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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JUAN CARLOS I King of Spain to all that the present join together and act.


Know: That the Cortes Generales have approved and I come in to sanction the following law.


EXHIBITION of reasons I the Spanish Constitution, in its article 31.1, States that: «All contribute to sustain public expenditure according to their economic capacity through a fair tax system, based on the principles of equality and progressivity that, in any case, will have confiscatory scope».


As the Constitutional Court pointed out, the tax on the income of physical persons is one of the structural pillars of our tax system. It's a tribute in which the principle of economic capacity and its correlate, that of equality and tax progressivity, found its most suitable projection. It is for this reason that this tax is the most suitable instrument to achieve the objectives of redistribution of income and solidarity advocated by the Constitution and giving content to the social and democratic State of law, given its generality, as evidenced by the fact that in their annual returns are affected 31 million Spaniards, and their revenue capacity.


The current model of the tax that was introduced in Spain with tax reform initiated in 1977 has suffered multiple changes throughout its history, because no tribute, and less of the importance of this, can remain aside from social, economic, even technological changes that fits.


In particular, the last major legislative amendment to physical persons income tax came with the law 18/1991 of June 6, which sought to respond to the issues raised by the statement of the 45/1989 Constitutional Court of 20 February adapting tax to the constitutional requirements.


Well, the time elapsed since the modification made in 1991 has aggravated problems presenting the previous regulation. The excessive complexity of the tax with indirect management costs that this entails; dispersion, low consistency and the lack of systematization of the regulations, due, in part, to the repeated adjustments, changes and modifications that tax has undergone since its entry into force; its unusual load management, which has become a tribute focused on returns and advance payments and, in short, functional deficiencies that hinder the fight against tax fraud, have caused a significant loss of revenue elasticity.


At the current moment, it is essential to the adaptation of the tax to the current model in the countries of our environment and, in particular, to certain figures specific 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 consequences undesirable if they deviate from the criteria used by the rest of the Western countries in this fiscal policy. In this framework, the tax must be an effective instrument for the creation of employment, promotion of saving and, in sum, of economic growth which requires the fulfilment of the Pact of stability and employment and the economic and Monetary Union European.


Finally, the fulfillment of the political commitment of the Government of introducing greater equity in the distribution of taxes, and improving the tax treatment of the incomes from work and people with older dependants, made all necessary point tax reform.


II at the beginning of this legislature, the Government immediately initiated amendments specific to boost economic activity, promote the neutrality of the tax and boost savings, by means of the Royal Decree-Law 7/1996, of 7 June, which submitted to tax capital gains, that pursuant to the law of 1991 were exempt from taxation if the capital is immobilized in a given period of time that it undermined the principle of tax justice and impeded economic growth at the same time.


Subsequently, established a new tax regime for small and medium-sized enterprises, which constitute the core of our economic activity and employment. At the same time, were partial reforms in crucial aspects of the tax on the income of physical persons as rate, whose parameters are clearly away from those corresponding to a modern tax; also support measures were adopted to families, with a substantial increase of the family deductions, and it has enhanced the management of the tax.


From another point of view, the development of the State of autonomies has been consolidated with the new system of financing of the autonomous communities approved in 1996, which is based on the principle of fiscal stewardship. To enforce this principle, introduced in the structure of the tax - a supplementary assessment, whose product is earmarked for the financing of the autonomous communities and which can be modified by them.


However, all these changes were a step prior to the project's overall review of the tax on the income of the physical persons, that is which incorporates this law.


III the reform of the tax on the income of the physical persons in a context of economic globalization, and after the success achieved by the society Spanish with our entry into the third stage of the Economic Union and monetary, required a detailed study of their economic and social consequences. In addition, the incidence of the tax and its generality need an undoubted social support; that is why in its reform as possible of social partners should be involved.


For this reason, the drafting of this law has been subject to a process of reflection and study, started since the beginning of the legislature, which has its most important manifestation in the establishment by resolution of the State Secretary of Finance of February 17, 1997, of the 'Commission for the study and proposed measures for the reform of the tax on the income of physical persons'.


The work of this Committee, submitted on 13 February 1998, assumed an endorsement to the need for tax reform, and to provide solid arguments in favour of it, and are designated objectives and General characteristics. In this sense, the high technical quality of the work of the Committee has been favoured both by the technical profile of its components (from Government, University, experts in public finance, professors of financial and tax law, etc.) as for the valuable external opinions, made from various fields and received during their working sessions.


The results of this laborious process of public information, the economic studies conducted along the same, reports and received analysis and contrasting opinions are condensed in the law, in which the Government has also taken into account the currents of opinion from various fields social to the work of the Committee, as well as the reports prepared by other bodies , and of the economic and Social Council.


IV. the law is structured in a preliminary title, eleven titles and 90 articles, along with the corresponding additional, transitional, repeal and final provisions.


Disposable income is defined as subject to the tax in the preliminary title and considered as income which the taxpayer after addressing can be used to your needs and those of subjects who depend on him. To translate this principle declares exemption from a minimum of income that varies according to the personal and family circumstances of the taxpayer: this is one of the most important aspects of the reform.


It should be noted that the law regulates only the obligation to contribute personal assumption. The regulation of the taxation of non-resident refers to a subsequent law.


The general structure of the tax is designed from title I, with the analysis of taxable and income exempt, whereas as a contributor to the person physical, as required by the doctrine of the Constitutional Court. However, law has in mind that the taxpayer is part of a family whose protection deserves tax favourable treatment so that, in addition to the configuration of the minimum before concerned family, articulated other measures for this purpose (joint statement, exemption of pension alimony deduction for investment in the residence, favorable taxation of pensions on behalf of children). Similarly, the legislator has taken into account costs of disease and the care or care that may affect the taxpayer, which sets a minimum personal and family special for those people who are affected by a high degree of disability or a deficiency State involving the help of third parties.


The law defines the taxable incomes and their way of integration and compensation.


Treatment of work yields improved in great degree about the situation through the setting of further reductions and, in particular, with the creation of a specific reduction for these yields, which makes losing weight to the contribution of employees with respect to other sources of income.
In the real estate capital yields, the estimated performance of the residence shall be deleted. The income from the capital, introduces a noticeable improvement in the taxation of savings, ensuring a neutral of the different ways of saving treatment: it clarifies the taxation of pension plans alternative systems, its current regulation is improved in the service of the neutrality and is given a treatment simple and unitary, favourable to long-term savings , to yield arising from insurance contracts. In this field he has opted for a maximum simplicity in the rating scheme, avoiding unjustified current discrimination between the different modes of recruitment.


The determination of the performance of economic activities maintains rules incorporated into the tax in 1998, in whose driving capacity of the investment and employment this Government has put their trust.


In the chapter of profit and economic loss are produced some modifications with respect to the regulations in force. Emphasizes in this regard the incorporation into such a concept of warnings about elements related to economic activities, in order to not introduce differentiations with the rest of individuals.


Moreover, the tax rate incorporates two new worthy to be highlighted: the reduction of the tax burden, with a general reduction in rates, including the minimum and maximum, and reduction and redefinition of the sections, being perfectly approved that apply in most European countries, who are inclined to simplification also in this field.


Next to it, and with respect to the deductions of quota remain and even improving those which, either respond to a constitutional mandate, as it is the case of the acquisition of residence, or favor the so-called general interest of donations, or are necessary for reasons of territorial balance, as does the deduction for income obtained in Ceuta and Melilla.


Given that the reform is not intended to alter the model of autonomous financing of the five-year period 1997-2001, remains the structure of autonomous or complementary assessment of physical persons income tax designed in law 14/1996, of 30 December, transfer of State taxes to the autonomous and complementary tax measures, which ensures fiscal responsibility - of the autonomous communities and the adequacy of resources.


Finally, join this law, for reasons of legislative coordination, the rules on special regimes, most regulated so far aside from the tax law, such as the imputation of income and of collective investment institutions.


On the other hand, amending the rules governing the management of tribute; This line introduces measures to improve and streamline it, the number of declarants are reduced significantly, and prevents excess payments on the differential tax fee. Finally, reinforce the requirements of the principle of reservation of law, for which purpose are established the conditions and limits to each form an integral system of payments on account.


TITLE preliminary nature, object and scope article 1. Nature of the tax.


The tax on the income of physical persons is a tribute of personal and direct nature which, according to the principles of equality, generality and escalation, the income of natural persons according to their personal and family circumstances.


Article 2. Subject to the tax.


1 is the object of this tax the income of the taxpayer, understood as the totality of their yields, profits and economic losses and allegations of income established by law, regardless of the place where it had occurred, and any that is the residence of the payer.


2. the tax taxed the economic capacity of the taxpayer, understood as their disposable income that will result from reducing income in the amount of the minimum personal and family.


Article 3. Configuration as tax loan partially to the autonomous communities.


1. the physical persons income tax is a tax given partially, in the terms established in the organic law 8/1980, of 22 September, financing of the autonomous communities, and the rules governing the transfer of taxes from the State to the autonomous communities.


2. the elements of the tax subject to Regulation by the autonomous communities are corresponding to the autonomic assessment rates and deductions which fall exclusively on the latter, under the terms and within the limits established by law.


3. the calculation of the liquid autonomous quota shall be effected in accordance with this law and, where appropriate, with the rules dictated by the respective autonomous community. In the event that the autonomous communities have not assumed or exercised the regulatory powers on this tax, liquid share is required in accordance with the supplementary fee and deductions established by the State.


Article 4. Scope of application.


1. the tax on the income of physical persons shall apply throughout the Spanish territory.


2. the provisions of the preceding paragraph shall be without prejudice of provincial tax regimes of concert and economic agreement into force, respectively, in the historical territories of the Basque country and in the region of Navarre.


3. in the Canary Islands, Ceuta and Melilla shall be taken into account specialties provided for in their specific legislation and this Act.


Article 5. Treaties and conventions.


Provisions of this law shall be without prejudice to treaties and international conventions that have become a part of the internal order, in accordance with article 96 of the Spanish Constitution.


Title I subject to tax: materials, personal and temporal aspects chapter I taxable and exempt income article 6. Made taxable.


1 constitutes taxable income by the taxpayer obtain.


2 make up the income of the taxpayer: a) the performance of the work.


(b) the income from the capital.


(c) the performance of economic activities.


(d) gains and economic losses.


(e) allegations of income established by law.


3 they shall presume fee-charging, unless proven otherwise, the benefits of goods, rights or services capable of generating returns of labour or capital.


4. do not subject to this tax income that is subject to the tax on inheritance and donations.


Article 7. Exempt income.


Exempt the following income: a) the public performance by acts of terrorism.


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


(c) recognized pensions in favor of those who suffered injury or mutilation during or as a result of the Civil War 1936 / 1939, either by the regime of passive kinds of State or under the special legislation dictated to the effect.


(d) compensation as a result of civil liability for physical or psychological damage to people in the legal or judicially recognized amount.


(e) compensation for dismissal or cessation of the worker, in the established amount on a mandatory basis in the Statute of workers, in its implementing regulations or, where appropriate, the rules governing the execution of judgements, unless it can be considered as established under Convention, agreement or contract.


(f) benefits by Social security or by entities that replaced it - as a consequence of absolute permanent disability or major disability recognized to the taxpayer.


Also, the benefits recognized professionals not integrated in the special regime of the Social security of the self-employed or autonomous by the mutualities of social welfare to act as the Special Social security scheme mentioned alternatives, provided that in the case of benefits in identical situations to those provided for the absolute permanent disability or severe disability of the Social Security.


Limit the exempt amount will be the amount of the maximum benefit that recognizes Social security by the concept that corresponds. The excess will be taxed as a performance of the work, being understood that produced, in the case of concurrence of benefits from Social Security and mutual benefit societies mentioned before, in the performance of the latter.


(g) pension by uselessness or permanent disability of the regime of passive classes, whenever injury or disease that would have been cause of the same inhabilitare in full to the beneficiary of the pension for any profession or trade.


(h) family benefits for dependent child regulated in chapter IX of title II of the consolidated text of the General Law on Social Security, approved by Royal Legislative Decree 1/1994 of 20 June.


(i) the perceived amounts of public institutions for the placement of disabled people or over sixty-five years of age.


(j) the perceived public scholarships for study at all levels and degrees of education, up to the Bachelor's degree or equivalent system inclusive.


(k) annuities for food perceived parents by judicial decision.
(l) the awards literary, artistic, or relevant scientists, with conditions to be determined by regulation.


(m) supports economic content to high level athletes adjusted to preparation programmes established by the Superior Council of sports with the Spanish sports federations or the Spanish Olympic Committee, under conditions to be determined by regulation.


(n) unemployment benefits recognised by the respective management entity when they received in the form of single payment established in the Royal Decree 1044 / 1985, of 19 June, which regulates payment of the provision by unemployment in the form of single payment, with a limit of 1,000,000 pesetas, whenever the perceived amounts intended for the purposes and in the cases provided for in the aforementioned regulation.


The exemption provided for in the preceding paragraph shall be conditional on the maintenance of action or participation during the period of five years, on the assumption that the taxpayer has been integrated into associated work cooperatives or labour societies, or maintenance, for identical period of activity, in the case of self-employed.


(n) the prizes of lotteries and betting organised by the national agency of Loterías y Apuestas del Estado and by the autonomous communities, as well as Lottery organised by the Spanish Red Cross and the national organization for the blind.


(o) the extraordinary bonuses paid by the Spanish State for participation in international peace or humanitarian missions under the terms established by law.


(p) work yields earned by work carried out abroad, in the amount and under the conditions established by regulation, provided that they have actually paid abroad on the basis of a tax similar or identical to this tax.


Chapter II article 8 contributors. Taxpayers.


They are taxpayers this tax: a) the natural persons who have their habitual residence in Spanish territory.


(b) natural persons who have their habitual residence abroad by any of the circumstances provided for in paragraphs 2 and 3 of the following article.


Article 9. Habitual residence in Spanish territory.


1 means that the taxpayer has habitual residence in Spanish territory when any of the following circumstances: to) that remains more than one hundred eighty-three days, during the calendar year, in Spanish territory. Sporadic absences will be calculated to determine this period of stay in Spanish territory unless the contributor accredits fiscal residence in another country. In the case of countries or territories of the qualified by law as a tax haven, the tax administration may require that the permanence in the same test for one hundred and eighty-three days in the calendar year.


(b) that lies in Spain the main core or base their activities or economic interests, either directly or indirectly.


It shall be presumed, unless evidence to the contrary, that the taxpayer has habitual residence in Spanish territory when, in accordance with the above criteria, usually reside in Spain the non-separated spouse legally and the minor children that depend on that one.


2 1 A the effects of this law, shall be considered as taxpayers nationals Spanish, non-separated spouse legally and minor children who had their habitual residence abroad, by their condition: to) members of Spanish diplomatic missions, comprising both the head of the mission and members of the diplomatic personnel, administrative, technical or services of the same.


(b) members of the Spanish consular offices, comprising both the head of the same as the official or staff services to them attached, with the exception of the Honorary Vice or honorary consular officers and dependent on the same staff.


(c) holders of office or official employment of the State Spanish as members of delegations and permanent representatives accredited to international organizations or to form part of delegations or observers in foreign missions.


d) officials active carrying abroad charge or employment officer to not have diplomatic or consular nature.


(No 2nd shall apply the provisions of the previous number: to) when people referred to in number 1 of this section are not public officials--active or holders of office or official employment and had 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, if they had their habitual residence abroad prior to the acquisition by the spouse, father or mother, the conditions listed in number 1 of this section.


3 will not lose the status of taxpayers this tax natural persons of Spanish nationality who prove their new fiscal residence in a country or territory by regulation qualified as a tax haven. This rule applies in the tax period in which the change of residence is made and during the four following tax periods.


4 where not applicable specific standards derived from international treaties to which Spain is a party, taxpayers, by way of reciprocity, are not considered as foreign nationals who have their residence in Spain, when this circumstance was the result of any of the cases set out in paragraph 2 of this article.


Article 10. Income allocation.


1. pensions for civil societies, with or without legal personality, legacies recumbent, co-ownerships and other entities referred to in article 33 of the law 230/1963, of 28 December, General tax, will be attributed to members, heirs, community members or participants, respectively, according to the rules or agreements applicable in each case and, if these do not brand the tax administration informing they will be attributed equally.


2. the assigned revenue will have nature arising from the activity or source where appropriate, to each of the partners, heirs, community members or participants.


3. the income allocation regime shall not apply to the agrarian societies of transformation that will be taxed by tax.


4. the entities with income allocation regime shall not be subject to tax.


Article 11. Individualisation of income.


1. the income shall be obtained by the taxpayer on the basis of the origin or source of the same, anyone who is, in his case, the economic regime of marriage.


2. the performance of the work will be attributed exclusively to who has generated the right to their perception.


Still, the benefits referred to in article 16.2, to) of this law, be attributed to the individuals on whose behalf they are recognized.


3. the income from the capital will be attributed to taxpayers that, as provided for in article 7 of law 19/1991 of June 6, the wealth tax, are owners of the assets, goods or rights, that come from those yields.


4. the performance of economic activities are considered to be obtained by implementers habitually, personal and direct management on their own the means of production and human resources allocated to the activities.


It is presumed, unless evidence to the contrary, that these requirements are in people who appear as holders of economic activities.


5. earnings and economic losses will be considered obtained by taxpayers that, as provided for in article 7 of law 19/1991, of June 6, the wealth tax, are owners of the property, rights, and other assets that come from.


Not justified capital gains will be attributed on the basis of the ownership of property or rights that appear.


Acquisitions of property and rights which do not derive from a previous transmission, as profits in the game, will be considered capital gains of the person where the right to obtain or to you have gained them directly.


Chapter III tax period, accrual of tax and temporary imputation article 12. General rule.


1. the tax period shall be the calendar year.


2. the tax is accrued on 31 December each year, without prejudice to the provisions of the following article.


Article 13. Tax period less than the calendar year.


1. the tax period shall be less than the calendar year when the death of the taxpayer occur on a day other than December 31.


2. in such event the tax period will end and will accrue the tax at the date of death, without prejudice to the option by the joint taxation provided for in article 68.3 of this law.


Article 14. Temporary allocation.


1. general rule.


Revenues and expenses that determine the income to be included in the tax base shall be charged to the tax period that corresponds, in accordance with the following criteria: to) labour and capital yields shall be charged to the tax period that fall due by its recipient.
(b) the performance of economic activities shall be charged in accordance with the rules governing corporate tax, without prejudice to the specialties that may be established by regulation.


(c) gains and capital losses shall be charged to the tax period in which the heritage alteration takes place.


2. Special rules.


(a) when it had not satisfied the whole or part of an income, to find court pending the determination of the right to their perception or the amount, no amounts shall be charged to the tax period in which one achieves firmness.


(b) when justified circumstances not attributable to the taxpayer, derivative - work yields are received in tax periods other than those in which they were required, they shall be charged to these, practised, where appropriate, supplementary statement-settlement, without penalty or interest or any extra charge. When the circumstances provided for in the letter to), yields are considered to be payable in the tax period in which the judgment acquires firmness.


The Declaration will be presented in the period between the date when received and the immediate following deadline of tax declarations.


(c) unemployment benefits perceived in their mode of single payment pursuant to the labour regulations, may be attributed in each of the tax periods in that, not having mediated the single payment, have had the benefit.


Such imputation will be in proportion to the time that would have been entitled to the benefit of not having mediated the single payment in each tax period.


(d) in the case of operations in instalments or with deferred price, the taxpayer may elect to proportionally impute the incomes obtained in such operations, as the collections be made enforceable. They will be considered operations in instalments or with deferred price those whose price is perceived, wholly or partly, by successive payments, provided that the period between delivery or provision and the expiry of the last period is over the year.


When an operation payment in instalments or with deferred price has had implemented, in whole or in part, through the issue of exchange-rate effects and these were transmitted firm before its expiration, the income will fall within the tax period of its transmission.


In any case they will have this treatment, to the transferor, the operations arising from income annuities or temporary contracts. Time of transmission of property and rights in return for a life annuity or temporary, profit or loss wealth for the rentier will it fall within the tax period in which constitute income.


(e) the positive or negative differences that occur in the accounts balances in foreign currency or foreign currency, as a result of changes experienced in their quotes-representative, shall be charged at the time of collection or the respective payment.


(f) estimated income referred to in article 6.3 of this Act shall be charged to the tax period in which is understood to have produced.


(g) public aid paid as compensation to the structural defects of construction of housing intended for the repair of the same and usual, may be charged by quarters, in the tax period in which obtained and the following three.


3. in the event that the taxpayer loses its status by change of residence, all pending allocation incomes shall be integrated in the tax base for the last tax period which must be declared by this tax, under the conditions established by law, practicing, where appropriate, supplementary statement-settlement, without penalty or interest of delay or charge.


4. in the case of death of the contributor all pending allocation incomes must be integrated in the tax base for the last tax period which should be declared.


Title II determination of the economic capacity subject to assessment article 15. Determination of the taxable and taxable base.


1. the tax base of tax will be made up by the amount of the available income of the taxpayer, expression of their economic capacity.


2. the tax base shall be determined by applying the arrangements provided for in article 45 of this law.


3. for the quantification of the tax base will proceed, in the terms provided for in this law, in the following order: 1 will qualify and quantified the revenue according to their origin. NET yields are obtained by difference between accounting income and deductible expenses and profits and economic losses will be determined by the difference between the values of transmission and acquisition.


2nd apply reductions of the NET performance that, if necessary, corresponding to each of the sources of income.


3rd will be the integration and compensation of different incomes according to their origin.


4th will be deducted the amount corresponding to the minimum personal and family law recognizes to the taxpayer, according to their personal and family circumstances.


4. the taxable base will result from practicing the taxable reductions provided for in article 46 of this law.


Chapter I definition and determination of the taxable income section 1 income from work article 16. Full income from work.


1. shall be deemed intact work yields all services or utilities, any that is its name or nature, monetary or in kind, which derive, directly or indirectly, work or labour or statutory relationship and do not have the character of income from economic activities.


They will include, in particular: to) wages and salaries.


(b) unemployment benefits.


(c) pay expenses of representation.


(d) allowances and allowances for travel expenses, except those of locomotion and the normal maintenance and stay in catering establishments with the limits established by law.


(e) contributions or contributions paid by the promoters of pension plans, as well as the amounts paid by employers to meet the commitments for pensions under the terms provided for by the first additional provision of the law 8/1987 of 8 June, adjustment of plans and pension funds, and its implementing regulations, when the same are imputed to those persons to whom benefits are linked. This tax allocation will be mandatory in life insurance contracts that allow advance by persons available, through the granting of the right rescue or by any other formula, a - who are linked benefits. Shall not be considered, to these effects, allowing the advance disposal insurance embodying right to rescue for cases of serious illness or long-term unemployment, in the terms established by law.


2 in any case, shall be regarded as income from work: to) the following features: 1 pensions and perceived liabilities assets of public schemes of Social Security and passive classes and other benefits public by situations of disability, retirement, accident, disease, widowhood, orphanhood or similar.


2nd benefits perceived by the beneficiaries of mandatory general mutual officials, schools of orphans and other similar entities.


3rd benefits perceived by the beneficiaries of pension plans.


4th benefits perceived by the beneficiaries of insurance contracts concluded with mutual social welfare organizations whose contributions have been, at least in part, expenditure deductible for the determination of performance net of economic activities or subject to reduction in the tax base of tax.


Pension and disability benefits derived from such contracts will be integrated into the taxable where the perceived amount exceed the contributions that have not been subject to reduction or reduction in the tax base of tax for breaching the requirements laid down in article 46.1, numbers 1, 2 and 3, of this law.


5th pension and disability benefits perceived by the beneficiaries of collective insurance contracts that instrumenten pension commitments made by companies, in the terms provided in the first additional provision of the law 8/1987, of 8 June, adjustment of plans and pension funds, and its implementing regulations, insofar as the amount exceeds the contributions imputed tax and contributions made directly by the worker.


(b) the amounts that should be paid, by reason of his office, to the Spanish members in the European Parliament, the deputies and Senators of the general courts, the members of the regional legislative assemblies, city councillors and members of the Councils, inter-island or other local entities, with the exception, in any case, the part of them that these institutions allocated for travel and travel expenses.


(c) income derived from taught courses, conferences, colloquia, seminars and the like.


(d) the income derived from the production of literary, artistic or scientific works, provided that you give the right to its exploitation.
(e) the remuneration of the administrators and members of the boards of Directors of boards that make their times and other members of other representative bodies.


(f) the 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, who will book the founders or developers of a company as compensation for personal services.


(h) grants, without prejudice to the provisions of article 7 of this law.


(i) remuneration perceived by those who work in humanitarian or social welfare promoted by non-profit entities.


(j) payments arising from labour relations of a special nature.


3 However, when yields referred to in letters c)) and (d) above and derived from the employment relationship special performers in public entertainment and the special employment relationship of people which involved in commercial operations on behalf of one or more entrepreneurs without assuming the risk and ventura from those involving management of means of production and human resources or one of both self-employed in order to intervene in the production or distribution of goods or services, they will qualify as income from economic activities.


Article 17. NET performance of the work.


1 net work performance will result from decreasing the full performance in the amount of deductible expenses. Integrity yields should be computed, in his case, after application of the percentage of reduction referred to in the following paragraph.


2. as a rule, integrity yields are calculated entirely, except it will be application of the following reductions: to) 30 per 100 of reduction, in the case of performances that have a period, more than two years and not obtained periodically or recurrent, as well as those who are qualified by regulation as obtained from form notoriously irregular over time.


The computation of the period, in the event that these yields are charged in fractional form, should follow the number of years of Division, in the terms established by law.


((b) - 40 per 100 reduction, in the case of the benefits set out in article 16.2. to) of this Act, excluding those provided for in the number 5th, received in the form of capital, whenever more than two years have elapsed since the first contribution.


Within two years will not be payable in the case of benefits disability.


((c) income deriving from collective insurance contracts retirement benefits to which refers article 16.2. to), 5th of this Act, received in the form of capital, will be reduced in the following terms: all that apply to premiums paid more than two years prior to the date when received, in a 40 by 100.


All that apply to bonuses paid over five years prior to the date when received, in a 60 by 100.


All that apply to premiums paid over eight years prior to the date when received, 70 by 100.


This reduction of 70 by 100 is also applicable to the total yield derived from performance of these contracts received in the form of capital, after more than twelve years from the payment of the first premium, provided that premiums paid throughout the duration of the contract are sufficient, in the terms established by law a periodicity and regularity.


Still as provided for in the preceding paragraphs of this letter, in the case of retirement benefits derived from collective insurance contracts that referred to in article 16.2. to), 5th of this law, in which contributions made by employers have not been attributed to persons who are linked benefits, the reduction applicable shall be 40 per 100 for the satisfied bonus retirement benefits with more than two years prior to the date they are received.


((d) 60 per 100 of reduction, in the case of income derived from benefits because of disability, on the terms and grades established by regulation, perceived in the form of capital, by the beneficiaries of collective insurance contracts referred to in article 16.2. to), 5th, of this law, and 40 per 100 of reduction, in the case of income derived from these benefits because of disability When the above requirements are not satisfied.


The applicable reduction shall be 70 by 100 when invalidity benefits derived from insurance contracts concluded with more than twelve years old, provided that premiums paid throughout the duration of the contract are sufficient, in the terms established by law a periodicity and regularity.


Still as provided for in the preceding paragraphs of this letter, as regards invalidity benefit under the contracts of collective insurance referred to in article 16.2. to), 5th, of this law, in which contributions made by employers have not been attributed to persons who are linked benefits, the reduction applicable will be , in any case, a 40 by 100.


((e) reductions provided for in this section shall not apply to the benefits referred to in article 16.2. to) of this law, when they are received in the form of income, nor charged corporate contributions that reduce the tax base, according to article 46.1 of this law.


((f) regulations may be established formulas, simplified for the implementation of the reductions referred to in the letters b)) and (c) above.


3 shall be regarded as deductible expenses exclusively the following: to) the contributions to Social security or compulsory general mutual officials.


(b) the drawdown by passive rights.


(c) contributions to schools for orphans or similar entities.


(d) fees met unions and professional associations, when membership is mandatory, in the part that corresponds to the purposes of these institutions, and with the limit established by law.


(e) costs of legal defense directly disputes arising in the relationship of the taxpayer with the person that sees yields, with a limit of 50,000 pesetas per year.


Article 18. Reductions.


1 net work performance will be reduced in the following amounts: to) taxpayers with net yields of work equal to or less than 1.350.000 pesetas: 500,000 pesetas per year.


(b) taxpayers with net income from work between 1.350.001 and 2,000,000 pesetas: 500,000 pesetas less the result of multiplying by 0,1923 difference between the performance of the work and 1.350.001 pesetas per year.


(c) taxpayers with net yields of work greater than 2,000,000 pesetas or income other than the above 1,000,000 pesetas labour: 375,000 pesetas per year.


The amount of these reductions will increase: to ') in a 75 per 100 for those active disabled workers with a degree of disability equal to or greater than 33 per 100 and lower to 65 per 100.


(b') in a 125 per 100 for those active disabled workers with a degree of disability equal to or greater than 33 per 100 and lower to 65 per 100 that, to go to their workplace or to perform the same, crediting need help from third parties or reduced mobility.


(c') in a 175 per 100 for those active disabled workers with a degree of disability equal to or greater than 65 per 100.


2. as a result of the application of the reductions provided for in this article, the resulting balance shall not be negative.


SECTION 2 the CAPITAL yields article 19. Definition of income from the capital.


1 they shall be regarded as integrity capital yields the totality of earnings or compensation matter what origin or nature, monetary or in kind, which may arise, directly or indirectly, assets, goods or rights, whose ownership corresponds to the taxpayer and are not related to economic activities carried out by the same.


However, income derived from the transfer of ownership of the assets, even where there is a Covenant on retention of title, will be taxed as earnings or economic losses, except that under this law, they qualify as income from the capital.


2 in any case, shall be included as income from the capital: to) from real estate, both rustic and urban, who are not related to economic activities carried out by the taxpayer.


(b) those who come from the capital and, in general, of the remaining property or rights that is holder of the taxpayer, that are not related to economic activities carried out by the same.


1st performance of real estate capital article 20 subsection. Integrity real estate capital yields.


1 they shall be regarded as full income from the ownership of real estate rustic and urban, or rights in rem that borne by them, all who lease or the Constitution or assignment of rights or powers of use or enjoyment over them, any that is its name or nature.
2. will it be calculated as full performance the amount for all items received from the purchaser, transferee, lessee or sublessee, including, where applicable, corresponding to all those goods transferred with the property and excluded value added tax.


Article 21. Deductible expenses and reductions.


1 for the determination of the net return, they shall be deducted from the integrity yields the following expenditures: to) all costs necessary to obtain yields. The deduction of interests - foreign capital invested in the acquisition or improvement of property, rights or powers of use or enjoyment which obtained yields, and other financing costs, shall not exceed the amount of the full results achieved.


(b) the amount of the damage suffered by the use or the passage of time in the goods which come from yields, under conditions to be determined according to the rules.


In the case of income derived from ownership of a right or Faculty of use or enjoyment, will be equally deductible concept of depreciation, with the limit of the integral yields, the proportion of the value of acquisition satisfied, under conditions to be determined according to the rules.


2. the net yield with a period, more than two years, as well as which are qualified by regulation as obtained from form notoriously irregular in time, shall be reduced by 30 per 100.


The computation of the period, in the event that these yields are charged in fractional form, should follow the number of years of Division, in the terms established by law.


Article 22. Performance in case of kinship.


When the purchaser, transferee, lessee or sublessee of the property or the right in rem falling upon it, is the spouse or a relative, including the related, up to the third degree inclusive, the taxpayer, the total net yield may not be less to the result of the rules of article 71 of this law.


Subsection 2nd income from the capital article 23. Full income from the capital.


They shall be regarded as full income from the capital as follows: 1. yields obtained by participation in the own funds of any type of entity.


(a) are included in this category following yields, cash or in kind: 1 dividends, premiums from assistance to boards and share in the benefits of any type of entity.


2. the yields from any asset class, except the delivery of paid-up shares, that articles of association or by a decision of the social organs, empower to participate in profits, sales, operations, income or similar concepts of an entity other than the remuneration of work because.


3rd yield arising from the creation or transfer of rights or powers of use or enjoyment, either that or its name and nature, on the securities or shares representing participation in the equity of the entity.


4th any other utility, different from the previous ones, coming from an entity by the status of partner, shareholder, partner or shareholder.


(b) integrity yields to that referred to above, as soon as it is obtained from entities resident in Spanish territory, are multiplied by the following percentages: 140 by 100, in General.


125 per 100, where they come from the entities referred to in article 26.2 of law 43/1995, of 27 December, the corporate income tax.


100 per 100, where they come from the entities referred to in article 26.5 and 6 of law 43/1995, of 27 December, the corporation tax, and co-operatives protected and specially protected, regulated by law 20/1990 of 19 December on regime Fiscal Union, the distribution of bonus issue and the operations described in the 3rd and 4th of the letter points to) above. Shall apply, in any case, this percentage to the yields corresponding to shares acquired within the two months prior to the date on which those have had met when, after this date, within the same period, there is a transmission of homogeneous values or values. In the case of entities in fiscal transparency, applies the same percentage by taxpayers when the above operations are carried out by the transparent entity.


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


2 yields obtained by the assignment to third parties of own capital.


This consideration have the services of all kinds, that is its name or nature, monetary or in-kind, interest and any other form of compensation agreed upon as compensation for such assignment, as well as those arising from the transmission, refund, amortization, redemption or conversion of any kind of representative of the uptake and utilization of non-capital assets.


(a) in particular, will have this consideration: 1 yields from any instrument rotation, including the resulting from commercial transactions, from the moment that it endorses or transmitted, except that the endorsement or assignment is made as payment for a credit from suppliers or suppliers.


2. the consideration, that is its name or nature, arising out of accounts in all kinds of financial institutions, including those based in operations on financial assets.


3rd income derived from operations of temporary transfer of financial assets to Covenant of repurchase.


4th the rents paid by a financial as a result of assignment or transfer, transmission, total or partial, a credit institution belonging to that.


(b) in the case of transmission, refund, amortization, redemption or conversion of securities, it is computed as the difference between the value of transmission, refund, amortization, redemption or conversion thereof and its value of acquisition or subscription performance.


As the value of an Exchange or conversion will be that corresponds to the values received.


The costs of acquisition and disposition will be computed for the quantification of the performance, as long as they are adequately justified.


Negative yields derived from transmissions of financial assets, when the taxpayer had acquired homogeneous financial assets within two months prior or subsequent to such transmissions, will be integrated to the financial assets that remain in the heritage of the taxpayer from being transmitted.


3-cash or in-kind yields resulting from operations of capitalisation and life and disability insurance contracts, except where, pursuant to the provisions of article 16.2. to) of this Act, must file returns as income from work.


En_particular, the following rules shall apply to these income from capital: to) when a deferred capital is perceived, the yield from capital determined by the difference between the amount of satisfied premiums and perceived capital.


(b) in the case of immediate annuities, which have not been acquired by inheritance, legacy or any other inheritance title, performance of capital shall be deemed the result of applying the following percentages to each annuity: 45 per 100, when the beneficiary is less than forty years.


40 per 100, when the beneficiary has between forty and forty-nine years.


35 per 100, when the beneficiary has between 50 and 59 years.


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


20 per 100, when the recipient has more than sixty and nine years.


These percentages will be those corresponding to the age of the Annuitant at the time of the creation of income and will remain constant during the entire period of the same.


(c) if it is immediate temporary income, which have not been acquired by inheritance, legacy or any other inheritance title, deemed capital yield the result of applying the following percentages to each annuity: 15 per 100, when income have a duration exceeding five years.


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


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


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


((d) received annuities, temporary, or deferred incomes which have not been acquired by inheritance, legacy or any other inheritance title, is considered to be capital yield the result of applying to every annuity the percentage which corresponds under letters b)) and (c) above, increased profitability obtained until the Constitution of income, in the form determined by law.


(When incomes have been acquired by donation or any other legal business to gratuitously and inter alive, the performance of the capital will be, exclusively, the result of applying to every annuity the percentage which corresponds under letters b)) and (c) above.
Still as provided for in the preceding paragraph, in the terms established by law, pension and disability benefits paid in the form of income to beneficiaries of contracts of life insurance or disability, other than those referred to in article 16.2. to), and that has not existed any kind of mobilization of the provisions of the insurance contract during its term will they be integrated into the taxable income of the tax, in respect of income from the capital, from the moment that the amount exceeding premiums that have been paid pursuant to the contract or, in the case that the income is acquired by donation or any other legal business to gratuitously and inter alive, when they exceed the actuarial present value of the income at the time of the Constitution of the same. In these cases will not apply the percentages provided for in the letters b)) and (c) above. The application of this regime will require that the insurance contract is concluded, at least two years prior to the date of retirement.


(e) in the case of termination of temporary or annuities, pensions that have not been acquired by inheritance, legacy or any other inheritance title, when the extinction of income have their origin in the exercise of the right of rescue, the performance of the capital will be the result add to the amount of the rescue the rents paid until such time and less satisfied premiums and the amounts that in accordance with previous letters in this paragraph, they have paid as income from the capital. When incomes have been acquired by donation or any other legal business to gratuitously and inter alive, be deducted in addition, profitability accumulated until the Constitution of the incomes.


4. other income from the capital.


They are included under this heading, among others, the following yields, cash or in kind: to) from the IP when the taxpayer is not the author and from the industrial property that is not affects to economic activities carried out by the taxpayer.


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


(c) from the lease of movable property, businesses or mines as well perceived the sublease from by the sublessor, that do not constitute economic activities.


(d) the annuity or other storms that cause the imposition of capital, except where have been acquired by inheritance, legacy or any other inheritance title. (Deemed capital yield the result of applying to every annuity the percentage provided for in the letters b) and (c)) of the previous paragraph of this article for pensions, annuities or temporary, immediate derived from life insurance contracts.


(e) from the transfer of the right to the exploitation of the image or consent or authorization for its use, unless such transfers take place in the field of economic activity.


5. never have the consideration of performance of capital, without prejudice to their taxation by the concept that corresponds, the consideration obtained by the taxpayer for the postponement or fractionation of the price of the operations performed in its usual economic activities.


Article 24. Deductible expenses and reductions.


1 for the determination of the NET performance, will be deducted from the integral yields exclusively the following expenditures: a) the deposit of securities and administrative expenses.


For these purposes, shall be regarded as expenses of administration and deposit those amounts affecting companies of investment services, credit institutions or other financial institutions that the law 24/1988, of July 28, the stock market, are aimed give back the provision for carrying out on behalf of the owners of the escrow service values represented in the form of titles or the administration of values represented in annotations in account.


The amounts involving the consideration of discretionary and individualized management of portfolios of investments, where there is a disposition of the investments made on behalf of holders pursuant to the mandates conferred by these will not be deductible.


(b) when in the case of income derived from the provision of technical assistance, from the lease of movable property, businesses or mines or sublease, they shall be deducted from integrity yields the expenditure necessary to obtain and, where appropriate, the amount of the damage suffered by the goods or rights of revenues come.


2. as a rule, net yields are calculated entirely, except it will be application of the following reductions: to) when they have a period exceeding two years, as well as when they qualify according to the rules as obtained from notoriously irregular shape in time, shall be reduced by 30 per 100.


The computation of the period, in the event that these yields are charged in fractional form, should follow the number of years of Division, in the terms established by law.


(b) the yields derived from perceptions of life insurance contracts received in the form of capital will be reduced in the following terms: all that apply to premiums paid more than two years prior to the date when received, by 30 per 100.


All that apply to bonuses paid over five years prior to the date when received, in a 60 by 100.


All that apply to premiums paid over eight years prior to the date when received, 70 by 100.


This last reduction is also applicable to the total yield derived from perceptions of contracts of life insurance, which are received in the form of capital, after more than twelve years from the payment of the first premium, provided that premiums paid throughout the duration of the contract are sufficient, in the terms established by law a periodicity and regularity.


((c) income derived from performance by invalidity, terms and levels established by regulation, received in the form of capital by the beneficiaries of insurance contracts other than those laid down in article 16.2. to), 5th, of this law, shall be reduced by 100 60. In the case of income derived from benefits because of disability, when they do not meet the above requirements, they will fall by 40 per 100.


The applicable reduction shall be 70 by 100 when invalidity benefits derived from insurance contracts concluded with more than twelve years old, provided that premiums paid throughout the duration of the contract are sufficient, in the terms established by law a periodicity and regularity.


((((d) reductions provided for in this section will not be applicable to the benefits referred to in the letters b), c)) and (d) of paragraph 3 and point d) of paragraph 4 of article 23 of this law, which are perceived in the form of income.


e) regulations may be established formulas, simplified for the implementation of the reductions referred to in point (b)) of this section.


SECTION 3 income from economic activities article 25. Full performance of economic activities.


1. are considered as full income from economic activities, those which, proceeding from personal work and capital together, or one only of these factors, which by the taxpayer management on their own means of production and human resources or one of both, in order to intervene in the production or distribution of goods or services.


In particular, have this consideration yields of extractive activities, manufacturing, trade or provision of services, including those of handicraft, agricultural, forestry, farming, fishing, construction, mining, and the exercise of liberal professions, artistic and sports.


2 a. effects of the provisions of the preceding paragraph, means that the lease or sale of real estate is done as an economic activity, only when the following circumstances occur concurrently: to) that in the development of the activity be counted, at least with a local exclusively earmarked to carry out the management of the same.


(b) for management that is used, at least, a person employed with employment contract and full-time.


Article 26. General rules for calculation of the NET performance.


1. the NET performance of economic activities shall be determined according to the tax rules, without prejudice to the special rules laid down in this article, in article 28 of this law for the direct estimation, and in article 29 of this law for the objective estimation.


Provisions of article 122 of law 43/1995, of 27 December, the corporate income tax, to determine the net amount of turnover is taken into account all economic activities exercised by the taxpayer.


2. for the determination of the NET performance of economic activities are not included gains or capital losses pertaining to the same heritage elements, which are quantified as provided in section 4 of this chapter.
3. the affectation of assets or the deallocation of fixed assets the taxpayer shall not constitute heritage alteration, provided that the property or rights to continue part of its heritage.


Means that there has been no involvement if the alienation of the property or rights are carried out before three years have elapsed since this.


4. is it attend the normal market value of the goods or services object of the activity, the taxpayer subsides or provided to third parties for free or intended for use or consumption.


Also, when mediate consideration and this is significantly less than the normal value in the market of goods and services, it will serve to the latter.


Article 27. Affected assets.


1 will be considered assets subject to an economic activity: to) real property where the activity of the taxpayer develops.


(b) goods intended for economic and socio-cultural services staff in the service of the activity.


They are not considered affects real leisure and recreation or, in general, private use of the owner of the economic activity.


(c) any other assets that are necessary to obtain the respective yields. In any case the assets covering the participation will have this consideration in equity of an entity and the transfer of capital to third parties.


2. in the case of assets that serve only partially to the subject of economic activity, involvement means limited to that portion of them actually used in the activity concerned. In no event will be susceptible to partial involvement indivisible assets.


By law the conditions may be determined on that, however its use for needs private accessory and notoriously irrelevant, so certain assets may be considered related to an economic activity.


3. the consideration of related assets will be regardless of the ownership of these, in case of marriage, is common to both spouses.


Article 28. Rules for the determination of the NET performance in direct estimate.


Next to the General rules of article 26 of this law, shall be taken into account the following special: 1st not shall be regarded as deductible expense the concepts referred to in the article 14.2 of law 43/1995, of 27 December, corporate income tax, no contributions to the own entrepreneur or professional provident mutual , without prejudice to the provisions of article 46 of this law.


However, it shall be regarded as deductible expense amounts paid under insurance contracts concluded with mutual social welfare professionals not integrated in the special regime of the Social security of the self-employed or autonomous, when, for the purpose of fulfilling the obligation provided for in paragraph 3 of the transitional provision fifth and fifteenth additional provision of law 30/1995 8 November, management and Supervision of private insurances, act as alternatives to the special regime of the Social Security mentioned in the part which is intended to cover contingencies served by Social Security, with the annual limit of 500,000 pesetas.


2nd where duly accredited, with the appropriate labor contract and the affiliation to the corresponding system of Social Security, to the spouse or children of the taxpayer who live with him, regularly work and with continuity in the economic activities developed by it, are deducted, for the determination of yields, the remuneration stipulated with each of them , if they are not higher than those corresponding to their professional qualifications and work market. Such amounts shall be obtained by the spouse or children in respect of income from work for all tax purposes.


3rd when the spouse or children of the taxpayer who live with him made transfers of goods or rights that would serve the purpose of economic activity of that case, shall be deducted, for the determination of the yields of the holder of the activity, the stipulated consideration, provided that it does not exceed the market value and, in the absence of that the corresponding to the latter may deduct. The consideration or the market value will be considered income from the capital of the spouse or children for all tax purposes.


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


4th regulations may provide special rules for the quantification of expenditure deductible in the case of entrepreneurs and professionals in simplified direct estimation, including difficult to justify.


Article 29. Rules for the determination of the net return on objective estimation.


The calculation of the NET performance in objective estimation shall be governed by the provisions of this article and the provisions that develop it.


The regulations shall comply with the following rules: 1st in the calculation of the NET performance of economic activities on estimation objective, use signs, indices or General modules or relating to particular sectors of activity determined by the Minister of economy and finance, taking into account the investments that are necessary for the development of the activity.


2nd application for activities or specific sectors of objective estimation systems under which are established upon acceptance by the taxpayer, individual figures of net returns for several tax periods can be regulated by law.


3 the application of objective estimation schemes may never give rise to assessment of capital gains which, in his case, may occur due to differences between the actual performances of the activity and the derivatives of the correct application of these regimes.


Article 30. Reductions.


The net yield with a period, more than two years, as well as those who are qualified by law as obtained from notoriously irregular shape in time, shall be reduced by 30 per 100.


The computation of the period, in the event that these yields are charged in fractional form, should follow the number of years of Division, in the terms established by law.


SECTION 4 gains and capital losses article 31. Concept.


1 are gains and losses economic variations in the value of the assets of the taxpayer put revealed on the occasion of any alteration in the composition of the former, except that under this law, they qualify as income.


2 it is estimated that alteration in the composition of the heritage there is no: a) in the case of division of the common thing.


(b) on the dissolution of the marital society or the extinction of the marital economic regime of participation.


(c) on the dissolution of communities of goods or in cases of separation of comuneros.


The assumptions referred to in this section may not give rise, in any case, the updating of the values of the assets or rights received.


3 it is estimated that gain or loss equity in the following cases there is no: to) in the capital reductions. When the reduction in capital, what ever their purpose, give rise to the depreciation of securities or shares, shall be deemed depreciated those acquired in the first place, and acquisition cost will be proportionately distributed among the remaining homogeneous values that remain in the heritage of the taxpayer. When the reduction of capital does not affect equally all the securities or shares in circulation of the taxpayer, is it understood to refer to those acquired in the first place.


When the reduction in capital is intended the return of contributions, the amount of this or the normal market value of real or perceived rights will reduced the purchase price of the affected values, in accordance with the rules of the previous paragraph, until its cancellation. The excess that could result will be taxed as a capital gain.


(b) on the occasion of lucrative transmissions by cause of death of the contributor.


(c) on the occasion of the lucrative transmissions of companies or participations referred to in paragraph 6 of article 20 of the law 29/1987, of 28 December, the tax on inheritance and donations.


Heritage elements that affect the taxpayer economic activity subsequent to its acquisition must have been suffering continuously for at least five years preceding the date of the transmission.


4 shall be exempt from tax the capital gains that are evident: to) on the occasion of the donations that are made to entities referred to in article 55.3 of this law.


(b) at the time of transmission by over sixty-five years of his residence.


(c) on the occasion of the payment provided for in article 80.3 of this law.


5 not be computed as the following economic losses: to) the unjustified.


b) those due to the consumption.


(c) those due to lucrative acts «inter» live transmissions or donations.


d) those due to losses in the game.
(e) those arising from the transmission of assets, when the transferor to acquire them within the year following the date of such transfer.


This equity loss will be integrated when the subsequent transmission of the asset.


(f) those arising from the transmission of securities or shares admitted to trading on any of the official secondary markets of Spanish values, when the taxpayer had acquired homogeneous values within the two months prior or subsequent to such transmissions.


(g) those arising from the transmission of values or shares are not admitted to trading on any of the official secondary markets of Spanish values, when the taxpayer had acquired homogeneous values in the year before or after such transmissions.


(In the cases provided for in the letters f) and g) earlier, the economic losses will be integrated to transmission of values or entries that remain in the heritage of the taxpayer.


(As provided for in the letters 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 the Act.


Article 32. The amount of the profits or economic losses. General rule.


1 the amount of earnings or capital losses will be: a) in the case of transmission onerous or profit, the difference between the values of acquisition and transmission of the assets.


(b) in other cases, the market value of the assets or shares, in their case.


2. If she has had made improvements in the assets transferred, be differentiated part of the value of alienation that corresponds to each component of it.


Article 33. Transmissions for consideration.


1 the purchase price will consist of the sum of: to) the actual amount by which the acquisition has been made.


(b) the cost of investment and carried out improvements in the property acquired and expenditures and taxes inherent to the acquisition, excluded interests, which had been satisfied by the acquirer.


Under conditions to be determined according to the rules, this value will be reduced by the amount of depreciation.


2. the value of acquisition referred to in the preceding paragraph will be updated, exclusively in the case of immovable property, by applying the coefficients to be established in the relevant General State budget Act. The coefficients will be applied in the following manner: a) on the amounts referred to in the letters a) and b) of the preceding paragraph, according to the year in which have been fulfilled.


(b) on depreciation, according to the year to which they relate.


3. the transmission value shall be the actual amount by which alienation had made. This value will be deducted the expenses and taxes referred to in - letter b) of paragraph 1 as are satisfied by the transferor.


In actual amount of the value of alienation the effectively satisfied, shall be provided that it is not less than the normal market, in which case it shall prevail.


Article 34. Transmissions to lucrative title.


Where the acquisition or transmission has been a lucrative title shall apply the rules of the previous article, taking actual amount of those respective values resulting from the application of the rules of inheritance and gift tax.


In the lucrative acquisitions referred to in point (c)) of paragraph 3 of article 31 of this law, the grantee is subrogated in the position of the donor with respect to values and dates of acquisition of such property.


Article 35. Specific valuation rules.


1 when an alteration in the value of the heritage: to) transmission for valuable consideration of securities admitted to trading on some markets secondary official Spanish and representative participation in the equity of companies or entities, the gain or loss will be calculated by the difference between their purchase price and the value of transmission determined by listing on the official secondary market of Spanish values on the date in which occurs it or the price agreed when it is higher than the price.


For the determination of the purchase price will be deducted the amount obtained by the transfer of the subscription rights.


Notwithstanding the provisions of the preceding paragraph, if the amount obtained in the transfer of the rights of subscription should be greater than the value of acquisition of values which come from such rights, the difference will be considered equity profit for the transferor, in the tax period in which transmission occurs.


In the case of partially paid-up shares, acquisition cost is the amount actually paid by the taxpayer. In the case of fully paid-up shares, acquisition value both of these as that come will be distribute the cost between the number of titles, both the ancient as the released corresponding.


(b) of the transmission for valuable consideration of securities or shares not admitted to trading on secondary markets official Spanish and representative participation in the equity of companies or entities, the gain or loss will be calculated by the difference between the acquisition value and the value of transmission.


Unless there is evidence that the amount effectively paid corresponds with which would have agreed to independent parties in normal market conditions, the value of transmission may not be less than the greater of the following two: the resulting theorist of the balance sheet for the last financial year closed prior to the date of accrual of the tax.


The result of capitalizing on the average of the results of the three social exercises closed prior to the date of accrual of the tax at the rate of 20 per 100. For this last purpose, are counted as benefits distributed dividends and allocations to reserves, excluding those of regularization or updating of balances.


The transmission value thus calculated shall be taken into account to determine the purchase price of the securities or shares to the acquirer.


The amount obtained by the transmission of subscription rights from these values or entries will be considered equity profit for the transferor in the tax period in which the aforementioned transmission occurs.


In the case of partially paid-up shares, acquisition cost is the amount actually paid by the taxpayer. In the case of fully paid-up shares, acquisition value both of these as that come will be distribute the cost between the number of titles, both the ancient as the released corresponding.


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


For this purpose, the value of acquisition and ownership be integrated: first. The price or amount disbursed for purchase.


Second. For the amount of social benefits that, without effective distribution, they had been charged to taxpayers as yields of its shares or participations in the period of time between their acquisition and disposition.


Third party. For partners who purchase values subsequent to the imputation of the positive tax base, the purchase price shall be reduced by the amount of dividends or shares in profits coming from tax periods during which the society was in regime of transparency.


In the case of mere possession of property companies, transmission to compute value will be, as a minimum, resulting theoretician of the last approved balance sheet, once replaced the net book value of real estate for the value it would have for the purposes of the wealth tax.


This letter shall be without prejudice, where appropriate, provisions on rights of subscription in the two previous letters.


(d) of the non-monetary contributions to societies, the gain or loss is determined by the difference between the acquisition value of the property or rights provided and the higher of the following: first: the nominal value of the shares or participation certificates received by the contribution or, where appropriate, the corresponding part of the same. This value will be the amount of the share premium.


Second: the value of trading of the securities received on the day that formalize the contribution or the immediate previous.


Third: the market value of the property or right contributed.


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


(e) in cases of separation of members or dissolution of societies, shall be deemed gain or loss asset, without prejudice to the corresponding to the society, the difference between the social settlement fee value or the market value of the goods received and the value of acquisition of title or equity that corresponds.
In cases of a scission, merger or absorption of societies, the gain or capital loss of the taxpayer will be calculated by the difference between the acquisition value of the titles, rights or securities of the partner and the market value of the securities, cash or rights received or the value of the given market.


(f) from a transfer, the capital gain will be calculated the assignor in the amount corresponding in the transfer.


When the right to transfer it was acquired by price it will have consideration of purchase price.


(g) compensation or capital insured for losses or claims on assets, it is counted as a gain or patrimonial loss the difference between the perceived amount and the proportion of the purchase price corresponding to the damage.


When the compensation was not in cash, will be calculated the difference between the market value of the goods, rights or services received and the proportion of the purchase price corresponding to the damage. Only be computed equity gain when an increase in the value of the assets of the taxpayer derived.


(h) of the exchange of goods or rights, profit or loss, assets shall be determined by the difference between the acquisition value of the property or right that is transferred and the higher of the following two:-the market value of the property or right handed over.


-The market value of the property or right it gets in return.


(i) of the extinction of life or temporary income, gain or loss equity will be calculated, for the obligor to pay those difference between the acquisition value of the capital received and the amount of the income effectively satisfied.


(j) in the transmissions of assets in Exchange for a temporary or lifetime income, gain or loss equity is determined by difference between the financial actuarial present value of the income and the purchase price of the assets transferred.


((k) when the holder of a right of enjoyment or enjoy in real estate made its transmission, or when there is extinction, for the calculation of the gain or loss equity the actual amount referred to in article 33.1. to) of this law will be reduced in proportion to the time during which the holder had not received income from the real estate capital.


(l) in the additions of assets or rights which do not derive from a transmission, be computed as capital gain the market value of those.


(m) in the operations carried out in the Royal Decree 1814-regulated futures and options markets / 1991, of 20 December, deemed gain or heritage loss the performance obtained when the operation does not pose coverage of a main operation agreed on the development of the economic activities carried out by the taxpayer, in which case will be taxed in accordance with the provisions of section 3 of this chapter.


(n) in the transmissions of assets related to economic activities, the book value, without prejudice to the specialties that regulations may be established with respect to depreciation that prediction this value shall be regarded as acquisition cost.


2 a provisions in the letters to), b), c) of the previous paragraph when there are homogeneous values deemed that the transmitted by the taxpayer are those who bought in the first place.


Also, when it is not transmitted all of the subscription rights, means that the transmitted correspond to the values acquired in the first place.


In the case of fully paid-up shares, will be considered the same seniority which correspond to the actions in which they arise.


3 the provisions of the letters d) and e) of paragraph 1 of this article shall be without prejudice of provisions of Chapter VIII of title VIII of law 43/1995, of 27 December, the corporate income tax.


Article 36. Reinvestment in the cases of transmission of residence and economic activities related elements.


1 capital gains obtained by the transmission of the residence of the taxpayer, provided that the total amount obtained by the transmission if invested in the acquisition of a new residence in conditions to be determined by regulation may be excluded from assessment.


When the reinvested amount is less than the total of what is perceived in the transmission, is only excluded from taxation the proportional part of the obtained equity gain that corresponds to the reinvested amount.


2. taxpayers who carry out economic activities and transmit elements pertaining to the same eligible pay taxes for capital gains incurred pursuant to the provisions of this law, or apply as provided in article 21 of law 43/1995, of 27 December, the corporate income tax, for the reinvestment of windfall profits in which case will be integrated in each tax period the total amount of the equity gain attributable to that period in the general part of the tax base.


In no event shall apply to these capital gains exemption for reinvestment corporation tax provided for in article 127 of the law 43/1995, of 27 December.


Article 37. Capital gains is not justified.


Shall be regarded as unjustified profits of heritage property or rights whose tenure, declaration or acquisition does not correspond with the income or heritage declared by the taxpayer, as well as the inclusion of non-existent debts in any declaration by this tax or wealth tax or registration in the books or official records.


Not justified capital gains will be integrated into the taxable base general of the tax period in respect of which are discovered, unless the taxpayer test enough that it has been holder of the property or corresponding rights from a date prior to that of the prescription period.


Chapter II integration and compensation of income article 38. Integration and compensation of income in the general part of the tax base.


The general part of the tax base will be formed with all of the income of the taxpayer, excluded - gains and capital losses referred to in the following article, and will be constituted by: a) the balance resulting integrate and compensate for each other, without any limitation, in each tax period, yields and allegations of income referred to in Title VII and article 78 of this law.


(b) the positive balance resulting integrate and compensate, exclusively, in each tax period, earnings and economic losses, excluding those referred to in the following article.


If the result of the integration and compensation referred to in this letter cast negative balance, the amount shall be compensated with the positive balance of income provided for in letter to) of this article, in the same tax period, the limit of 10 per 100 of such positive balance.


If after such compensation be negative balance, the amount will be offset in the next four years in the order established in the preceding paragraphs.


In no case will made this compensation out of four years, by accumulating economic losses in future periods.


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


1. the special of the taxable part will be constituted by the positive balance resulting from integrating and compensate exclusively among themselves, in each tax period, earnings and economic losses that are highlighted on the occasion of the transmissions of assets or improvements made in them, more than two years prior to the date of transmission , or subscription rights that correspond to acquired values, also with the same notice.


2. If the result of the integration and compensation cast negative balance, amount may only be offset with the earnings and economic losses than, corresponding to the same concept, will make clear during the next four years.


3. the compensation should be the maximum amount that will allow each of the following exercises and can be practised outside the period referred to in the preceding paragraph through the accumulation to equity losses from future periods.


Chapter III minimum staff and 40 family article. Minimum personal and family.


1. the minimum staff and family referred to in the following paragraphs shall apply, first, to reduce the general part of the tax base, unless this can be negative as a result of such reduction. The remainder, if any, shall apply to reduce the special part of the tax base, which can not be negative.


2. personal minimum.


The personal minimum is generally of 550,000 annual pesetas.


This amount will be 650,000 pesetas when the taxpayer has an age of more than sixty-five years of 850,000 pesetas when it is disabled and shows a degree of disability equal to or greater than 33 per 100 and lower to 65 per 100, and 1.150.000 pesetas when the degree of disability is equal to or greater than 65 per 100.


3. minimum family.


1 the family minimum will be:
(a) 100,000 annual pesetas for each ascendant sixty-five-year-old who depend on and live with the taxpayer and have annual incomes above the national minimum wage, including the exempt.


(b) by each single descendant of less than twenty-five years, always that you live with the taxpayer and has no income annual upper set that is according to the rules, with a minimum limit of 200,000 pesetas per year:-200,000 pesetas per year by the first and second.


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


These amounts will be increased: to ') in 25,000 pesetas, in concept of school material, each descendant, from three to sixteen years of age.


(b') in 50,000 pesetas for each descendant in charge less than three years.


(((c) for each one of those cited in the letters a) and b) above, anyone who is his age, who do not have annual incomes exceeding the amount established by regulation, with the minimum of 550,000 euros, including the exempt, who are disabled and proof of a degree of disability equal to or greater than 33 per 100 and less than 65 per 100 , in addition to the above if come, 300,000 pesetas per year. This amount will be 600,000 pesetas per year when the accredited degree of disability is equal to or greater than 65 per 100.


(For purposes of the provisions of the letters b)) and (c) above, shall be treated as the descendants those persons related to the taxpayer by reason of guardianship and foster care, in the terms provided for in the applicable civil law.


2nd do not proceed the implementation of minimum family members referred to in number 1 above where people who generate the right to the same statement for this tax or the communication provided for in article 81 of this Act.


3rd when two or more taxpayers are entitled to the application of the minimum family, the amount will be prorated among them equally.


However, when taxpayers have varying degrees of kinship with the ascendant or descendant, the application of the minimum relative will correspond to the nearest degree, except that they do not have income exceeding the amount which is fixed by law in which case will be up to the next grade.


4. the determination of the personal and family circumstances that should be taken into account for the purposes of the provisions of the preceding paragraphs, will be attending to the situation existing at the date of accrual of the tax.


However, the application of the minimum relative by ascendants will require that the ascendant depend on and live with the taxpayer, at least, the half of the tax period.


5. the minimum personal and family of each taxpayer shall consist of the sum of the amounts that are applicable according to the preceding paragraphs.


Chapter IV Special rules of valuation article 41. Estimation of incomes.


1. the assessment of estimated income referred to in article 6.3 of this Act shall be made by the normal market value. This means the consideration that would be agreed between independent subjects, unless proven otherwise.


2. If it's loans and operations of recruitment or use of foreign capital in general, means normal value in market legal interest of the money that is in effect the last day of the tax period.


Article 42. Related-party transactions.


1 apply this tax rules for the evaluation of the operations linked in the terms provided in article 16 of law 43/1995, of 27 December, of the tax.


2. in the event that the operation linked to a society appropriate to the exercise of economic activities or the provision of personal work by individuals, these must be carried out their assessment in the terms provided in article 16 of law 43/1995, of 27 December, the corporation tax, aforementioned, when they involve an increase of their income. In this case, also the entity shall perform this evaluation for the purposes of corporation tax.


Article 43. Income in kind.


1 constitute income in kind the use, consumption, or obtaining, for particular purposes, of goods, rights or services for free or for less than the normal market price, even though they do not pose a real spending for those who grant them.


When the payer of income delivered to the taxpayer amounts in cash to enable it to acquire goods, rights or services, the income will be considered cash.


2 not shall be regarded as income from work in kind: to) the delivery workers in active, for free or for a price lower than the normal market, shares of the company or other companies of the Group of companies, in part not to exceed, for the whole of the delivered to each worker 500,000 pesetas per year or 1,000,000 pesetas in the past five years, under the conditions established by law.


(b) the amounts earmarked for updating, training or recycling of personnel employed, when required by the development of its activities or the characteristics of the jobs come.


(c) delivery to employees of products at reduced prices in canteens or canteens or stores of a social nature. They will have consideration of delivery of products at reduced prices in canteens carried out indirect formulas of the service whose amount does not exceed the amount to be determined by regulation.


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


(e) the premiums or fees paid by the company under contract of insurance of accident at work or of civil responsibility of the worker.


(f) the premiums or met contributions to insurance companies for coverage of illness of the worker, under the conditions and within the limits established by law.


Article 44. Valuation of in-kind income.


1 in General, income in kind will be valued for their normal value in the market, with the following specialties: 1 the following in-kind work yields will be valued in accordance with the following standards of valuation: to) in the case of use of housing, 10 per 100 of the rateable value.


In the case of homes whose property values have been revised or modified, in accordance with procedures regulated in articles 70 and 71 of Act 39/1988, of 28 December, regulating local treasuries, and entered into force on 1 January 1994, the 5 by 100 of the rateable value.


If the date of accrual of the tax the estate lacked rateable value or this would have not been notified to the holder, 50 will be taken as the basis of imputation of them by 100 of the one that need to compute for the purposes of the wealth tax.


In these cases, the percentage will be 100 5.


The resulting assessment may not exceed 10 per 100 of the remaining payments of the work.


(b) in the case of the use or delivery of motor vehicles:-in the event of delivery, the cost to the taxpayer, including the taxes that are payable in respect of the operation.


-In the case of use, 20 per 100 yearly cost referred to in the preceding paragraph. Where the vehicle is not owned by the taxpayer, that percentage will apply on the market value that would correspond to 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 resulting assessment of the previous use.


(c) in loans with interest rates below the legal money, the difference between interest paid and the legal interest of the existing money in the period.


(d) by the cost to the taxpayer, including the taxes that are payable in respect of the operation, the following income:-benefits in respect of maintenance, lodging, travel and the like.


(-The premiums or contributions paid under insurance contract or other similar, without prejudice to the provisions in the letters e) and f) of paragraph 2 of the preceding article.


-The quantities to meet expenses for the study and maintenance of the taxpayer or other persons linked to it by bond of kinship, including the Allied, up to the fourth degree inclusive, without prejudice to the provisions in paragraph 2 of the preceding article.


(e) by the amount, the contributions paid by the promoters of pension plans, as well as the amounts paid by employers to meet the commitments for pensions in the terms provided for in the first additional provision of the law 8/1987 of 8 June, adjustment of plans and pension funds, and its implementing regulations.


(f) however in previous letters, where the performance of work in species is fulfilled by enterprises which have as usual activity – the activities that give rise to the same, valuation may not be lower than the price offered to the public good, right or service concerned.


2nd capital gains in kind will be valued in accordance with articles 32 and 35 of this Act.


2. in cases of income in kind, their assessment will take place according to the rules laid down in this law.


To this value will be added income into account, except that the amount would have been impacted to the income beneficiary.


Chapter V regimes for the determination of the tax base
Article 45. Regimes for the determination of the tax base.


1. the components of the taxable amount shall be determined on a general basis by the direct estimate regime.


2 the determination of the performance of economic activities will be carried out through the following schemes: to) direct estimate, that will be applied as a general scheme, and which will support two modes:-normal.


-The simplified. This mode applies to certain economic activities, the net amount of turnover for the whole of activities carried on by the taxpayer, does not exceed the 100.000.000 pesetas in the immediately previous year, unless renounce its application, in the terms established by law.


(b) objective estimation of yields for certain economic activities, which will be regulated by law in accordance with the following rules: 1st taxpayers who meet the circumstances provided for in the regulations of this regime, will determine their yields according to the same, unless they renounce their application, in the terms established by law.


2nd objective estimate scheme applies jointly with special regimes established in the value added tax or General indirect Canary tax, when so determined by law.


The scope of application of the system of estimation 3rd objective be set, among other ends, either by the nature of the activities and crops, either by modules objectives as the volume of operations, the number of workers, the amount of purchases, the surface of the holdings or fixed assets used, with the limits that, for all activities carried out by the taxpayer are determined by law.


4th by regulation the application of the system of objective estimation entities may establish in income allocation regime.


3. the indirect estimate scheme applies in accordance with the provisions in the law 230/1963, of 28 December, General tax.


The indirect estimation of yields from economic activities they shall take into account, preferably, signs, indexes or modules set for objective estimation, in the case of taxpayers who have waived this latest scheme for the determination of the tax base.


Chapter VI taxable section 1 GENERAL taxable BASE article 46. General taxable base.


The general taxable base will be constituted by the result of practicing in the general part of the tax base, exclusively, the following reductions: 1. in the case of contributions to mutual benefit societies and pension plans: 1 the amounts paid under insurance contracts concluded with mutual social welfare professionals not integrated in any of the Social security schemes , where it is intended to cover the contingencies provided for in article 8.6 of the law 8/1987 of 8 June, adjustment of plans and pension funds, provided that they have not had the consideration of deductible expense to find the net yield of economic activities, in the terms foreseen in the second paragraph of rule 1 of article 28 of this law.


2. the amounts paid under insurance contracts concluded with mutual social welfare by professionals or individual entrepreneurs in any of the schemes of Social Security, where it is intended to cover the contingencies provided for in article 8.6 of the law 8/1987, of 8 June, adjustment of plans and pension funds.


3 the amounts paid under insurance contracts concluded with mutual social welfare for workers by an employee or worker-members, including contributions of the promoter had been charged them in concept of income from work, when they are carried out in accordance with provisions in the first additional provision of the law 8/1987 of 8 June Adjustment of plans and pension funds, including the unemployment for workers members cited.


Insurance contracts concluded with mutual social welfare to those who refer three issues, in addition to those listed above, must meet the following requirements: to) the maximum annual contributions to such contracts, including, where appropriate, which have been attributed by promoters, may not exceed the quantities provided for in article 5.3 of the law 8/1987 8 June, adjustment of plans and pension funds.


(b) strengthened rights of members only may be made effective in the cases provided, for pension plans, by article 8.8 of the law 8/1987 of 8 June, adjustment of plans and pension funds.


The taxpayer was available, total or partially, such rights consolidated in various cases, replace if unduly practiced reductions in the tax base, practicing complementary settlements, including interest. At the same time, the sums received by the early provision of consolidated rights will be taxed as income from capital, unless they come from the insurance contracts referred to in number 3 of this section, in which case, will be taxed as income from work.


(c) perceived benefits will be taxed in its entirety, unless in any case they can lower in - the amounts corresponding to the excesses of the contributions on the reduction in the tax base limits referred to in this article. Still, the rule provided for in point (c) is applicable) of article 27 of the law 8/1987 of 8 June, adjustment of plans and pension funds.


4th the contributions made by the participants in pension plans, including contributions of the promoter that had been imputed to them in respect of performance of the work.


As limit maximum set of these reductions will apply the lesser of the following amounts: to) 20 per 100 of the sum of the net yield of work and economic activities perceived individually in the exercise.


For these purposes, shall be deemed income from economic activities defendants by transparent societies regulated by article 75, paragraph 1, letters b) and c) of law 43/1995, of 27 December, the corporation tax, its partners effectively exercising its activity through them like professionals, artists or athletes.


(b) 1,100,000 pesetas per year.


The maximum limit of fiscal retrenchment will depend on the financial limit which in each case is assessed, pursuant to article 5.3 of the law 8/1987 of 8 June, adjustment of plans and pension funds.


2. compensatory pensions in favour of the spouse and annuities for food, with the exception of the fixed in favor of the children of the taxpayer, paid both by judicial decision.


Article 47. Compensation payable general negative bases.


1 if the general taxable base is negative, the amount may be compensated with the of the bases be settled general positive obtained in the next four years.


2. the compensation should be the maximum amount that will allow each of the following exercises and without that can practice the deadline concerning the previous section through the accumulation to be settled bases general denials of later years.


SECTION 2 BASE taxable special article 48. Special taxable base.


The special taxable base will be constituted by the special part of the tax base.


Title III chapter I definition of the total state tax article 49 tax calculation. Total state tax.


Full State fee will be the sum of the amounts resulting from rates of assessment, those referred to in articles 50 and 53 of this law, to the general and special payable basis, respectively.


Article 50. General tax scale.


1 general taxable base will be taxed to the types listed in the following scale: total tax taxable rest base taxable rate applicable to pesetas Pesetas up to 0 percentage-pesetas... 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... on... 39.60
2 means medium of State assessment derivative multiplied by 100, the resulting ratio by dividing the quota obtained by the application of the scale provided for in the preceding paragraph by the general taxable base. The average state tax rate shall be expressed to two decimal places.


Article 51. Applicable specialties in the case of annuities by food for the children.


Taxpayers who meet annuities for food to their children by judicial decision, when the amount of those is lower than the general taxable base, apply the scale of the previous article separately to the amount of annuities for food and the rest of the general taxable base.


Article 52. Scale applicable to residents abroad.


In the case of taxpayers who had their habitual residence abroad because some of the circumstances which referred to in paragraphs 2 and 3 of article 9 of this law, the applicable scales will be those laid down in paragraph 1 of article 50 and paragraph 1 of article 61, both of this law.


Article 53. Special types of assessment.


1. the taxable special be taxed at the rate of 17 per 100.


2. the special taxable base of taxpayers referred to in article 9, paragraphs 2 and 3, of this law, be taxed at the rate of 20 per 100.


Chapter II determination of the liquid state fee article 54. Liquid state fee.


1. the liquid state tax share will result from reducing the total state tax in 85 per 100 of the total amount of the deductions that they are provided for in article 55 of this law.


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


Article 55. Deductions.


1. deduction for investment in residence.


(1st taxpayers may apply a deduction for investment in his residence in accordance with the following requirements and circumstances: to) in General, 15 may not be reduced by the amounts paid in the period 100-question by acquisition or rehabilitation of housing which constitutes or will constitute the habitual residence of the taxpayer. For this purpose, the rehabilitation must satisfy the conditions established by law.


The maximum of this deduction base will be 1,500,000 pesetas per year and will be constituted by the amounts paid for the purchase or rehabilitation of housing, including the expenses that have been carried out by the purchaser and, in the case of funding of others, depreciation, interest and other expenses arising from the same.


You can also apply this deduction by amounts that are deposited in credit institutions, in accounts that meet the requirements of formalisation and provision are established according to the rules, and who always intended to the first acquisition or rehabilitation of the residence, with the limit, in conjunction with that laid down in the preceding paragraph, of 1,500,000 pesetas per year.


((b) when in the purchase or rehabilitation of the residence is used outside funding, the deduction percentages applicable to the basis of deduction referred to in the letter to) above are in the conditions and requirements established by law, as follows:-during the two years following the acquisition or rehabilitation. The 25 by 100 on the first 750,000 pesetas and 15 per 100 over the excess up to 1,500,000 pesetas.


-Postrelease, the above percentages shall be 20 per 100 and 15 per 100, respectively.


2nd when you purchase a residence having enjoyed the deduction for purchase of other former regular dwellings, not you can practice deduction by acquisition or rehabilitation of the new insofar as the amounts invested in the same do not exceed the reversed previous, insofar as they had been deductible.


When the alienation of a residence had generated an exempt equity profit for reinvestment, the basis of deduction for the acquisition or the new rehabilitation will be reduced in the amount of the capital gain to which the block exemption applies for reinvestment. In this case, not you can practice deduction by the acquisition of the new while the amounts invested in the same do not exceed both the previous price, insofar as it has been subject to deduction, as the equity gain exempt by reinvestment.


3rd means residence that where the taxpayer resides for a period of three years. However, means that the dwelling had that character when, despite not having passed this term, there is the death of the taxpayer or that necessarily require the change of housing, such as marital separation, job transfer, obtaining first job or most advantageous employment or other similar circumstances.


(4th may also apply the deduction for investment in residence disabled taxpayers who carry out works and adaptation in the same facilities, including the common elements of the building and which serve as a necessary step between the estate and the public roads, with the following specialties: to) works and fitness facilities must be certified by the competent administration as necessary for accessibility and sensory communication that facilitates the dignified and proper development of people disabled, in the terms established by law.


((b) the maximum of this deduction, basis regardless of the set in the letter a) of paragraph 1 above, will be 2,000,000 pesetas per year.


c) when the adequacy of housing investment is used outside funding, the applicable deduction percentages will be, in the conditions and requirements established by law, those provided for in point (b)) of paragraph 1 above.


(d) it is understood as a circumstance which necessarily requires the change of housing when the previous is inadequate because of the disability.


(e) also entitles to deduction works and installations of adaptation to be carried out in homes occupied by the disabled contributor to title of lessee, sublessee or usufructuary.


2. deductions in economic activities.


This tax by taxpayers engaged in economic activities, shall apply incentives and stimulus to business investment established or established in the regulations of the tax, with equal percentages and deduction limits.


However, these incentives only will apply to taxpayers in objective estimate scheme when it is thus established regulations taking into account the characteristics and formal obligations of the said regime.


3. deductions for donations.


Taxpayers may apply, in this concept: to) the deductions provided for in law 30/1994 of 24 November, foundations and tax incentives to private participation in activities of General interest.


(b) 10 per 100 of amounts donated to the legally recognized foundations that are held accountable to the corresponding protectorate authority, as well as associations declared of public utility, not included in the previous letter.


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 be deducted 50 per 100 of the part of the State and autonomous or complementary sum of intact quotas proportionately corresponding income computed for the determination of payable databases that had been obtained in Ceuta or Melilla.


(b) also enjoy the present deduction taxpayers who maintain their usual residence in Ceuta or Melilla during not less than five years, in the tax periods initiated after the end of that period, the incomes obtained outside these cities when, at least one third of the net worth of the taxpayer, determined in accordance with the rules governing the wealth tax is located in these cities.


The maximum amount of the incomes, obtained outside these cities, which may be entitled to the deduction will be the net amount of yields and gains and capital losses obtained in these cities.


2nd taxpayers who do not have their habitual residence in Ceuta or Melilla, shall be deducted 50 per 100 of the part of the sum of quotas intact State - and autonomous or complementary to proportionally appropriate income computed for the determination of positive payable databases that had been obtained in Ceuta or Melilla.


In any case this deduction shall apply to the following income: from collective investment institutions, unless all of their assets is invested in Ceuta or Melilla, in conditions to be determined by regulation.


The incomes to which referred to), e) e i) the following number.


(3rd to the purposes specified in this law, shall be deemed incomes obtained in Ceuta or Melilla the following: to) the performance of the job, when they derive from the work of any kind in those territories.


(b) the yields derived from the ownership of real estate located in Ceuta or Melilla or real rights that fall on them.
(c) that coming from the exercise of economic activities effectively carried out, under conditions to be determined according to the rules, in Ceuta or Melilla.


(d) capital gains derived from real estate in Ceuta or Melilla.


(e) capital gains derived from movable property situated in Ceuta or Melilla.


(f) the income from the capital from bonds or loans, when funds are invested in those territories and there to generate the corresponding income.


(g) the income from the capital from the lease of movable property, businesses or mines, under conditions to be determined by regulation.


(h) income from companies that operate effectively and materially in Ceuta or Melilla and home and exclusive corporate purpose in those territories.


(i) yields from deposits or accounts in all sorts of financial institutions located in Ceuta or Melilla.


5. deduction for investments and expenses incurred in of cultural interest.


Taxpayers may apply a deduction for these concepts, pursuant to any of the following ways: to) 15 per 100 of investments made in the procurement of goods which are registered in the General registry of goods of Cultural interest, in accordance with article 69.2 of the law 16/1985, of 25 June , of the Spanish historical heritage, provided that good remains in equity of the holder for a period of not less than three years time and formalize communication of transmission to the General property registry of Cultural interest.


(b) 15 per 100 of the amount of the costs of conservation, repair, restoration, dissemination and exhibition of goods that meet the requirements established in the previous letter, as insofar as they cannot be deducted as tax-allowable expenses, in order to determine the net yield which, where appropriate, appropriate.


Article 56. Limits of certain deductions.


1. the base of the deductions referred to in paragraphs 3 and 5 of article 55 of this law, may not exceed 10 per 100 of the taxable base of the taxpayer.


2. the limits of the deduction referred to in paragraph 2 of article 55 of this law will be applied on the fee resulting from lower the sum of quotas intact State and autonomous or complementary in the total amount of the deductions for investment in residence and investment and spending on goods of cultural interest.


Article 57. Verification of the patrimonial situation.


1. the application of the deduction for investment in housing will require the amount proven heritage of the taxpayer at the end of the period of taxation exceeds value that cast its verification at the beginning of the same at least in the amount of investments, without computing the interest and other financing expenses.


2. for these purposes, are not counted increases or decreases in value experienced during the tax period for the assets that continue forming part of the assets of the taxpayer at the end of the same.


Title IV autonomic assessment or supplementary chapter I standards common article 58. Common rules for the determination of the autonomous or complementary assessment.


For the determination of regional or supplementary assessment shall apply the rules on the subject to the tax, and determination of the economic capacity contained in the law Titulosiyiideesta, as well as those concerning family taxation, special regimes and collective investment institutions, contained in titles VI, VII and VIII of this law.


Chapter II habitually resident 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, it shall be deemed that habitually resident in Spanish territory taxpayers who are resident in the territory of an autonomous community: 1 when a greater number of days of the tax period to remain in its territory.


Temporary absences will be calculated to determine the period of permanence.


Unless proven otherwise, it shall be deemed that an individual remains in the territory of an autonomous region when his residence is situated in that territory.


2 if it was not possible to determine the retention referred to in point 1 above, will be considered resident in the territory of the autonomous community where they have their main centre of interests.


The territory where most of the taxable income of the tax on the income of the physical persons, determined by the following components of income obtained shall be considered as such: to) work yields, which are understood to be obtained where is situated the Centre of respective work, if it exists.


(b) performance of real estate capital and capital gains derived from immovable property, which are understood to be obtained at the place to file these.


(c) income derived from economic activities, whether they are business or professional, that are understood to be obtained where is situated the center of management of each one of them.


(d) bases implicated in the regime of professional transparency, which are understood to be obtained at the place where the professional activity to develop.


3rd when cannot be determined in accordance with the criteria set out in points 1 and 2 previous residence, will be considered resident in the place of his last residence declared for the purposes of the tax on the income of physical persons.


2 natural persons resident in the territory of an autonomous community, which pass to have their habitual residence in another, will meet their tax in accordance with the new residency obligations, when this serves as connection point.


In addition, when under the provisions of the following paragraph 3 is to be that there has been no change of residence, individuals must submit additional statements that apply, including the interests of delay.


The deadline for submission of supplementary statements will end on the same day that concludes the deadline for submission of statements by the physical personal income tax for the year in which the circumstances which, according to the provisions of paragraph 3 below, to determine that he is to be that there has been no change of residence.


3 do not produce effect changes of residence having main object is to achieve a lower effective taxation in this tax.


It shall be presumed, unless the new residence extends continuously for at least three years, that there has been no change in relation to the performance assigned from the tax on the income of physical persons, when the following circumstances occur concurrently: to) that in the year in which occurs the change of residence or the next, the taxable income of the tax on the income of physical persons is greater in at least, a 50 by 100 of the year prior to the change.


In the case of joint taxation shall be determined in accordance with the rules of individualization.


(b) that in the year in which occurs the situation referred to in the previous letter, its effective taxation by the tax on the income of physical persons is lower than which would have corresponded in accordance with the regulations applicable in the autonomous community in which they resided prior to change.


((c) that in the year following that in which the situation referred to in the letter to), or the next, again having their habitual residence in the territory of the autonomous community in which resided prior to the change.


4 natural persons resident in Spanish territory, which do not remain in said territory of more than one hundred and eighty-three days during the calendar year, shall be considered resident in the territory of the autonomous community where the core or base their activities or economic interests.


5 natural persons resident in Spanish territory by application of the presumption envisaged in the last subparagraph of paragraph 1 of article 9 of this law, shall be considered resident in the territory of the autonomous community in which they reside usually non-separated spouse legally and underage children who depend on them.


Chapter III calculation of autonomous or complementary assessment section 1 determination of the total tax autonomous or complementary item 60. Total tax autonomous or complementary.


The autonomous or complementary full tax fee will be the sum of the resulting amounts of rates of assessment, those referred to in articles 61 and 63 of this Act, to the general and special taxable, respectively.


Article 61. Scale regional or additional tax.


1 general taxable base will be taxed to the types of scale regional tax which, in accordance with the provisions of article 13.uno.1.º to) of the Act 14/1996 of 30 December, transfer taxes of State to the autonomous communities and complementary tax measures, has been approved by the autonomous region.


If the autonomous community had not approved the scale referred to in the preceding paragraph or not I would have assumed regulatory powers in respect of the tax on the income of physical persons, the following additional scale shall apply:
Total tax taxable rest base taxable rate applicable to pesetas Pesetas up to 0 percentage-pesetas... 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............................... en adelante............................... 8.40 2. Medium means of autonomous or complementary assessment derivative multiplied by 100, the resulting ratio by dividing the quota obtained by the application of the scale provided for in the preceding paragraph by the general taxable base. Average of autonomic assessment shall be expressed to two decimal places.


Article 62. Applicable specialties in the case of annuities by food for the children.


Taxpayers who meet annuities for food to their children by judicial decision, when the amount of those is lower than the general taxable base, apply the scale of the previous article separately to the amount of annuities for food and the rest of the general taxable base.


Article 63. Special tax rate.


The taxable base special be taxed with type 3 by 100.


AUTONOMOUS determination of the liquid share 2nd or complementary article 64 section. Liquid autonomous or complementary fee.


1 liquid autonomous or complementary fee will result from reducing full autonomous or complementary fee in the sum of: to) 15 per 100 of the total amount of the deductions that they are provided for in article 55 of this law, the limits and requirements of patrimonial situation provided for in articles 56 and 57 of the same.


(b) the amount of the deductions provided by the autonomous community in the exercise of the powers provided for in the law 14/1996 of 30 December, transfer of State taxes to the autonomous communities and complementary tax measures.


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


Title V fee differential article 65. Differential quota.


The differential fee will be the result of lower total liquid share of the tax, which will be the sum of liquid shares, State and autonomic, or complementary, in the following amounts: to) the double taxation of dividends and double international taxation deductions provided for in articles 66 and 67 of this Act.


(b) the deductions, to account revenues and the instalments provided for in this Act and its regulatory development rules.


(c) the fees paid by corporate tax by the companies subject to the system of fiscal transparency, referred to in article 75 of law 43/1995, of 27 December, corporate tax, as well as dues that had been imputed to these societies.


The deduction of these fees, together with payments to account imputed to them, will be maximum limit the derivative of the average effective rate of tax apply to the part of the taxable base corresponding to the taxable income imputed, when the following circumstances occur concurrently: 1 corresponding to transparent societies provided for in subparagraphs b) and c) of article 75 of law 43/1995 of 27 December, the corporation tax, where imputation is not carried out entirely to natural persons who, directly or indirectly, are linked to the development of professional activities that derive revenues from the transparent society, or natural persons of whose artistic or sports performances derived revenues for the transparent society (, or referred to in the letter to) of that article.


2nd that the effective taxation of personal income tax is lower than the corporate tax, in terms that provide for by law.


When operating the limit referred to in the preceding paragraph shall be deducted, in addition, excess payments charged on the difference between the total tax from corporation tax and deductions and bonuses referred to in chapters II, III and IV of title VII of law 43/1995, of 27 December, the corporate income tax.


(d) the deductions referred to in article 75.8 and article 76.4 from this law.


Article 66. Deduction for double taxation of dividends.


1. There shall be deducted the amount resulting from applying the percentages listed below, when whether the yields referred to in paragraph 1 of article 23 of this law and the part of imputed tax base of an open society that corresponds to those yields: 40 by 100, in General.


25 per 100 when, in accordance with the aforesaid article, had proceeded to multiply the performance by the percentage of the 125 per 100.


0 per 100 when, in accordance with the aforesaid article, had proceeded to multiply the performance by the percentage of 100 per 100.


For the deduction for double taxation for returns of cooperatives protected and specially protected, regulated by law 20/1990 of 19 December, on Fiscal regime of cooperatives, it will serve to the provisions of article 32 of this law.


2. the basis of this deduction will be constituted by the full amount collected.


3. the amounts not deducted for failure of liquid share may not be reduced in the next four years.


Article 67. Deduction for double international taxation.


1 when the income of the taxpayer listed yields or capital gains obtained and taxed abroad, will be deducted the lesser of the following amounts: to) the actual amount of the satisfied abroad on the basis of assessment of personal about those yields or capital gains.


(b) the result of applying the tax rate to the part of taxable taxed abroad.


2. for these purposes, the type of assessment will result from multiplying by 100 ratio retrieved from dividing the total liquid fee for the taxable base. So you should differentiate the type of assessment that corresponds to the incomes which must be integrated into the general or special part of the tax base, as appropriate.


The tax rate shall be expressed to two decimal places.


Title VI taxation family article 68. Joint taxation.


1 may jointly pay people that form part of any of the following types of household: the integrated spouses not legally separated 1st and, if any: to) children, with the exception of those who, with the consent of the parents, live independent of these.


(b) the Court subject to the patria potestas extended or rehabilitated disabled older children.


2nd in the case of legal separation, or when there is no marriage, formed by the father or the mother and all the children who live with one or the other and which meet the requirements referred to in rule 1 of this article.


2. no one may be part of two households at the same time.


3. the determination of the members of the family will be attending the situation at 31 December of each year, except in case of death during the year of any member of the family unit, in which case, the remaining members of the family unit may opt for joint taxation, including the income of the deceased.


Article 69. Joint taxation option.


1. natural persons in a household are eligible, in any tax period, by jointly to pay in the tax on the income of physical persons, pursuant to the General rules of the tax and the provisions of this title, provided that all members are taxpayers this tax.


The joint taxation option not linked for successive periods.


2. the joint taxation option must include all of the members of the family unit.


If one of them is individual Declaration, the remaining should be used the same regime.


The option exercised for a tax period may not be modified later with respect to the same once the regulatory period of declaration.


In case of Declaration, taxpayers will be taxed individually, unless they expressly declare your choice within the period of ten days from the request of the tax administration.


Article 70. Rules applicable in the joint taxation.


1. in the joint taxation shall apply the General rules of tax determination of income from taxpayers, tax and taxable bases determination and determination of the tax debt, with the specialties that are set in the following paragraphs.
2. the amounts and quantitative limits established for the purpose of individual taxation, apply identical amount in the joint taxation, without which their lifting or multiplication in function of the number of members of the family unit.


Still: 1 the maximum reduction of the tax base provided for in b) of paragraph 1 of article 46 of this law will be applied individually by each shareholder or mutual society integrated in the family unit.


2nd in the first of the modalities of household of article 68 of this law, the minimum staff provided a general rule in paragraph 2 of article 40 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.


3rd in the second of the modalities of household of article 68 of this law, the personal minimum laid down in paragraph 2 of article 40 of this law will be 900,000 and 1,000,000 and 1,200,000 and 1,500,000 pesetas, respectively. When the father and mother live together, the personal minimum is that laid down in paragraph 2 of article 40 of this law.


4th in any case will proceed the implementation of minimal staff for the children, without prejudice to the amount which is appropriate for family minimum.


3. in the joint taxation will be compensable, pursuant to the General rules of the tax, economic losses and General payable databases made and not compensated by contributing components of the family unit in earlier tax periods that have individually shown negative.


4. the concepts identified in joint taxation will be compensated solely, in case of subsequent individual taxation, for those taxpayers who apply in accordance with the rules on identification of revenue contained in this law.


5 any income obtained by natural persons integrated into a family unit who have opted for joint taxation, will be taxed acumuladamente.


6. all the members of the family unit shall be jointly and severally liable subject to the tax, without prejudice to the right to apportion among themselves the tax debt, according to the part of income subject that corresponds to each of them.


Title VII regimes special section 1 allocation of income real estate article 71. Allocation of real estate income.


1. in the case of real estate urban, qualified as such in article 62 of law 39/1988, of 28 December, regulating local treasuries, not affection to economic activities, or generators of income from the real estate capital, excluding the residence and not built-up soil, it will be considered income imputed to the amount resulting from applying the 2 per 100 to the rateable value determined proportionally to the number of days that corresponds in each tax period.


For properties whose property values have been revised or modified, in accordance with procedures regulated in articles 70 and 71 of Act 39/1988, of 28 December, regulating local treasuries, and entered into force on 1 January 1994, the imputed income is 1.1 per 100 of the rateable value.


If the date of accrual of the tax the property referred to in this section lacked rateable value or this would have not been notified to the holder, 50 will be taken as the basis of imputation of them by 100 of the one that need to compute for the purposes of the wealth tax. In these cases, the percentage will be 1.1 per 100.


In the case of buildings under construction and in cases that, for planning reasons, the property is not susceptible of use, not any income is estimated.


2. these incomes shall be charged to the owners of real property in accordance with article 7 of the Law 19/1991 of June 6, from the wealth tax.


When there are real rights of enjoyment, computable income for these purposes in the holder of the right shall be which would correspond to the owner.


3. in the case of rights of timeshare real estate allegation shall be made to the holder of the right in rem, prorating the taxable base of the tax on real estate property according to the duration of the annual period of use.


When the taxable base cannot be determined, the price of acquisition of the right to development be taken as the basis of imputation.


Not proceed the imputation of income real estate to the holders of rights to use real estate shift when its duration does not exceed two weeks per year.


2 accusations in the FISCAL transparency regime article 72. Allocation of taxable bases.


1. taxpayers charged in the general part of the tax base, as laid down in article 38 of this law, the taxable income obtained by companies that are transparent to that referred to in article 75 of law 43/1995, of 27 December, the corporation tax, at the rate resulting from the articles of Association and , in their absence, in accordance with their participation in the share capital.


Article 75.3 of prior law, a part of imputed taxable base corresponding to yields obtained by participation in own funds of any type of entity resident in Spanish territory shall however you application as provided in paragraph 1 of article 23 of this law.


2. the imputation of positive taxable bases of societies in fiscal transparency regime shall be made in the tax period in which it had approved the annual accounts. If these not had been adopted within the period of six months from the closing date of the fiscal year, they shall be charged to the tax period in which that period expires.


However, the taxpayer may elect to attribute them to the tax periods that correspond to the dates of closing of the social exercises.


The option will manifest itself in the first tax return that should take effect, must be kept for three years and may not produce as effect that are taxable without declarations of taxpayers to compute.


Article 73. Allocation of other concepts.


Taxpayers referred to in the preceding article shall be entitled to imputation: a) of deductions and allowances in the fee to which it is entitled society. The bases of the deductions and allowances will be integrated in the liquidation of the taxpayer, discounting, where applicable, the quota according to specific rules of this tax.


Deductions and allowances are charged jointly with the positive tax base.


(b) of fractionated payments, withholdings and payments on account associated with the transparent society.


((c) of the quota fulfilled by the open society because of the tax, as well as the fee that has been imputed to the company, the limit referred to in article 65.c) of this law.


Article 74. Individualization.


The concepts referred to in this section shall be charged to individuals who have the economic rights inherent in the quality of partner the day of the conclusion of the tax period of the transparent society.


SECTION 3 international FISCAL transparency article 75. Allocation of revenue in international fiscal transparency regime.


1 taxpayers charged positive income obtained by a non-resident entity in Spanish territory, insofar as such income strength belongs to one of the classes provided for in paragraph 2 of this article and the following circumstances are fulfilled: to) that alone or together with institutions as provided for in article 16 of law 43/1995 December 27, tax on companies or with other taxpayers United by bonds of kinship, including the spouse, online direct or collateral, consanguineous or by affinity to the second degree inclusive, have a stake equal to or exceeding 50 per 100 in the capital, own funds, results or voting rights of the non-resident entity in Spanish territory , on the date of the closing of the business year of the latter.


Participation that have non-resident related entities will be calculated by the amount of the indirect participation determined by people or entities linked resident in Spanish territory.


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


(b) that the amount paid by the non-resident entity in Spanish territory, attributable to some kinds of income provided for in paragraph 2, by reason for assessment of nature identical or analogous to the corporate income tax, is less than 75 per 100 of which has been reciprocated in accordance with the rules of the aforementioned tax.


2 only shall be apportioned amongst the positive income that comes from each of the following sources: a) ownership of rural and urban real estate or rights in rem that fall on them, unless they are pertaining to a business activity in accordance with article 27 of this law or in use are transferred to entities not resident, belonging to the same group of companies of the holder , in the sense of article 42 of the code of Commerce.


(b) participation in equity of any entity and transfer to third parties of own capital, in the terms referred to in paragraphs 1 and 2 of article 23 of this law.
No means positive income that comes from the following financial assets included in this letter: to ') the dyed to comply with legal and regulatory obligations caused by business activities.


(b') which incorporate credit rights born of contractual relations established as a result of the development of business activities.


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


((d') the dyed by credit institutions and insurance companies as a result of the exercise of its business activities, without prejudice to the provisions of point (c)).


Positive income derived from the transfer to third parties of capital means that it comes from credit and financial activities referred to in point (c)), when the assignor and the assignee belong to a group of companies within the meaning of article 42 of the code of Commerce, and the income of the transferee will come, at least in the 85 per 100 , in the pursuit of business activities.


(c) activities credit, financial, insurance and service provision, except those directly related to export activities, directly or indirectly, with persons or entities resident in Spanish territory and linked in the sense of article 16 of law 43/1995, of 27 December, the corporation tax, as determined tax deductible expenses in such residents.


Positive income will not be included when more than 50 per 100 of the income derived activities, credit, financial, insurance or provision of services, except those directly related to export activities, carried out by the non-resident entity come from operations carried out with persons or entities not linked within the meaning of article 16 of law 43/1995 , of 27 December, the corporate income tax.


((d) transmissions of the goods and rights referred to in letters a) and b) that generate profit and economic loss.


Does not include income referred to in paragraphs to), b) and d) earlier, obtained by the entity non-resident as soon as it is obtained or derived from entities in which to participate, directly or indirectly, by more than 5 per 100, when the following two conditions are met: to ') that the non-resident entity, direct and manage entries through the corresponding organization of personal and material resources.


(b') income of entities that obtained income derived, at least in the 85 per 100, the pursuit of business activities.


For these purposes, means that they come from the exercise of business income provided for in the letters to), b) and d) which had its origin in entities that meet the requirement of the letter b') above and are owned, directly or indirectly, by more than 5 per 100 by the non-resident entity.


3 not be charged rents provided for in the letters to), b) and d) of the preceding paragraph where the sum of the amounts is less than the 15 per 100 of total income or the 4 by 100 of the total income of the non-resident entity.


The limits laid down in the preceding paragraph may refer to income or income earned by the Group of the non-resident entities in Spanish territory belonging to a group of companies within the meaning of article 42 of the code of Commerce.


In no event will fall an amount greater than the total income of the non-resident entity.


You will not fall in the taxable income of the taxpayer the tax or tax nature identical or similar to the tax actually satisfied by the non-resident company for the part of income to include.


Income positive from each of the sources cited in paragraph 2 shall be charged on the general part of the tax base, as laid down in article 38 of this law.


4 shall be obliged to the corresponding charging taxpayers covered by the letter to) of paragraph 1, which participate directly in the entity not resident either indirectly through one or more other non-resident entities. In the latter case, the positive income amount shall be the corresponding indirect participation.


5. the allocation will take place in the tax period including the day in which the entity not resident in Spanish territory completed its fiscal year that, for these purposes, you can not understand more than 12 months duration, unless the taxpayer chooses to make such inclusion in the tax period that includes the day that approved the accounts for the year , provided that had not spent more than six months from the date of conclusion.


The option will manifest itself in the first tax return that should take effect and should be kept for three years.


6. the amount of the positive to impute the taxable income is calculated according to the principles and criteria laid down in law 43/1995, of 27 December, of tax on companies, and the remaining provisions relating to corporation tax for the determination of the tax base. Total income means the amount of the tax base resulting from implementing these same criteria and principles.


For these purposes, the exchange rate prevailing at the end of the fiscal year of the non-resident entity will be used in Spanish territory.


7. not be charged dividends or shares in benefits in the part that corresponds to the positive income that has been imputed. The same treatment applies to dividends into account.


In the case of distribution of reserves it attend the designation contained in the social agreement, understanding applied the latest amounts paid to such reservations.


Same positive income may only be charges one one-time, any object that is the shape and the entity that occurs.


8 will be deductible from the liquid share tax or tax actually satisfied overseas because of the distribution of dividends or shares in profits, or in accordance with an agreement to avoid double taxation in accordance with the domestic legislation of the country or territory concerned, in the part that corresponds to the positive income included in the tax base.


This deduction shall be even if taxes apply to tax periods other than that which was included.


In no event shall be deducted taxes satisfied in countries or territories qualified by law as tax havens.


This deduction may not exceed the total tax that would pay for the positive income imputed tax base in Spain.


9 to calculate the income derived from the transmission of the participation, direct or indirect, will be used the rules contained in the letter c) of paragraph 1 of article 35 of this law, in relation to the positive income imputed - tax base. The benefits referred to in the aforesaid article shall be those corresponding to positive income imputed.


10 taxpayers who may apply as provided in this article must be submitted jointly with the Declaration by physical persons income tax following data relating to the non-resident entity in Spanish territory: a) name or corporate name and place of domicile.


(b) relation of administrators.


(c) balance sheet and profit and loss account.


(d) amount of positive income that should be imputed.


(e) taxes satisfied with respect to the positive income that should be imputed justification.


11 when the investee entity is resident of countries or territories by regulation qualified as tax havens will be presumed that: a) met the circumstance referred to in paragraph 1 letter b).


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


(c) the income obtained by the investee entity is 15 per 100 of the acquisition value of the participation.


The presumptions contained in the previous letters accepted evidence to the contrary.


The presumptions contained in the previous letters shall not apply when the investee entity consolidate their accounts, in accordance with the provisions of article 42 of the code of Commerce, with one or more of the entities obliged to inclusion.


12. the provisions of this article shall mean without prejudice to the provisions of the international treaties and conventions that have become a part of domestic and in article 2 of this law.


SECTION 4 rights of image article 76. Allocation of income by the transfer of image rights.


1 taxpayers charged in your taxable income for the tax on the income of physical persons the amount referred to in paragraph 3 when the following circumstances occur concurrently: to) that have ceded the right to the exploitation of their image or had consented to or authorized their use to another person or entity, resident or non-resident. For purposes of this letter, it will be indifferent that the assignment, consent or authorization had taken place when the individual was not contributing.


(b) that you provide their services to a person or entity within the scope of an employment relationship.
(c) that the person or entity with which the taxpayer keep the employment relationship, or any other person or entity associated with them under the terms of article 16 of law 43/1995, of 27 December, the corporation tax, has obtained, by means of acts concluded with persons or entities resident or non resident transfer of exploitation right or consent or authorization for the use of the image of the physical person.


(2-the allocation referred to in the preceding paragraph shall not be maintained where work yields obtained in the tax period by the natural person referred to in paragraph first above pursuant to the employment relationship are not more lower than 85 per 100 of the sum of the above yields the total consideration in charge of the person or entity that referred to c) above by the acts There indicated.


3. the amount to be charged will be the value of the consideration that been satisfied prior to the hiring of labour services of the natural person or that must meet the person or entity referred to in point (c)) (1) for the acts listed there. Such amount will be increased by the amount of the income account referred to in paragraph 9 and will be reduced to the value of the consideration obtained by the individual as a result of the transfer, consent or authorization referred to in the letter a) of paragraph 1, provided that it had obtained in a tax period in which the person holder image physics is taxpayer for this tax.


4 1 where appropriate imputation, will be deductible from the full share of the tax on the income of the person referred to in paragraph first (1) physical persons: to) tax or tax nature identical or similar to the tax on the income of physical persons or societies, met abroad by the person or entity non-resident first assignee corresponding to the part of the net income derived from the amount to be included in your taxable income.


b) the tax on the income of physical persons or societies, met in Spain by the person or entity resident first assignee, corresponds to the part of the net income derived from the amount to be included in your taxable income.


(c) tax or tax actually satisfied overseas because of the distribution of dividends or shares in the profits distributed by the first assignee, is as an agreement to avoid double taxation or in accordance with the domestic legislation of the country or territory that is, in the part that corresponds to the amount included in the tax base.


(d) tax paid in Spain, when the physical person is not resident, corresponding to the consideration obtained by the individual as a consequence of the first assignment of the right to the exploitation of their image or consent or authorization for its use.


(e) tax or tax nature identical or similar to physical persons income tax paid abroad, corresponding to the consideration obtained by the individual as a consequence of the first transfer of the right of exploitation of their image or consent or authorization for use.


2nd these deductions will practice even if taxes apply to tax periods other than that which the imputation was performed.


In no event shall be deducted taxes satisfied in countries or territories qualified by law as tax havens.


These deductions may not exceed, as a whole, the total tax that corresponds to meet in Spain by the imputed the taxable income.


5 1 the allocation takes place by the physical person in the tax period corresponding to the date on which the person or entity referred to in point (c)) (1) the payment is made or meet the agreed consideration, except that for the tax period the individual would not be taxpayer by this tax, in which case the inclusion should be performed in the first or in the last tax period whereby he must pay by this tax, as the case may be.


2nd the allocation shall be made in the general part of the tax base, as laid down in article 38 of this law.


3rd A these effects be used the exchange rate prevailing on the day of payment or satisfaction of the consideration agreed to by the person or entity referred to in point (c)) (1).


6 1 not be charged on the tax staff of members of the first assignee dividends or shares in profits distributed by this in the part that corresponds to the amount that has been imputed by the natural person referred to in the first subparagraph of paragraph 1. The same treatment applies to dividends into account.


In the case of distribution of reserves it attend the designation contained in the social agreement, understanding applied the latest amounts paid to such reservations.


2nd dividends or shares referred to in number 1 above will not give right to the deduction for double taxation of dividends or the deduction for double international taxation.


3rd a same amount shall only be imputation only once, any object that is the form and the person or entity that is revealed.


7 when had proceeded the imputation concerning the apartado1ylacesion, consent or authorization referred to in the letter to) thereof there had been in favor of a society subject to the regime of transparency by application of the provisions of point (c)) (1) of article 75 of law 43/1995, of 27 December, tax (((, and this, in turn, had made the assignment, consent or authorization to the person or entity referred to in point (c)) of that paragraph: to) will not have the consideration of income tax computable in the transparent society the value of the consideration which should satisfy the person or entity referred to in point (c)) (1) for the acts listed there.


(b) will be considered tax deductible expense in the transparent society the consideration paid to the natural person referred to in the first subparagraph of paragraph 1.


8. the provisions of the preceding paragraphs of this article shall mean without prejudice to the provisions of the international treaties and conventions that have become a part of domestic and in article 4 of this law.


9 when an allegation referred to in paragraph 1, the person or entity referred to in point (c)) it must be an income on account of the compensation paid in cash or in kind to individuals or entities not resident for the acts listed there.


If the consideration is in kind, its valuation shall be carried out according to the provisions of article 44 of this law, and shall be income to count on that value.


The person or entity referred to in point (c)) (1) shall provide a declaration of income account in the form, terms and forms provided by the Minister of economy and finance. At the time of presenting the Declaration must determine its amount and make their entry into the Treasury.


It will be statutorily regulated income account type.


Title VIII article 77 collective investment institutions. Taxation of partners or participants in collective investment undertakings.


Taxpayers who are partners or participants in collective investment institutions regulated in law 46/1984, of 26 December, regulating collective investment institutions, charged in the general or special part of the tax base, in accordance with the provisions of this law, the following income standards: to) profit or loss assets obtained as a result of the transmission of the shares or participations or reimbursement of the latter. There are homogeneous values, is considered to be that the transmitted or reimbursed by the taxpayer are those who bought in the first place.


(b) the results distributed by collective investment institutions, which in any case shall be entitled to the deduction for double taxation of dividends referred to in article 66 of this law.


However, will be the application of deduction cited with respect to those dividends coming from interest or real estate investment that result from application the general type of assessment laid down in article 26 of law 43/1995, of 27 December, the corporate tax.


Article 78. Taxation of partners or participants in collective investment undertakings incorporated in countries or territories qualified by law as tax havens.


1. taxpayers who participate in collective investment institutions incorporated in countries or territories qualified by law as tax havens, charged in the general part of the tax base, as laid down in article 38 of this law, the positive difference between the net asset value of the share on the day of closure of the tax period and their acquisition cost.


The imputed amount is deemed higher purchase price.


2. the benefits distributed by the collective investment institution shall not be charged and minorarán the value of acquisition of the participation. These benefits will not give right to deduction for double taxation.
3. it shall be presumed, unless evidence to the contrary, that the difference referred to in paragraph 1 is 15 per 100 of the acquisition value of the action or participation.


Title IX management of the tax chapter I statements article 79. The obligation to declare.


1. taxpayers will be required to submit and sign Declaration by this tax, with the limits and conditions established by law.


2 However, notwithstanding the provisions of section 81 of this Act, will not have to declare the taxpayers who obtain income from solely from the following sources: a) performance of the work, with a limit of 3.500.000 annual gross pesetas in individual or joint taxation.


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


(c) charged real estate income referred to in article 71, the limit established by law.


3 the limit referred to in the letter to) of paragraph 2 above, will be 1,250,000 pesetas for taxpayers who receive income from work from more than one payer and those who receive compensatory pensions received from spouse or annuities for food other than those envisaged in article 7, letter k) of this law.


4. they are obliged to declare in any case taxpayers who are entitled to deduction for investment in housing, by international double taxation or that make contributions to pensions or Social Welfare mutual plans that will reduce the tax base, in the conditions established by law.


5 models of statement shall be approved by the Minister of finance, who shall establish the form and terms of presentation, as well as the assumptions and conditions of presentation of declarations by electronic means.


6. the Minister of economy and finance may approve the use of simplified or special modalities of declaration.


The Declaration shall be made in the form, terms and forms provided by the Minister of economy and finance.


Taxpayers must fill out all of the data concerning them contained in the statements, accompanying documents and supporting documents to establish and present them in places determined by the Minister of economy and finance.


7. the successors of the deceased shall be required to comply with the outstanding tax obligations by this tax, with the exception of the sanctions, in accordance with article 89.3 of law 230/1963, of 28 December, General tax.


8. when the taxpayer had no obligation to declare, public administrations may not require the provision of statements by this tax in order to obtain subsidies or any public benefits, or in mode one conditional to the presentation of such statements.


9. the law on the State budget may modify the provisions of the preceding paragraphs.


Article 80. Autoliquidación.


1. taxpayers who are forced to declare by this tax, at the time of filing his statement, shall determine the appropriate tax debt and entering the place, form and time limits determined by the Minister of economy and finance.


2. the entry of the amount resulting from the autoliquidación can be split in the form determined by law.


3. the payment of the tax debt may be through delivery of part of Spanish historical heritage assets that are registered in the General inventory of goods and chattels or in the General registry of goods of Cultural interest, in accordance with article 73 of the law 16/1985, of 25 June, the Spanish historical heritage.


4. the successors of the deceased shall be required to comply with the outstanding tax obligations by this tax, with the exception of the sanctions, in accordance with article 89.3 of law 230/1963, of 28 December, General tax.


5. in the case provided for in article 14.4 of this Act, the successors of the deceased may apply to the tax administration fractionation of the part of tax debt to income referred to in this rule, calculated by applying the rate regulated in article 67.2 of the Act.


The application will be formulated within the regulation period of declaration relating to the tax period of death and shall be granted on the basis of the tax periods that correspond to impute such incomes should that not have occurred with a maximum limit of four years under conditions to be determined by regulation.


Article 81. Communication of information by the taxpayer and request for repayment.


1. taxpayers do not have to file a return by this tax, in accordance with article 79.2 of the Act, and that have supported withholdings and payments on account and staged instalments exceeding the total liquid share reduced by the amount of the deductions for double taxation of dividends and international may send a communication to the tax administration requesting the refund of the amount that is coming.


For this purpose, the tax administration may require taxpayers the submission of a communication and information and documents that are necessary for the practice of refoulement.


2. the models of communication shall be approved by the President of the Agency State of tax administration, who shall establish the time and place of presentation. Also, determine the assumptions and conditions for submission of communications by electronic means and the cases that reported data are understood to be remaining for successive years, if the taxpayer does not communicate the same variation.


3 tax view, where appropriate, of the received communication and management data and file history in his possession shall be, if necessary, return that result to the taxpayer. Merely for information purposes, the result of calculations made by the means established by law will be communicated to taxpayers.


Received the refund or, where applicable, after the term for this purpose, taxpayers may request, within a period of three months, the management practice a provisional liquidation, in accordance with the provisions of paragraph 2 of article 84 of this law and the law 230/1963, of 28 December, General tax. Notification not be no obligation on the taxpayer other than the return of the previously returned more involved the interest of delay referred to in the article 58.2. b) of the General tax law. This same regime will be equally subject taxpayers who obtained returns above that correspond to them.


4. the procedure, as well as the term and the form of payment of the refund referred to in this article, shall be determined by regulation.


Once the period for return unless the payment is ordered for reasons imputable to the tax administration, shall apply to the amount - return the interest of delay referred to in the article 58.2 c) of law 230/1963, of 28 December, General tax, from the day following the end of that period and up to the date that your payment order , without that the taxpayer as well claim it.


5. Notwithstanding the above, the tax administration shall to the determination of the fees referred to in article 64 of this law, for the sole purpose to comply with provisions of Article 3B) 2 of law 14/1996 of 30 December, transfer of State taxes to the autonomous and complementary tax measures.


Chapter II payments on account article 82. Obligation practice account payments.


1 in the tax on the income of the physical persons, payments which, in any case, shall be regarded as tax debt, may consist in: to) retention.


(b) payments on account.


(c) instalments.


2. entities and legal entities, including entities with income allocation, which satisfied or paid income subject to this tax, will be forced to practice retention and income into account, in respect of a payment on account of tax on the Renta de las Personas Físicas corresponding to the recipient, the amount to be determined according to the rules and enter the amount in the Treasury in cases and in the manner laid down. Taxpayers this tax engaged in economic activities with respect to pensions that meet or paid in the course of such activities, shall be subject to the same obligations as natural persons, legal and other entities not resident in Spanish territory, that operate on it through permanent establishment, or without permanent establishment concerning yields work that meet as well as respect of other returns subject to retention or income account which constitute deductible expense to obtain income to that referred to in paragraph 2 of article 23 of the law 41/1998 on non-resident income tax and tax rules.
When an entity, resident or non-resident, please pay yields of the working taxpayers who provide their services to a resident entity linked with that in the terms provided for in article 16 of law 43/1995, of 27 December, tax, permanent oaunestablecimiento resident in Spanish territory, the entity or the permanent establishment in which the taxpayer pay services It should be retained or income account.


3. do not undergo retention yields derived from the lyrics of treasure and the transmission, Exchange or depreciation of the values of public debt that prior to the entry into force of this law were not subject to withholding. Regulations may excepcionarse retention or entry into account certain incomes.


4. in any case, subjects bound withholding or paying on account will assume the obligation to make income in the Treasury, unless the breach of that obligation can excuse them from this.


5. the beneficiary of income which should be retained to account for this tax be calculated those by the accrual full consideration.


When retention has not been practiced or would have been by less than due, attributable to the retainer or forced to log in to account, because the recipient deducted from share the amount that should be withheld.


In the case of legally established remuneration that would have been met by the public sector, the beneficiary may only deduct effectively retained amounts.


When he could not prove the full consideration accrued, the tax administration can compute as full a quantity which, subtracted once it from retention, throw the actually perceived. In this case it be deducted from the quota as withholding the difference between what is actually perceived and the full amount.


6. when any obligation to account, be presumed that such income has been paid. The taxpayer will include the taxable valuation of the remuneration in kind, in accordance with the rules laid down in this law and entry into account, unless it had been impacted you.


7. taxpayers carrying on economic activities will be required to make payments fractionated on account of the tax on the income of physical persons, autoliquidando and entering your amount under conditions to be determined by regulation.


Regulations may exempt from this obligation to those taxpayers whose incomes have been subject to retention or income into account in the percentage that is set to the effect.


Instalment payment institutions in regime of income allocation, engaged in economic activities, will be made by each of the partners, heirs, comuneros or sharers, who proceed to attribute income of this nature, in proportion to its participation in the benefit of the entity.


Article 83. Maximum amount of payments.


1. withholdings and payments on account on the work yields derived from labour or statutory relations and pensions and passive assets, shall be determined by regulation by reference to the amount resulting from the rates apply to the base of the retention or payment to account.


In yields of work other than the above, the percentage of retention or payment on account shall not exceed 40 per 100.


2. the percentages of withholdings and payments on account that are set by regulation on capital yields may not exceed 25 per 100.


3. the percentages of withholdings and payments on account are set by regulation on the yields derived from economic activities shall not exceed 20 per 100.


4. the percentages of withholdings and payments on account that are set according to the rules on capital gains may not exceed 20 per 100.


5 the percentages, which are set by regulation, of fractionated payments to taxpayers carrying on economic activities, need to practice shall not exceed the following limits: to) when calculated according to the net yield of activity, 20 per 100.


(b) when calculated in function of the volume of revenues or sales activity, 100 5.


Chapter III liquidations provisional article 84. Provisional liquidation.


1. the organs of the tax administration may turn the provisional liquidation General tax applicable in accordance with the provisions of article 123 of the law 230/1963, of 28 December.


2 Notwithstanding provisions of article 81.3 of this law, taxpayers who do not have to submit Declaration, under article 79.2 of the Act, only them shall be the provisional liquidation of profession referred to in the preceding paragraph, in the following cases: to) when the data provided by the taxpayer to the payer of income from work are false incorrect or inaccurate, being practiced, as a result, some lower than those that would have been from withholding.


For the practice of this provisional settlement only be computed withholding resulting from the data provided by the taxpayer to the taxpayer.


(b) when, expected to take place in the previous letter, the communication provided for in article 81 of this Act contains false, incorrect or inaccurate data or has omitted some of the data to be included in the same.


3. a provisional settlements referred to in the second subparagraph of article 81.3 of this law, them will not apply provisions of article 123.3 from the law 230/1963, of 28 December, General tax.


4. the provisions of the preceding paragraphs shall be without prejudice to subsequent verification and investigation that can perform the tax administration.


Article 85. Nursing return taxpayers forced to declare.


1 where the amount of withholdings and payments on account instalments exceeds the amount of the resulting share of the autoliquidación, the tax administration shall, in its case, practice provisional liquidation within six months at the end of the period laid down for the submission of the Declaration.


When the statement had been presented after the deadline, the six months referred to in the preceding paragraph should be computed from the date of its presentation.


2. when the resulting share of the autoliquidación or, in their case, the provisional liquidation, is less than the sum of the amounts effectively retained and payments on account made, the tax administration shall return ex officio the excess over the quoted fee, without prejudice to the practice of further liquidations, provisional or definitive, remedies.


3. If the provisional liquidation had not practiced within the time limit set in paragraph 1 above, the tax administration shall return the excess over the autoliquidada fee, without prejudice to the practice of further provisional or definitive settlements resulting from nursing.


(4 after the time limit set in paragraph 1 of this article unless it has ordered the payment of the refund for reasons not imputable to the taxpayer, shall apply to the outstanding repayment amount the interest of delay referred to in the article 58.2. c) of law 230/1963, of 28 December, General tax, from the day following the term of that period and up to the date that your payment order , without that the taxpayer as well claim it.


5. regulations will be determined the procedure and the method of payment for the return of trade referred to in this article.


Chapter IV obligations formal article 86. Formal obligations of taxpayers.


1 payers of the tax on the income of physical persons will be required to maintain, during the term of prescription, the supporting documents and supporting documents from operations, revenue, expenses, income, reductions and deductions of any kind that must be included in their statements.


2. for the purposes of this law, taxpayers who develop business activities whose performance is determined in direct estimate scheme will be required to keeping accounts adjusted to the provisions of the commercial code.


However, regulations are you exempt this obligation to taxpayers whose business does not have a commercial character in accordance with the commercial code, and those taxpayers that determine your NET performance by the simplified form of the direct estimate regime.


3. Likewise, the taxpayers of this tax will be required to carry in the form determined by the Minister of economy and Hacienda books or records that are established by law.


4. regulations may be established specific obligations of asset information, simultaneous to the presentation of the Declaration of the income tax of individuals or of the wealth tax, aimed at the control of incomes or the use of certain property and rights of taxpayers.


Article 87. Formal retainer, the obligor's obligations to practice to account revenues and other formal obligations.
1 subject required to retain and practice income to account must submit, in deadlines, form and places that are established by regulations, statement of retained amounts or payments on account, or negative declaration when had not proceeded the same practice. It will also present an annual overview of withholdings and payments on account with the contents to be determined according to the rules.


The subject required to retain and practice income to account will be required to keep the relevant documentation and to issue, under conditions to be determined according to the rules, supporting certification of the withholdings or payments on account made.


Corresponding statement models are approved by the Minister of economy and finance.


2 regulations provision of information obligations may be established for persons and entities that develop or are in the following operations or situations: to) for lenders, in relation to mortgage loans for the purchase of housing.


(b) for entities that paid labour or capital income not subject to withholding.


(c) for entities and legal persons that meet awards, even if they have incomes considered free for the purposes of the tax.


(d) for the percipient entities of donations giving right to deduction for this tax, in relation to the identity of donors, as well as the amounts received, when these have requested accreditation certification of the donation for the purposes of the Declaration by this tax.


e) to the national agency of lotteries and Apuestas del Estado, autonomous communities, the Red Cross and the national organization for the blind, with respect to the awards that satisfy exempt from the tax on the income of physical persons.


Title X financial liability and penalties Article 88. Liability of the taxpayer.


Tax debts by physical persons income tax will have the same consideration that the referred in article 1365 of the Civil Code and, consequently, the marital property will respond directly to the Treasury for these debts, owed by one of the spouses, without prejudice to the provisions of paragraph 6 of article 70 of this law in the case of joint taxation.


Article 89. Offences and penalties.


1. tax violations in this tax will qualify and will sanctioned pursuant to provisions in the law 230/1963, of 28 December, General tax, without prejudice to the specialties provided for in this law.


2 it is simple infringement, the incorrect implementation of the communications provided for in article 81 of this Act.


3 constitute serious infringement fail to communicate or notify the payer of income subject to withholding or income account false, incorrect or inaccurate determinants of withholdings or payments on account from below.


This offence shall be punished with proportional pecuniary fine of 50 to 150 by 100 of the difference between the retention or income from account and effectively practised as a result of the application of these data and without that the sanction may be less than 10,000 pesetas.


Taxpayers must notify the payer of income subject to withholding or income on account of those who are receiving decisive circumstances for calculating retention or income from account, in the terms established by law.


Title XI court order article 90. Court order.


The Supreme jurisdiction, prior exhaustion of administrative track, will be the only competent to settle disputes of fact and law arising between the tax administration and taxpayers, retainers and other required tax in relation to any of the matters referred to in this law.


First additional provision. Remuneration in kind.


They won't have the consideration of remuneration in kind, loans with interest rate lower than the previously agreed money legal on 1 January 1992 and whose main had been placed at the disposal of the borrower also prior to that date.


Second additional provision. Transmission of values or not admitted shares to trading after a reduction in capital.


1. when a reduction in the capital instrumented through a decrease of the nominal value that does not affect equally all the securities or shares in circulation of the taxpayer had occurred prior to the transmission of securities or shares not admitted to trading on some markets secondary officers of Spanish values, shall apply the rules laid down in section 4 of chapter I of title II of this law (, with the following specialties: 1 shall be regarded as value of transmission that would be based on the nominal value resulting from the application of the provisions in article 31, paragraph 3, letter a), of this law.


2nd in the case that the taxpayer had not transmitted all of their values or interests, the positive difference between the value of transmission corresponding to the nominal value of the securities or shares effectively transmitted and the value of transmission, referred to in the previous paragraph, will be reduced from the acquisition of the remaining securities or participations homogeneous value , until its cancellation. The excess that could result will be taxed as a capital gain.


2. the rules laid down in the preceding paragraph shall be of application in case of transmissions of securities or shares in the capital of companies transparent.


Third additional provision. Agencia Estatal de Administración Tributaria.


1. the State tax administration agency is an entity of public law, with legal personality and own patrimony that acts with autonomy of management and full capacity to legal, public and private, in the fulfilment of its purposes.


2. the Agency shall govern their performance and operation as provided in article 103 of law 31/1990, of 27 of December, General State budget for 1991, its Organic Statute, and other specific legislation.


Fourth additional provision. Information by electronic means.


Prior authorization of stakeholders and in the terms and with the guarantees established by order of the Minister of economy and finance, tax information requiring the public administrations for the development of its functions can be supplied to those directly by the Agencia Estatal de Administración Tributaria by electronic means or telematic, within the framework of collaboration that is established. Also in the aforementioned order the provision of information in the cases provided for in article 113.1 of the law 230/1963, of 28 December, General tax may be adjusted.


To the extent that through the intended framework of collaboration public administrations can make use of such information shall not be required to stakeholders to provide individually certifications issued by the State tax administration agency, nor the presentation, in original, copy or certification from their tax returns.


Fifth additional provision. Data collection.


The Minister of economy and finance, following a report of the data protection agency what is coming, he will propose to the Government the measures require to ensure the capture of data in any kind of public record or record of public administrations, which are necessary for the management and control of the tax.


Sixth additional provision. Permanent Cameral resource.


The levying of the permanent Chamber resource referred to in point (b)) of paragraph 1 of article 12 of the Act 3/1993, of 22nd March, basic of Chambers official of Commerce, industry and navigation, will turn on the returns covered by the section 3 of chapter I of title II of this law, when they arise from activities under article 6 of the Act 3/1993 , March 22, basic of Chambers official of Commerce, industry and navigation.


Seventh additional provision. The law of tax policy referrals.


The references made by law 43/1995, of 27 December, tax, the law 18/1991 of June 6, the tax on the income of physical persons, be construed as references to the corresponding provisions of this Act.


The eighth additional provision. The law of regulation of plans and pension funds regulatory referrals.


The references made by the law 8/1987 of 8 June, adjustment of plans and pension funds, the law 18/1991 of June 6, the tax on the income of physical persons, be construed as references to the corresponding provisions of this Act.


Ninth additional provision. Regulatory referrals from the law of transfer taxes of State to the autonomous communities and complementary tax measures.


References to the law 18/1991 of June 6, the tax on the income of physical persons, carried out by the law 14/1996 of 30 December, on transfer of taxes from the State to the autonomous communities and complementary tax measures, be construed as references to the corresponding provisions of this Act.


Tenth additional provision. Management and Supervision of private insurances Act regulatory referrals.
The references contained in law 30/1995 of 8 November, management and Supervision of private insurances, law 18/1991 of June 6, the tax on the income of physical persons, be construed as references to the corresponding provisions of this Act.


Eleventh additional provision. Modification of the transitional regime of accommodation of pension commitments.


First. New wording is given to paragraph 5 of the transitional provision of law 30/1995 of 8 November, 15th of ordination and Supervision of private insurance, which will be drafted in the following terms: 'employers or institutions covered in this transitional regime, which have implemented the commitments for pensions with their workers and integrated their resources in a pension plan they implement the obligations regarding retirees or beneficiaries prior to the formalization of the referred plan, either through the site or through a collective insurance.


In the course of integrating these beneficiaries into the pension plan, will be admissible later contributions to the adequate coverage of benefits caused, provided that are incorporated in the corresponding plan of rebalancing and this conforms to the legislation which is applicable to you.


Contributions and insurance contract premiums met to address these performance caused not shall be the tax imputation beneficiaries concerned, being deductible in the personal tax of the promoter in the terms set out in paragraph 1 of the sixteenth transitional provision.


The fiscal regime provided for in this section also apply to contracts of insurance premiums paid for coverage of benefits caused to retirees or beneficiaries covered in this transitional regime, although employers or institutions not have implemented the commitments by pension active workers through a pension plan will be except that the companies or entities to use the exception referred to in paragraph 2 of the fourteenth transitory provision.


The second. Added a new paragraph to the paragraph first of the sixteenth transitional provision of the law 30/l995, of November 8, of management and Supervision of private insurances, with the following wording: «the taxation provided for in this paragraph will be applicable in relation to the contributions made by companies to social welfare mutuals formalised through insurance contracts or regulations of performance of mutuals which meet the requirements laid down in article 46 of the law 40/1998, tax on physical persons income and other tax rules, made pursuant to the transitional provisions fourteenth and fifteenth of this law, provided that these contributions correspond to rights for past service recognized pursuant to the limits for the pension plans in the fifteenth transitional provision above, paragraph Fourth, and its regulatory development.»


Twelfth additional provision. Table of deductions from income from work and payments fractionated on economic activities in estimating yields objectively.


1. within the 15 January 1999, the Government will approve tables applicable deductions in the year of 1999 to the performance of the work, taking into account rate and the personal and family circumstances of the beneficiary.


2. the Government will adapt the instalments in charge of taxpayers subject to the regime of objective estimate of the tax on the income of the physical persons, with a maximum of twenty-five percent reduction.


Thirteenth additional provision. Modification of the tax on insurance premiums.


Added a new letter i) to paragraph cinco.1 of article 12 of law 13/1996 of 30 December, measures fiscal, administrative and Social order, with the following wording: «i) healthcare and disease insurance operations.»


Fourteenth additional provision. Information obligations.


1. by regulation obligations of providing information to the management companies of collective investment institutions, in connection with the transactions on shares of these institutions, including the information in their possession relating to the result of the operations of buying and selling them may be established.


2. taxpayers physical persons income tax or corporation tax shall provide information, in the terms established by law, in relation to operations, situations, collections and payments that made or arising from the holding of securities or related goods, directly or indirectly, with countries or territories qualified by law as tax havens.


Fifteenth additional provision.


Gives new wording to paragraph 1 of article 113 of the law 230/1963, of 28 December, General tax: «1. data, reports or records obtained by the tax administration in the performance of their duties are restricted and may only be used for the effective application of the taxes or resource whose management is entrusted, unless they can be transferred or communicated to third parties» (, unless the assignment is intended: to) the investigation or prosecution of public crimes by courts or prosecutors.


(b) cooperation with other tax administrations for the purpose of compliance with tax obligations in the field of its competences.


(c) collaboration with the Inspectorate of labour and Social Security and with the management entities and common services of the Social Security in the fight against fraud in the quote and collection of quota contributions of the Social security system, as well as in obtaining and enjoyment of performance carried out by the same system.


(d) collaboration with any other public administrations for the fight against fraud in obtaining or perception of subsidies or grants in charge of public funds or of the European Union.


(e) collaboration with the parliamentary commissions of inquiry in the legally established framework.


(f) the protection of the rights and interests of minors and incapacitated by the courts or the public prosecutor's Office.


(g) collaboration with the Court of Auditors in the exercise of their functions of supervision of the State tax administration agency.


(h) collaboration with the judges and courts for the enforcement of firm judgments.


«Judicial request for information will require resolution expresses, in which previous weighting of public and private interests involved in the affair that concerned and by having exhausted other means or sources of knowledge about the existence of assets and rights of the debtor, it motivates the need to collect data from the tax administration.»


Sixteenth additional provision. Mutual insurance of employed persons.


You can reduce the general part of the tax base, on the terms laid down in article 46 of this law, the amounts paid under contracts of insurance concluded by mutual societies of social welfare by workers employed as a complementary system of pensions, when previously, for at least one year in the terms established by law, these same members have made contributions to these same mutual According to the provisions of the fifth transitional provision and the additional provision in fifteenth law 30/1995, of 8 November, management and Supervision of private insurance, always and when there is an agreement of the corresponding organs of mutuality that only allow to collect benefits when there are the same contingencies provided for in article 8.6 of the law 8/1987 , 8 June, regulating plans and pension funds.


Seventeenth additional provision. Retirement plans and mutual welfare constituted in favour of disabled persons.


As of January 1, 1999, may be made contributions to pension plans in favor of people with a degree of disability equal to or greater than 65 per 100. They will find it applicable financial and tax regime of the pension with the following specialties plans: 1. contributions to the pension scheme may be both the own participant disabled and persons having with the same a relationship direct or collateral line up to the third degree inclusive. In the latter case, the disabled must be designated beneficiaries in sole and irrevocable manner for any contingency. However, the contingency of death of the disabled to create entitlement to widow's benefits, orphan or in favor of those who have made contributions to - the disabled pension scheme in proportion to the contribution of these.


These contributions shall not be subject to the tax on inheritance and donations.


2. as the limit maximum contributions, for the purposes of article 5.3 of the law 8/1987 of 8 June, adjustment of plans and pension funds, shall apply the following amounts: to) the maximum annual contributions made by people with disabilities participate, may not exceed the amount of 2,200,000 pesetas.
(b) the maximum annual contributions made by each participant in favour of disabled people linked by kinship relationship may not exceed the amount of 1,100,000 pesetas. This is without prejudice of the contributions made to its own pension plan, in accordance with the limit laid down in article 5.3 of the law 8/1987, regulation of schemes and pension funds.


(c) the maximum annual contributions to retirement plans made in favour of a person with a disability, including their own contributions, may not exceed the amount of 2,200,000 pesetas.


Failure to comply with these contribution limits will be penalties envisaged in article 36.4 of the law 8/1987 of 8 June, of regulation plans and pension funds. These purposes, when there are several contributions on behalf of the disabled, means that the limit of 2,200,000 pesetas is covered, first, with the contributions of the own disabled and when these do not exceed this limit, the remaining contributions in proportion to the amount.


Acceptance of contributions to a pension plan, on behalf of a beneficiary himself disabled, above the limit of 2,200,000 annual pesetas, will be considered very serious infringement, in the terms provided for in article 35.3. n) of the Act 8/1987, regulation of plans and pension funds.


3. the benefits of the pension plan must be in the form of income, unless, in exceptional circumstances, and in the terms and conditions established by law, they can be in the form of capital.


4. by regulation specifications relating to contingencies that may met benefits, referred to in article 8.6 of the law 8/1987 of 8 June, adjustment of plans and pension funds may be established.


5. regulations will be determined the assumptions in which may become effective rights consolidated in the pension plan by people with disabilities, as laid down in article 8.8 of law 8/1987 of 8 June, adjustment of plans and pension funds.


6 the contributions made to pension plans, in accordance with this provision, may be subject to reduction in the general part of the tax base of the tax on the income of physical persons with the following maximum limits: to) the annual contributions made by each participant in favour of disabled people that there is a family relationship , with a limit of 1,100,000 pesetas per year. This is without prejudice of the contributions that can be to their own pension plans, in accordance with the limits laid down in article 46 of this law.


(b) the annual contributions made by people with disabilities share, with 2,200,000 pesetas per year limit.


The set of reductions practiced by all people who make contributions on behalf of a same disabled, including those of the own disabled, may not exceed 2,200,000 pesetas per year. For these purposes, when there are several contributions on behalf of the disabled person, they shall be subject to reduction, first of all, the contributions made by the own disabled and only if they do not reach the designated limit of 2,200,000 pesetas, may be reducing the contributions made by others on their behalf in the tax base of these, in proportion , unless in any case the set of reductions practiced by all persons who made contributions on behalf of a same disabled does not exceed 2,200,000 pesetas.


7 work yields derived benefits obtained in the form of income for people with disabilities, corresponding to the contributions referred to in this provision, shall enjoy a reduction in the tax on the income of physical persons up to a maximum amount of two times the national minimum wage.


In the case of benefits received in the form of capital for people with disabilities, corresponding to the contributions referred to in this provision, the reduction provided for in article 17.2. b) of this law will be 50 by 100, whenever more than two years have elapsed since the first contribution.


8. the regime regulated in this additional provision shall apply to contributions to Social Welfare mutuals made as of January 1, 1999 and features them in favour of disabled people who meet the requirements provided for in paragraphs. In this case, the limits established by this provision will be sets for contributions of pension schemes and provident mutual.


The disposition of rights consolidated in cases other than those provided for in this additional provision will have the consequences provided for in article 46.1.3., b), second paragraph, of this law.


Eighteenth additional provision. Information with tax significance.


When in application of the provisions of article 116 of the law 13/1995, of May 18, the public administrations contracts, the successful tenderer concluded with third parties the partial realization of the contract, the contracting administration is required to provide the following information to the Agencia Estatal de Administración Tributaria: a) identification of the subcontractor.


(b) identification of the parties to the contract to be performed by the subcontractor.


(c) amount of outsourced benefits.


The aforementioned information must be supplied in within five days, calculated from that that contractor communication takes place to the Administration, established in paragraph 2.a) cited legal text.


Nineteenth additional provision. Forest revenue.


Not will be integrated into the taxable income of the tax on the income of physical persons granted subsidies to those who exploit forest farms managed in accordance with plans technical forest management, management of montes, dasocraticos plans or reforestation plans approved by the competent forestry administration, provided that the period of production medium, depending on the species concerned as determined in each case by the competent forestry administration, is equal to or more than twenty years.


The Government will develop an objective estimate scheme in the tax on the income of physical persons for the determination of the NET performance derived from forestry holdings which comply with the requirements set out in the preceding paragraph.


Twenty additional provision. Binding nature of the answers to certain questions on the application of the tax on the income of physical persons.


During the first six months of 1999, may be made to the tax administration questions, whose answer will have a binding for this, on the application of the tax on the income of physical persons, conditions and requirements listed below: first. Queries may be made exclusively by professional associations, official Chambers, employers, trade unions, associations of consumers, business associations and professional organizations, as well as by the federations which group together organizations or entities mentioned above, when they refer to matters affecting the generality of its members or partners.


Second. The General direction of tributes will answer the queries formulated in previous terms, by means of resolution, which shall be communicated to the consultant entity and will be published in the «Bulletin official of the Ministry of economy and finance».


Third party. The presentation, processing and contestation of these consultations, as well as the effects of your reply, shall be governed by the provisions in the Real Decree 404/1997, of 21 March, which establishes the regime applicable to the query whose answer should be binding for the tax administration.


First twenty additional provision. Aid to the residence received in 1998.


Public subsidies received during 1998 as compensation of the structural defects of construction of the residence and intended for the repair of the same may be attributed by quarters, in the tax period in which obtained and the following three.


Twenty second additional provision. Subsidies of the Community agricultural policy and public aid.


1 not be integrated into the taxable income of the tax on the income of physical persons or of positive income tax put of manifest as a result of: to) the perception of the following AIDS of Community agricultural policy: 1 permanent abandonment of cultivation of the vineyard.


Premium 2nd start of Apple plantations.


Premium 3rd start of banana plantations.


4th permanent abandonment of milk production.


5 permanent abandonment of the cultivation of pears, peaches and nectarines.


6 start of plantations, of pears, peaches and nectarines.


(b) the perception of the following AIDS of the common fisheries policy: permanent abandonment of fishing activity.


(c) the perception of public assistance designed to repair the destruction, by fire, flood or collapse of assets pertaining to the exercise of economic activities.
2. to calculate the income which will not integrate in the tax base be taken into account both the amount of aid perceived as economic losses which, if any, occur in the elements pertaining to the activities. When the amount of this aid is less than the losses produced in the abovementioned elements, you can integrate the taxable negative. When there are no losses, only shall be excluded from assessment the amount of aid.


First transitional provision. Exemption for reinvestment in the tax on the income of physical persons.


Income benefiting from the exemption for reinvestment provided for in article 127 of law 43/1995, of 27 December, the corporate income tax, shall be regulated by the the established, even when the reinvestment in tax periods started as of January 1, 1999.


Second transitional provision. Tax value of collective investment undertakings incorporated in countries or territories classified as tax havens.


1. for the purposes of calculating the excess of the net asset value referred to in article 78 of this law, they shall purchase price the net asset value the first day of the first tax period which is this law with respect to shares and shares having the same by the taxpayer. The difference between that value and the actual value of acquisition shall be taken as the value of acquisition for the purposes of the determination of the income derived from the transfer or refund of the shares or participations.


2. dividends and shares in profits distributed by collective investment institutions, which come from profits prior to the entry into force of this law, will be integrated into the base of partners or participants from the same.


For these purposes, means that the first distributed reserves have been equipped with the first earned benefits.


Third transitional provision. Transitional arrangements for mutual social welfare organizations.


1. the pension and disability benefits arising from insurance contracts concluded with mutual social welfare organizations whose contributions, made prior to the entry into force of this law, have been subject of reduction at least partly in the tax base, must be integrated in the taxable income of the tax in respect of income from work.


2. the integration will be where the perceived amount exceed the contributions made to the mutuality that have not been subject to reduction or reduction in the tax base of tax in accordance with the legislation in force at any time and, therefore, have shown previously.


3. If the amount of the contributions that have not been subject to reduction or reduction in the tax base could not be accredited, 75 will be integrated by 100 benefits perceived retirement or invalidity.


Fourth transitional provision. Compensation for deductions in acquisition and rental housing.


1 the General State budget Act determines the procedure and conditions for the perception of financial compensation in the following cases: to) taxpayers who had acquired his residence prior to May 4, 1998 and had right to deduction for purchase of housing, in the event that the application of the regime provided for in this Act for such deduction is them less favourable than the regulated in the law 18/1991 , 6 June, from the tax on the income of physical persons.


(b) the taxpayers entitled to the deduction for rental of dwelling by reason of age prior to the 24 of April of 1998 contract, in the event that this law is less favourable than the law 18/1991 of June 6, the tax on the income of the physical persons, as a result of the non-application of the above-mentioned deduction for rent , always keep the lease for its residence system.


2. the financial compensation will be satisfied on application by the taxpayer, within six months following the day that ends the deadline for filing personal income tax.


Fifth transitional provision. Outstanding compensation items.


1 negative irregular yields from the tax periods for 1998, 1997, 1996, 1995 and 1994, which are pending compensation to the date of entry into force of this law, is only offset by the positive balance of yields and the accusations of income referred to in the 38th article) of this law.


2. the net equity decreases from the tax periods for 1998, 1997, 1996, 1995 and 1994, which are pending compensation to the date of entry into force of this law, be compensated only with the balance of gains and capital losses referred to in article 39 of this law.


3. the negative regular payable basis of the tax periods for 1998, 1997, 1996, 1995 and 1994, which are pending compensation to the date of entry into force of this law, be compensated only with the positive balance of the general taxable base provided for in article 47 of this law.


Sixth transitional provision. Transitional regime for life insurance contracts generating increases or decreases of assets prior to the entry into force of this law.


When it is perceived a capital delayed the part of provision corresponding to raw satisfied prior to 31 December 1994, it will be applicable percentages of reduction laid down in the transitional provision eighth law 18/1991 of June 6, the tax on the income of physical persons, once calculated the performance in accordance with articles 23 and 24 excluding the provisions of the last paragraph of the letter b) of paragraph 2 of this law.


Seventh transitional provision. Taxation of certain new insurance contracts.


Reducing the 70 per 100 provided in the last paragraph of the articles 17.2, c) and (d)), and 24.2, b) and c), of this law will only be applicable to contracts of insurance entered into as of December 31, 1994.


Eighth transitory provision. Taxation of certain values of public debt.


Yields derived from the transmission, redemption or refund, since 1 January 1999, the public debt stock, acquired prior to December 31, 1996 and that before they generate increases of heritage, will be integrated in the special part of the tax base, without which they will not apply the reductions provided for in article 24.2 of this law.


Ninth transitional provision. Capital gains arising from items purchased prior to 31 December 1994.


Capital gains derived from the transfer of assets not related to economic activities, acquired before 31 December 1994, will be reduced in accordance with rules 2 and 4 of paragraph 2 of the transitional provision octave of the law 18/1991 of June 6, the tax on the income of physical persons.


Tenth transitional provision. Contracts of lease anterioresa9demayo of 1985.


In the determination of the equity yields derived from contracts of lease prior to May 9, 1985, which does not enjoy the right to review of the income of the contract under the application of the rule of paragraph 11 of the transitional provision 7 second law 29/1994, 24 November , urban leases, will include in addition, as a deductible expense, while this situation persists and by way of compensation, the amount corresponding to the depreciation of the property.


Eleventh transitional provision. Transitional arrangements for income annuities and temporary.


1 to determine the part of income annuities and temporary, immediate or deferred, which is considered the capital performance, will be applicable exclusively the percentages established by article 23.3, letters b), c), of this law to benefits in the form of income received from the entry into force of this law, when it had already occurred , prior to that entry into force, the Constitution of the incomes.


These percentages will be applicable depending on the age that had the beneficiary at the time of the Constitution of the income in the case of annuities or total duration of income if it is temporary income.


2. If you come to the rescue of annuities or temporary income whose Constitution had occurred prior to the entry into force of this law, for the calculation of the yield of the capital produced on the occasion of the rescue is subtracted the profitability obtained up to the date of incorporation of the income.


Twelfth transitional provision. Application of the third paragraph of the second final provision of this Act, the carryforwards of the tax prior to the entry into force of this law.
The carryforwards pending compensation at the beginning of the tax period that will be implementing the present law may offset within the period prescribed in paragraph 1 of article 23 of law 43/1995, of 27 December, of the tax from the beginning of the tax period following that in which these carryforwards were determined.


Thirteenth transitional provision.


The participants of pension plans that have continued to make contributions to them subsequent to the cessation of work, prior to the entry into force of this law, may choose between: keep consolidated rights pertaining to these contributions to cover the contingency of death.


Get back them in the form of capital, within the period of one year from the entry into force of this law, taxed as income from work as provided in section 1 of chapter I of this law, and, in particular, by applying the reduction provided for in article 17.2. b) of the same.


Sole repeal provision.


1 the entry into force of this law shall be repealed all provisions that are opposed to it and, in particular, the following standards: 1. Title III of the law 46/1984, of 26 December, regulating collective investment institutions, in what refers to this tax.


2. the provisions additional and transitional of law 14/1985, of 19 may, of the Fiscal regime of certain financial assets.


3. the law 18/1991 of June 6, the tax on the income of physical persons.


4 Article 4 of Royal Decree-Law 9/1993 of May 28, which are granted aid to those affected by the human immunodeficiency virus (HIV) as a result of actions carried out in the health care system.


5. the first additional provision of law 22/1993 of 29 December, measures fiscal reform of the regime legal of the function public and unemployment protection.


6 article 2 of the law 42/1994 of 30 December, measures fiscal, administrative and Social order.


7. Article 2.tres of the law 13/1996 of 30 December, measures fiscal, administrative and Social order.


8. the additional provision twenty eighth of the law 66/1997, of 30 December, measures fiscal, administrative and Social order.


However 2nd as provided for in the preceding paragraph, shall remain in force: 1. Article 2 of law 22/1986, of 23 December, which are granted certain exemptions to tax and customs to the Institute on Europeo-Latinoamericano relations (IRELA).


2. the law 20/1990 of 19 December, on Fiscal regime.


3. the additional provision sixteenth law 18/1991 of June 6, from the tax on the income of physical persons.


4. further provisions seventeenth and twenty third of law 18/1991, of June 6, the tax on the income of physical persons.


5. the articles 93 and 94 of law 20/1991, of July 6, modification of the aspects prosecutors of the regime economic and Fiscal of Canaries.


6. the Royal Decree-Law 3/1993, 26 February, on urgent measures on budget matters, tax, financial and employment, in what refers to this tax.


7. Article 14.7 of the Royal Legislative Decree 1/1993, 24 September, which approves the revised text of the law on property transfer and stamp tax.


8. the Law 19/1994, of 6 June, modification of the economic regime and Canarias Attorney, in what refers to this tax.


9. the Royal Decree-Law 7/1994 of 20 June, on freedom of amortization for the generating investment for employment.


10. the law 30/1994 of 24 November, foundations and tax incentives to private participation in activities of General interest, except with regard to the limits of the deduction referred to in its article 61.


11. the additional provision twenty sixth law 42/1994 of 30 December, measures fiscal, administrative and Social order.


12. the Royal Decree-Law 2/1995, of 17 February, on freedom of amortization for the generating investment for employment.


13. the Law 19/1995, of 4 July, modernization of the agricultural holdings.


14. the additional provision fifth of law 43/1995, of 27 December, the corporate income tax.


15. paragraph 3 of disposition of law 43/1995, of 27 December, sixth of tax.


16. the transitional provision of law 13/1996 of 30 December, eleventh measures fiscal, administrative and Social order.


17. la Law 39/1997, of 8 October, which approves the programme provided for the modernization of the vehicle fleet automobiles, the increase of road safety and the defence and protection of the environment.


18. the article 3.4 of law 64/1997, of 26th December, which regulates incentives in the field of Social Security and tax for encouraging indefinite hiring and employment stability.


19. the additional provision ten of the law 66/1997, of 30 December, measures fiscal, administrative and Social order.


20. the transitional provision of the law 66/1997, of 30 December, second measures fiscal, administrative and Social order.


3rd will continue in force regulations that is not contrary to this Act in no-make use of regulatory permits that are planned.


4th the repeal of the provisions referred to in paragraph 1 shall not prejudice the rights of the Treasury regarding obligations accrued during his term.


First final provision. Modification of article 3 of law 29/1987, of 18 December, the tax on inheritance and donations.


New wording is given to article 3 of law 29/1987, of 18 December, the tax on inheritance and donations, which is worded as follows: «article 3. º taxable.


1 is taxable: a) the acquisition of assets and rights by inheritance, legacy or any other inheritance title.


(b) the acquisition of assets and rights by donation or any other legal business, free of charge, «intervivos».


((c) the perception of amounts by the beneficiaries of insurance contracts on life, when the Contracting Party is a person other than the recipient, except for the cases expressly regulated in article 16.2, to), the law on personal income tax and other tax rules.


2. increases of assets referred to in the previous number, obtained by legal persons, are not subject to this tax and shall be subject to the tax.'


Second final provision. Modification of law 43/1995, of 27 December, the corporate income tax.


For the tax periods started as of January 1, 1999, articles of law 43/1995, of 27 December, the corporation tax, listed below, will be drawn up as follows: first. Article 3.


«Article 3. Treaties and conventions.


Provisions of this law shall be without prejudice pursuant to international conventions and treaties that have become a part of the internal order, in accordance with article 96 of the Spanish Constitution. "


Second. Paragraph 11 of article 15.


The price of acquisition or production cost of real property transmitted and accumulated depreciation relating thereto shall be multiplied by the» coefficients to be established in the relevant General State budget Act.


(b) the difference between the amounts determined by the application of provisions of the previous letter will be reduced in the book value of the asset transmitted.


((c) the amount resulting from that operation will be multiplied by a coefficient determined by: to ') the numerator: own funds.


(b') in the denominator: total liabilities less credit rights and the Treasury.


Determining quantities of the coefficient will be the gotten during the tenure of the patrimonial element transmitted or in the five years prior to the date of the transmission, if this time period is smaller at the choice of the taxable person.


Provisions of this letter shall not apply when the coefficient exceeding 0.4.'


Third party. Paragraphs 1, 3 and 5 of article 23.


«1. the carryforwards may be compensated with the positive incomes of the tax periods that concluded in the ten immediate and successive years. ' «» 3 newly created entities can compute the term of compensation referred to in paragraph 1 from the first tax period whose income is positive."


«5. the taxable person must demonstrate, where appropriate, through the accounting and timely documentary stands display, the origin and amount of the carryforwards whose compensation intended to, anyone who is the exercise that originated.»


Room. Paragraphs 2, 3 and 4 of article 28.
«2. the deduction referred to in the preceding paragraph shall be 100 per 100 where dividends or shares in profits come from entities in which the percentage of participation, direct or indirect, is equal to or greater than 5 per 100, provided that that percentage has had uninterrupted during the year preceding the day which will be callable profit that is distributed. The deduction will also be 100 per 100 with respect to participation in profit on mutual general insurance, social welfare institutions, associations and mutual guarantee societies.


3. the deduction also applies in the event of liquidation, separation of partners, acquisition of shares to their depreciation and dissolution without liquidation operations of merger, total excision or global transfer of assets and liabilities, on computed income derived from those operations, in the part that corresponds to the undistributed profits even those they had been incorporated to the capital and income that the company which carries out the operations referred to in the preceding paragraph should integrate the taxable pursuant to article 15.3 of this law.


4 the deduction provided for in the preceding paragraphs shall not apply with respect to the following income: to) those arising from the reduction of the capital or of the distribution of the premium from issuance of shares, without prejudice to the provisions of the last paragraph of the previous section.


When together with operations referred in the previous paragraph the distribution of dividends or shares in profits, the deduction on them in accordance with the rules laid down in this article shall apply.


(b) referred to in the preceding paragraphs, when prior to its distribution there has been a reduction of capital constitute reserves to offset losses, the transfer of the share premium reserves, or a contribution of partners to replenish the equity, up to the amount of the reduction, transfer or contribution.


The provisions of the preceding paragraph shall not apply with respect to the distributed incomes that have integrated into the tax base without have occurred with respect to the same compensation for negative taxable, except that no compensation derived as provided in paragraph 2 of article 23 of this law.


(c) distributed by the Fund's regulation of public character of the mortgage market.


(d) dividends or shares in benefits that correspond to actions or shares acquired within the two months prior to the date on which those have had met when after this date, within the same period, there is a transmission of homogeneous values.


(e) when the distribution of the dividend or the share of profit does not determine the integration of income tax base or when that distribution has been a depreciation in the value of the participation. In this case recovery of the value of participation will not be taxable.


As in the previous letter shall not apply when: to ') the taxable person prove that an amount equal to the depreciation in the value of the participation has been integrated into the taxable income of the corporation tax paid to any of the types of assessment provided for in paragraphs 1, 2 and 7 of article 26 of this tax in respect of income obtained by successive proprietary organizations participation on the occasion of its transmission , and that this income has not been entitled to the deduction by double internal taxation of capital gains.


The deduction shall be partially when the test referred to in this paragraph have partial character.


(b') the taxable person prove that an amount equal to the depreciation in the value of the participation has been integrated into the taxable income of the tax on the income of the physical persons, in respect of income obtained by successive owners individuals from participation, on the occasion of its transmission. The deduction shall be partially when the test referred to in this paragraph have partial character.


(En el supuesto previsto en la presente letra b') the deduction may not exceed the amount calculated by applying the dividendooalaparticipacion benefits the type of assessment that in the tax on the income of physical persons corresponds to capital gains arising from the transmission of assets acquired with more than two years in advance. "


Fifth. Article 36 bis. Deduction for job creation for the disabled workers.


«1. will be deductible from the total tax the amount of 800,000 pesetas for each person/year of increase of the average of the staff of workers disabled, contracted, in accordance with article 39 of the Act 13/1982 of 7 April, Social integration of disabled people, for an indefinite time, experienced during the tax period, regarding the template mean workers disabled with this type of contract in the run-up.»


2. for the calculation of the increase in the average number of staff workers are counted, only disabled people per year with indefinite contract that develop full-time, in the terms that has labor regulations.


3 employees that give right to the deduction provided for in this article not be counted for the purpose of accelerated depreciation with regulated employment creation 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 is practiced once made the deductions and allowances of chapters II and III of this title.»


The amounts corresponding to the tax period not deducted may be applied in the liquidations of the tax periods that concluded in the five immediate and successive years.


The computation of time limits for the application of the deduction provided for in this chapter may be extended to the first year in which, within the period of prescription, positive results, occur in the following cases: to) in the newly created entities.


(b) in institutions that AES losses of previous years through the effective contribution of new resources, unless deemed as such application or capitalization of reserves.


The amount of the deductions provided for in this chapter which referred to this, applied in the tax period may not exceed jointly 35 per 100 of the total tax reduced in deductions to avoid domestic and international double taxation and subsidies.


2. an investment shall not lead to the application of the deduction in more than one entity.


3. the assets subject to the deductions provided for in the preceding articles shall remain in operation for five years or lifetime if it is less.


Together with the fee for the tax period in which failure to comply with this requirement occurs, it will enter the deducted amount, plus interest.»


Seventh. Paragraph 3 of article 38.


«3. fractional payments may also be made at the option of the taxpayer, on the part of the taxable income of the period of the first three, nine or eleven months of every calendar year determined according to the rules laid down in this law.


Taxable persons whose tax period does not coincide with the calendar year shall be the payment of instalments on the part of the taxable base corresponding to the days elapsed since the beginning of the tax period up to the day before each of the periods referred to in the preceding paragraph.


So the choice referred to in this section is valid and produces effects, it must be exercised in the corresponding census Declaration, during the month of February of the calendar year which must be valid, provided the tax period to which it relates the aforementioned option coincides with the calendar year. Otherwise, the exercise of the option must be made in the corresponding census Declaration, during the period of two months counted from the beginning of the tax period or within the period between the beginning of the tax period and the expiry of the deadline for the first payment for the referred tax period when this time period is less than two months.


The taxable person will be linked to this modality of payment instalments for payments for the same tax period and following, while not you renounce your application through the Census Declaration which must be exercised within the same deadlines set out in the preceding paragraph.'


Eighth. Paragraph 5 of article 81.


«5. the Group of companies shall terminate when the parent company lost that character.


However, in the event that another company take stake in the parent company of a group of societies by any of operations regulated in Chapter VIII of title VIII of this law, so that the first meets the requirements to be considered dominant, the tax system laid down in this chapter will be applicable to the new group so formed , prior to the tax administration and communication since the time of the extinction of the pre-existing group.
«Such communication must be carried out prior to the conclusion of the first tax period in which the new group tribute in the regime of the groups of companies.»


Ninth. Paragraph 3 of article 101.


«3. the values received by partners will be assessed, for tax purposes, by the delivered value, determined in accordance with the rules of this tax or the tax on the income of physical persons, as appropriate. This valuation shall be increased or reduced by the amount of additional compensation in money delivered or received. The received values will retain the date of acquisition of the delivered.»


Tenth. Paragraph 2 of article 102.


«2. the values received under fusion, absorption and partial, or total excision operations are valued, for tax purposes, by the delivered value, determined in accordance with the rules of this tax or the tax on the income of physical persons, as appropriate.


This valuation shall be increased or reduced by the amount of additional compensation in money delivered or received. The received values will retain the date of acquisition of the delivered.» Eleventh. Letter to) of paragraph 1 of article 109.


«to) the benefits distributed without charge to contributed assets attributable income give right to the deduction for the double internal taxation of dividends referred to in article 28.2 of this law, which is the percentage of participation of partner. Equal criteria shall apply with respect to the deduction for the double internal taxation of capital gains referred to in article 28.5 of this law by the income generated in the transmission of participation.'


Third final provision. Amendment of the Act on Civil liability and insurance in the circulation of vehicles to Motor.


A final provision is added to the Act on Civil liability and insurance in the circulation of vehicles to Motor, which is worded in the following terms: 'disposal. Regulatory clearance.


1 enabled the Government to dictate how many provisions are necessary for the development and implementation of this law.


2. in matters not provided for in this law and the regulations issued for its development the contract of insurance for civil liability for vehicles engine is governed by law 50/1980, of 8 October, insurance contract."


Fourth final provision. Organic Statute 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 develop their functions, status, organization and functioning, with adaptation to the principles of efficiency and economy management, organizational autonomy, participation of public administrations involved in its management and fiscal stewardship contained in their specific regulations and law 14/1996, of 30 December, transfer of State taxes to the autonomous and complementary tax measures.


Fifth final provision. Enabling for the General State budget Act.


The General State budget Act may modify, in accordance with the provisions of paragraph 7 of article 134 of the Spanish Constitution: to) the scale and types of tax and fee deductions.


(b) the other quantitative limits and fixed percentages established in this law.


Sixth final provision. Enabling legislation.


The Government will dictate how many provisions are necessary for the development and implementation of this law.


Seventh final disposition. Entry into force.


1. the present law shall enter into force on January 1, 1999. However, the qualifications to the General State budget Act shall enter into force on the day following the publication of this law in the «Official Gazette».


2. for the purposes of the tax on the income of physical persons, this Act shall apply to income derived from that date and that appropriate to impute from it, in accordance with the criteria of allocation temporary law 18/1991, of 6 June, the tax on the income of physical persons , and its implementing rules.


Therefore, command to all Spaniards, private individuals and authorities, which have and will keep this law.


Madrid, December 9, 1998.


JUAN CARLOS R.


The Prime Minister, JOSÉ MARÍA AZNAR LÓPEZ

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