article 6.3 of this Law shall be charged to the tax period in which they are produced.

(g) Public aid received as compensation for structural defects in the construction of the usual dwelling and intended for the repair of it may be imputed by fourths in the tax period in question. which are obtained and in the following three.

3. If the taxpayer loses his/her status by way of residence, all the outstanding amounts receivable must be incorporated into the tax base corresponding to the last tax period to be declared by this tax, in the conditions to be laid down in regulation, where appropriate, where appropriate, a supplementary declaration-settlement, without any penalty or interest for late payment or surcharge.

4. In the case of the death of the taxpayer, all outstanding amounts must be included in the tax base of the last tax period to be declared.

TITLE II

Determination of the economic capacity under charge

Article 15. Determination of the taxable and liquidable basis.

1. The taxable amount of the tax will be the amount of the taxpayer's disposable income, an expression of its economic capacity.

2. The tax base shall be determined by applying the schemes provided for in Article 45 of this Law.

3. For the quantification of the tax base, the following order shall be made in the terms provided for in this Law:

1. The income shall be qualified and quantified according to its origin. Net yields will be earned by difference between the computable income and deductible expenses and the property gains and losses will be determined by difference between the transmission and acquisition values.

2. The net yield reductions that, if any, correspond to each of the sources of income, shall apply.

3. The integration and compensation of the different income according to their origin will be carried out.

4. The amount corresponding to the minimum personal and family that the Law recognizes to the taxpayer, according to his personal and family circumstances, will be deducted.

4. The liquidable basis will be the result of the reductions provided for in Article 46 of this Law in the tax base.

CHAPTER I

Definition and determination of taxable income

SECTION 1. PERFORMANCE OF WORK

Article 16. Full income from work.

1. Full income from work shall be considered as any consideration or profit, whatever its name or nature, in cash or in kind, resulting directly or indirectly from the personal work or the employment relationship or (a) statutory and non-performance of economic activities.

They will be included, in particular:

(a) Wages and salaries.

(b) Unemployment benefits.

c) Remuneration for representation expenses.

(d) Diets and allowances for travel expenses, except those for travel expenses and normal subsistence and subsistence expenses in hotel establishments with the limits that are regulated.

e) The contributions or contributions paid by the promoters of pension schemes, as well as the amounts paid by employers to meet the pension commitments in the terms laid down by the The first provision of Law 8/1987, of 8 June, of Regulation of the Pension Plans and Funds, and in its implementing legislation, when the same are imputed to those persons to whom the benefits are linked. This tax allocation shall be binding in the life insurance contracts which, by granting the right to rescue or by any other formula, allow for their early provision by persons to whom it is link in the benefits. For these purposes, insurance which incorporates the right to rescue for the cases of serious illness or long-term unemployment shall not be considered as allowing the advance provision in terms to be laid down in a regulation.

2. In any case, they will have the consideration of income from work:

a) The following capabilities:

1. Pensions and liabilities received from public social security schemes and passive classes and other public benefits for situations of incapacity, retirement, accident, sickness, widowage, orphan or similar.

2. The benefits received by the beneficiaries of compulsory general mutual funds of officials, orphans ' colleges and other similar entities.

3. The benefits received by the beneficiaries of pension schemes.

4. The benefits received by the beneficiaries of insurance contracts concluded with social security mutual societies whose contributions may have been, at least in part, deductible expenditure for the determination of the net performance of economic activities or reduction in the tax base.

The retirement and invalidity benefits arising from such contracts shall be integrated into the tax base in so far as the amount received exceeds the contributions which may not have been reduced or reduced. in the tax base of the tax for failing to meet the requirements laid down in Article 46.1, numbers 1, 2 and 3. of this Law.

5. The retirement and invalidity benefits received by the beneficiaries of collective insurance contracts that implement the pension commitments assumed by the companies in the terms provided for in the provision (a) the first part of Law No 8/1987 of 8 June 1987 on the Regulation of the Pension Plans and Funds and their implementing rules, in so far as their amount exceeds the tax contributions and the contributions directly made by the worker.

(b) The amounts paid, on the basis of their position, to Spanish Members of the European Parliament, to the Members of the Parliament and to the senators of the General Courts, to the members of the Autonomous Legislative Assemblies, Council and members of the Provincial Diputations, Island Councils or other local entities, with the exception, in any case, of the part of the same that those institutions assign for travel and travel expenses.

c) Yields derived from teaching courses, lectures, colloquia, seminars and the like.

(d) Yields derived from the production of literary, artistic or scientific works, provided that the right to their exploitation is given.

e) The remuneration of the administrators and members of the Boards of Directors, of the Boards of Directors who do their times and other members of other representative bodies.

(f) Compensatory pensions received from the spouse and annuities for food, without prejudice to the provisions of Article 7 of this Law.

g) The special rights of economic content reserved by the founders or promoters of a company as remuneration for personal services.

h) Grants, without prejudice to the provisions of Article 7 of this Law.

i) Remuneration received by those who collaborate in humanitarian or social assistance activities promoted by non-profit entities.

(j) Remuneration arising from special employment relationships.

3. However, where the returns referred to in points (c) and (d) of the preceding paragraph and the results of the special employment relationship of the artists in public performances and the special employment relationship of the persons involved in the commercial transactions on behalf of one or more employers without taking on the risk and sale of those undertakings involve the own-account management of the means of production and human resources or of one of them, in order to intervene in the production or distribution of goods or services shall be classified as income from economic activities.

Article 17. Net work performance.

1. The net performance of the work will be the result of decreasing the full performance in the amount of deductible expenses. The total income shall be taken into account, where appropriate, after application of the reduction rates referred to in the following paragraph.

2. As a general rule, full returns shall be computed in full, except that they are applicable to any of the following reductions:

(a) 30 per 100 reduction, in the case of yields which have a period of generation exceeding two years and which are not obtained on a regular or recurring basis, as well as those which are regulated as obtained in a notoriously irregular manner over time.

The computation of the generation period, in the event that these yields are charged in a fractionated manner, must take into account the number of years of fractionation, in the terms that are regulated.

(b) The-40 per 100 reduction, in the case of benefits provided for in Article 16.2.a) of this Act, excluding those provided for in the number 5, which are received in the form of capital, provided that more than two have elapsed years since the first contribution.

The two-year period will not be enforceable in the case of invalidity benefits.

(c) The income from retirement benefits of the collective insurance contracts referred to in Article 16.2.a), 5. of this Act, received in the form of capital, shall be reduced in the following terms:

Those that correspond to premiums paid more than two years in advance of the date on which they are collected, by 40 per 100.

Those that correspond to premiums paid more than five years in advance of the date on which they are collected, by 60 per 100.

Those that correspond to premiums paid more than eight years in advance of the date on which they are collected, by 70 per 100.

This reduction of 70 per 100 will also be applicable to the total return on performance of these contracts which are received in the form of capital, more than 12 years after the payment of the first premium, provided that the premiums paid over the duration of the contract are sufficiently regular and regular in the terms that they are regulated.

Notwithstanding the foregoing paragraphs of this letter, in the case of retirement benefits arising from the collective insurance contracts referred to in Article 16.2.a), 5. of this Law, in which the Contributions made by employers have not been attributed to the persons to whom the benefits are linked, the reduction to be applied shall be 40 per 100 for the retirement benefits corresponding to the premiums paid more two years in advance of the date on which they are received.

(d) 60 per 100 reduction in the case of income derived from invalidity benefits, in terms and degrees which are regulated, in the form of capital, by the beneficiaries of insurance contracts collective agreements referred to in Article 16.2.a), 5. of this Law, and 40 per 100 reduction, in the case of income derived from these invalidity benefits, where the above conditions are not met.

The applicable reduction shall be 70 per 100 if the invalidity benefits result from insurance contracts concluded more than twelve years old, provided that the premiums paid over the duration of the contract keep sufficient periodicity and regularity in the terms that they regulate.

Notwithstanding the foregoing paragraphs of this letter, in the case of invalidity benefits arising from the collective insurance contracts provided for in Article 16.2.a), 5. of this Law, in which the Contributions made by employers have not been attributed to the persons to whom the benefits are linked, the reduction to be applied will in any case be 40 per 100.

(e) The reductions provided for in this paragraph shall not apply to the benefits referred to in Article 16.2.a) of this Act, when they are received in the form of income, or to the imputed business contributions which reduce the tax base, according to Article 46.1 of this Law.

(f) Simplified formulas may be established for the application of the reductions referred to in points (b) and (c) above.

3. They shall have the following exclusively deductible expenses:

(a) Social security contributions or compulsory general mutual funds of officials.

(b) Liabilities to liabilities.

(c) Contributions to the colleges of orphans or similar entities.

(d) The fees paid to trade unions and professional associations, where the membership is compulsory, in the party corresponding to the essential purposes of these institutions, and with the limit which it regulates set.

e) Legal expenses arising directly from disputes arising out of the taxpayer's relationship with the person from whom the income is paid, subject to the limit of 50,000 pesetas per year.

Article 18. Reductions.

1. Net work performance will be reduced in the following amounts:

(a) Taxpayers with net income from work equal to or less than 1,350,000 pesetas: 500,000 pesetas per year.

b) Contributors with net income from work comprised between 1.350,001 and 2,000,000 pesetas: 500,000 pesetas minus the result of multiplying by 0.1923 the difference between the performance of the job and 1.350,001 pesetas year.

(c) Contributors with net income from work exceeding 2,000,000 pesetas or with income other than those of work exceeding 1,000,000 pesetas: 375,000 pesetas per year.

The amount of these reductions will be increased:

a ') By 75 per 100 for disabled active workers with a disability level equal to or greater than 33 per 100 and less than 65 per 100.

b ') By 125 per 100 for disabled active workers with a disability level equal to or greater than 33 per 100 and less than 65 per 100 who, to move to their place of work or to perform the same, You will need third-party help or reduced mobility.

c ') By 175 per 100 for disabled active workers with a disability level equal to or greater than 65 per 100.

2. As a result of the implementation of the reductions provided for in this Article, the resulting balance may not be negative.

SECTION 2. CAPITAL RETURNS

Article 19. Definition of returns on capital.

1. They shall be regarded as full capital income for all profits or for any consideration of their denomination or nature, money or in kind, which come, directly or indirectly, from elements property, property or rights, the ownership of which corresponds to the taxpayer and is not affected by economic activities carried out by the taxpayer.

However, the income derived from the transfer of ownership of the assets, even if there is a reserve of domain agreement, will be taxed as profits or property losses, except that by this Law qualify as capital returns.

2. In any case, they shall be included as capital returns:

(a) Those coming from real estate, both rustic and urban, that are not affected by economic activities carried out by the taxpayer.

(b) Those that come from the capital and, in general, from the other assets or rights of the taxpayer, who are not affected by economic activities carried out by the taxpayer.

Subsection 1. Th Real Estate Capital Yields

Article 20. Full income from real estate capital.

1. They shall be regarded as full income from the ownership of rural and urban real estate or real rights falling upon them, all arising from the lease or the establishment or transfer of rights or the right to use or enjoy them, whatever their name or nature.

2. It shall be computed as full performance of the amount that all the concepts are received from the acquirer, transferee, lessee or subtenant, including, where appropriate, the corresponding to all those assets transferred with the building and excluding the Value added tax.

Article 21. Deductible expenses and reductions.

1. For the determination of net yield, the following expenses shall be deducted from the total income:

(a) All the necessary expenses for obtaining the income. The deduction of interest from other capital invested in the acquisition or improvement of the goods, rights or powers of use or enjoyment of which the income is derived, and other financing costs, may not exceed the amount of the integrated returns obtained.

(b) The amount of the deterioration suffered by the use or over time in the goods from which the yields are made, under the conditions which are determined to be determined.

In the case of yields derived from the ownership of a right or right of use or enjoyment, it shall be equally deductible as a depreciation, with the limit of the full income, the proportional share of the value (a) to be satisfied, under the conditions to be determined.

2. Net yields with a period of generation exceeding two years, as well as those that are regulated as well-regulated as obtained in a notoriously irregular manner over time, shall be reduced by 30 per 100.

The computation of the generation period, in the event that these yields are charged in a fractionated manner, must take into account the number of years of fractionation, in the terms that are regulated.

Article 22. Performance in case of kinship.

Where the acquirer, transferee, lessee or subtenant of the immovable property or the actual right to the property is the spouse or a relative, including the like, up to and including the third degree, of the taxpayer, the total net yield may not be less than that resulting from the rules of Article 71 of this Law.

Subsection 2. Th Capital Returns

Article 23. Full income of the capital.

They will have the consideration of full capital returns as follows:

1. Income derived from participation in own funds of any kind of entity.

(a) The following yields, cash or in kind, shall be included within this category:

1. º dividends, joint attendance premiums and interest in the profits of any type of entity.

2. º The returns from any asset class, except the release of shares released, which, by virtue of the decision of the social bodies, entitle them to participate in the profits, sales, operations, income or similar concepts of an entity for reasons other than the remuneration of the personal work.

3. The returns arising from the constitution or assignment of rights or faculties of use or enjoyment, whatever their denomination or nature, on the securities or units representing the participation in the own funds of the institution.

4. º Any other utility, other than previous ones, coming from an entity on the condition of partner, shareholder, associate or participant.

(b) The full income referred to in the preceding subparagraph, as soon as it comes from entities resident in Spanish territory, shall be multiplied by the following percentages:

140 per 100, with a general character.

125 per 100, when they come from the entities referred to in Article 26.2 of Law 43/1995, of December 27, of the Company Tax.

100 per 100, when they come from the entities referred to in Article 26.5 and 6 of Law 43/1995, of December 27, of the Tax on Societies, and of protected and specially protected cooperatives, regulated by the Law 20/1990 of 19 December on the Tax Regime of Cooperatives, the distribution of the emission premium and the operations described in points 3 and 4. of point (a) above. This percentage shall, in any case, be applied to yields corresponding to securities or shares acquired within two months prior to the date on which they were satisfied when, after that date, within the The same period of time for the transmission of homogeneous values. In the case of entities in tax transparency, this same percentage shall be applied by taxpayers where the operations described above are carried out by the transparent entity.

In the case of securities or holdings not admitted to trading in any of the official secondary markets of Spanish securities, the period provided for in the preceding paragraph shall be one year.

2. Income from the transfer to third parties of own capital.

They have this consideration for consideration of any kind, whatever their denomination or nature, money or in kind, such as interest and any other form of remuneration agreed upon as remuneration for such disposal, as well as those arising from the transmission, redemption, redemption, exchange or conversion of any class of assets representative of the collection and use of foreign capital.

a) In particular, they will have this consideration:

1. º The returns from any turning instrument, including those arising from commercial transactions, from the time that it is made or transmitted, unless the endorsement or transfer is made as a payment of a credit suppliers or suppliers.

2. No. The consideration, whatever its name or nature, derived from accounts in all financial institutions, including those based on financial asset transactions.

3. The income derived from operations of temporary disposal of financial assets with a repurchase agreement.

4. º The income paid by a financial institution as a result of the transfer, transfer or transfer, in whole or in part, of a credit held by the financial institution.

(b) In the case of transmission, redemption, redemption, exchange or conversion of securities, the difference between the value of transmission, redemption, amortisation, exchange or conversion of the securities and their value shall be calculated as yield acquisition or subscription.

As a swap or conversion value, the value that corresponds to the values that are received will be taken.

Ancillary acquisition and disposal expenses shall be computed for the quantification of performance, as long as they are adequately justified.

Negative returns derived from transfers of financial assets, where the taxpayer has acquired homogeneous financial assets within two months prior to or after such transmissions, integrate as the financial assets that remain in the taxpayer's equity are transmitted.

3. Cash or in-kind income from capital and life insurance contracts, except where, as provided for in Article 16.2.a) of this Act, they are to be taxed as income from the work.

In particular, the following rules apply to these capital returns:

(a) When a deferred capital is collected, the return on capital shall be determined by the difference between the capital received and the amount of premiums paid.

(b) In the case of immediate lifetime income, which has not been acquired by inheritance, legacy or any other successor title, the result of applying to each annuity shall be considered as capital performance. Following percentages:

45 per 100, when the recipient is less than forty years old.

40 per 100, when the recipient is forty-forty-nine years old.

35 per 100, when the recipient is fifty-fifty-nine years old.

25 per 100, when the recipient is between sixty and sixty-nine years.

20 per 100, when the recipient is more than sixty-nine years old.

These percentages will be those corresponding to the age of the rentier at the time of the constitution of the income and will remain constant for the duration of the rent.

(c) In the case of immediate temporary income, which has not been acquired by inheritance, legacy or any other successor title, the performance of the capital shall be deemed to be the result of applying to each annuity the Following percentages:

15 per 100, when the income is less than or equal to five years.

25 per 100, where the income is longer than five and less than or equal to ten years.

35 per 100, when the income is longer than ten and less than or equal to fifteen years.

42 per 100, when the income is longer than fifteen years.

(d) Where deferred income, lifetime or temporary income, which has not been acquired by inheritance, legacy or any other successor title, is considered to be the return on capital of furniture the result of applying to each annuity the percentage corresponding to those provided for in points (b) and (c) above, increased in the profitability obtained up to the date of the establishment of the income, in the form which it is determined to regulate.

When the income has been acquired by donation or any other legal business for free and inter-living, the performance of the capital shall be, exclusively, the result of applying to each annuity the percentage corresponding to those provided for in points (b) and (c) above.

By way of derogation from the preceding paragraph, in the terms which are regulated, the retirement and invalidity benefits received in the form of income by the beneficiaries of life insurance contracts or invalidity, other than those referred to in Article 16.2.a), and where there has not been any kind of mobilisation of the provisions of the insurance contract during its term, they shall be incorporated into the tax base of the tax, returns on capital, from the time when the amount exceeds the premiums paid by the capital been satisfied under the contract or, in the event that the income has been acquired by donation or any other legal business, free of charge and inter vivos, when they exceed the current actuarial value of the income at the time of the constitution of the same. In such cases, the percentages provided for in points (b) and (c) above shall not apply. For the purposes of applying this scheme, it is necessary for the insurance contract to be concluded at least two years before the date of retirement.

e) In the event of the extinction of temporary or life-income, which has not been acquired by inheritance, legacy or any other successor title, when the extinction of the income has its origin in the exercise of the right of rescue, the return on capital shall be the result of adding to the amount of the ransom the income paid up to that moment and of subtracting the premiums paid and the amounts which, according to the preceding letters of this paragraph, have taxed as income from capital. Where the income has been acquired by donation or any other legal business free of charge and inter vivos, the cumulative return to the income shall be reduced.

4. Other returns on capital furniture.

The following shall be included in this heading, among others, the following yields, dineraries or in kind:

(a) Those arising from intellectual property when the taxpayer is not the author and those from the industrial property that is not found to be affected by the taxpayer's economic activities.

(b) Those arising from the provision of technical assistance, unless such provision takes place in the field of economic activity.

(c) Those from the lease of movable property, business or mine, as well as those from the sub-lease received by the sub-landlord, which do not constitute economic activities.

(d) for life income or other temporary income for the purposes of the taxation of capital, except where it has been acquired by inheritance, legacy or any other successor title. The performance of the capital shall be deemed to be the result of applying to each annuity the percentages provided for in points (b) and (c) of the preceding paragraph of this Article for immediate, lifetime or temporary income from contracts of life insurance.

e) Those arising from the transfer of the right to the exploitation of the image or the consent or authorisation for its use, unless such transfer takes place in the field of economic activity.

5. It shall not have the consideration of return on capital, without prejudice to its taxation for the relevant concept, the consideration obtained by the taxpayer for the deferral or fractionation of the price of the transactions carried out in the course of its usual economic activity.

Article 24. Deductible expenses and reductions.

1. For the determination of the net yield, the following expenses shall be deducted from the total income:

(a) The expense of administration and deposit of marketable securities.

For these purposes, those amounts which are passed on by investment firms, credit institutions or other financial institutions which, in accordance with the Law 24/1988, are to be used and deposited shall be considered as administrative expenses. of 28 July of the Stock Market are intended to give back the provision arising from the realisation of their holders of the securities deposit service represented in the form of securities or the administration of securities represented in the account.

The amounts of the consideration of a discretionary and individual management of investment portfolios shall not be deductible, where a provision of the investments made on behalf of the holders is made in accordance with the mandates given by them.

(b) In the case of income derived from the provision of technical assistance, the lease of movable property, business or mine or sub-leases, the costs necessary for the provision of such income shall be deducted from the income obtaining and, where appropriate, the amount of the deterioration suffered by the goods or the rights to which the revenue comes.

2. As a general rule, net yields shall be computed in their entirety, except that they are applicable to any of the following reductions:

(a) When they have a period of generation exceeding two years, as well as when they are regulated as being otherwise notoriously irregular in time, they shall be reduced by 30 per 100.

The computation of the generation period, in the event that these yields are charged in a fractionated manner, must take into account the number of years of fractionation, in the terms that are regulated.

(b) Yields derived from perceptions of life insurance contracts received in the form of capital shall be reduced in the following terms:

Those that correspond to premiums paid more than two years in advance of the date on which they are collected, by 30 per 100.

Those that correspond to premiums paid more than five years in advance of the date on which they are collected, by 60 per 100.

Those that correspond to premiums paid more than eight years in advance of the date on which they are collected, by 70 per 100.

This last reduction shall also be applicable to the total return arising from perceptions of life insurance contracts, which are received in the form of capital, more than twelve years after the payment of the first premium, provided that the premiums paid over the duration of the contract are sufficiently regular and regular in the terms that they are regulated.

(c) Yields resulting from invalidity benefits, in terms and degrees that are regulated in a regulated manner, received in the form of capital by the beneficiaries of insurance contracts other than those established in the Article 16.2.a), 5. of this Law, shall be reduced by 60 per 100. In the case of income derived from invalidity benefits, where they do not meet the above requirements, they shall be reduced by 40 per 100.

The applicable reduction shall be 70 per 100 if the invalidity benefits result from insurance contracts concluded more than twelve years old, provided that the premiums paid over the duration of the contract keep sufficient periodicity and regularity in the terms that they regulate.

(d) The reductions provided for in this paragraph shall not apply to the benefits referred to in Article 23 (3) (b), (c) and (d) and Article 23 (4) (d) of this Law, which are form of income.

(e) Regulation (EC) No 738/90 of the European Parliament and of the European Parliament and of the European Parliament and of the European Parliament and of the European Parliament

SECTION 3. PERFORMANCE OF ECONOMIC ACTIVITIES

Article 25. Full income from economic activities.

1. It shall be considered to be full income from economic activities which, by way of personal and capital work together, or of one of these factors, involve the taxpayer in the own-account management of (a) production and human resources or one of the two, in order to intervene in the production or distribution of goods or services.

In particular, they have this regard for the performance of extractive, manufacturing, trade or service delivery activities, including crafts, agricultural, forestry, livestock, fishing, construction, mining, and the exercise of liberal, artistic and sporting professions.

2. For the purposes of the preceding paragraph, the term 'lease' or 'sale' of immovable property shall be understood as an economic activity, only where the following circumstances are met:

(a) That in the development of the activity, at least one local is counted on to carry out the management of the activity.

(b) That for the ordination of that one, at least one person employed with a labor contract and a full day is used.

Article 26. General rules for the calculation of net yield.

1. The net performance of economic activities shall be determined in accordance with the rules of the Company Tax, without prejudice to the special rules contained in this Article, in Article 28 of this Law for direct estimation, and in the Article 29 of this Law for the objective estimation.

For the purposes of Article 122 of Law 43/1995, of December 27, of the Company Tax, to determine the net amount of the turnover, account shall be taken of all economic activities. exercised by a taxpayer.

2. For the purposes of determining the net performance of economic activities, the assets or losses arising from the assets assigned to them shall not be included, which shall be quantified in accordance with the provisions of Section 4. of this Chapter.

3. The affectation of assets or the disaffection of assets fixed by the taxpayer shall not constitute a property alteration, provided that the assets or rights continue to be part of their assets.

It is understood that there has been no effect if the disposal of the goods or rights is carried out within three years from the date of the transfer.

4. The normal value on the market of the goods or services covered by the activity shall be treated, which the taxpayer shall give to third parties free of charge or for use or consumption.

In addition, when it is considered to be less than the normal value in the market for goods and services, the latter will be treated.

Article 27. Property assets affected.

1. Economic activity shall be considered as property assets:

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

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

The goods for recreation and recreation are not considered to be affected or, in general, of particular use of the owner of the economic activity.

c) Any other assets that are necessary to obtain the respective returns. In no case shall the assets representative of the equity participation of an entity and the transfer of capital to third parties be considered.

2. In the case of property assets which serve only partially for the purpose of economic activity, the affectation shall be deemed to be limited to that part of the economic activity which is actually used in the activity in question. In no case shall they be subject to partial affectation of indivisible assets.

Reglamentarily, the conditions under which certain heritage elements may be considered to be affected by an incidental and notoriously irrelevant use may be determined economic activity.

3. The consideration of property assets shall be such as to ensure that the ownership of such assets, in the case of marriage, is common to both spouses.

Article 28. Rules for the determination of net performance in direct estimation.

In addition to the general rules of Article 26 of this Law, the following special rules will be taken into account:

1. The concepts referred to in Article 14.2 of Law 43/1995 of 27 December 1995 of the Company Tax, nor the contributions to the social security funds of the company, shall not be considered deductible. employer or professional, without prejudice to the provisions of Article 46 of this Law.

However, the amounts paid under contracts of insurance agreed with social security funds by professionals who are not integrated into the special security scheme shall be regarded as deductible expenditure. Social of self-employed or self-employed persons, where, for the purpose of complying with the obligation laid down in paragraph 3 of the fifth transitional provision and in the additional provision 15th of Law 30/1995, of 8 November, Management and supervision of private insurance, acting as alternatives to the scheme The Committee on Social Affairs, Employment and the Social Security, and the Committee on Social Affairs, Employment and the Social Security, have the right to cover the social security system, with the limit of 500 000 pesetas per year.

2. When duly accredited, with the appropriate employment contract and the affiliation to the corresponding Social Security scheme, the spouse or minor children of the taxpayer who live with him/her normally and with continuity in the economic activities carried out by it, shall be deducted, for the purposes of determining the income, the remuneration stipulated with each of them, provided that they are not higher than those of the market corresponding to their professional qualifications and work. These amounts shall be considered to be obtained by the spouse or minor children in respect of income from work for all tax purposes.

3. When the spouse or minor children of the taxpayer who are living with him or her are transferred to the economic activity in question, it shall be deducted for the purposes of determining the income of the holder of the activity, the consideration stipulated, provided that it does not exceed the market value and, in the absence of the market value, the latter may be deducted. Consideration or market value shall be considered as income from the capital of the spouse or children under all tax purposes.

The provisions of this rule will not apply in the case of goods and rights that are common to both spouses.

4. Special rules may be established for the quantification of certain deductible expenses in the case of entrepreneurs and professionals in simplified direct estimation, including those of difficult justification.

Article 29. Rules for the determination of net performance in objective estimation.

The calculation of the net yield in the objective estimate shall be governed by the provisions of this Article and the provisions that develop it.

Regulatory provisions will conform to the following rules:

1. In the calculation of the net performance of economic activities in objective estimation, the signs, indices or general modules or referring to certain sectors of activity to be determined by the Minister for Economic Affairs and Finance, in view of the investments made necessary for the development of the activity.

2. Reglamentarily the application may be regulated for specific activities or sectors of systems of objective estimation under which they are established, after acceptance by the contributors, individualised figures of net returns for various tax periods.

3. The application of the objective estimation schemes may never give rise to the taxation of the property gains which, where appropriate, could be caused by the differences between the actual returns on the activity and the derivatives of the correct application of these schemes.

Article 30. Reductions.

Net yields with a period of generation over two years, as well as those that are regulated as well-regulated as obtained in a notoriously irregular manner over time, will be reduced by 30 per 100.

The computation of the generation period, in the event that these yields are charged in a fractionated manner, must take into account the number of years of fractionation, in the terms that are regulated.

SECTION 4. PROPERTY GAINS AND LOSSES

Article 31. Concept.

1. Property gains and losses are changes in the value of the assets of the taxpayer that are evidenced by any alteration in the composition of the taxpayer, except that by this Law they are qualified as yields.

2. It will be estimated that there is no alteration in the composition of the heritage:

a) In the assumptions of division of the common thing.

b) In the dissolution of the ganancial society or in the extinction of the matrimonial property regime of participation.

c) In the dissolution of communities of goods or in cases of separation of communes.

The assumptions referred to in this paragraph may in no case give rise to the updating of the securities of the goods or rights received.

3. It will be estimated that there is no property gain or loss in the following assumptions:

a) In capital reductions. Where the reduction of capital, whatever its purpose, results in the depreciation of securities or units, the acquisition shall be deemed to be amortized first, and its acquisition value shall be distributed proportionally between the other homogeneous values remaining in the taxpayer's assets. Where the reduction of capital does not affect all the securities or units in circulation of the taxpayer, it shall be understood as referring to those acquired in the first place.

Where the reduction of capital is intended to return contributions, the amount of the capital reduction or the normal market value of the goods or rights received shall bear the value of the acquisition of the securities concerned, with the rules of the previous paragraph, until its cancellation. The excess that could be taxed as a wealth gain.

b) On the occasion of lucrative transmissions for the death of the taxpayer.

(c) On the occasion of the lucrative transmissions of undertakings or shares referred to in Article 20 (6) of Law 29/1987 of 28 December 1987 on the Tax on Successions and Donations.

The assets that are affected by the taxpayer to the economic activity after its acquisition must have been affected uninterrupted for at least the five years prior to the date of the acquisition. transmission.

4. The tax shall be exempt from the tax on capital gains made manifest:

(a) On the occasion of the donations made to the entities referred to in Article 55.3 of this Law.

b) On the occasion of the transmission for over sixty-five years of its habitual dwelling.

c) On the occasion of the payment provided for in Article 80.3 of this Law.

5. The following shall not be computed as property losses:

a) Unjustified.

b) Due to consumption.

c) Due to lucrative transmissions for "inter living" acts or for liberalities.

d) Due to losses in the game.

(e) Those arising from transfers of assets, where the transfer is repurchased within the year following the date of such transfer.

This patrimonial loss will be integrated when the subsequent transfer of the asset item occurs.

(f) Those arising from the transfer of securities or units admitted to trading in one of the official secondary markets of Spanish securities, where the taxpayer has acquired homogeneous values within the two months before or after such transmissions.

(g) Those arising from the transfer of securities or units not admitted to trading in any of the official secondary markets of Spanish securities, where the taxpayer has acquired homogeneous values in the year prior to or after such transmissions.

In the cases referred to in points (f) and (g) above, the property losses shall be integrated as the securities or units that remain in the taxpayer's equity are transmitted.

The provisions of points (f) and (g) shall not apply to transmissions made within the time limits referred to in the last two paragraphs of Article 23.1 of this Law.

Article 32. Amount of the property gains or losses. General rule.

1. The amount of property gains or losses shall be:

(a) In the case of onerous or lucrative transmission, the difference between the acquisition and transfer values of the assets.

(b) In the other cases, the market value of the assets or proportional parts, if any.

2. If improvements have been made to the transferred assets, the part of the disposal value corresponding to each component of the transfer shall be distinguished.

Article 33. Transfers for consideration.

1. The acquisition value shall consist of the sum of:

(a) The actual amount for which the acquisition was made.

(b) The cost of the investments and improvements made in the assets acquired and the expenses and taxes inherent in the acquisition, excluding interest, which would have been satisfied by the acquirer.

Under the conditions that are determined to be determined, this value shall be reduced by the amount of the write-downs.

2. The acquisition value referred to in the preceding paragraph shall be updated exclusively in the case of immovable property by applying the coefficients set out in the corresponding State General Budget Law. The coefficients will be applied as follows:

(a) The amounts referred to in points (a) and (b) of the previous paragraph, taking into account the year in which they were satisfied.

(b) On redemptions, taking into account the year to which they correspond.

3. The transmission value shall be the actual amount by which the disposal was made. This value shall be deducted from the costs and taxes referred to in paragraph 1 (b) as soon as they are satisfied by the transmission.

The actual amount of the disposal value shall be effectively satisfied, provided that it is not lower than the normal market value, in which case it shall prevail.

Article 34. Transfers to a lucrative title.

When the acquisition or transmission has been awarded for profit, the rules of the previous article shall apply, taking by real amount of the respective values those resulting from the application of the rules of the tax on Successions and Donations.

In the lucrative acquisitions referred to in Article 31 (3) (c) of this Law, the donor shall be subrogated to the position of the donor in respect of the securities and dates of acquisition of such assets.

Article 35. Specific valuation rules.

1. Where the alteration in the value of the equity proceeds:

(a) For the purpose of the transfer of securities admitted to trading on any of the official secondary markets of Spanish securities and representative of the participation in own funds of companies or entities, the profit or loss shall be computed by the difference between its acquisition value and the transmission value, as determined by its listing on the official secondary market of Spanish securities on the date on which it occurs or by the agreed price when it is higher than the quotation.

For the determination of the acquisition value the amount obtained by the transmission of the subscription rights shall be deducted.

By way of derogation from the preceding paragraph, if the amount obtained in the transmission of the subscription rights is greater than the value of the acquisition of the securities from which such rights are derived, the difference shall be considered to be a financial gain for the transferor in the tax period in which the transfer takes place.

In the case of partially released shares, their acquisition value will be the amount actually paid by the taxpayer. In the case of fully-released shares, the acquisition value of such shares as well as the value of such shares shall be divided into the total cost between the number of securities, both the old and the released.

(b) Of the transfer for consideration of securities or shares not admitted to trading on official secondary markets of Spanish securities and representative of participation in own funds of companies or entities, the gain or loss shall be computed by the difference between the acquisition value and the transmission value.

Unless proof that the amount actually satisfied corresponds to that which would have been agreed by independent parties under normal market conditions, the transmission value shall not be less than the greater of the following two:

The theoretical balance sheet corresponding to the last financial year closed prior to the tax accrual date.

The average of the results of the three social exercises closed prior to the tax accrual date is to be capitalised at the rate of 20 per 100. To this end, distributed dividends and allocations to reserves, excluding those for regularisation or updating of balance sheets, shall be counted as profits.

The transmission value thus calculated shall be taken into account to determine the acquisition value of the securities or units corresponding to the acquirer.

The amount obtained by the transfer of subscription rights from these securities or units shall be considered to be an asset for the transfer in the tax period in which the said securities are transferred. transmission.

In the case of partially released shares, their acquisition value will be the amount actually paid by the taxpayer. In the case of fully-released shares, the acquisition value of such shares as well as the value of such shares shall be divided into the total cost between the number of securities, both the old and the released.

(c) For the transfer of securities or shares in the capital of transparent companies, the gain or loss shall be computed by the difference between the acquisition and ownership value and the transmission value of those.

To this effect, the acquisition and ownership value is estimated to be integrated:

First. For the price or amount disbursed for its acquisition.

Second. For the amount of social benefits that, without effective distribution, would have been imputed to the taxpayers as income from their shares or units in the period of time between their acquisition and disposal.

Third. In the case of partners who acquire the securities after the positive tax base is charged, the acquisition value shall be reduced in the amount of dividends or shares in profits from tax periods. during which the company is in a position of transparency.

In the case of companies of mere holding of goods, the transmission value to be computed shall be at least the theoretical resulting from the last approved balance sheet, after the net book value of the real estate is replaced by the value of the would have the effect of the Heritage Tax.

The provisions of this letter shall be without prejudice to the application, where appropriate, of the provision of subscription rights in the two preceding letters.

(d) From non-cash contributions to companies, the gain or loss shall be determined by the difference between the acquisition value of the assets or rights contributed and the largest amount of the following:

First: the nominal value of the shares or social units received by the contribution or, where appropriate, the corresponding part of the contribution. The amount of the emission premiums shall be added to this value.

Second: the value of the quotation of the securities received on the day when the contribution or the previous one is formalized.

Third: the market value of the good or the right provided.

The transmission value thus calculated shall be taken into account to determine the acquisition value of the securities received as a result of the non-cash contribution.

(e) In cases of separation of the partners or dissolution of companies, the difference between the value of the share of the social settlement shall be considered as a profit or loss of assets, without prejudice to those of the company. or the market value of the goods received and the acquisition value of the corresponding title or equity interest.

In cases of division, merger or absorption of companies, the taxpayer's profit or loss shall be computed by the difference between the acquisition value of the securities, rights or securities representing the the partner's participation and the market value of the securities, number or rights received or the market value of the delivered.

f) Of a transfer, the wealth gain will be computed to the transferor in the amount corresponding to the transfer.

When the right of transfer has been acquired by price, it will have the consideration of the purchase price.

(g) Of compensation or capital insured for loss or loss in property assets, the difference between the amount received and the proportional share of the value of the assets shall be computed as a profit or loss. acquisition corresponding to the damage.

Where the compensation is not in cash, the difference between the market value of the goods, rights or services received and the proportional share of the acquisition value corresponding to the damage shall be computed. Only estate gain will be computed when a rise in the value of the taxpayer's estate is derived.

h) Of the swap of goods or rights, the wealth gain or loss shall be determined by the difference between the acquisition value of the property or right that is given and the greater of the following two:

-The market value of the given right or right.

-The market value of the good or right that is received in return.

(i) From the extinction of life or temporary income, the property gain or loss shall be computed, for the obligation to pay those, by difference between the value of the acquisition of the capital received and the sum of the income effectively satisfied.

(j) In the transfer of assets in exchange for a temporary or lifetime income, the wealth gain or loss shall be determined by difference between the actuarial current financial value of the income and the value of acquisition of the transferred assets.

k) When the holder of a real right of enjoyment or enjoyment of immovable property carries out its transmission, or when its extinction occurs, for the calculation of the profit or loss of property the actual amount referred to in the article 33.1.a) of this Law shall be given in proportion to the time during which the holder would not have received income from the real estate capital.

(l) In the incorporation of goods or rights that do not derive from a transmission, the market value of the goods shall be computed as a wealth gain.

m) In the transactions made in the futures and options markets regulated by Royal Decree 1814/1991 of 20 December, the yield obtained shall be deemed to be profit or loss when the transaction does not involve the coverage of a major concerted operation in the development of the economic activities carried out by the taxpayer, in which case they shall be taxed in accordance with the provisions of Section 3 of this Chapter.

n) In the transfer of property assets to economic activities, the book value shall be deemed to be the value of the acquisition, without prejudice to the specialities which may be established in respect of the amortisation of that value.

2. For the purposes of points (a), (b) and (c) of the preceding paragraph, where there are homogeneous values, those transmitted by the taxpayer shall be deemed to be those which he acquired in the first place.

Also, when the totality of the subscription rights is not transmitted, the transmitted rights are understood to correspond to the values acquired in the first place.

In the case of fully released shares, the age of the shares shall be considered to be the age of the shares from which they come.

3. The provisions of paragraph 1 (d) and (e) of this Article shall be without prejudice to the provisions of Chapter VIII of Title VIII of Law 43/1995 of 27 December 1995 on Corporate Tax.

Article 36. Reinvestment in the assumptions of the transmission of habitual housing and of elements affected by economic activities.

1. The capital gains obtained by the transfer of the taxpayer's habitual dwelling may be excluded from taxation, provided that the total amount obtained by the transfer is reinvested in the acquisition of new normal housing in the conditions to be determined.

When the reinvested amount is less than the total amount of the transmission, only the proportional share of the acquired wealth that corresponds to the reinvested amount shall be excluded from taxation.

2. Taxpayers who carry out economic activities and pass on elements affected by economic activities may choose to pay for the property gains that occur in accordance with the rules of this Law, or to apply the provisions of the article. 21 of Law 43/1995, of 27 December, of the Company Tax, for the reinvestment of extraordinary profits, in which case the total amount of the patrimonial gain attributable to that period in the tax period will be integrated into each tax period general part of the tax base.

In no case will the reinvestment exemption provided for in Article 127 of Law 43/1995 of 27 December of the Company Tax be applicable to these property gains.

Article 37. Non-justified heritage gains.

Will have the consideration of non-justified wealth gains for goods or rights whose tenure, statement or acquisition does not correspond to the income or equity declared by the taxpayer, as well as the inclusion of non-existent debts in any declaration by this tax or by the Heritage Tax, or their registration in the official books or records.

Unjustified capital gains shall be integrated into the overall liquidable basis of the tax period for which they are discovered, unless the taxpayer sufficiently proves that he has been the holder of the assets or corresponding rights from a date prior to that of the prescription period.

CHAPTER II

Income integration and compensation

Article 38. Integration and compensation of income in the general part of the tax base.

The general portion of the tax base will be formed with the entire income of the taxpayer, excluding-the property gains and losses referred to in the following article, and shall be constituted by:

(a) The balance resulting from the integration and compensation of each other, without limitation, in each tax period, the income and the income taxes referred to in Title VII and Article 78 of this Law.

(b) The positive balance resulting from integrating and compensating, exclusively with each other, in each tax period, the property gains and losses, excluding those provided for in the following Article.

If the result of the integration and compensation referred to in this letter has negative balance, the amount shall be offset by the positive balance of the income provided for in point (a) of this Article, obtained in the same period tax, with the limit of 10 per 100 of that positive balance.

If, after such compensation, the balance is negative, the amount shall be offset in the following four years in the same order as in the preceding paragraphs.

In no case will this compensation be made outside the four-year period, through the accumulation of capital losses from subsequent years.

Article 39. Integration and compensation of income in the special part of the tax base.

1. The special part of the tax base shall consist of the positive balance resulting from the exclusive integration and compensation of the profits and losses in each tax period which are apparent on the occasion of the transfer of assets or improvements made to them, more than two years in advance of the date of transmission, or of subscription rights corresponding to securities acquired at the same time.

2. If the result of the integration and the compensation is negative, the amount of the balance shall be offset only by the amount of capital gains and losses corresponding to the same concept during the four years. next.

3. The compensation shall be made at the maximum amount permitted by each of the following financial years and without being able to be performed outside the period referred to in the preceding paragraph by means of the accumulation of financial losses for financial years. later.

CHAPTER III

Personal and family minimum

Article 40. Minimum personal and family.

1. The minimum number of staff and family members referred to in the following paragraphs shall first apply to the reduction of the general part of the tax base, without the latter being negative as a result of such a decrease. The remainder, if any, shall be applied to the reduction of the special part of the tax base, which shall also not be negative.

2. Minimum staff.

The minimum number of staff will be 550,000 pesetas per year.

This amount will be 650,000 pesetas when the taxpayer is over sixty-five years old, of 850,000 pesetas when he is disabled and credit a degree of disability equal to or greater than 33 per 100 and less than 65 100, and of 1,150,000 pesetas where the degree of disability is equal to or greater than 65 per 100.

3. Family minimum.

1. The family minimum will be:

(a) 100,000 pesetas per year for each parent over the age of sixty-five years dependent and living with the taxpayer and no annual income exceeding the minimum inter-professional salary, including those exempted.

(b) For each single descendant under the age of 25 years, provided that they live together with the taxpayer and do not have annual income exceeding those laid down in regulation, with the minimum limit of 200,000 pesetas per year:

-200,000 pesetas per year for the first and second.

-300,000 pesetas per year for the third and next.

These amounts will be increased:

a ') In 25,000 pesetas, in concept of school material, for each descendant, from the three to the sixteen years of age.

b ') In 50,000 pesetas, for each descendant under three years of age.

(c) For each of the persons referred to in (a) and (b) above, irrespective of their age, who do not have annual income exceeding the amount to be regulated, with a minimum of 550,000 pesetas, including exempt, who are disabled and who credit a degree of disability equal to or greater than 33 per 100 and less than 65 per 100, in addition to the previous ones if they come, 300,000 pesetas per year. This amount shall be 600 000 pesetas per year if the degree of disability is equal to or greater than 65 per 100.

For the purposes of points (b) and (c) above, those persons who are bound to the taxpayer by reason of guardianship and acceptance shall be treated as descendants in accordance with the applicable civil law.

2. The application of the family minima referred to in the previous No 1 shall not be carried out when the persons who generate the right to the same submit a declaration for this tax or the communication provided for in the article. 81 of this Law.

3. Where two or more contributors are entitled to the application of the family minima, their amount shall be apportioned among them equally.

However, where the taxpayer has a different degree of kinship with the ascending or descending order, the application of the family minimum shall correspond to those of the nearest degree, unless the latter have no higher income than the the amount to be fixed in the case of the next grade.

4. The determination of the personal and family circumstances to be taken into account for the purposes of the foregoing paragraphs shall be made in the light of the situation prevailing on the date of the tax due.

However, for the application of the family minimum by ascendants it will be necessary for the ascendant to depend and to live with the taxpayer, at least, half of the tax period.

5. The minimum personal and family members of each taxpayer shall be composed of the sum of the amounts that are applicable in accordance with the preceding paragraphs.

CHAPTER IV

Special Rules of Assessment

Article 41. Estimate of rents.

1. The valuation of the estimated income referred to in Article 6.3 of this Law shall be carried out by the normal value on the market. This shall mean the consideration to be agreed between independent subjects, unless otherwise proved.

2. In the case of loans and operations for the collection or use of foreign capital in general, the normal value in the market shall be the legal interest rate of the money in force on the last day of the tax period.

Article 42. Related transactions.

1. The rules for the valuation of transactions linked to the terms provided for in Article 16 of Law 43/1995 of 27 December of the Company Tax shall apply in this tax.

2. Where the operation linked to a company corresponds to the exercise of economic activities or to the provision of personal work by natural persons, they shall carry out their assessment in accordance with the terms laid down in Article 16 of the Treaty. Law 43/1995, of 27 December, of the Company Tax, cited above, when they involve an increase in their income. In this case, the entity shall also carry out such valuation for the purposes of the Company Tax.

Article 43. Income in kind.

1. They constitute income in kind for the use, consumption or obtaining, for particular purposes, of goods, rights or services free of charge or lower than the normal market price, even if they do not entail a real expense for those who grant them.

When the payer of the income gives to the taxpayer amounts in cash to the taxpayer to acquire the goods, rights or services, the income will have the consideration of money.

2. They shall not have the consideration of income from work in kind:

(a) Delivery to workers in assets, free of charge or at a lower price than the normal market price, of shares or units of the company itself or other companies of the group of companies, in the part that does not exceed, for the total of those delivered to each worker, of 500,000 pesetas per year or 1,000,000 pesetas in the last five years, under the conditions which they regulate.

(b) The amounts intended for the updating, training or retraining of the staff employed, when required by the development of their activities or the characteristics of the jobs.

(c) Deliveries to employees of products at discounted prices to be carried out in canteens or in eaters of a company or social economy. They shall be given the consideration of the delivery of products at discounted prices to be carried out in a company's dining room, the indirect formulas for the provision of the service, the amount of which does not exceed the amount to be determined.

d) The use of goods for the social and cultural services of the staff employed.

e) The premiums or fees paid by the company under contract of accident insurance or civil liability of the worker.

(f) The premiums or fees paid to insurance companies for the sickness cover of the worker, under the conditions and with the limits to which they are regulated.

Article 44. Valuation of income in kind.

1. In general terms, income in kind shall be valued at normal value on the market, with the following specialties:

1. The following yields of the in-kind work will be valued according to the following valuation rules:

a) In the case of housing use, 10 per 100 of the cadastral value.

In the case of buildings whose cadastral values have been revised or modified, in accordance with the procedures laid down in Articles 70 and 71 of Law 39/1988, of 28 December, regulating local farms, and have entered into force from 1 January 1994, 5 per 100 of the cadastral value.

If, at the date of the tax accrual, the real estate or the cadastral value has not been notified to the owner, it shall be taken as the basis of imputation of the same 50 per 100 of the one for which it is to be computed to Effects of the Tax on Heritage.

In these cases, the percentage will be 5 per 100.

The resulting valuation may not exceed 10 per 100 of the remaining consideration of the work.

b) In the case of the use or delivery of motor vehicles:

-In the delivery case, the acquisition cost for the payer, including the taxes that the transaction taxes.

-In the use case, the 20 per 100 year of the cost referred to in the previous paragraph. If the vehicle is not the property of the payer, this percentage shall be applied to the market value which would be the vehicle if it were new.

-In the case of use and subsequent delivery, the valuation of the latter shall be carried out taking into account the valuation resulting from the previous use.

c) In loans with interest rates lower than the legal interest rate, the difference between the interest paid and the legal interest of the money in the period.

d) For the cost to the payer, including the taxes that the transaction taxes, the following income:

-Benefits in the form of maintenance, accommodation, travel and the like.

-The premiums or fees paid under contract insurance or similar, without prejudice to the provisions of points (e) and (f) of paragraph 2 of the previous article.

-The amounts intended to satisfy the costs of studies and maintenance of the taxpayer or other persons linked to it by relationship of kinship, including those related, up to and including the fourth degree, without prejudice to the provided for in paragraph 2 of the previous Article.

(e) For their amount, the contributions paid by the promoters of pension schemes, as well as the amounts paid by employers to meet the pension commitments in the terms laid down by the Additional provision of Law 8/1987, of 8 June, of Regulation of Pension Plans and Funds, and its implementing rules.

(f) Notwithstanding the provisions of the preceding letters, where the performance of the work in kind is satisfied by undertakings which have as their usual activity the performance of the activities which give rise to the performance of the work may not be less than the price offered to the public of the goods, right or service concerned.

2. The property gains in kind shall be valued in accordance with Articles 32 and 35 of this Law.

2. In cases of income in kind, their valuation will be carried out according to the rules contained in this Law.

This value shall be added to the revenue account, unless its amount has been passed on to the income recipient.

CHAPTER V

Taxable base determination regimes

Article 45. Schemes for the determination of the tax base.

1. The amount of the various components of the tax base shall be determined in general by the direct estimation scheme.

2. The determination of the income from economic activities shall be carried out through the following schemes:

a) Direct estimate, which will be applied as a general scheme, and which will support two modes:

-Normal.

-The simplified. This modality shall apply for certain economic activities, the net amount of which, for all activities carried out by the taxpayer, does not exceed 100,000,000 pesetas in the preceding year, except that to give up its application, in the terms that are regulated.

(b) An objective estimate of income for certain economic activities, which shall be regulated in accordance with the following rules:

1. Taxpayers Who fulfil the circumstances provided for in the regulatory rules of this scheme shall determine their income under the arrangements, unless they give up their application, in the terms which they regulate establish.

2. The objective estimation regime shall be applied in conjunction with the special schemes established in the Value Added Tax or Indirect General Tax Canarian, where this is determined by regulation.

3. The scope of the objective estimation scheme shall be determined, inter alia, by the nature of the activities and crops, or by objective modules such as the volume of operations, the number of workers, the amount of the purchases, the area of the holdings or the fixed assets used, with the limits which, for the whole of the activities carried out by the taxpayer, are to be determined by regulation.

4. Reglamentarily the application of the objective estimation regime may be established for entities on the basis of income allocation.

3. The indirect estimation scheme shall be applied in accordance with the provisions of Law 230/1963 of 28 December, General Tax.

In the indirect estimation of income from economic activities, account shall be taken, preferably, of the signs, indices or modules established for the objective estimate, in the case of taxpayers who have renounced the latter system of determination of the tax base.

CHAPTER VI

Liquidable Base

SECTION 1. GENERAL LIQUID BASE

Article 46. General liquidable base.

The general liquidable basis will be the result of practicing on the general part of the tax base, exclusively, the following reductions:

1. In the case of contributions to mutual funds and pension schemes:

1. The amounts paid under insurance contracts concluded with mutual social security contributions by professionals who are not integrated into one of the social security schemes, in the part which is the subject of the coverage of the contingencies provided for in Article 8.6 of Law 8/1987 of 8 June of Regulation of the Pension Plans and Funds, provided that they have not had the consideration of deductible expenditure to find the net income of the economic activities, in the terms provided for in the second paragraph of Rule 1 (1) of this Article Law.

2. º The amounts paid under insurance contracts concluded with social welfare insurance funds by individual professionals or entrepreneurs integrated into any of the social security schemes, in the the purpose of which is to cover the contingencies provided for in Article 8.6 of Law 8/1987 of 8 June 1987 on the Regulation of Pension Plans and Funds.

3. º The amounts paid under insurance contracts concluded with social welfare insurance funds for employed or employed persons, including the contributions of the promoter who have been (a) to be charged in respect of income from work, where they are carried out in accordance with the provisions of the first provision of Law 8/1987 of 8 June of Regulation of the Pension Plans and Funds, including unemployment for the These are workers.

The insurance contracts concluded with social security mutual funds referred to in the preceding three numbers shall, in addition to those referred to above, meet the following requirements:

(a) The maximum annual contributions to such contracts, including, where appropriate, those which have been charged by the promoters, may not exceed the amounts provided for in Article 5.3 of Law 8/1987 of 8 June 1987, Regulation of Pension Plans and Funds.

(b) The consolidated rights of the mutualists may be made effective only in the cases provided for, for pension schemes, by Article 8 (8) of Law 8/1987 of 8 June of Regulation of the Plans and Funds of the Pensions.

If, in whole or in part, such consolidated rights are available in different scenarios, the taxpayer shall replenish the reductions in the tax base unduly practiced, by practicing statements-settlements additional, including interest on late payment. In turn, the amounts received by the advance provision of the consolidated duties shall be taxed as returns on capital, except where they come from the insurance contracts referred to in the third subparagraph of this paragraph. case, they will be taxed as income from the work.

(c) The benefits received will be taxed in their entirety, without in any case being able to be reduced in the amounts corresponding to the excesses of the contributions on the reduction limits in the tax base to which refers to this article. However, the rule provided for in Article 27 (c) of Law 8/1987 of 8 June of Regulation of the Pension Plans and Funds shall apply.

4. The contributions made by the participants in pension plans, including the contributions of the promoter who had been imputed to them in terms of income from the work.

As a maximum set of these reductions, the smallest of the following amounts will be applied:

(a) 20 per 100 of the sum of the net income of the work and of the economic activities received individually in the financial year.

For these purposes, income from economic activities shall be regarded as income from the transparent companies governed by Article 75 (1) (b) and (c) of Law 43/1995 of 27 December 1995 on the tax on Companies, their partners that effectively exercise their activity through them as professionals, artists or sportsmen.

b) 1.100,000 pesetas annually.

The maximum tax reduction limit will depend on the financial limit that is set in each case, as set out in Article 5.3 of Law 8/1987 of 8 June, on the Regulation of Pension Plans and Funds.

2. Compensatory pensions in favour of the spouse and annuities for food, with the exception of those laid down in favour of the taxpayer's children, both of which are satisfied by judicial decision.

Article 47. Compensation of negative general liquidable bases.

1. If the general liquidable base is negative, its amount may be offset against those of the positive general liquidable bases which are obtained in the following four years.

2. The compensation shall be made at the maximum amount which permits each of the following financial years and which cannot be carried out outside the time limit referred to in the preceding paragraph by means of the accumulation of negative general terms and conditions of Subsequent years.

SPECIAL LIQUIDABLE BASE 2 SECTION

Article 48. Special liquidable base.

The special liquidable base will be made up of the special part of the tax base.

TITLE III

Calculation of tax

CHAPTER I

Determination of the state full quota

Article 49. Full state quota.

The full state share will be the sum of the amounts resulting from the application of the tax rates, as referred to in Articles 50 and 53 of this Law, to the general and special liquidable bases, respectively.

Article 50. General scale of the tax.

1. The general liquidable basis will be taxed at the rates indicated on the following scale:

Liquidable Base Quota integrates Liquidable Base Rate Applicable Type Up Pesetas Pesetas Up pesetas Percentage

0 ........................................................ 0 ................................ 600.000............................... 15,00

600,000 ..................................... 90,000 ............................. 1.500.000............................... 20.17

2.100,000 ................................. 392.550 ............................ 2.000.000............................... 23.57

4.100,000 ................................. 863,950 ............................. 2.500,000 ............................... 31.48

6.600,000 .............................. 1.650.950 ............................ 4.400.000................................ 38.07

11,000,000 ............................ 3.326.030 ................................. 39.60

2. The average rate of state charge shall be that of multiplying by 100 the ratio resulting from dividing the quota obtained by the application of the scale provided for in the previous paragraph by the general liquidable basis. The average state levy rate shall be expressed in two decimal places.

Article 51. Specialties applicable in the assumptions of annuities for food in favor of the children.

Taxpayers who satisfy their children's annuities by judicial decision, when the amount of the income is lower than the general liquidable base, will apply the scale of the previous item separately to the amount of the annuities for food and the rest of the general liquidable base.

Article 52. Scale applicable to residents abroad.

In the case of taxpayers who have their habitual residence abroad for any of the circumstances referred to in Article 9 (2) and (3) of this Law, the applicable scales shall be the same as those of the in Article 50 (1) and in Article 61 (1), both of this Law.

Article 53. Special rates of charge.

1. The special liquidable base will be taxed at the rate of 17 per 100.

2. The special liquidable taxpayer base referred to in Article 9 (2) and (3) of this Law shall be taxed at the rate of 20 per 100.

CHAPTER II

Determination of the state liquid quota

Article 54. State liquid quota.

1. The state's liquid share of the tax will be the result of decreasing the total state share in 85 per 100 of the total amount of the deductions that come from those provided for in Article 55 of this Law.

2. The results of the operations referred to in the preceding paragraph may not be negative.

Article 55. Deductions.

1. Deduction for investment in habitual housing.

1. º Taxpayers will be able to apply a deduction for investment in their usual dwelling according to the following requirements and circumstances:

(a) In general, 15 per 100 of the quantities satisfied in the period in question may be deducted from the purchase or rehabilitation of the dwelling which constitutes or is to constitute the habitual residence of the taxpayer. For these purposes, rehabilitation must meet the conditions laid down in regulation.

The maximum basis for this deduction shall be 1,500,000 pesetas per year and shall consist of the amounts satisfied for the purchase or rehabilitation of the dwelling, including the incurred expenses incurred by the and, in the case of foreign financing, the depreciation, interest and other expenses arising therefrom.

They may also apply this deduction for amounts deposited in credit institutions, in accounts that meet the requirements of formalization and provision that are regulated, and provided that they are the first purchase or rehabilitation of the usual dwelling, with the limit, in conjunction with that provided for in the previous paragraph, of 1,500,000 pesetas per year.

(b) Where in the acquisition or rehabilitation of the usual dwelling, the amount of deduction applicable to the deduction base referred to in point (a) above shall be subject to the conditions and requirements to be laid down in regulation, the following:

-For the next two years after acquisition or rehabilitation. The 25 per 100 on the first 750,000 pesetas and 15 per 100 on excess up to 1,500,000 pesetas.

-Later, the above percentages will be 20 per 100 and 15 per 100, respectively.

2. When a habitual dwelling is acquired having enjoyed the deduction for acquisition of other habitual dwellings, no deduction may be made for the purchase or rehabilitation of the new housing. amounts invested in the same do not exceed those invested in the previous ones, in so far as they were the subject of deduction.

When the disposal of a habitual dwelling would have generated a wealth gain exempt by reinvestment, the basis of deduction for the acquisition or rehabilitation of the new one will be reduced in the amount of the estate profit. to which the reinvestment exemption applies. In this case, no deduction may be made for the purchase of the new one while the amounts invested in it do not exceed the price of the new one, in so far as it has been the subject of deduction, such as the exempt assets by reinvestment.

3. The usual housing shall mean that in which the taxpayer resides for a continuous period of three years. However, it shall be understood that the dwelling was such that, in spite of the absence of such a period, the taxpayer's death occurs or circumstances which necessarily require the change of housing, such as marriage separation, transfer of employment, first employment or more advantageous employment or other similar employment.

4. The deduction for investment in habitual housing may also be applied by disabled taxpayers who carry out works and facilities for their suitability, including the common elements of the building and those that serve as necessary step between the farm and the public road, with the following specialties:

(a) The works and facilities of adaptation must be certified by the competent authority as necessary for the accessibility and sensory communication that facilitates the dignified and adequate development of the people with disability, in terms that are established in a regulated manner.

(b) The maximum basis for this deduction, irrespective of the one laid down in paragraph 1 (a) above, shall be 2,000,000 annual pesetas.

(c) Where the investment for the adequacy of the dwelling is used, the applicable deduction rates shall be, under the conditions and conditions laid down in the rules, as laid down in the letter. (b) of paragraph 1.

(d) It is understood as a circumstance which necessarily requires the change of housing when the previous one is inappropriate in reason of disability.

(e) They shall also be entitled to deduct the works and facilities of adequacy to be carried out in dwellings occupied by the disabled taxpayer in the title of lessee, subtenant or usufruct.

2. Deductions in economic activities.

The taxpayers for this tax that will carry out economic activities, will apply the incentives and incentives to the business investment established or that are established in the regulations of the Corporate Tax, with equal percentages and deduction limits.

However, these incentives will only apply to taxpayers on an objective basis when it is established in a regulatory manner taking into account the characteristics and formal obligations of the said taxpayer. regime.

3. Deductions for donations.

Contributors will be able to apply, in this concept:

(a) The deductions provided for in Law 30/1994, of 24 November, of Foundations and of Tax Incentives for Private Participation in Activities of General Interest.

(b) 10 per 100 of the amounts donated to the legally recognised foundations which are held accountable to the body of the corresponding protectorate, and to the associations declared for public utility, not included in the letter previous.

4. Deduction for income obtained in Ceuta or Melilla.

1. Taxpayers resident in Ceuta or Melilla.

(a) Taxpayers who have their habitual residence in Ceuta or Melilla shall be deducted 50 per 100 from the sum of the total state and autonomous or complementary contributions that are proportional to the income For the determination of the liquidable bases which would have been obtained in Ceuta or Melilla.

(b) Taxpayers who maintain their habitual residence in Ceuta or Melilla for a period of not less than five years shall also be entitled to this deduction in the tax periods initiated after the end of that period. (a) period of time, in respect of income obtained outside those cities where at least one third of the net worth of the taxpayer, determined in accordance with the rules governing the tax on heritage, is situated in those cities.

The maximum amount of income, obtained outside those cities, which may benefit from the deduction, shall be the net amount of the income and profits and property losses obtained in those cities.

2. Tax payers who do not have their habitual residence in Ceuta or Melilla, will be deducted 50 per 100 from the sum of the total state-and autonomous or complementary contributions that are proportional to the Revenue from the calculation of the positive liquidable bases which would have been obtained in Ceuta or Melilla.

This deduction will not be applied to the following rents:

Those from the Collective Investment Institutions, except when all of their assets are invested in Ceuta or Melilla, under the conditions that will be determined.

The income referred to in points (a), (e) and (i) of the following number.

3. For the purposes set out in this Law, the following shall be considered as income obtained in Ceuta or Melilla:

(a) The income of the work, when derived from works of any kind performed in those territories.

(b) Yields arising from the ownership of real estate located in Ceuta or Melilla or of real rights falling on them.

(c) Those which come from the exercise of economic activities actually carried out, under the conditions which are determined in accordance with the rules, in Ceuta or Melilla.

(d) The property gains that come from real estate located in Ceuta or Melilla.

e) The property gains that come from movable property located in Ceuta or Melilla.

(f) Equity income from bonds or loans, where the capital is invested in those territories and where the corresponding income is generated there.

(g) Equity income from the lease of movable property, business or mine, under conditions which are determined to be determined.

(h) Income from companies that are effectively and materially operating in Ceuta or Melilla and with a registered office and social object in those territories.

i) Income from deposits or accounts in all financial institutions located in Ceuta or Melilla.

5. Deduction for investments and expenses incurred in goods of cultural interest.

Taxpayers will be able to apply a deduction for these concepts, according to any of the following modes:

(a) 15 per 100 of the investments made in the acquisition of goods which are entered in the General Register of Goods of Cultural Interest, in accordance with the provisions of Article 69.2 of Law 16/1985 of 25 June of the Spanish Historical Heritage, provided that the property remains in the holder's estate for a period of not less than three years and the communication of the transfer to the General Registry of Goods of Cultural Interest is formalized.

(b) 15 per 100 of the amount of the costs of conservation, repair, restoration, dissemination and exposure of the goods which meet the requirements laid down in the preceding subparagraph, as long as they cannot be deducted as expenditure fiscally eligible, for the purposes of determining the net yield which, where appropriate, shall be applicable.

Article 56. Limits of certain deductions.

1. The basis of the deductions referred to in Article 55 (3) and (5) of this Law may not exceed 10 per 100 of the taxable amount of the taxpayer.

2. The limits of the deduction referred to in Article 55 (2) of this Law shall apply to the quota resulting from the reduction of the sum of the total state and regional or supplementary contributions in the total amount of the deductions by investment in habitual housing and investment and expenditure on goods of cultural interest.

Article 57. Verification of the patrimonial situation.

1. The application of the deduction for investment in housing shall require the fact that the taxable amount of the taxpayer's assets at the end of the period of taxation exceeds the value of his/her check at the start of the tax at least in the the amount of investments made, without taking into account interest and other financing costs.

2. For these purposes, the increases or decreases in value experienced during the tax period shall not be taken into account for the assets which, at the end of the tax period, remain part of the taxpayer's assets.

TITLE IV

Autonomic or Supplementary Taxation

CHAPTER I Common Rules

Article 58. Common rules applicable for the determination of the autonomous or complementary charge.

For the determination of the autonomic or complementary charge, the rules on the subjection to the tax, and determination of the economic capacity contained in the TitleIyIIdethis Law, as well as those relating to the family taxation, special schemes and collective investment institutions, contained in Titles VI, VII and VIII of this Law.

CHAPTER II

Habitual residence in the territory of an Autonomous Community

Article 59. Habitual residence in the territory of an Autonomous Community.

1. For the purposes of this Law, taxpayers with habitual residence on Spanish territory shall be deemed to be resident in the territory of an Autonomous Community:

1. When a greater number of days of the tax period remain on your territory.

To determine the length of stay, temporary absences will be computed.

Unless otherwise tested, a natural person shall be deemed to remain in the territory of an Autonomous Community when in that territory they are radiating their habitual dwelling.

2. When it is not possible to determine the permanence referred to in point 1. above, they will be considered residents in the territory of the Autonomous Community where they have their principal center of interest.

The territory where they obtain most of the tax base of the Income Tax of the Physical Persons, determined by the following components of income, shall be considered as such:

(a) Res of work, which shall be understood as having been obtained where the respective work centre is located, if it exists.

(b) Real estate capital and property gains derived from real estate, which shall be understood to be derived from the place in which they radiate.

(c) Business or professional activities resulting from economic activities, which shall be understood as having been obtained where the management centre of each of them is located.

(d) Bases attributed to the system of professional transparency, which shall be understood as being obtained at the place where the professional activity is carried out.

3. Where the residence cannot be determined in accordance with the criteria laid down in points 1 and 2. above, they shall be considered to be resident at the place of their last declared residence for the purposes of the Income Tax. Physical Persons.

2. Natural persons residing in the territory of an Autonomous Community, who have their habitual residence in the territory of another Autonomous Community, shall fulfil their tax obligations in accordance with the new residence, where it acts as a connecting point.

In addition, where, pursuant to paragraph 3 below, it is to be considered that there has been no change of residence, the natural persons shall submit the accompanying declarations corresponding to the interest on late payment.

The deadline for the submission of the supplementary declarations shall be the same day as the deadline for the submission of the declarations for the Income Tax of the Physical Persons corresponding to the year in which the circumstances which, as provided for in paragraph 3 below, determine that there has been no change of residence.

3. There will be no effect on changes of residence aimed at achieving lower effective taxation on this tax.

It shall be presumed, unless the new residence is continued on a continuous basis for at least three years, that there has been no change, in relation to the yield of the Income Tax of the Physical Persons, when the following circumstances are present:

(a) That in the year in which the change of residence occurs or in the following year, the taxable base of the Income Tax of the Physical Persons is higher in, at least, 50 per 100 to that of the year before the change.

In case of joint taxation it will be determined according to the rules of individualization.

b) That in the year in which the situation referred to in the preceding letter occurs, its effective taxation of the Income Tax of the Physical Persons is lower than that which it would have corresponded to according to the rules applicable in the Autonomous Community in which it resided prior to the change.

(c) In the year following the year in which the situation referred to in (a) above occurs, or in the following year, return to its habitual residence in the territory of the Autonomous Community in which it resided with prior to the change.

4. Natural persons resident in Spanish territory, who do not remain in that territory more than one hundred and eighty three days during the calendar year, shall be considered to be resident in the territory of the Autonomous Community in which the nucleus principal or the basis of their activities or economic interests.

5. Natural persons resident in Spanish territory pursuant to the presumption provided for in the last subparagraph of Article 9 (1) of this Law shall be considered to be resident in the territory of the Autonomous Community where they reside. usually the spouse is not legally separated and the children under age are dependent on them.

CHAPTER III

Calculation of the autonomic or complementary lien

SECTION 1. DETERMINATION OF THE FULL AUTONOMIC OR COMPLEMENTARY QUOTA

Article 60. Full regional or complementary quota.

The full autonomy or supplementary fee of the tax shall be the sum of the amounts resulting from the application of the tax rates, as referred to in Articles 61 and 63 of this Law, to the general and special liquidable base, respectively.

Article 61. Autonomous or complementary scale of the tax.

1. The general liquidable base will be taxed at the rates of the autonomic scale of the tax which, as provided for in Article 13 (1) (a) of Law 14/1996, of 30 December, of Transfer of Taxation of the State to the Autonomous Communities and of Additional Tax Measures have been approved by the Autonomous Community.

If the Autonomous Community has not approved the scale referred to in the preceding paragraph or has not assumed regulatory powers in respect of the Income Tax of the Physical Persons, the following scale shall apply. complementary:

Liquidable Base Quota integrates Liquidable Base Rate Applicable Type Up Pesetas Pesetas Up pesetas Percentage

0 ...................................................... 0 ....................................... 600.000............................... 3.00

600,000 ................................... 18,000 ................................ 1.500.000................................ 3.83

2,100,000 ................................ 75.450 ................................ 2.000.000................................ 4.73

4,100,000 .............................. 170,050 ................................ 2.500.000................................ 5.72

6.600,000 .............................. 313.050 ................................ 4.400.000................................ 6.93

11,000,000 ............................ 617.970 ............................... henceforth ............................... 8.40

2. The average of the autonomous or complementary charge shall be the one derived from multiplying by 100 the ratio resulting from dividing the quota obtained by the application of the scale provided for in the previous paragraph by the general liquidable base. The average rate of regional taxation shall be expressed in two decimal places.

Article 62. Specialties applicable in the assumptions of annuities for food in favor of the children.

Taxpayers who satisfy their children's annuities by judicial decision, when the amount of the income is lower than the general liquidable base, will apply the scale of the previous item separately to the amount of the annuities for food and the rest of the general liquidable base.

Article 63. Type of special charge.

The special liquidable base will be taxed with the 3 per 100 type.

SECTION 2. DETERMINATION OF THE AUTONOMOUS OR COMPLEMENTARY LIQUID QUOTA

Article 64. Autonomous or complementary liquid quota.

1. The autonomous or complementary liquid quota shall be the result of decreasing the full or complementary autonomous quota in the sum of:

(a) 15 per 100 of the total amount of the deductions that come from those provided for in Article 55 of this Law, with the limits and requirements of the patrimonial situation provided for in Articles 56 and 57 thereof.

(b) The amount of the deductions established by the Autonomous Community in the exercise of the powers provided for in Law 14/1996 of 30 December 1996 on the Transfer of Taxation of the State to the Autonomous Communities and Measures Supplementary Prosecutors.

2. The results of the operations referred to in the preceding paragraph may not be negative.

TITLE V

Differential fee

Article 65. Differential fee.

The differential fee will be the result of minoring the total liquid quota of the tax, which will be the sum of the liquid, state and autonomous or complementary quotas, in the following amounts:

(a) Deductions for double taxation of dividends and for international double taxation provided for in Articles 66 and 67 of this Law.

(b) Withholding, income on account, and fractional payments provided for in this Law and in its regulatory development standards.

(c) The fees paid by the Company for the Companies under the tax transparency regime, as referred to in Article 75 of Law 43/1995 of 27 December 1995, of the Company Tax. as the quotas which would have been charged to those companies.

The deduction of these quotas, together with the imputed payments corresponding to them, will have as a maximum limit the derivative of applying the effective average rate of this tax to the part of the liquidable base corresponding to the taxable amount charged, where the following circumstances are met:

1. That they correspond to transparent companies as provided for in points (b) and (c) of Article 75 of Law 43/1995 of 27 December 1995 on the Tax on Societies, in which the imputation is not made in full to the natural persons who, directly or indirectly, are linked to the development of the professional activities of which the income of the transparent company is derived, or to the natural persons whose artistic or sporting performances derive from them revenue for the transparent company or the revenue provided for in point (a) of that Article.

2. That the effective taxation of the Income Tax of the Physical Persons is lower than that of the Company Tax, in the terms that are regulated.

When the limit referred to in the preceding paragraph is operated, the excess of the payments to account imputed on the difference between the full share of the Company Tax and the deductions and deductions shall be deducted. bonuses referred to in Chapters II, III and IV of Title VII of Law 43/1995 of 27 December 1995 on Corporate Tax.

(d) The deductions referred to in Article 75.8 and Article 76.4 of this Law.

Article 66. Deduction for double taxation of dividends.

1. The amounts resulting from the application of the percentages set out below, in the case of the yields referred to in Article 23 (1) of this Law and the taxable base portion of a company, shall be deducted. transparent corresponding to those yields:

40 per 100, with a general character.

25 per 100 when, according to the aforementioned precept, it would have proceeded to multiply the yield by the percentage of 125 per 100.

0 per 100 when, according to the aforementioned precept, the yield was multiplied by the percentage of 100 per 100.

For the double taxation deduction corresponding to the returns of the protected and specially protected cooperatives, regulated by Law 20/1990, of 19 December, on the Tax Regime of the Cooperatives, will be attended to the provisions of Article 32 of that Law.

2. The basis for this deduction shall be the amount collected.

3. The amounts not deducted for insufficient liquid quota may be deducted in the following four years.

Article 67. Deduction for international double taxation.

1. Where the income of the taxpayer includes income or income earned and taxed abroad, the lower of the following amounts shall be deducted:

(a) The effective amount of the foreign satisfaction due to a personal tax on such income or property gains.

(b) The result of applying the rate of charge to the settled base part taxed abroad.

2. For these purposes, the rate of charge shall be the result of multiplying by 100 the ratio obtained from dividing the total liquid quota by the liquidable basis. To this end, the rate of charge corresponding to the income to be included in the general or special part of the tax base, as appropriate, must be differentiated.

The lien rate will be expressed with two decimal places.

TITLE VI

Family taxation

Article 68. Joint taxation.

1. Persons who are part of any of the following forms of family unit may be taxed together:

1. The one integrated by the spouses not legally separated and, if any:

(a) Children with the exception of those who, with the consent of the parents, live independent of them.

(b) Older children who are legally incapacitated subject to parental rights extended or rehabilitated.

2. In cases of legal separation, or where there is no marriage link, the one formed by the parent or the mother and all the children living together with one or the other and who meet the requirements referred to in Rule 1. Article.

2. No one can be part of two family units at the same time.

3. The determination of the members of the family unit shall be carried out on the basis of the situation as at 31 December of each year, except in the case of death during the year of any member of the family unit, in which case the other members of the family unit Members of the family unit may opt for joint taxation, including the income of the deceased.

Article 69. Option for joint taxation.

1. Natural persons integrated into a family unit may, in any tax period, choose to pay jointly in the Income Tax of the Physical Persons, in accordance with the general rules of the tax and the provisions of this Title, provided that all its members are taxpayers for this tax.

The option for joint taxation will not link for successive periods.

2. The option for joint taxation should cover all members of the family unit.

If one of them has an individual declaration, the other must use the same regime.

The option exercised for a tax period may not be modified after the end of the regulatory period for a declaration.

In the event of a lack of declaration, taxpayers will be taxed individually, unless they expressly express their choice within ten days of the tax administration's requirement.

Article 70. Rules applicable to joint taxation.

1. In joint taxation, the general rules of the tax on the determination of the income of the taxpayers, determination of the taxable and liquidable bases and determination of the tax liability, with the specialties that are set out in the following paragraphs.

2. The amounts and quantitative limits established for the purposes of individual taxation shall be applied in the same amount in the case of joint taxation, without any increase or multiplication depending on the number of members of the family unit.

However:

1. The maximum limit for the reduction of the tax base provided for in Article 46 (1) (b) of this Law shall be applied individually by each participating member or mutualist in the family unit.

2. In the first of the procedures for the family unit of Article 68 of this Law, the minimum staff provided for in Article 40 (2) of this Law shall be applied taking into account the circumstances of each of the spouses, with the minimum set of 1,100,000 pesetas.

3. In the second of the procedures for the family unit of Article 68 of this Law, the minimum staff provided for in Article 40 (2) of this Law shall be 900,000, 1,000,000 and 1,200,000 or 1,500,000 pesetas, respectively. Where the father and the mother live together, the minimum number of staff shall be that provided for in Article 40 (2) of this Law.

4. In no case shall the application of the minimum staff by the children be carried out, without prejudice to the amount of the minimum family.

3. In the case of joint taxation, it shall be compensable, in accordance with the general rules of the tax, for the property losses and general negative liquidable bases, carried out and not compensated by the taxpayer components of the family unit. in previous tax periods in which they have been individually taxed.

4. The same concepts determined in joint taxation will be compensable exclusively, in the case of subsequent individual taxation, by those taxpayers to whom they correspond according to the rules on the individualization of income contained in this Law.

5. Income of any kind obtained by natural persons integrated into a household which has opted for joint taxation shall be taxed cumulatively.

6. All members of the family unit shall be jointly and severally liable to the tax, without prejudice to the right to extend the tax liability to each other, according to the part of the income subject to each of them.

TITLE VII

Special Regimes

SECTION 1. ALLOCATION OF REAL ESTATE INCOME

Article 71. Imputation of real estate.

1. In the case of urban real estate, qualified as such in Article 62 of Law 39/1988, of December 28, regulating local farms, not affecting economic activities, nor generating income from capital property, excluding habitual dwelling and unbuilt soil, shall have the consideration of imputed income the amount that results from applying the 2 per 100 to the cadastral value, determined proportionally to the number of days corresponding to each tax period.

In the case of buildings whose cadastral values have been revised or modified, in accordance with the procedures laid down in Articles 70 and 71 of Law 39/1988, of 28 December, regulating local farms, and have entered into force from 1 January 1994, the income charged shall be 1,1 per 100 of the cadastral value.

If the property referred to in this section has not been notified to the owner of the tax, or the property has not been notified to the owner, it shall be taken as the basis for the allocation of the property 50 per 100 of the tax. which are to be computed for the purposes of the Heritage Tax. In these cases, the percentage will be 1.1 per 100.

In the case of buildings under construction and in cases where, for urban reasons, the property is not susceptible to use, no income shall be estimated.

2. These rents shall be charged to the holders of the immovable property in accordance with Article 7 of Law 19/1991 of 6 June of the Heritage Tax.

When there are real rights of enjoyment, the income that is computed for these purposes in the owner of the right will be the one that would correspond to the owner.

3. In the case of rights to take advantage of immovable property, the imputation shall be made to the holder of the actual right, in proportion to the liquidable basis of the Property Tax in accordance with the annual duration of the period of use.

Where the liquidable basis cannot be determined, the acquisition price of the right of use shall be taken as an imputation basis.

The property income shall not be imputed to the holders of rights to take advantage of real estate when its duration does not exceed two weeks per year.

SECTION 2. IMPUTATIONS IN THE TAX TRANSPARENCY REGIME

Article 72. Imputation of taxable bases.

1. The tax base, in accordance with Article 38 of the Law, will be charged by the taxpayers in the general part of the tax base with the tax base obtained by the transparent companies referred to in Article 75 of Law 43/1995, 27 of December, in the case of the Company Tax, in the proportion that results from the social statutes and, failing that, according to their participation in the social capital.

By way of derogation from Article 75.3 of the previous Act, to the taxable amount of the taxable amount corresponding to income earned from participation in own funds of any type of entity resident in the territory Article 23 (1) of this Law shall apply to the Spanish Government.

2. The allocation of positive tax bases for companies under tax transparency shall be made in the tax period in which the corresponding annual accounts have been approved. If they have not been approved within six months of the date of the closure of the social year, they shall be charged against the tax period in which the period expires.

However, the taxpayer may choose to charge them with the tax periods corresponding to the closing dates of the social exercises.

The option will be stated in the first tax return in effect, it must be maintained for three years and will not be able to produce as an effect that there are any tax bases left without computing in the declarations of the taxpayers.

Article 73. Imputation of other concepts.

Taxpayers referred to in the previous Article shall be entitled to imputation:

(a) The deductions and allowances in the quota to which the company is entitled. The bases of the deductions and bonuses will be integrated into the settlement of the taxpayers, minoring, if necessary, the quota according to the specific rules of this tax.

Deductions and bonuses will be jointly charged against the positive tax base.

(b) Of the instalments, retentions and income on account of the transparent company.

(c) Of the quota satisfied by the transparent company for the Company Tax, as well as the quota that has been imputed to that company, with the limit referred to in Article 65.c) of this Law.

Article 74. Individualisation.

The concepts set out in this section shall be attributed to natural persons who have the economic rights inherent in the quality of the partner on the day of the completion of the tax period of the transparent company.

SECTION 3. INTERNATIONAL TAX TRANSPARENCY

Article 75. Allocation of income in the international tax transparency regime.

1. The taxpayer shall charge the positive income obtained by a non-resident entity in Spanish territory, as soon as such income belongs to one of the classes provided for in paragraph 2 of this Article and the circumstances are fulfilled. following:

(a) Which on its own or in conjunction with related entities as provided for in Article 16 of Law 43/1995 of 27 December of the Company Tax, or with other taxpayers joined by kinship links, including the spouse, in direct or collateral line, consanguine or by affinity to the second degree inclusive, have a holding equal to or greater than 50 per 100 in the capital, own funds, results or voting rights of the institution not resident in Spanish territory, on the date of the closure of the latter's social exercise.

The participation of the non-resident related entities shall be computed by the amount of indirect participation that it determines in the persons or entities related to residents in Spanish territory.

The amount of the positive income to be included shall be determined in proportion to the participation in the results and, failing that, to the participation in the capital, own funds or voting rights of the entity.

(b) the amount satisfied by the non-resident entity in Spanish territory, attributable to one of the classes of income provided for in paragraph 2, by reason of a charge of a nature identical or similar to the Company Tax; is less than 75 per 100 of which it was in accordance with the rules of the said tax.

2. Only the positive income from each of the following sources shall be charged:

(a) Entitlement to rustic and urban real estate or real rights that fall upon them, except that they are affected by a business activity in accordance with the provisions of Article 27 of this Law or transferred to non-resident entities belonging to the same group of companies as the holder within the meaning of Article 42 of the Trade Code.

(b) Participation in own funds of any kind of entity and transfer to third parties of own capital, in accordance with Article 23 (1) and (2) of this Law.

The positive income from the following financial assets is not included in this letter:

a ') Those held to comply with statutory and regulatory obligations arising from the exercise of business activities.

b ') Those incorporating credit rights arising from contractual relations established as a result of the development of business activities.

c ') Those held as a result of the exercise of intermediation activities in official securities markets.

d') Those held by credit institutions and insurers as a result of the exercise of their business activities, without prejudice to point (c).

The positive income derived from the transfer to third parties of own capital shall be understood as arising from the carrying out of credit and financial activities referred to in point (c), where the transferor and the transferee belong to the a group of companies within the meaning of Article 42 of the Code of Commerce and the revenue of the transferee shall, at least 85 per 100, carry out the business activities.

(c) Credit, financial, insurance and service provision activities, except those directly related to export activities, carried out, directly or indirectly, with persons or entities resident in Spanish territory and linked within the meaning of Article 16 of Law 43/1995 of 27 December 1995 on the Tax on Societies, as soon as they determine tax deductible expenses in those resident persons.

No positive income shall be included where more than 50 per 100 of the income derived from credit, financial, insurance or service provision activities, except those directly related to activities of (a) export, made by the non-resident entity, from transactions carried out with persons or entities not related within the meaning of Article 16 of Law 43/1995 of 27 December 1995 on the Company Tax.

(d) Transmissions of the goods and rights referred to in points (a) and (b) that generate property gains and losses.

The income provided for in paragraphs (a), (b) and (d) above, obtained by the non-resident entity, shall not be included as soon as it comes from or is derived from entities in which it participates, directly or indirectly, in more than 5 per 100, when the following two requirements are met:

a ') That the non-resident entity directs and manages the units by means of the corresponding organisation of material and personal means.

b ') That the income of the entities from which the income is obtained shall be at least 85 per 100 for the business of the business.

For these purposes, it is understood that the income provided for in points (a), (b) and (d) of the business activities arising out of the business activities is derived from entities that meet the requirement of (b) above and are participated directly or indirectly by more than 5% by the non-resident entity.

3. The income provided for in points (a), (b) and (d) of the previous paragraph shall not be charged where the sum of the amounts is less than 15 per 100 of the total income or 4 per 100 of the total income of the non-resident entity.

The limits set out in the preceding paragraph may relate to the income or income obtained by the whole of the non-resident entities in Spanish territory belonging to a group of companies within the meaning of the Article 42 of the Trade Code.

In no case will an amount exceed the total income of the non-resident entity.

The tax or tax of an identical or similar nature to the Company Tax effectively satisfied by the non-resident company for the income to be included shall not be imputed to the taxpayer's tax base.

The positive income of each of the sources referred to in paragraph 2 shall be attributed to the general part of the tax base, in accordance with the provisions of Article 38 of this Law.

4. The taxpayers referred to in paragraph 1 (a) shall be required to participate directly in the non-resident entity or indirectly through another or other non-resident entities. In the latter case, the amount of the positive income shall be that corresponding to the indirect participation.

5. The imputation shall be made in the tax period comprising the day on which the non-resident entity in Spain has concluded its social exercise which, for these purposes, cannot be understood as a duration exceeding 12 months, unless the the taxpayer chooses to make such an inclusion in the tax period which includes the day on which the accounts for that financial year are approved, provided that no more than six months after the date of the conclusion of the agreement.

The option will be stated in the first tax return in which it has to take effect and must be maintained for three years.

6. The amount of the positive income to be charged in the tax base shall be calculated in accordance with the principles and criteria laid down in Law 43/1995 of 27 December of the Company Tax and the other provisions relating to the Corporation tax for the determination of the tax base. Total income shall mean the amount of the tax base resulting from the application of these same criteria and principles.

For these purposes, the exchange rate in force at the close of the social exercise of the non-resident entity in Spanish territory shall be used.

7. Dividends or shares in profits shall not be charged on the part corresponding to the positive income that has been charged. The same treatment will apply to dividends on account.

In the case of distribution of reserves, the designation contained in the social agreement will be considered, the last amounts paid to those reserves being applied.

A single positive income may only be imputed for one time, whatever form and entity in which it manifests.

8. The tax or levy effectively paid abroad by reason of the distribution of dividends or shares in profits shall be deductible from the liquid quota, in accordance with an agreement to avoid double taxation or with the domestic legislation of the country or territory concerned, in the part corresponding to the positive income included in the tax base.

This deduction will be applied even if the taxes correspond to tax periods other than that in which the inclusion was made.

In no case will the satisfied taxes be deducted in countries or territories that are regulated as tax havens.

This deduction may not exceed the full quota that in Spain would be payable for the positive income attributed to the tax base.

9. In order to calculate the income derived from the transmission of the direct or indirect participation, the rules contained in Article 35 (1) (c) of this Law, in relation to the positive income charged, shall be used in the tax base. The social benefits referred to in that provision shall be those corresponding to the positive income attributed.

10. The taxpayers to whom the provisions of this Article are applicable shall present together with the statement of the Income Tax of the Physical Persons the following data relating to the non-resident entity in Spanish territory:

a) Social name or reason and place of the registered office.

b) The relationship of administrators.

c) Balance sheet and profit and loss account.

(d) Amount of positive income to be charged.

e) Justification of the taxes satisfied with respect to the positive income to be imputed.

11. Where the participating entity is a resident of countries or territories that are regulated as tax havens, it shall be presumed that:

(a) The circumstance referred to in paragraph 1 (b) is fulfilled.

(b) The income obtained by the participating entity comes from the sources of income referred to in paragraph 2.

(c) The income obtained by the participating entity is 15 per 100 of the acquisition value of the holding.

The presumptions contained in the preceding letters will admit proof to the contrary.

The assumptions contained in the preceding letters shall not apply when the participating entity consolidates its accounts, as provided for in Article 42 of the Trade Code, with some or some of the entities forced to include.

12. The provisions of this Article shall be without prejudice to the provisions of international treaties and conventions which have become part of the internal order and in Article 2 of this Law.

SECTION 4. IMAGE COPYRIGHT

Article 76. Allocation of revenue by the transfer of image rights.

1. The amount referred to in paragraph 3 shall be charged by the taxpayer in its taxable base of the Income Tax on the Physical Persons:

(a) That they have granted the right to the exploitation of their image or have consented or authorized their use to another person or entity, resident or non-resident. For the purposes of this letter, it will be indifferent that the transfer, consent or authorisation would have taken place when the natural person was not a taxpayer.

b) To provide their services to a person or entity in the field of an employment relationship.

(c) The person or entity with whom the taxpayer maintains the employment relationship, or any other person or entity linked to them in the terms of Article 16 of Law 43/1995, of December 27, of the Tax on Companies, has obtained, by means of concerted acts with persons or entities resident or non-resident the cession of the right to the exploitation or the consent or authorization for the use of the image of the natural person.

2. The imputation referred to in the preceding paragraph shall not proceed when the performance of the work obtained in the tax period by the natural person referred to in the first subparagraph of the preceding paragraph under the employment relationship is not less than 85 per 100 of the sum of the above returns the total consideration by the person or entity referred to in point (c) of the preceding paragraph for the acts referred to therein.

3. The amount to be imputed shall be the value of the consideration which he has satisfied prior to the employment of the physical person's employment services or which the person or entity referred to in paragraph 1 (c) is required to satisfy. the acts referred to therein. This amount shall be increased by the amount of the revenue referred to in paragraph 9 and shall be reduced by the value of the consideration obtained by the natural person as a result of the transfer, consent or authorization to which the person is assigned. referred to in paragraph 1 (a), provided that the same has been obtained in a tax period in which the natural person who holds the image is a contributor to that tax.

4. 1. Where the imputation proceeds, it shall be deductible from the full quota of the Income Tax of the Physical Persons corresponding to the person referred to in the first subparagraph of paragraph 1:

(a) Tax or taxes of a nature identical or similar to the Income Tax of the Physical Persons or on Societies which, satisfied abroad by the person or entity not resident first transferee, corresponds to the part of the net income derived from the amount to be included in its tax base.

(b) The Income Tax of the Physical Persons or on Companies which, satisfied in Spain by the person or entity resident first transferee, corresponds to the part of the net income derived from the amount to be included in its tax base.

(c) The tax or levy actually paid abroad by reason of the distribution of dividends or shares in profits distributed by the first transferee, in accordance with an agreement to avoid double taxation taxation or in accordance with the domestic law of the country or territory concerned, in the part corresponding to the amount included in the tax base.

(d) The tax satisfied in Spain, where the natural person is not resident, corresponding to the consideration obtained by the natural person as a result of the first assignment of the right to the exploitation of his or her image consent or authorisation for use.

e) Tax or taxes of a nature identical or similar to the Income Tax of the Physical Persons satisfied abroad, corresponding to the consideration obtained by the natural person as a result of the the first assignment of the right to the exploitation of its image or of the consent or authorization for its use.

2. These deductions shall be made even if the taxes correspond to tax periods other than that in which the imputation was made.

In no case will the satisfied taxes be deducted in countries or territories that are regulated as tax havens.

These deductions may not, as a whole, exceed the full share corresponding to the income attributed to Spain in the tax base.

5. 1. The imputation shall be carried out by the natural person in the tax period corresponding to the date on which the person or entity referred to in paragraph 1 (c) is paid or satisfies the agreed consideration, unless that tax period the natural person is not a taxpayer for this tax, in which case the inclusion must be made in the first or in the last tax period for which he is to be taxed for this tax, as the case may be.

2. The imputation shall be carried out in the general part of the tax base, in accordance with the provisions of Article 38 of this Law.

3. For these purposes, the exchange rate in force shall be used on the day of payment or satisfaction of the agreed consideration by the person or entity referred to in paragraph 1 (c).

6. 1. No dividends or participations in profits distributed by the latter shall not be charged in the personal tax of the members of the first transferee in the part corresponding to the amount which has been imputed by the natural person to which he refers. the first subparagraph of paragraph 1. The same treatment will apply to dividends on account.

In the case of distribution of reserves, the designation contained in the social agreement will be considered, the last amounts paid to those reserves being applied.

2. º The dividends or shares referred to in the preceding number 1 shall not entitle the deduction by double taxation of dividends or the international double taxation deduction.

3. The same amount may only be charged for one time, whatever the form and the person or entity in which it manifests.

7. Where the imputation referred to in paragraph 1 has been made, the consent or authorization referred to in point (a) of that paragraph shall have been produced in favour of a company subject to the transparency regime by application of the provided for in Article 75 (1) (c) of Law 43/1995 of 27 December 1995 on Corporate Tax, and is, in turn, effected the transfer, consent or authorisation of the person or entity referred to in point (c) of that paragraph:

(a) The value of the consideration to be satisfied by the person or entity referred to in paragraph 1 (c) by the acts shall not be taken into account by the transparent company in the transparent society. indicated.

(b) The consideration of tax-deductible expenditure in the transparent society shall not be considered to be the consideration satisfied to the natural person referred to in the first subparagraph of paragraph 1.

8. The provisions of the foregoing paragraphs of this Article shall be without prejudice to the provisions of international treaties and conventions which have become part of the internal order and in Article 4 of this Law.

9. Where the imputation referred to in paragraph 1 applies, the person or entity referred to in point (c) of the same shall make an entry into account of the consideration in cash or in kind to persons or entities not residents for the acts mentioned there.

If the consideration is in kind, its valuation shall be carried out in accordance with the provisions of Article 44 of this Law, and revenue shall be applied to that value.

The person or entity referred to in point (c) of paragraph 1 shall make a statement of the income in the form, instalments and forms established by the Minister for Economic Affairs and Finance. At the time of filing the declaration you must determine your amount and make your income to the Treasury.

Reglamentarily the rate of income will be regulated.

TITLE VIII

Collective investment institutions

Article 77. Taxation of the partners or members of the collective investment institutions.

Taxpayers who are partners or members of the collective investment institutions regulated in Law 46/1984 of 26 December, regulatory of the Collective Investment Institutions, will charge in the general part or special tax base, in accordance with the provisions of this Law, the following income:

(a) The property gain or loss obtained as a result of the transmission of the shares or units or of the redemption of the shares. Where homogeneous values are present, those transmitted or reimbursed by the taxpayer shall be deemed to be those which he acquired in the first place.

(b) The results distributed by the collective investment institutions, which shall in no case be entitled to the double taxation of dividends referred to in Article 66 of this Law.

However, the application of the said deduction shall be applied in respect of dividends from movable or immovable investment companies to which the general rate of charge laid down in the Article 26 of Law 43/1995 of 27 December 1995 on Corporate Tax.

Article 78. Taxation of members or members of collective investment institutions incorporated in countries or territories which are regulated as tax havens.

1. Taxpayers who participate in collective investment institutions incorporated in countries or territories which are regulated as tax havens shall be charged on the general part of the tax base in accordance with the provisions of the Article 38 of this Law, the positive difference between the liquidative value of the participation on the day of the closing of the tax period and its acquisition value.

The amount charged will be considered as higher acquisition value.

2. The profits distributed by the collective investment institution shall not be imputed and shall bear the value of the acquisition of the holding. These benefits shall not be eligible for double taxation.

3. Unless otherwise tested, the difference referred to in paragraph 1 shall be presumed to be 15 per 100 of the acquisition value of the share or share.

TITLE IX

Tax Management

CHAPTER I

Statements

Article 79. Obligation to declare.

1. Taxpayers will be obliged to submit and sign a declaration for this tax, subject to the limits and conditions which they regulate.

2. However, without prejudice to the provisions of Article 81 of this Law, taxpayers shall not be required to declare income derived exclusively from the following sources:

(a) Job flows, with the limit of 3,500,000 gross annual pesetas in individual or joint taxation.

(b) Capital gains and capital gains subject to retention or income on account, with the limit of 250,000 pesetas per year.

(c) Real estate charges referred to in Article 71, with the limit to be established in a regulated manner.

3. The limit referred to in point (a) of paragraph 2 above shall be 1,250,000 pesetas for taxpayers who receive income from work coming from more than one payer and for those who receive compensatory pensions received from the spouse or annuities for food other than those provided for in Article 7 (k) of this Law.

4. In any case, they shall be obliged to declare taxpayers who are entitled to a deduction for investment in housing, double taxation internationally or who make contributions to Pension Plans or Social Welfare Mutual Insurance schemes which reduce the tax base, under the conditions laid down in regulation.

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

6. The Minister for Economic Affairs and Finance may approve the use of simplified or special declarations.

The declaration will be made in the form, deadlines and forms established by the Minister of Economy and Finance.

Taxpayers must complete all the data that affects them contained in the declarations, accompany the documents and supporting documents to be established and present in the places to be determined by the Minister of State. Economy and Finance.

7. The successors of the deceased will be obliged to comply with the tax obligations outstanding for this Tax, excluding the penalties, in accordance with Article 89.3 of Law 230/1963 of December 28, General Tax.

8. Where taxpayers have no obligation to declare, public administrations may not require the provision of declarations for this tax in order to obtain grants or any public benefits, or in any way conditions for the submission of such declarations.

9. The General Budget Law of the State may amend the provisions of the previous paragraphs.

Article 80. Autoliquidation.

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

2. The revenue from the amount resulting from the reverse charge may be split in the form that it is determined.

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

4. The successors of the deceased will be obliged to comply with the tax obligations outstanding for this tax, excluding the penalties, in accordance with Article 89.3 of Law 230/1963 of December 28, General Tax.

5. In the case provided for in Article 14 (4) of this Law, the successors of the deceased may request the tax authorities to split the part of the tax liability corresponding to the income referred to in that provision, calculated applying the rate laid down in Article 67.2 of this Law.

The application shall be made within the statutory period of the declaration relating to the death tax period and shall be granted on the basis of the tax periods to which the said income is to be charged in case of the fact that the latter had not been produced with the maximum limit of four years under the conditions to be determined by regulation.

Article 81. Data communication by the taxpayer and return request.

1. Taxpayers who do not have to make a declaration for this tax, in accordance with Article 79.2 of this Law, and who have incurred withholding and income on account and made payments in excess of the total liquid quota the amount of the double taxation deductions and international tax deductions may direct a communication to the tax administration requesting the return of the amount resulting from it.

For such purposes, the tax administration may require taxpayers to submit a communication and the information and documents that are necessary for the practice of the return.

2. The communication models shall be approved by the President of the State Tax Administration Agency, who shall establish the time limit and the place of his presentation. It shall also determine the assumptions and conditions for the submission of communications by telematic means and the cases in which the data communicated shall be understood to be subsist for successive years, if the taxpayer does not communicate change in the "

3. The tax authorities shall, where appropriate, in the light of the communication received and the data and background in their possession, carry out, where appropriate, the refund resulting from the taxpayer. For information purposes only, the result of the calculations made shall be communicated to the contributors by the means which they regulate.

Received the refund or, if appropriate, after the deadline for making it, the taxpayers may request, within the following three months, that the Administration practice a provisional settlement, according to In accordance with Article 84 (2) of this Law and Law 230/1963 of 28 December, General Tax. The notification may not involve any obligation under the taxpayer other than the refund of the previously returned interest plus the interest on late payment referred to in Article 58.2.b) of the General Tax Act. This same regime will also be subject to taxpayers who have obtained returns in excess of those that correspond to them.

4. The procedure, as well as the time limit and the form of payment of the refund referred to in this Article, shall be determined in accordance with the rules.

After the deadline for the refund without the payment for cause attributable to the tax administration, the interest of the delay referred to in Article 58.2 (c) shall be applied to the outstanding amount. of Law 230/1963 of 28 December, General Tax, from the day following the end of that period and until the date on which payment is ordered, without the need for the taxpayer to claim it.

5. Notwithstanding the foregoing, the tax administration shall determine the quotas referred to in Article 64 of this Law, to the sole effect of complying with the provisions of Article 3 (b) 2. of Law 14/1996, of 30 of In December, the State of Taxation of the State to the Autonomous Communities and of Complementary Fiscal Measures.

CHAPTER II

Payments to account

Article 82. Obligation to make payments on account.

1. In the Tax on the Income of the Physical Persons, the payments to account that, in any case, will have the consideration of tax liability, may consist of:

a) Retentions.

b) Income on account.

c) Fracked payments.

2. Entities and legal persons, including entities in the allocation of income, who satisfy or pay income subject to this tax, shall be obliged to carry out withholding tax and income in respect of payment of the tax on The Income of the Physical Persons corresponding to the recipient, in the amount that is determined to be regulated and to enter the amount in the Treasury in the cases and in the form that are established. Taxpayers shall be subject to the same obligations as taxable persons who carry out economic activities in respect of income which they satisfy or pay in the exercise of those activities, as well as natural, legal and other persons. entities not resident in Spanish territory, operating in the Spanish territory by way of permanent establishment, or without permanent establishment in respect of the performance of the work they satisfy, as well as other yields subject to retention or income as a deductible expense for the collection of the income to which it refers Article 23 (2) of Law 41/1998 of the Income Tax of Non-Residents and Tax Rules.

When an entity, resident or non-resident, satisfies or pays income from the work to taxpayers who provide their services to a resident entity linked to that entity in the terms provided for in Article 16 of the Act 43/1995, of 27 December, of the Company Tax, or permanent establishment situated in Spanish territory, the entity or the permanent establishment in which the taxpayer provides its services, must carry out the retention or the income to account.

3. The income derived from the Treasury bills and the transmission, redemption or redemption of the securities of public debt that prior to the entry into force of this Law were not subject to withholding shall be withheld. Regulations may be exempted from withholding or taking into account certain income.

4. In any case, the persons required to retain or to enter into account shall assume the obligation to make the entry into the Treasury, without the failure of that obligation to excuse them from this.

5. The recipient of income on which this tax is to be withheld shall be calculated by the full consideration.

When the retention has not been practiced or has been for an amount less than due, for cause imputable to the retainer or obliged to enter into account, the recipient will deduct from the quota the amount that must have been retained.

In the case of legally established remuneration that would have been met by the public sector, the recipient will only be able to deduct the amounts actually withheld.

When the full consideration cannot be proven, the tax administration may compute as an amount in full an amount that, once the withholding tax has been deducted from it, yields the effectively perceived amount. In this case, the difference between what was actually perceived and the full amount will be deducted from the quota.

6. Where there is an obligation to enter into account, it shall be presumed that such entry has been made. The taxpayer shall include in the tax base the valuation of the remuneration in kind, in accordance with the rules laid down in this Law and the income to be taken into account, unless it has been passed on to it.

7. Taxpayers who carry out economic activities shall be obliged to make payments on account of the income tax of the physical persons, self-employed and entering their amount under the conditions which they regulate. determine.

This obligation may be exempted from this obligation to those taxpayers whose income has been subject to withholding or income on account of the percentage that is set for that purpose.

The split payment for entities under the income allocation scheme, which shall carry out economic activities, shall be made by each of the partners, heirs, community members or unit-holders, to whom the income is to be attributed. of this nature, in proportion to its participation in the profit of the entity.

Article 83. Maximum amount of payments on account.

1. Deductions and income on account of income from work arising from employment or statutory and pension relationships and liabilities shall be determined by reference to the amount which would result from the application of the fees to the base of the withholding or income to account.

In job yields other than previous ones, the percentage of retention or income on account may not exceed 40 per 100.

2. The percentages of withholding taxes and income on account that are regulated on the basis of capital returns shall not exceed 25 per 100.

3. The percentages of withholding taxes and income on account which are fixed in a regulation on income derived from economic activities shall not exceed 20 per 100.

4. The percentages of deductions and income on account that are regulated on the basis of property gains shall not exceed 20 per 100.

5. The percentages, which are to be determined in accordance with the rules, of the instalments to be paid by taxpayers engaged in economic activities, shall not exceed the following limits:

(a) When calculated on the basis of the net income of the activity, 20 per 100.

b) When calculated based on the volume of revenue or sales of the activity, 5 per 100.

CHAPTER III

Provisional Liquidations

Article 84. Provisional settlement.

1. The tax management bodies may turn the provisional settlement as appropriate in accordance with the provisions of Article 123 of Law 230/1963 of 28 December, General Tax.

2. Notwithstanding the provisions of Article 81 (3) of this Law, taxpayers who do not have to make a declaration under Article 79.2 of this Law shall only be subject to the provisional liquidation of their own office referred to in paragraph 1. above, in the following cases:

(a) Where the data provided by the taxpayer to the payer of income from the work are false, incorrect or inaccurate, having, as a consequence, a lower withholding tax than would have been from.

For the practice of this provisional settlement only holds that are derived from the data provided by the taxpayer to the payer will be computed.

(b) Where, without the provision in the preceding subparagraph, the communication provided for in Article 81 of this Law contains false, incorrect or inaccurate information or has been omitted from the information to be included in the letter.

3. The provisional liquidations referred to in the second paragraph of Article 81.3 of this Law shall not apply to them as laid down in Article 123.3 of Law 230/1963 of 28 December, General Tax.

4. The provisions of the foregoing paragraphs shall be without prejudice to the subsequent verification and investigation which the tax administration may carry out.

Article 85. Return of trade to taxpayers obliged to declare.

1. Where the sum of the deductions, revenue to account and broken payments is greater than the amount of the quota resulting from the reverse charge, the tax administration shall, where appropriate, carry out provisional liquidation within six months of the months following the end of the period laid down for the submission of the declaration.

When the declaration has been filed out of time, the six months referred to in the preceding paragraph shall be computed from the date of its filing.

2. Where the quota resulting from the reverse charge or, where appropriate, the provisional liquidation, is less than the sum of the amounts actually withheld and the payments to be made, the tax authorities shall return ex officio the excess over the said quota, without prejudice to the practice of subsequent provisional or definitive liquidations, which proceed.

3. If the provisional liquidation has not been carried out within the period laid down in paragraph 1 above, the tax administration shall, without prejudice to the practice of the tax administration, return the excess over the autoliquid quota. provisional or final settlement which may result.

4. After the period laid down in paragraph 1 of this Article without the payment of the refund for reasons not attributable to the taxpayer being ordered, the amount to be repaid shall be applied to the amount of the interest for the delay referred to in the Article 58 (2) (c) of Law 230/1963 of 28 December, General Tax, from the day following that of the term of that period and until the date on which the payment is ordered, without the need for the taxpayer to claim it.

5. The procedure and the method of payment of the return of trade referred to in this Article shall be determined.

CHAPTER IV

Formal Obligations

Article 86. Formal obligations of taxpayers.

1. The taxpayers of the Income Tax of the Physical Persons shall be obliged to keep, during the limitation period, the supporting documents and documents of the operations, income, expenses, income, reductions and deductions of any type to be recorded in their declarations.

2. For the purposes of this Law, taxpayers who carry out business activities whose performance is determined by direct estimation shall be obliged to keep accounts in accordance with the provisions of the Trade Code.

However, regulations may be exempted from this obligation to taxpayers whose business activity is not mercantile in accordance with the Trade Code, and to those taxpayers who determine their business. Net performance by the simplified mode of the direct estimation scheme.

3. Also, the taxpayers of this tax will be obliged to take in the form that is determined by the Minister of Economy and Finance the books or records that they regulate are established.

4. Specific obligations for information of a patrimonial nature may be established, at the same time as the declaration of the Income Tax on the Income of the Physical Persons or the Tax on the Heritage, which is intended for the control of the income or use of certain goods and the rights of the taxpayer.

Article 87. Formal obligations of the retainer, of the obligation to practice income on account and other formal obligations.

1. The taxable person shall, within the time limits, form and places to be established, make a statement of the amounts withheld or payments to be made, or a negative statement if the person is obliged to keep and practice income. they have carried out the practice of the same. It shall also provide an annual summary of withholding and revenue in accordance with the content to be determined by regulation.

The subject obliged to retain and practice income on account will be obliged to keep the relevant documentation and to issue, under the conditions that are regulated, certification of the withholding tax. or revenue to be made.

The corresponding declaration models will be approved by the Minister of Economy and Finance.

2. Regulations may provide for the provision of information to persons and entities who develop or are in the following operations or situations:

(a) For lenders, in relation to mortgage loans granted for the acquisition of homes.

(b) For institutions that pay income from work or capital not subject to retention.

c) For legal entities and entities that satisfy prizes, even if they have the consideration of exempt income for tax purposes.

(d) For entities receiving donations giving the right of deduction for this tax, in relation to the identity of the donors, as well as the amounts received, where they have applied for accreditative certification of the donation for the purposes of the declaration by this tax.

e) For the National Agency for Lotteries and Gambling of the State, the Autonomous Communities, the Red Cross and the National Organization of the Blind, in respect of prizes that are exempt from the Income Tax of Persons Physical.

TITLE X

Heritage liability and sanctioning regime

Article 88. Taxpayer's equity liability.

The tax debts for the Income Tax of the Physical Persons will have the same consideration as those referred to in Article 1365 of the Civil Code and, consequently, the ganancial goods will respond directly (a) to the public finances for these debts, which are incurred by one of the spouses, without prejudice to the provisions of Article 70 (6) of this Law for the joint taxation case.

Article 89. Infringements and sanctions.

1. The tax infringements in this tax will be qualified and punished according to the provisions of Law 230/1963 of 28 December, General Tax, without prejudice to the specialties provided for in this Law.

2. It constitutes a simple infringement, the incorrect conduct of the communications provided for in Article 81 of this Law.

3. It constitutes a serious infringement to cease to communicate or to communicate to the payer of returns subject to withholding or income to account false, incorrect or inexact determinants of withholding or income to account inferior to those coming.

This infringement shall be punishable by a proportional pecuniary fine of 50 to 150 per 100 of the difference between the withholding or entry into account and that actually practised as a result of the application of such data and without the sanction being less than 10,000 pesetas.

Taxpayers shall report to the payer of income subject to withholding or income from whom the determining circumstances for the calculation of the withholding or income from the withholding tax are discernible. terms to be established regulatively.

TITLE XI

Jurisdictional Order

Article 90. Court order.

The judicial-administrative jurisdiction, prior to the exhaustion of the economic-administrative path, will be the only competent authority to settle disputes in fact and in law that arise between the tax administration and the taxpayers, retainers and other tax payers in relation to any of the matters referred to in this Law.

Additional disposition first. Remuneration in kind.

They will not have the consideration of remuneration in kind, the interest rate loans lower than the legal of the money previously agreed to 1 January 1992 and whose principal would have been made available to the a borrower also before that date.

Additional provision second. Transfers of securities or units not admitted to trading after a reduction of capital.

1. Where, prior to the transfer of securities or units not admitted to trading in any of the official secondary markets of Spanish securities, a reduction in the capital was produced by means of a reduction of the nominal value that does not affect all the securities or units in circulation of the taxpayer, the rules provided for in Section 4. of Chapter I of Title II of this Law shall apply, with the following specialties:

1. The value of the transmission shall be considered to be the value of the nominal value resulting from the application of the provisions of Article 31 (3) (a) of this Law.

2. In the event that the taxpayer has not transmitted all of its securities or units, the positive difference between the transmission value corresponding to the nominal value of the securities or shares/units The value of the transfer, as referred to in the preceding paragraph, shall be subject to the acquisition value of the remaining homogeneous securities or units until its cancellation. The excess that could be taxed as a wealth gain.

2. The rules laid down in the preceding paragraph shall apply in the case of transfers of securities or shares in the capital of transparent companies.

Additional provision third. State Tax Administration Agency.

1. The State Tax Administration Agency is an entity governed by public law, with its own legal personality and its own patrimony, acting with autonomy of management and full legal, public and private capacity, in the fulfilment of its aims.

2. The Agency shall govern its performance and operation in accordance with Article 103 of Law 31/1990 of 27 December 1990 on the General Budget of the State for 1991, its Organic Statute and other specific rules.

Additional provision fourth. Information by telematic means.

Prior authorization of the interested parties and in the terms and with the guarantees to be established by Order of the Minister of Economy and Finance, the information of a tax nature that the public administrations need the development of its functions may be provided to those directly by the State Agency of Tax Administration by means of computer or telematic means, in the framework of collaboration established. Likewise, the provision of information in the cases provided for in Article 113.1 of Law 230/1963 of 28 December, General Tax, may be regulated in the Order cited.

To the extent that through the indicated framework of collaboration public administrations may have such information, the interested parties who individually provide certifications issued by the Agency will not be required State of Tax Administration, nor the presentation, in original, copy or certification, of its tax declarations.

Additional provision fifth. Data collection.

The Minister of Economy and Finance, prior to the report of the Data Protection Agency, will propose to the government the precise measures to ensure the collection of working data in any kind of public registration or registration of public administrations, which are necessary for the management and control of the tax.

Additional provision sixth. Permanent Cameral Resource.

The levy of the Permanent Cameral Resource referred to in Article 12 (1) (b) of Law 3/1993, of 22 March, Basic of the Official Chambers of Commerce, Industry and Navigation, shall be based on the (a) income under Section 3 of Chapter I of Title II of this Law, where they are derived from activities included in Article 6 of Law 3/1993, of 22 March, Basic of the Official Chambers of Commerce, Industry and Navigation.

Additional provision seventh. Regulatory referrals of the Corporate Tax Act.

The references made by Law 43/1995, of December 27, of the Tax on Societies, to Law 18/1991, of 6 June, of the Tax on the Income of the Physical Persons, shall be construed as references to the precepts corresponding to this Law.

Additional disposition octave. Regulatory referrals of the Law on the Regulation of Pension Plans and Funds.

The references made by Law 8/1987, of 8 June, of Regulation of the Pension Plans and Funds, to Law 18/1991, of 6 June, of the Tax on the Income of the Physical Persons, shall be construed as references to the precepts corresponding to this Law.

Additional provision ninth. Regulatory referrals of the Law on the Law of Taxation of the State to the Autonomous Communities and of Complementary Fiscal Measures.

The references to Law 18/1991, of 6 June, of the Tax on the Income of the Physical Persons, made by Law 14/1996, of December 30, of cession of taxes of the State to the Autonomous Communities and of Fiscal Measures Supplementary shall be construed as references to the relevant provisions of this Law.

Additional provision 10th. Regulatory referrals of the Law on the Management and Supervision of Private Insurance.

The references contained in Law 30/1995, of 8 November, of Management and Supervision of Private Insurance, to Law 18/1991, of 6 June, of the Income Tax of the Physical Persons, shall be construed as Corresponding provisions of this Law.

Additional provision eleventh. Amendment of the transitional arrangements for the accommodation of pension commitments.

First. New wording is given to paragraph 5 of the transitional provision 15th of Law 30/1995 of 8 November of the Management and Supervision of Private Insurance, which shall be worded as follows:

" Employers or institutions covered by this transitional regime, who have implemented pension commitments with their employees and integrated their resources into a pension scheme, will implement the obligations (a) in respect of pensioners or beneficiaries prior to the formalisation of the plan, either through the scheme or through collective insurance.

In the case of integrating these beneficiaries into the pension scheme, subsequent contributions will be eligible for adequate coverage of the benefits, provided that they are incorporated into the relevant pension scheme. rebalance and this is in line with the legislation applicable to it.

The contributions and insurance contract premiums paid to meet these benefits will not require the tax allocation to the beneficiaries concerned, being the subject of deduction in the personal tax. of the sponsor in the terms set out in paragraph 1 of the transitional provision sixteenth.

The tax regime provided for in this paragraph shall also apply to premiums for insurance contracts which are satisfied for the coverage of benefits in respect of retired persons or beneficiaries under this scheme. transitional, even if employers or institutions have not implemented pension commitments with their employees in the form of an occupational pension scheme, unless the undertakings or entities are covered by the derogation provided for in the paragraph 2 of the transitional provision fourteenth. '

Second. A new paragraph is added to the first paragraph of the transitional provision sixteenth of Law 30 /l995 of 8 November of the Management and Supervision of Private Insurance, with the following wording:

" The tax regime provided for in this paragraph shall be applicable in relation to the contributions made by undertakings to social welfare insurance companies formalised through insurance contracts or insurance benefits of the mutual funds that meet the requirements of Article 46 of Law 40/1998, the Income Tax of the Physical Persons and other Tax Rules, made to comply with the provisions of the transitional provisions fourteenth and fifteenth of this Law, provided that such contributions correspond to rights for past services recognised in accordance with the limits laid down for pension schemes in the transitional provision fifteenth, fourth paragraph, and in their regulatory development. '

Additional disposition twelfth. Table of holds on work yields and fractional payments on yields of economic activities in objective estimation.

1. Before 15 January 1999, the Government shall approve the withholding tables applicable in the 1999 financial year to the income of the work, taking into account the rate and the personal and family circumstances of the recipient.

2. The government will adapt the payments made by the taxpayers under the objective estimate of the income tax of the physical persons, with a maximum reduction of twenty-five percent.

Additional disposition thirteenth. Amendment of the Insurance Premium Tax.

A new letter (i) is added to Article 12 (1) (1) (1) of Law 13/1996, of 30 December, of Fiscal, Administrative and Social Order Measures, with the following wording:

"i) Health care and disease insurance operations."

Additional disposition fourteenth. Reporting obligations.

1. Regulations may provide for the provision of information to the management companies of collective investment institutions in connection with the operations relating to shares or units of such institutions, including the information that they have relative to the results of the operations of purchase and sale of the same.

2. The taxpayers for the Income Tax of the Physical Persons or for the Company Tax shall provide information, in the terms that they regulate, in relation to the operations, situations, charges and payments made or derived from the holding of securities or related assets, directly or indirectly, with countries or territories that are regulated as tax havens.

Additional provision 15th.

New wording is given to Article 113 (1) of Law 230/1963 of 28 December, General Tax:

" 1. The data, reports or records obtained by the tax authorities in the performance of their duties are reserved and may be used only for the effective application of the taxes or resources assigned to them, without which they may be transferred or communicated to third parties, unless the assignment is intended to:

(a) The investigation or prosecution of public crimes by the courts or the Public Ministry.

b) Collaboration with other tax administrations for the purpose of fulfilling tax obligations in the field of their competences.

c) Collaboration with the Labour and Social Security Inspectorate and the Social Security Management and Common Services Entities in the fight against fraud in the listing and collection of the system's quotas. Social security, as well as in obtaining and enjoying benefits in charge of the same system.

d) Collaboration with any other public administrations for the fight against fraud in obtaining or receiving grants or grants from public funds or from the European Union.

e) The collaboration with the parliamentary committees of inquiry in the legally established framework.

f) The protection of the rights and interests of minors and disabled by the courts or the Public Ministry.

g) Collaboration with the Court of Auditors in the exercise of its oversight functions of the State Tax Administration Agency.

h) The collaboration with the Judges and Courts for the execution of firm judicial decisions.

The judicial request for information will require express resolution, in which it will be weighed against the public and private interests affected in the case in question and the other means or sources of knowledge have been exhausted. on the existence of assets and rights of the debtor, the need to collect data from the tax administration is motivated. "

Additional provision sixteenth. Mutual benefit of employed persons.

They may reduce the general portion of the tax base, as provided for in Article 46 of this Law, of the amounts paid under insurance contracts, which are agreed by workers ' social security contributions. As a supplementary pension system, where previously, for at least one year on the terms which are to be regulated, these same mutualists have made contributions to the same mutual funds, according to the provided for in the fifth transitional provision and the additional 15th of the Law 30/1995 of 8 November 1995 for the Management and Supervision of Private Insurance, and provided that there is an agreement between the corresponding bodies of the mutual society which only allows the benefits to be paid when the same contingencies are met provided for in Article 8.6 of Law 8/1987 of 8 June of Regulation of Pension Plans and Funds.

Additional 17th disposition. Pension schemes and Social Welfare Mutual Social Welfare schemes constituted in favour of people with disabilities.

From 1 January 1999, contributions may be made to pension schemes in favour of persons with a disability level of 65 per 100 or more. The financial and tax arrangements for pension schemes with the following specialties will apply to them:

1. Contributions to the pension scheme may be made by both the disabled person himself or persons who have a direct or collateral relationship with the pension scheme up to and including the third degree. In the latter case, people with disabilities will have to be designated as beneficiaries in a unique and irrevocable way for any contingency. However, the death contingency of the disabled person may give rise to the right to benefits, orphans or those who have made contributions to the disability pension scheme in proportion to their contribution.

Such contributions will not be subject to the Succession and Donation Tax.

2. As a ceiling for contributions, for the purposes of Article 5.3 of Law 8/1987 of 8 June of Regulation of the Pension Plans and Funds, the following amounts shall apply:

(a) The maximum annual contributions made by the disabled persons shall not exceed the amount of £ 2,200,000.

(b) The maximum annual contributions made by each participant in favour of persons with disabilities linked to a relationship of kinship may not exceed the amount of 1.100,000 pesetas. This is without prejudice to the contributions which it may make to its own pension scheme, in accordance with the limit laid down in Article 5.3 of Law 8/1987, on the Regulation of Pension Plans and Funds.

(c) The maximum annual contributions to pension schemes made in favour of a person with disabilities, including their own contributions, may not exceed the amount of £ 2,200,000.

The failure to comply with these limits will be the subject of the sanction provided for in Article 36.4 of Law 8/1987 of 8 June, of Regulation of Pension Plans and Funds. For these purposes, when several contributions are made in favour of the disabled, the limit of 2 000 pesetas shall be understood to be covered, first, with the contributions of the disabled person himself and where they do not exceed that limit, with the other contributions, in proportion to their size.

The acceptance of contributions to a pension scheme, on behalf of the same disabled beneficiary, above the limit of 2,200,000 pesetas per year, shall be considered as a very serious infringement, as provided for in the Article 35 (3) (n) of Law 8/1987 on the Regulation of Pension Plans and Funds.

3. The benefits of the pension scheme must be in the form of income, unless, in exceptional circumstances, and in the terms and conditions which are regulated, they may be perceived as capital.

4. Regulations may lay down specifications in relation to the contingencies for which benefits may be satisfied, as referred to in Article 8.6 of Law 8/1987 of 8 June of Regulation of the Plans and Funds of the European Communities. Pensions.

5. The cases in which the consolidated rights in the pension scheme may be made effective by persons with disabilities may be determined in accordance with the provisions of Article 8 (8) of Law No 8/1987 of 8 May 1987. June, Regulation of the Pension Plans and Funds.

6. Contributions made to pension schemes, as provided for in this provision, may be reduced in the general part of the taxable income tax base of the Physical Persons with the following maximum limits:

(a) The annual contributions made by each participant in favour of persons with disabilities with whom there is a relationship of kinship, with the limit of 1,100,000 pesetas per year. This is without prejudice to the contributions they may make to their own pension schemes, in accordance with the limits laid down in Article 46 of this Law.

(b) The annual contributions made by the disabled persons, subject to the limit of 2,200,000 pesetas per year.

All the reductions made by all persons making contributions in favour of the same disabled person, including those of the disabled person himself, may not exceed 2,200,000 pesetas per year. For these purposes, when several contributions are made in favour of the disabled, the contributions made by the disabled person must be reduced, and only if they do not reach the limit of 2 200 000 pesetas. (a) the Commission may, in accordance with Article 1 (1) (a) of Regulation (EU) No No 1, of the European Parliament and of the Commission of the European Parliament and of the European Parliament, of the European Parliament and of the European Parliament, of the European Parliament and of the European Parliament, Contributions in favour of a disabled person may exceed 2 000 pesetas.

7. Income from work resulting from benefits obtained in the form of income by persons with disabilities, corresponding to the contributions to which this provision relates, shall enjoy a reduction in the tax on the Income of the Physical Persons up to a maximum amount of two times the minimum interprofessional salary.

In the case of benefits received in the form of capital by persons with disabilities corresponding to the contributions referred to in this provision, the reduction provided for in Article 17 (2) (b) of this Law shall be 50 per 100, provided that more than two years have elapsed since the first contribution.

8. The arrangements laid down in this additional provision shall apply to contributions to Social Welfare Mutual Funds made as from 1 January 1999 and benefits from such contributions in favour of disabled persons who fulfil the requirements laid down in this Directive. in the previous paragraphs. In such a case, the limits established by this provision will be sets for the contributions of Pension Plans and Social Welfare Mutuals.

The provision of consolidated rights in cases other than those provided for in this additional provision shall have the consequences provided for in the second paragraph of Article 46.1.3 (b) of this Law.

18th additional disposition. Information with tax implications.

When in application of the provisions of Article 116 of Law 13/1995, of 18 May, of Contracts of the Public Administrations, the successful tenderer has the partial performance of the contract with third parties, the Administration The following information is required to be provided to the State Tax Administration Agency:

a) Identification of the subcontractor.

b) Identification of the parts of the contract to be performed by the subcontractor.

c) Amount of subcontracted capabilities.

This information must be supplied within five days, computed from the time the contractor's communication takes place to the Administration, as set out in paragraph 2.a) of the aforementioned legal text.

Additional 19th disposition. Forest incomes.

They will not be integrated into the tax base of the Income Tax of the Physical Persons, the grants awarded to those who exploit forest farms managed in accordance with technical plans for forest management, montes, dasocratic plans or afforestation plans approved by the competent forest administration, provided that the average production period, according to the species concerned, determined in each case by the forest administration competent, shall be equal to or greater than twenty years.

The Government shall develop an objective estimation regime in the Income Tax of Physical Persons for the determination of net yield derived from forest holdings that meet the requirements set out above. in the preceding paragraph.

320th additional disposition. Binding nature of the replies to certain consultations on the application of the Income Tax of the Physical Persons.

During the first six months of 1999, the tax administration will be able to ask the tax administration, whose response will be binding on the tax administration, on the application of the Income Tax of the Physical Persons, under the conditions and with the following requirements:

First. Consultations may be conducted exclusively by professional bodies, official chambers, employers ' organisations, trade unions, consumer associations, business associations and professional organisations, as well as by the federations. which bring together the organisations or entities referred to above, where they relate to issues affecting the generality of their members or partners.

Second. The Directorate-General for Taxation will reply to the consultations that are made in the above terms, by resolution, which will be communicated to the consulting entity and published in the "Official Gazette of the Ministry of Economy and Finance".

Third. The presentation, processing and defence of these consultations, as well as the effects of their reply, shall be governed by the provisions of Royal Decree 404/1997 of 21 March 1997 laying down the arrangements applicable to consultations whose The answer must be binding on the tax administration.

Additional twenty first disposition. Aid to the usual housing received in 1998.

Public aid received during 1998 as compensation for structural defects in the construction of the usual dwelling and intended for repair may be charged by fourths in the tax period. in which they are obtained and in the following three.

Additional twenty-second disposition. Subsidies for Community agricultural policy and public aid.

1. Positive income tax or corporate income tax shall not be included in the tax base of the Income Tax or Corporate Income Tax which is shown as a consequence of:

(a) The perception of the following Community agricultural policy aid:

1. The definitive abandonment of vineyard cultivation.

2. º Prima at the start of apple plantations.

3. Prima at the start of plataneras.

4. The definitive abandonment of milk production.

5. The definitive abandonment of the cultivation of pears, peaches and nectarines.

6. Grubbing of pears, peaches and nectarines.

b) The perception of the following aid from the Community fisheries policy: definitive abandonment of fishing activity.

(c) The collection of public aid to repair the destruction, fire, flood or collapse of property assets affected by the exercise of economic activities.

2. In order to calculate the income which will not be included in the tax base, account shall be taken of both the amount of aid received and the property losses which, where appropriate, are incurred in the elements affected by the activities. Where the amount of such aid is less than that of the losses incurred in the abovementioned elements, the negative difference may be incorporated in the tax base. Where there are no losses, only the amount of the aid shall be excluded.

First transient disposition. Exemption by reinvestment in the Income Tax of the Physical Persons.

The income from the reinvestment exemption provided for in Article 127 of Law 43/1995 of 27 December of the Company Tax will be regulated by the provisions of the provisions of this Regulation, even if the reinvestment takes place in tax periods initiated as from 1 January 1999.

Second transient disposition. Tax value of collective investment institutions incorporated in countries or territories qualified as tax havens.

1. For the purposes of calculating the excess of the liquidative value referred to in Article 78 of this Law, the value of the acquisition shall be the first day of the first tax period to which this Law applies, in respect of the shares and shares held by the taxpayer. The difference between that value and the effective acquisition value shall not be taken as the acquisition value for the purposes of determining the income derived from the transmission or redemption of the shares or units.

2. Dividends and participations in profits distributed by collective investment institutions, which derive from profits made prior to the entry into force of this Law, shall be integrated into the taxable base of the members or Member of the European

For these purposes, the first distributed reserves will be understood to have been endowed with the first benefits gained.

Transitional provision third. Transitional arrangements applicable to social security funds.

1. Retirement and invalidity benefits arising from insurance contracts concluded with social security mutual societies whose contributions, made prior to the entry into force of this Law, have been subject to a minimum sentence of at least Part of the tax base will have to be incorporated into the tax base of the tax on income from work.

2. The integration shall be made in so far as the amount received exceeds the contributions made to the mutual fund which have not been the subject of reduction or reduction in the tax base of the tax in accordance with the legislation in force in each Member State. time and, therefore, have been previously taxed.

3. If the amount of contributions which have not been the subject of reduction or reduction in the tax base cannot be credited, 75 per 100 of the pension or invalidity benefits received shall be included.

Transitional disposition fourth. Compensation for deductions on housing acquisition and leasing.

1. The General Budget Law of the State will determine the procedure and conditions for the perception of economic compensation in the following cases:

(a) Taxpayers who had acquired their habitual residence before 4 May 1998 and were entitled to the deduction for purchase of housing, in the event that the application of the scheme established in the This law is less favourable to them than the one regulated in Law 18/1991 of 6 June of the Income Tax of the Physical Persons.

(b) Taxpayers entitled to the deduction for rent of housing on the basis of a contract of seniority prior to 24 April 1998, in the event that this Law is less favourable to them than Law 18/1991 of 6 May 1998. June, of the Tax on the Income of the Physical Persons, as a consequence of the non-application of the aforementioned deduction for rent, provided that they maintain the system of leasing for their usual dwelling.

2. The financial compensation shall be met upon request of the taxpayer within six months of the end of the period for filing the declaration for the Income Tax of the Physical Persons.

Transient disposition fifth. Items to be cleared.

1. The negative irregular returns from the tax periods for 1998, 1997, 1996, 1995 and 1994, which are pending compensation at the date of entry into force of this Law, will be compensated only by the the positive balance of the income and the income taxes referred to in Article 38 (a) of this Law.

2. The net income decreases from the tax periods for 1998, 1997, 1996, 1995 and 1994, which are pending compensation at the date of entry into force of this Law, will be offset only by the the balance of the property gains and losses referred to in Article 39 of this Law.

3. The negative regular liquidable bases of the tax periods corresponding to 1998, 1997, 1996, 1995 and 1994, which are pending compensation at the date of entry into force of this Law, will be offset only by the balance positive of the general liquidable basis provided for in Article 47 of this Law.

Transitional disposition sixth. Transitional arrangements for life insurance contracts which generate increases or decreases in assets prior to the entry into force of this Law.

When a deferred capital is received, the benefit portion of the premiums paid prior to 31 December 1994 shall be applicable to the reduction rates laid down in the provision (a) transitional provisions of the Law 18/1991 of 6 June 1991 on the Income Tax of the Physical Persons, after calculating the yield in accordance with Articles 23 and 24, excluding the provisions laid down in the last subparagraph of point (b) of the paragraph 2 of this Law.

Transitional disposition seventh. Tax arrangements for certain new insurance contracts.

The reduction of 70 per 100 provided for in the last paragraph of Articles 17 (2), (c) and (d), and (d), and (b) and (c) of this Law shall apply only to insurance contracts which have been concluded since 31 December 1994.

Transient disposition octave. Taxation of certain public debt securities.

The income derived from the transmission, amortization or repayment, made since 1 January 1999, of securities of the public debt, acquired before 31 December 1996 and which will be generated before increases in assets, will be integrated into the special part of the tax base, without the reductions provided for in Article 24.2 of this Law being applicable.

transient disposition ninth. Capital gains derived from items previously acquired at 31 December 1994.

The capital gains arising from the transfer of assets not affected by economic activities acquired before 31 December 1994 shall be reduced in accordance with the rules laid down in rules 2 and 4. Paragraph 2 of the eighth transitional provision of Law 18/1991 of 6 June of the Tax on the Income of Physical Persons.

Transient disposition tenth. Previous lease contracts9demay of 1985.

In the determination of the income of the real estate capital arising from lease agreements concluded before 9 May 1985, which do not enjoy the right to the revision of the income of the contract under the application of Rule 7 (11) of the second transitional provision of Law No 29/1994 of 24 November 1994, of Urban Leases, will be further included as deductible expenditure, while this situation and in view of the compensation, the amount corresponding to the depreciation of the building.

Transient disposition eleventh. Transitional arrangements applicable to temporary and temporary income.

1. In order to determine the part of the temporary, immediate or deferred income, which is considered to be the return on capital, the percentages laid down in points (b) and (c) of Article 23.3 of this Regulation shall apply. Law on benefits in the form of income which are received from the entry into force of this Law, where the lodging of the income has already taken place before the entry into force of this Law.

These percentages will be applicable according to the age of the recipient at the time of the formation of the income in the case of life income or according to the total duration of the income if it is income temporary.

2. If the redemption of temporary or temporary income whose constitution had occurred prior to the entry into force of this Law for the purpose of calculating the return on capital produced by the rescue was made, subtract the profitability obtained up to the date of incorporation of the income.

Transient Disposition twelfth. Application of the provisions of the third paragraph of the second provision of this Law, to the negative tax bases of the Tax on Societies prior to the entry into force of this Law.

The negative tax bases to be paid at the beginning of the tax period in which this Law applies may be offset within the time limit laid down in Article 23 (1) of Law 43/1995, 27 of In December, the Company Tax was counted from the beginning of the tax period following that in which the negative tax bases were determined.

transient disposition thirteenth.

Members of pension schemes who, prior to the entry into force of this Law, would have continued to make contributions to them after the cessation of their work activity, will be able to choose between:

Maintain the consolidated rights for such contributions to cover the death contingency.

To recover them in the form of capital, within a period of one year from the entry into force of this Law, tributing as income from work in the form set out in Section 1 of Chapter I of this Law, and, in particular, by applying the reduction provided for in Article 17.2.b) thereof.

Single repeal provision.

1. The entry into force of this Law shall be repealed with all provisions that oppose the provisions of this Law, and in particular the following rules:

1. Title III of Law 46/1984, of December 26, Regulatory of the Institutions of Collective Investment, as far as this tax is concerned.

2. The additional and transitional provisions of Law 14/1985 of 19 May of the Tax Regime of Certain Financial Assets.

3. The Law 18/1991, of June 6, of the Tax on the Income of the Physical Persons.

4. Article 4 of Royal Decree-Law 9/1993 of 28 May granting aid to those affected by the human immunodeficiency virus (HIV) as a result of actions carried out in the health system.

5. The additional provision of Law 22/1993, of 29 December, of Fiscal Measures of Reform of the Legal Regime of the Civil Service and of Protection for Unemployment.

6. Article 2 of Law 42/1994, of December 30, of Fiscal, Administrative and Social Order Measures.

7. Article 2 (3) of Law 13/1996, of December 30, of Fiscal, Administrative and Social Order Measures.

8. The additional twenty-eighth provision of Law 66/1997, of December 30, of Fiscal, Administrative and Social Order Measures.

2. No, notwithstanding the above, they shall remain in force:

1. Article 2 of Law 22/1986 of 23 December 1986 granting certain tax and customs exemptions to the Institute of European-Latin American Relations (IRELA).

2. Law 20/1990 of 19 December on the Tax Regime of Cooperatives.

3. The additional sixteenth provision of Law 18/1991, of June 6, of the Income Tax of the Physical Persons.

4. The additional seventeenth and twenty-third provisions of Law 18/1991, of June 6, of the Income Tax of the Physical Persons.

5. Articles 93 and 94 of Law 20/1991 of 6 July, amending the Fiscal Aspects of the Economic and Fiscal Regime of the Canary Islands.

6. The Royal Decree-Law 3/1993 of 26 February of Urgent Measures on Budgetary, Tax, Financial and Employment Matters, as far as this tax is concerned.

7. Article 14.7 of the Royal Legislative Decree 1/1993, of 24 September, approving the recast of the Law on the Tax on Proprietary Transmissions and Documented Legal Acts.

8. Law 19/1994, of 6 June, of Amendment of the Economic and Fiscal Regime of the Canary Islands, as far as this tax is concerned.

9. The Royal Decree-Law 7/1994 of 20 June on Freedom of Depreciation for Investment Generators of Employment.

10. Law 30/1994, of 24 November, of Foundations and Tax Incentives for Private Participation in Activities of General Interest, except as regards the limit of the deduction referred to in Article 61 thereof.

11. The additional twenty-sixth provision of Law 42/1994, of December 30, of Fiscal, Administrative and Social Order Measures.

12. The Royal Decree-Law 2/1995 of 17 February on Freedom of Depreciation for Investment-Generating Investments.

13. Law 19/1995, of 4 July, of Modernisation of Agricultural Holdings.

14. The fifth additional provision of Law 43/1995, of 27 December, of the Company Tax.

15. Paragraph 3 of the sixth final provision of Law 43/1995 of 27 December 1995 on Corporate Tax.

16. The transitional provisions of Law 13/1996, of December 30, of Fiscal, Administrative and Social Order Measures.

17. Law 39/1997 of 8 October, approving the PREVER programme for the modernization of the motor vehicle fleet, the increase of road safety and the defence and protection of the environment.

18. Article 3.4 of Law 64/1997 of 26 December on the provision of social security and tax incentives for the promotion of indefinite employment and stability in employment.

19. The additional provision of Law 66/1997, of December 30, of Fiscal, Administrative and Social Order Measures.

20. The second transitional provision of Law 66/1997, of December 30, of Fiscal, Administrative and Social Order Measures.

3. Regulations that do not object to this Law shall continue in force as long as they are not used for the regulatory ratings that have been provided for.

4. The repeal of the provisions referred to in paragraph 1 shall not prejudice the rights of the Public Finance in respect of obligations accrued during its term.

Final disposition first. Amendment of Article 3 of Law 29/1987 of 18 December of the Tax on Successions and Donations.

Article 3 of Law 29/1987, of 18 December, of the Tax on Successions and Donations, which is worded as follows:

" Article 3. Tax Fact.

1. Constitutes the taxable event:

(a) The acquisition of assets and rights by inheritance, legacy or any other successor title.

b) The acquisition of goods and rights by donation or any other legal business, free of charge, "interliving".

(c) The collection of amounts by the beneficiaries of life insurance contracts, where the contractor is a person other than the beneficiary, except for the cases expressly referred to in Article 16.2 (a) of the Law of Tax on the Income of Physical Persons and other Tax Standards.

2. The increases in assets referred to in the preceding number, obtained by legal persons, are not subject to this tax and shall be subject to the Company Tax. "

Final disposition second. Amendment of Law 43/1995 of 27 December of the Corporate Tax.

For the tax periods started on or after 1 January 1999, the articles of Law 43/1995 of 27 December of the Company Tax, which are then related, will be worded as follows:

First. Article 3.

" Article 3. Treaties and conventions.

The provisions of this Law shall be without prejudice to the provisions of international treaties and conventions that have become part of the internal order, in accordance with Article 96 of the Constitution. Spanish. '

Second. Article 15 (11).

" 11. For the purposes of integrating into the tax base the positive income obtained in the transfer of assets of the fixed assets which have the nature of immovable property, the amount of the monetary depreciation shall be deducted produced from 1 January 1983, calculated in accordance with the following rules:

(a) The purchase price or production cost of the transferred real estate and the accumulated write-downs relative to them shall be multiplied by the coefficients to be established in the relevant Law of General Budget of the State.

(b) The difference between the quantities determined by the application of the provisions set out in the preceding subparagraph shall be reduced by the accounting value of the transferred assets.

(c) The amount resulting from that operation shall be multiplied by a coefficient determined by:

a ') In the numerator: own funds.

b ') In the denominator: the total liability minus the credit and treasury.

The determining factors of the coefficient shall be those during the holding time of the transferred assets or in the five financial years preceding the date of the transfer, whichever is less, the choice of the taxable person.

This letter shall not apply where the coefficient is greater than 0,4. '

Third. Article 23 (1), (3) and (5).

" 1. The negative tax bases may be offset against the positive income of the tax periods concluded in the immediate and successive ten years. "

" 3. A new establishment may take into account the period of compensation referred to in paragraph 1 from the first tax period the income of which is positive. '

" 5. The taxable person shall, where appropriate, prove by displaying the accounts and the appropriate documentary media, the provenance and the amount of the negative taxable bases the compensation of which he intends to make, whichever is the originated. "

Fourth. Article 28 (2), (3) and (4).

" 2. The deduction referred to in the preceding paragraph shall be 100 per 100 where the dividends or profit shares come from entities in which the percentage of direct or indirect participation is equal to or greater than 5 per 100. that the percentage was kept uninterruptedly during the year preceding the day on which the profit to be distributed is payable. The deduction shall also be 100 per 100 for the participation in profits from mutual insurance companies, social security institutions, mutual guarantee companies and associations.

3. The deduction shall also apply in the case of the settlement of companies, the separation of members, the acquisition of shares or units of their own for redemption and dissolution without liquidation in merger, total division or the total disposal of the assets and liabilities, in respect of the calculated income derived from those transactions, in the part corresponding to the undistributed profits, even those which have been incorporated in the capital, and to the income which the company which performs the operations referred to in the preceding paragraph, must be incorporated into the tax base of the Article 15 (3) of this Law is based on Article 15 (3).

4. The deduction provided for in the preceding paragraphs shall not apply in respect of the following

:

(a) Those arising from the reduction of the capital or the distribution of the premium for the issue of shares or units, without prejudice to the provisions of the last subparagraph of the previous paragraph.

When, in conjunction with the operations referred to in the preceding paragraph, the distribution of dividends or participations in profits occurs, the deduction shall be applied in accordance with the rules laid down in the Article.

(b) Those provided for in the preceding paragraphs, where prior to their distribution there has been a reduction in capital to constitute reserves or to compensate for losses, the transfer of the issue premium to reserves, or a the contribution of the partners to replenish the assets, up to the amount of the reduction, transfer or contribution.

The provisions of the foregoing paragraph shall not apply in respect of distributed income which has been integrated into the tax base without having been produced in respect of the same as the compensation of negative taxable bases, except that the non-compensation would have been derived from the provisions of Article 23 (2) of this Law.

c) Those distributed by the public-character regulation fund of the mortgage market.

(d) dividends or shares in profits corresponding to shares or shares acquired within two months prior to the date on which they were satisfied when after that date, within the same period, a transmission of homogeneous values occurs.

e) When the distribution of the dividend or the profit share does not determine the income integration in the tax base or where such distribution has resulted in a depreciation in the value of the stake. In this case the recovery of the value of the stake will not be integrated into the tax base.

The above letter will not apply when:

(a ') The taxable person proves that an amount equivalent to the depreciation of the value of the holding has been integrated into the tax base of the Company Tax on any of the tax rates provided for in the Article 26 (1), (2) and (7) of this tax, in respect of income obtained by successive entities which own the holding on the occasion of their transfer, and which has not been entitled to the double taxation deduction internal capital gains.

The deduction shall be made partially when the proof referred to in this point is partial.

b ') The taxable person proves that an amount equivalent to the depreciation of the value of the stake has been integrated into the taxable base of the Income Tax of the Physical Persons, in terms of income obtained by the successive natural persons who own the holding, on the occasion of their transfer. The deduction shall be made in part if the proof referred to in this point is partial.

In the case provided for in this point (b), the deduction may not exceed the amount resulting from the application of the tax rate to the income of the income tax on the income of the natural persons. corresponds to the capital gains arising from the transmission of acquired assets more than two years in advance. "

Fifth. Article 36a. Deduction for job creation for disabled workers.

" 1. It will be deductible from the quota in full the amount of 800,000 pesetas for each person/year of increase of the average of the staff of the disabled workers, contracted, according to the provisions of article 39 of Law 13/1982, of April 7, (a) the Social Integration of the Disabled, for an indefinite period of time, experienced during the tax period, with respect to the average workforce of disabled workers with such a contract for the period immediately preceding them.

2. For the calculation of the increase of the average number of staff, the disabled workers/year with an indefinite contract who develop full time will be counted in the terms that the labor regulations have.

3. Contract workers who are entitled to the deduction provided for in this Article shall not be counted for the purposes of the freedom of amortisation with the creation of regulated employment in the Royal Decree-Law 7/1994 of 20 June; in the Royal Decree-Law 2/1995, of 17 February, and in Article 123 of this Law. "

Sixth. Article 37. Rules common to the deductions provided for in this Chapter.

" 1. The deductions provided for in this Chapter shall be made once the deductions and allowances of Chapters II and III of this Title are made.

The amounts corresponding to the tax period not deducted may be applied in the settlements of the tax periods that are concluded in the immediate and successive five years.

The calculation of the time limits for the application of the deductions provided for in this Chapter may be deferred until the first financial year in which, within the period of limitation, positive results occur, in the following cases: cases:

a) In the newly created entities.

(b) In institutions that heal losses from previous years by the effective contribution of new resources, without the application or capitalization of reserves being considered as such.

The amount of the deductions provided for in this Chapter referred to in this paragraph, applied in the tax period, shall not be more than 35 per 100 of the full share held in the deductions for avoid internal and international double taxation and bonuses.

2. The same investment may not result in the application of the deduction in more than one entity.

3. The assets assigned to the deductions provided for in the preceding Articles shall remain in operation for five years or during their lifetime if they are lower.

Jointly with the fee corresponding to the tax period in which the non-compliance with this requirement is manifest, the amount deducted shall be entered in addition to the interest on the delay. "

Seventh. Article 38 (3).

" 3. Split payments may also be made, at the option of the taxable person, on the part of the taxable amount of the period of the three, nine or eleven first months of each calendar year determined in accordance with the rules laid down in this Law.

Any taxable person whose tax period does not coincide with the calendar year shall make the split payment on the part of the tax base corresponding to the days after the start of the tax period until the day before each of the periods referred to in the preceding paragraph.

For the option referred to in this paragraph to be valid and to produce effects, it shall be exercised in the corresponding census declaration, during the month of February of the calendar year from which it is to have effects, provided that where the tax period referred to in that option coincides with the calendar year. If not, the exercise of the option shall be carried out in the corresponding census declaration, within two months of the beginning of that tax period or within the period between the beginning of that period tax and the end of the period for making the first split payment corresponding to the tax period when the latter period is less than two months.

The taxable person will be bound by this form of split payment in respect of the payments corresponding to the same and subsequent tax period, as long as his application is not waived through the corresponding statement censal to be exercised within the same time limits as laid down in the preceding paragraph. '

Eighth. Article 81 (5).

" 5. The group of companies shall be extinguished when the dominant company loses that character.

However, in the event that another company takes part in the dominant company of a group of companies by way of one of the operations regulated in Chapter VIII of Title VIII of this Law, so that the first Meet the requirements to be considered dominant, the tax regime provided for in this chapter will result from application to the new group thus formed, after communication to the tax administration and from the moment of the extinction of the group pre-existing.

This communication must be made before the end of the first tax period in which the new group is taxed in the company group scheme. "

Ninth. Article 101 (3).

" 3. The securities received by the partners shall be valued for tax purposes for the value of the delivered, determined in accordance with the rules of this tax or the Income Tax of the Physical Persons, as applicable. This valuation shall be increased or reduced by the amount of the additional compensation in money delivered or received. The values received shall retain the date of purchase of the delivered. '

10th. Article 102 (2).

" 2. The securities received under merger, absorption and division, total or partial, are valued for tax purposes by the value of the delivered, determined in accordance with the rules of this tax or the Income Tax. Physical Persons, as appropriate.

This valuation will be increased or decreased in the amount of supplemental compensation in money delivered or received. The values received shall retain the date of purchase of the delivered. ' Eleventh. Point (a) of Article 109 (1).

" (a) The profits distributed from the income attributable to the assets shall be entitled to the deduction to avoid the double taxation of dividends as referred to in Article 28.2 of this Law, is the percentage of the partner's participation. The same criterion shall apply in respect of the deduction to avoid the double taxation of capital gains as referred to in Article 28.5 of this Law for income generated by the transfer of participation. "

Final disposition third. Amendment of the Law on Civil and Safe Liability in the Circulation of Motor Vehicles.

A final provision is added to the Law on Civil and Safe Liability in Motor Vehicle Circulation, which is worded as follows:

" Final Disposition. Regulatory enablement.

1. The Government is empowered to issue any provisions necessary for the development and implementation of this Law.

2. As not provided for in this Law and in the Regulation that is issued for its development, the insurance contract for civil liability arising from the movement of motor vehicles shall be governed by Law 50/1980 of 8 October of the Insurance Contract. "

Final disposition fourth. Organic status of the State Tax Administration Agency.

To ensure the best application of the provisions of this Law, the Government is authorized to approve the Organic Statute of the State Tax Administration Agency, which will carry out its functions, legal regime, organization and operation, with adaptation to the principles of efficiency and management economy, organizational autonomy, participation of the public administrations interested in their management and fiscal responsibility, contained in their regulations and in Law 14/1996, of 30 December, of the Transfer of Tax of the State to the Autonomous Communities and Complementary Tax Measures.

Final disposition fifth. Enablement for the State General Budget Law.

The General Budget Law of the State may modify, in accordance with the provisions of Article 134 (7) of the Spanish Constitution:

a) The scale and rates of the tax and deductions in the quota.

(b) The other quantitative limits and fixed percentages laid down in this Law.

Final disposition sixth. Regulatory enablement.

The government will dictate how many provisions are necessary for the development and implementation of this law.

Final disposition seventh. Entry into force.

1. This Law shall enter into force on 1 January 1999. However, the entitlements to the General Budget Law of the State shall enter into force on the day following the publication of this Law in the "Official Gazette of the State".

2. For the purposes of the Income Tax of the Physical Persons, this Law shall apply to the income obtained from that date and to which it corresponds to the income from that date, according to the criteria for temporary imputation Law 18/1991, of 6 June, of the Tax on the Income of Physical Persons, and its rules of development.

Therefore, I command all Spaniards, individuals and authorities, to keep and keep this Law.

Madrid, 9 December 1998.

JOHN CARLOS R.

The President of the Government,

JOSÉ MARÍA AZNAR LÓPEZ