The first article of this provision amends various articles of the Income Tax Regulation of the Physical Persons, approved by Article 1 of Royal Decree 1841/1991 of 30 December 1991, with the object of to establish a uniform regulation of the obligation to retain and of the rules on the actual obligation to contribute, in respect of the taxable persons of the Income Tax of the Physical Persons and the Tax on Societies. The modification brings its cause of the forecasts contained in respect of the obligation to retain in the Regulations of the Tax on Societies.

The second article adds a paragraph to the first provision of Royal Decree 765/1995 of 15 May 1995 governing certain matters relating to the scheme of tax incentives for private participation in the activities of general interest in order to apply what is available to the Ente publica Instituto Cervantes.

The third article incorporates an additional provision to Royal Decree 2027/1995, which regulates the annual declaration of transactions with third parties, in order to regulate such a declaration in relation to the transactions of the State Administration.

The fourth article gives new wording to Article 11 of Royal Decree 505/1987, on the account of the Debt, relating to the tax regime and the reporting obligations in respect of the transactions of these securities, for to adapt it to the current rules on monetary policy and to the new regulation of the obligation to retain regulated in the Corporate Tax Regulation.

In its virtue, on the proposal of the Second Vice President of the Government and Minister of Economy and Finance, according to the Council of State and after the release of the Council of Ministers at its meeting on April 11, 1997,

D I S P O N G O:

Article first. Amendment of Articles 41, 43, 50, 59, one, two and three, and 73 of the Income Tax Regulation of the Physical Persons, approved by Article 1 of Royal Decree 1841/1991 of 30 December 1991.

1. Article 41 of the Income Tax Regulation, approved by Article 1 of Royal Decree 1841/1991 of 30 December 1991, is hereby amended as follows:

" One. The persons or entities referred to in Article 42 of this Regulation who satisfy or pay the income provided for in Article 43 shall be obliged to retain and enter the Treasury, as a payment on account of the Income Tax Physical Persons corresponding to the recipient, the amount to be obtained in accordance with the rules of this Chapter.

There shall also be an obligation to retain in the transactions for the transmission of financial assets with implicit performance, subject to the conditions laid down in this Regulation.

Two. Where the said income is satisfied or paid in kind, the persons or entities referred to in the preceding paragraph shall be obliged to make an income, in respect of the payment of the income tax on the income of the physical persons. corresponding to the recipient, in accordance with the rules of this chapter.

Three. For the purposes of this Regulation, references to the retainer shall also be construed as being made to the obligation to make an income on account, in the case of the joint regulation of payments on account. "

2. Article 43 of the Income Tax Regulation, approved by Article 1 of Royal Decree 1841/1991 of 30 December 1991, is hereby amended as follows:

" One. They shall be subject to withholding or entry into account, as the case may be, of the following income:

a) The returns of the job.

(b) Income from capital, including income from business activities.

c) The performance of professional activities.

(d) Prizes which are awarded as a result of participation in games, contests, raffles or random combinations, whether or not they are based on the offer, promotion or sale of certain goods, products or services, except which constitute income from capital which is subject to withholding tax or income under paragraph (b) above.

e) The yields of agricultural or livestock activities.

(f) Equity returns satisfied by a financial institution to a third party, as a result of the transfer, transfer or transfer, in whole or in part, of a credit held by that institution.

g) The portion of the price that is equivalent to the coupon run in the State Debt securities transactions referred to in the additional 15th of the Tax Act.

(h) The part of the price equivalent to the coupon in the securities transfers referred to in the first provision of Law No 22/1993 of 29 December 1993 on Tax Measures for the Reform of the Legal Regime the Civil Service and the Protection for Unemployment.

(i) The share of the price that is equivalent to the coupon in the transmission of State Debt securities with explicit performance within the 30 days immediately preceding the expiration of the coupon by natural persons resident in Spanish territory to the entities referred to in Article 9 of Law 43/1995 of 27 December of the Company Tax, except if the transfer has been made to the Banco de España. The withholding tax shall be performed by the managing entity of the Public Debt market in Annotations that intervenes in the transmission.

Two. There shall be no obligation to practise retention or entry into account of:

(a) The exempt income referred to in Article 9 of the Tax Law.

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

However, credit institutions and other financial institutions, which formalise their clients ' financial account contracts based on operations on Treasury bills, will be required to retain their financial accounts. returns obtained by the holders of those accounts.

(c) Yields on non-resident accounts that are satisfied to natural persons not resident in Spanish territory, unless the payment is made to a permanent establishment, by the Bank of Spain, and other entities This is the case for the regulation of economic transactions with the outside world.

(d) the income distributed by the collective investment institutions governed by Law 46/1984 of 26 December 1984 on collective investment institutions, which are taxed at a special rate as soon as they are received by persons resident in other Member States of the European Union.

(e) Yields that are satisfied or paid to taxable persons under a real obligation to contribute to the non-mediation of permanent establishment, when the payment of the tax or the source of the exemption is credited.

(f) Prizes to be awarded as a result of games organised under the provisions of Royal Decree-Law 16/1977 of 25 February on the penal, administrative and fiscal aspects of the games of the luck, send or chance and bets. There shall also be no obligation to practise withholding or taking into account the prizes referred to in paragraph (d) of the preceding paragraph where the amount of the prizes is not greater than 100 000 pesetas, if they are delivered in cash, or if their value for purchase or cost does not exceed this amount, in the case of being in kind.

(g) The income of the capital as referred to in paragraph (d) of Article 44 (4) of the Tax Act.

(h) The conversion premiums for securities in shares, where they have the consideration of capital returns.

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

(j) dividends or shares in profits arising from tax periods during which the entity that distributes them is subject to tax transparency, except that they correspond to non-resident partners in territory of Spain. '

3. Article 50 of the Income Tax Regulation, approved by Article 1 of Royal Decree 1841/1991 of 30 December 1991, is hereby amended as follows:

" One. The obligation to retain shall be born at the time the implied performance materializes for the recipient.

For these purposes, performance shall be understood to mean any transmission of the asset, including as such redemption or redemption.

Two. The retention shall be made on the positive difference between the amount obtained on the transmission, redemption or redemption and the acquisition or subscription. For these purposes, the ancillary costs shall not be reduced to the operation.

Without prejudice to the withholding tax, in the event that a issuing person acquires a financial asset issued by it, prior to its repayment or redemption date, the issuer shall, where appropriate, make the following: retention and income on the return it obtains in any form of subsequent transfer of the title, excluding depreciation.

Three. The retention shall be carried out on the date on which the transmission is formalised whatever the agreed charging conditions.

Four. In transactions on financial assets with implicit performance they will be required to retain:

(a) In the performance of the transmission, redemption or redemption of the financial assets, the issuing institution or the financial institutions in charge of the transaction.

In the case of spin instruments converted after their issuance in financial assets, their maturity or transmission shall be required to retain the debtor or financial institution that presents them for recovery.

(b) In returns obtained in transmissions relating to transactions that are not documented in securities, as well as in the transmissions entrusted to a financial institution, the bank, cash-or entity acting on behalf of the Transmit.

For the purposes of paragraph (b) above, it shall be understood that the bank, box or financial institution receiving the order for the sale of the financial assets with implicit performance shall act on behalf of the transferor.

(c) In cases not covered by the preceding paragraphs, the intervention of the public purse, which shall carry out the corresponding retention, shall be compulsory.

Five. In order to transfer or obtain the repayment of the securities or assets with implicit return which are to be withheld, the prior acquisition of such securities or assets shall be credited with the intervention of the members or institutions. (a) the financial contribution referred to in the previous paragraph as well as the price at which the transaction was carried out.

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

When a turning instrument becomes a financial asset after its entry into circulation, the first endorsement or transfer must be made through the public purse or financial institution, unless the same acquirer is a financial institution. The holder or the financial institution shall, in an indelible form, indicate in the document the nature of the financial asset, with the identification of its first acquirer or holder.

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

a) Date of operation and identification of the asset.

b) The name of the acquirer.

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

d) Acquisition price.

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

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

Eight. Persons or entities issuing financial assets with implicit performance shall not be able to repay the same when the holder fails to accredit their prior acquisition by means of appropriate certification, as set out in paragraph 6 previous.

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

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

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

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

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

4. Article 59 one, two and three of the Income Tax Regulation, approved by Article 1 of Royal Decree 1841/1991 of 30 December 1991, is hereby amended as follows:

" One. The retainer and the obliged to enter into account must present in the first twenty calendar days of the months of April, July, October and January, before the competent organ of the tax administration, declaration of the quantities retained and the income to account corresponding to the previous immediate calendar quarter and to its amount in the public treasury.

However, the declaration and entry referred to in the preceding paragraph shall be made in the first twenty calendar days of each month, in relation to the amounts withheld and the revenue to be borne by the (a) the date of the application of the judgment of the Court of State in the case of a person who is a member of the national court or a person who is a member of the national court. By way of derogation, the declaration and entry for the month of July shall be made during the month of August and the first twenty calendar days of the month of September.

The retainer or the obligation to enter into account shall present a negative statement when, despite having satisfied the income of those mentioned in Article 43 of this Regulation, it would not have carried out the practice of withholding or (a) account for any of the cases, only in cases where the Minister for Economic Affairs and Finance so establishes.

Two. The holder must submit, within the same period of the last statement of each year, an annual summary of the withholding and revenue to be made. In this summary, in addition to your identification data, you may be required to record a nominee relationship with the following data:

a) First and last names.

b) Tax identification number.

(c) a withholding tax or income, if any, and income obtained, indicating the identification, description and nature of the concepts, and the financial year in which the income was due; including the exempt allowances and the exempt income.

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

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

Three. The holder or the holder shall issue in favour of the taxable person certifying evidence of the withholding tax or of the revenue to be paid, as well as of the other data relating to the taxable person to be included in the annual summary as referred to in the previous paragraph and other discounts applied for tax purposes for the recipient.

This certification must be made available to the taxable person prior to the opening of the deadline for declaring this tax.

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

5. Article 73 of the Income Tax Regulation, approved by Article 1 of Royal Decree 1841/1991 of 30 December 1991, shall be worded as follows:

" Article 73. Retention in the acquisition of immovable property to non-residents.

One. In the case of transfers of immovable property located in Spain by non-resident taxable persons on Spanish territory acting without permanent establishment mediation, the acquirer shall be obliged to retain and enter the 5 per 100, or to make the corresponding income, from the agreed consideration, as a payment on account of the tax corresponding to those.

Two. The acquirer shall be released from the obligation to retain or to make the entry into account in the following cases:

(a) Where the owner of the immovable property transmitted was a natural person and, at 31 December 1996, the property had remained in the assets of the taxable person for more than 10 years, without having been subject to improvements during that period. time.

(b) Where the transmitte accredits its subjection to the personal obligation of the tax by certification issued by the competent authority of the tax administration.

c) In cases of the contribution of real estate in the constitution and increase of capital of entities resident in Spanish territory.

Three. The obligation to retain must provide a declaration in the competent authority of the tax administration of the place of residence of the property and enter the amount retained in the public treasury within one month of the date of the transmission.

Four. The taxable person who is not resident in Spanish territory must declare and enter the definitive tax, compensating in the quota the amount retained or entered into account by the acquirer, within three months from the end of the period set for the entry of the retainer.

The tax administration shall, if necessary, make prior the necessary checks, to the refund to the taxable person of the excess entered into account.

Five. If the withholding tax or income referred to above has not been entered, the goods transmitted shall be affected by the payment of the tax.

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

Article 2. Incorporation of a new paragraph to the first provision of Royal Decree 765/1995.

A new paragraph is added to the first provision of Royal Decree 765/1995 of 15 May 1995 governing certain matters relating to the scheme of tax incentives for private participation in activities of general interest, with the following text:

"Also, it will be applicable to the Public Ente Instituto Cervantes."

Article 3. Addition of an additional provision to Royal Decree 2027/1995.

A fourth additional provision is added to Royal Decree 2027/1995 of 22 December, which regulates the annual declaration of transactions with third parties, with the following text:

" Additional provision fourth. Statement of operations with third persons of the State Administration.

One. The referral to the tax administration of the information of transactions with third persons referred to in this Royal Decree, in the field of the General Administration of the State, will be channeled through the General Intervention of the State administration, which will centralize and group in a single support the data on operations carried out from the State expenditure budget for the following purposes:

a) Direct payment.

b) Payment to justify.

c) Fixed cash advances.

With the scope provided for in Article 3 of this Royal Decree, the information relating to direct payments shall include all the obligations recognised in the financial year referred to in that information and the information referred to payments to be justified and fixed cash advances shall comprise all transactions included in the accounts rendered by the paying agents and atms throughout the financial year.

Two. The General Intervention of the State Administration shall transmit to the Department of Informatics of the State Administration of Tax Administration a single directly readable support by a comprehensive computer of all persons or entities with who have carried out operations in respect of any of the three procedures referred to in the previous paragraph which, as a whole, for each of those persons or entities, has exceeded the figure of 500 000 pesetas during the calendar year corresponding.

Three. For the purpose of centralizing the information of transactions carried out through payment systems to justify and advance payment of fixed cash, the Minister of Economy and Finance will determine, on a proposal from the General Intervention of the Administration of State, the information to be provided by the payers and the paying agents and the procedures and time limits for referral.

Four. Failure to transmit information or defective referral by any of the paying agents and cashiers will not prevent the General Intervention of the State Administration from sending a support to the tax administration. with the data effectively available, without prejudice to the completion of the information, once the defects of the information are remedied.

Five. As long as the rules referred to in paragraph 3 are laid down, the General Intervention of the State Administration shall be responsible for the remission of the data which is deducted from the accounting information system of the State Administration. "

Article 4. State Debt Scheme in Annotations.

1. The obligation to retain and to report on the transactions relating to the debt of the State governed by Royal Decree 505/1987 of 3 April 1987 on the taking into account of the debt shall be governed by the provisions of Article 11 of that Regulation. provision, whether the recipient of the income is subject to the Corporate Tax or the Income Tax of the Physical Persons.

2. Article 11 of Royal Decree 505/1987 of 3 April 1987 on the accounts of the Debt shall be worded as follows:

" Article 11. The tax regime and reporting obligations.

1. There shall be no obligation to retain in respect of the income derived from the transmission or repayment of the State Debt which, due to its conditions of issue, is not an implicit performance asset, even if the transmission is of the Article 8 (2) of this Royal Decree.

2. In the settlement of interest subject to retention the central bank shall pay the liquid amounts, once the withholding tax on the Income Tax of the Physical Persons or the Company Tax, and the entities managers will certify the holds supported by their principals.

In the transmission of a State Debt account with implicit performance it shall be required to retain and enter into the Treasury the managing entity transmitting or acting on behalf of the transmission of such annotations. At the time of reimbursement, such an obligation shall affect the issuer, and shall implement the retention through the central bank, unless the materialisation of the transaction is entrusted to the managing entities, in which case they shall be in charge of practicing and entering the withholding tax.

3. The central bank or the managing entities involved in the subscription and transmission of the debt of the State represented in the accounts shall be obliged to provide the tax authorities with the information relating to them. operations.

The central bank will report on the retentions practiced on the interests satisfied to the managing entities by the balances of their securities accounts in that one, both on their own account and on behalf of their clients. In turn, the managing entities must submit, within the time limit set for the annual summary of withholding or in conjunction with that summary, a nominative relationship between their principal recipients of interest adjusted to the established models or to be established by the Minister for Economic Affairs and Finance.

The managing entities will be required to provide information to the tax administration on the subscription, transmission and repayment of the State's debt in the accounts of its clients, according to the model established by the Minister of Economy and Finance. This obligation shall be deemed to be fulfilled in respect of the transactions subject to retention, with the presentation of the annual summary thereof. '

Single repeal provision. Regulatory repeal.

The following rules will be repealed with the entry into force of this Royal Decree:

1. Articles 12, 13, 36, 44.tres and 57 of the Income Tax Regulation, approved by Article 1 of Royal Decree 1841/1991 of 30 December 1991, on the approval of the Income Tax Regulation Natural Persons.

2. Article 74 of the Pension Funds and Plans Regulation approved by Royal Decree 1307/1988 of 30 September 1988.

Single end disposition. Entry into force.

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

Given in Madrid on April 14, 1997.

JOHN CARLOS R.

The Second Vice President of the Government

and Minister of Economy and Finance,

RODRIGO DE RATO Y FIGAREDO