Law 43/1995, Of 27 December, The Corporate Income Tax.

Original Language Title: Ley 43/1995, de 27 de diciembre, del Impuesto sobre Sociedades.

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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: exposition of reasons 1 background and causes of the reform of the corporate tax the corporate tax meets the objective of taxing the profits obtained by legal entities. In this sense tax complements the physical personal income tax in the context of the income tax system. In addition, it plays a role of withholdings at source with respect to capital incomes obtained by foreign investors through its property companies resident in Spanish territory.


Both objectives that respond to the constitutional principles of sufficiency and justice provided for in article 31 of the Constitution are a constant in the corporate income tax. This law does not alter those objectives and, therefore, the structure of the corporation tax which contains does not imply a radical transformation of the tribute.


The causes that motivate tax reform nor call into question its current structure, although if they determine some important changes. These causes are as follows: first-the partial reform of commercial law, carried out by law 19/1989, of 25 July.


Second.-the reform of the tax on the income of the physical persons, carried out by the law 18/1991 of June 6.


Third.-the openness of our economy to cross-border capital flows.


Fourth.-regulatory dispersion currently suffering from corporate income tax.


Fifth.-the evolution of the theory of finance, financial and tax systems of our environment in relation to corporation tax.


In what refers to the first cause, it should be noted that the object of the tax is the income obtained by legal entities, and this magnitude is determined, for the vast majority of taxable persons of the tax, under the accounting algorithm regulated by the principles and rules laid down in the code of Commerce , the Corporations Act and the General Accounting Plan, basically.


Determine the tax base of tax from the accounting profit, corrected by the exceptions legally classified, constitutes one of the main objectives of the reform of the corporate tax, which shall inure to the benefit of legal certainty for the taxpayer.


In what refers to the second cause, it should noted that tax, in a tax system that seeks to tax income extensively and only once, is a history of the tax on the income of physical persons. Indeed, tax means under this conception, which definitely incorporates law, a withholding at the source with respect to capital income obtained by natural persons through their participation in legal entities. In this sense, being subject to the tax on the income of physical persons all of the income from capital, appears clearly the intimate relationship between both tax figures and, therefore, that modification of one of them must necessarily have an impact on the other.


The method of elimination of the double taxation of dividends contained in Act 42/1994, of 30 December, measures fiscal, administrative and Social order, highlights the previously aforementioned relationship, definitely embracing the concept of the tax assessment of the income from capital applied to business activities which operates by way of deduction at source and a basis of assessment to tax on the income statement as of Natural persons.


As regards the third cause, he has to observe that the previously existing corporation tax was conceived on a closed economy, being so our economy is open to international movements of capital. This is probably the cause that with greater intensity demanded a reform of corporation tax that, in large part, has been anticipated under the measures contained in the law 42/1994, of 30 December, measures fiscal, administrative and Social order, by changing the deduction for double international taxation and incorporation, both in the physical personal income tax at the tax , of the so-called fiscal transparency international, whose aim is to submit to taxation at headquarters of persons or entities resident in Spain obtained passive income through non-resident entities which enjoy a privileged tax regime.


As far as the fourth cause is concerned, it should be recalled that, prior to this law coexisted together with the general regime one set of special tax regimes, some of them, as the relative to fiscal consolidation, whose regulation was previous to the own law 61/1978, of the tax, which determined a significant regulatory dispersion and certain interpretative uncertainties.


Incorporation into a single legal text of the set of special schemes at the heart of the corporate tax, exception made of those relating to cooperative societies and certain non-profit entities due to their special characteristics, is also one of the goals of the reform of tax having accomplished satisfaction in the present law.


In regard to the evolution of the doctrine finance, financial and tax systems of our environment, it should be noted the preponderance of theoretical elaborations and regulatory changes with rationale and justification for the principle of neutrality.


Finally, the construction of a tax structure that reaches higher degrees of neutrality is a goal of the utmost importance that, by itself alone, would justify the legislative momentum aimed at the reform of corporate income tax.


2 principles of the reform the establishment of guiding principles of tax reform has been an essential element in the reform task, which was reflected in the report for the reform of the corporate tax. This document and the debates that the proposals contained therein were contributed decisively to the configuration of the content of the Bill. Amendments, reports and discussions in the legislative procedure have taken concerned principles as a reference on many occasions, in such a way that the rules of this law respond, in no small measure, to them.


The mentioned principles are the following: neutrality, transparency, systematization, international coordination and competitiveness.


The principle of neutrality requires that the application of the tax do not alter the economic behavior of taxable persons, unless such alteration shop to overcome inefficient equilibria of market. It is well understood that the principle of neutrality responds to the objective of economic efficiency in the allocation of economic resources. However, although of an economic nature, links perfectly with constitutional generality and equality principles, hence as the axis of this law.


Measures such as the Elimination of the double taxation of dividends, the rapprochement between taxable income and accounting profit, the selective nature of tax incentives and their justification based on inefficient equilibria of market and the indifference of the type of lien against the application of the benefit they respond, among other things, the principle of neutrality.


The principle of transparency requires that the tax rules are intelligible and that your application's arises some tax debt. This principle follows from the more general legal security, and on it are inspired, inter alia, the inclusion of tax regimes special in this law and the possibility of carrying out previous agreements relating to transfer pricing. Some rules, however, reflect the complex reality which is projected corporate tax, while his perfect understanding will come facilitated, in many cases, by the rules of accounting nature relating to that reality.


Systematization principle claims that there is appropriate coordination between the physical personal income tax and corporate tax. The method of deduction for double taxation of dividends is the most relevant measure in order to achieve such coordination from the functional point of view.


The principle of international coordination requires that the basic trends of the tax systems of our environment are taken into consideration. This principle finds its basis in the internationalization of our economy. Measures such as the assessment of intersocietarios dividends from a certain level of participation, the replacement of the exemption for reinvestment by a system of deferral by reinvestment applicable to a wide range of assets, as well as the elevation of the period of compensation of losses, they are consequences of this principle.



The principle of competitiveness calls for tax contributes and is consistent with the set of economic policy measures aimed at the promotion of competitiveness. The deduction for the realization of the cost of vocational training, accelerated depreciation in relation to the activities of research and development, the deduction in the fee to such activities as well as the incentives for the internationalisation of companies since it derives an increase in exports, they respond to the abovementioned principle.


3. the main aspects of the reform in relation to the taxable transactions the most outstanding aspect consists of leaving the classification of revenues established in article 3 of the law 61/1978. The synthetic nature of the tax determines that such classification, in contrast to the tax on the income of physical persons, only be relevant in very particular aspects, such as the obligation to withhold and the obligation to contribute real.


The abandonment of the categories of income (income from economic holdings, capital yields and increases and decreases of heritage) determines a remarkable simplification of tax and facilitates its most perfect crimp with commercial standards of accounting nature.


Note that, except the law 61/1978, of 27 December, the corporation tax, the former regulatory legal texts of tax - consolidated text of 22 September 1922 and text revised 23 December 1967 - did not contain the previously aforementioned classification of incomes.


In regards to the taxable person, two are noteworthy developments. A part, the Elimination of minimum taxation and granting institutions partially exempt from deduction for double taxation of dividends, and another, the taxation of transparent societies that are subject to tax without prejudice to the attribution to members of the positive tax base and other elements to settle fee at the same time as the fee entered by the open society has the consideration of payment in relation to the tax levied to partners.


In what refers to the tax base, the highlight is that it will be determined, in the regime of direct estimation, through the correction of the accounting result set in accordance with the rules laid down in the commercial code, other laws relating to such determination and provisions that develop them using the specifically planned adjustments.


It should also be highlighted the replacement of the existing system of exemption for reinvestment of proceeds in the transmission of elements of tangible pertaining to business activities by a system of deferral of assessment of those earnings over a seven year period or during the period of depreciation of the assets in which materializes the reinvestment , at the choice of the taxable person. This system will apply not only to tangible items but also the of intangible assets as well as the fixed assets financial under certain circumstances.


In relation to the assessment of the capital gains, it has indicated that this law contains the relevant rules in order to exclude from taxable income obtained purely monetary income in the transmission of elements of fixed assets, whereas the composition of the sources of financing of the company trasmitente.


As regards the type of assessment, this law does not provide relevant news. It continues the structure proportional and indifferent with regard to the implementation of the result, at the same time that suppresses the type 26 per 100 at present applicable to credit unions, societies of mutual and reciprocal guarantee of insurance, which will pay tribute to 25 per 100, rate applicable generally to non-profit and similar entities.


In what refers to the deduction for double international taxation, this law collects the modifications introduced on this matter by law 42/1994, of 30 December, measures fiscal, administrative and Social order, incorporating specific mandates which are intended to expand the possibilities of deduction. The international legal double taxation deduction shall be calculated in relation to income from the same country, except in what refers to those derived from permanent establishments, and will also have consideration of tax paid abroad, in relation to the international double taxation economic, the paid by the entities owned by the company distributing the dividend and why on, are owned by them. Foreign tax which has not been able to be deduced by failure of total tax may move to the seven years following and successive.


In relation to the tax incentives, this law only regulates those who are intended to encourage certain activities: research and development, foreign investments aimed at the realization of export, goods of cultural interest and vocational training. The general tax incentives related to economic policy does not consist in the articles, but for them is established enabling timely and concrete in favor of the General State budget Act.


In what affects the special arrangements, the main aspect of the reform lies in that it set out in this law, unlike the current situation in which virtually all of them were regulated in special laws. However, regarding cooperatives and institutions which meet the requirements laid down in the law 30/1994 of 24 November, foundations and tax incentives to private participation in activities of General interest, the law only provides for the maintenance of the validity of these rules, because, essentially, the special characteristics that concur in the above entities. Similarly, expected the non-derogation of law 19/1994, of June 6, modification of the economic regime and Canarias tax, which remains fully in force.


Also should be noted the incorporation of a set of tax incentives in favour of companies of small size, the continuity of the regime of financial leasing, in the terms provided in the additional provision seven of law 26/1988, of July 29, on discipline and intervention of the entities of credit, establishing a limitation with respect to the amounts deductible depending on the useful life of good contract and the exemption for dividends and capital gains of foreign source for the holdings of foreign securities companies.


Finally, regarding real contribute obligation and regarding the personal elements, notably remarkable lightening obliged to name a representative, which is limited, in addition to the cases in that there is a permanent establishment in Spain, to those cases which are deductible expenditure, as well as in cases where, due to the complexity of the operation of the taxpayer is required by the administration.


With respect to the determination of the taxable income derived through a permanent establishment, for those cases in that the operations of the permanent establishment do not close commercial cycle, priority is given to the determination of the base system, on the basis of revenues that have been obtained between independent parties, against the system of determination of the taxable According to a percentage of the costs incurred, system which, however, is preserved in a subsidiary manner. This Act maintains the simplified system of calculating the tax for those permanent establishments carrying out isolated or short-term operations.


In terms of income obtained without mediation of permanent establishment, the main news focus on types of assessment; namely:-deletion of the reduced rate for amounts satisfied concept of consideration of support services to management by Spanish subsidiaries to its foreign parent, going to pay tribute to the general type.


-Suppression of assessment on the part of Headquarters overhead costs attributable to the permanent establishment.


-Establishment of a tax rate of 1.5 per 100, in the case of income from reinsurance operations.


-Establishment of a tax rate of 4 per 100 for sea or air navigation entities.


On to the special tax on real properties of entities non-residents, exemption from the tax, through identification of holders, is confined to the resident companies in countries with which Spain has signed Convention on double taxation with provisions for the exchange of information, provided that the holders are resident in Spain or in a country that has entered into with our country an agreement of this nature.


TITLE i. nature and scope of the tax article 1. Nature.


1. the tax is a tribute of directness and personal nature that taxes the income of corporations and other legal entities in accordance with the provisions of this law.



2. the levying of the tax to taxable persons not resident in Spanish territory shall be carried out in accordance with the rules governing an actual obligation to contribute contained in Title VII of this Act.


Article 2. Spatial scope.


1. the tax shall apply throughout the Spanish territory.


For the purposes of the preceding paragraph, the Spanish territory also includes those areas adjacent to the territorial waters over which Spain can exercise the rights that are appropriate concerning soil and marine subsoil, overlying waters, and their natural resources, in accordance with Spanish law and international law.


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


Article 3. Treaties and conventions.


As provided for in the foregoing article shall be without prejudice to treaties and international conventions that have become a part of domestic.


Title II article 4 taxable. Made taxable.


1 shall constitute the taxable transactions the obtaining of income, whatever that was its source or origin, by the taxable person.


2. in the system of fiscal transparency means obtaining income imputation to the taxable person of positive taxable bases of the entities subject to this regime.


In the international tax transparency regime compliance determining conditions of inclusion means obtaining income tax base of positive income derived by the non-resident entity.


Article 5. Estimation of incomes.


Transfers of goods and rights in its various forms shall presume paid by their normal market value, unless proven otherwise.


Article 6. 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 General tax law, 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 income allocation regime shall not apply to the agrarian societies of transformation, which will be taxed by tax.


3. the entities with income allocation regime will not be taxed by tax.


Title III the taxable person article 7. Taxable persons.


1 will be taxable persons of the tax: to) legal persons, except the civil societies.


(b) investment funds, regulated in law 46/1984, of 26 December, regulating collective investment undertakings.


(c) temporary unions of companies, regulated by law 18/1982, of 26 May, about Fiscal regime of groupings and temporary unions of companies and societies of Regional Industrial development.


(d) the venture capital funds, regulated in Royal Decree-Law 1/1986, of March 14, of urgent administrative measures, financial, tax, and labor.


(e) pension funds, regulated by law 8/1987 of 8 June, plans and pension funds.


(f) the regulation of the mortgage market funds, regulated by law 2/1981, dated March 25, regulation of the mortgage market.


(g) the mortgage securitisation funds, regulated by law 19/1992 of July 7, about regime of companies and real estate investment funds and mortgage securitisation funds.


(h) the funds of the securitization of assets referred to in the fifth additional provision, 2, of law 3/1994, of 14 April, on adaptation of the Spanish legislation in the field of credit to the second banking coordination directive and other amendments relating to the financial system.


2 taxable persons of the tax shall be designated abbreviated and indistinctly by denominations societies or organizations throughout this Act.


Article 8. Taxable persons by contributing personal obligation.


1. they are subject by personal obligation to contribute the entities that have their residence in Spanish territory.


2. taxable persons by contributing personal obligation will be taxed by the totality of income obtained, irrespective of the place where it has occurred and any that is the residence of the payer.


3 will be considered resident in Spanish territory entities in which if any of the following requirements: to) which have been subject to the Spanish laws.


(b) have its registered office in Spanish territory.


(c) have their place of effective management in Spanish territory.


For these purposes, means that an entity has its place of effective management in Spanish territory when the aforesaid the direction and control of all their activities.


4. the fiscal domicile of taxpayers resident in Spanish territory will be their head office, provided that it is effectively centralized administrative management and direction of their business. In another case, it will serve to place that can perform such management or direction.


In cases that cannot be established the place of fiscal domicile, in accordance with the above criteria, shall prevail one where is situated the highest value of fixed assets.


Article 9. Exemptions.


They shall be exempt from tax: to) the State, the autonomous communities and local authorities.


(b) autonomous State administrative bodies and autonomous bodies and autonomous entities of similar character of the autonomous communities and local authorities.


(c) the State of commercial, industrial, financial or similar autonomous bodies and autonomous bodies and autonomous entities of similar character of the autonomous communities and local authorities.


d) the Bank of Spain and the deposit guarantee funds.


(e) the public entities responsible for the management of Social Security.


(f) public bodies of article 6.5 of the consolidated text of the General Law on budget, approved by Royal Legislative Decree 1091 / 1988, of 23 September, as well as public bodies of similar character of the autonomous communities and local authorities.


(g) the Institute of Spain and the Royal Academies officers integrated into the same and the institutions of the autonomous communities with its own official language that have purposes analogous to the de la Real Academia Española.


Title IV taxable article 10. Concept and definition of the tax base.


1. the tax base will be constituted by the amount of the income in the tax period tax by offsetting carryforwards from prior years.


2. the tax base is determined by estimation scheme directly and, subsidiarily, by the of indirect estimate, in accordance with the provisions of the General tax law.


3. in the direct estimate regime tax base is calculated correcting, by applying the precepts laid down in the present law, the outcome accountant determined in accordance with the rules laid down in the commercial code, other laws relating to the determination and the provisions issued in development of the above-mentioned standards.


Article 11. Value adjustments: redemptions.


1 will be deductible, amounts for depreciation of tangible or intangible, correspond to effective depreciation which suffer the various elements for operation, use, enjoyment or obsolescence.


The depreciation is effective when: to) is the result of applying the linear depreciation rates set out in officially approved depreciation tables.


(b) be the result of applying a constant percentage of the pending of amortization value.


The constant percentage is determined by weighing the straight-line depreciation coefficient obtained from the period of depreciation according to officially approved depreciation tables, by the following coefficients: to ') 1.5, if the item has a less than five-year amortization period.


(b') 2, if the item has a repayment period to five years and less than eight years.


(c') 2.5, if the item has a payback period equal to or greater than eight years.


The constant percentage may not be less than 100 11.


Buildings, furniture and furnishings may not be eligible to the depreciation through constant percentage.


(c) be the result of applying the method of digit numbers.


The sum of digits is determined by the amortization period set forth in the officially approved depreciation tables.


Buildings, furniture and furnishings may not be eligible to depreciation by digit numbers.


(d) is set to a plan formulated by the individual passive and accepted by the tax authorities.


(e) the taxable person justifies its amount.


Implementing regulations will be adopted tables of depreciation and the procedure for the resolution of the plan referred to in point (d)).


2 can pay freely: to) the elements of tangible and immaterial labour public limited companies affects the realization of their activities, acquired during the first five years from the date of qualification as such.



(b) the active miners in the terms established in article 111.


(c) the elements of tangible and intangible, excluding buildings, affects the activities of research and development.


Buildings may pay for itself, equally, for a period of ten years, in the part which are related to the activities of research and development.


(d) research and development expenses activated as intangible assets, excluding depreciation of the items to enjoy accelerated depreciation.


(e) the elements of tangible or intangible entities that have the qualification of priority associative holdings in accordance with the provisions of law 19/1995, of 4 July, modernization of the agricultural holdings, acquired during the first five years from the date of their recognition as a priority exploitation.


The amounts applied to accelerated depreciation will increase the tax base with occasion of the amortization or transmission of items that enjoyed the same.


3. in the case of assignment of use of goods with option to purchase or renewal, when by the economic conditions of operation do not exist reasonable doubts that be exercised one or another option, will be deductible to the assignee company an amount equivalent to quotas of depreciation which, as laid down in paragraph 1, would correspond to the aforementioned goods.


It shall be assumed that reasonable doubt who is going to exercise any option when the amount to be paid by their exercise is less than the amount resulting from lower price of acquisition or production cost of the good in the sum of the maximum amortization contributions which would correspond to the same within the time duration of the assignment there is no.


The difference between the amounts to be paid to the transferor entity and the price of acquisition or production cost of the good will be for the entity assignee spending considered to be distributed among the tax periods within the duration of the transfer time.


When good has been the subject of prior transmission by the assignee to the assignor, the assignee will continue the same depreciation under identical conditions and on the same prior to the transmission value.


When application the provisions of this paragraph, the transferor entity amortised the price of acquisition or cost of production of the good, deducted the value of the option, in the term of operation.


The goods referred to in this paragraph may also pay for itself freely in the cases referred to in the preceding paragraph.


4 allowance for depreciation of goodwill will be deductible up to the annual maximum of the tenth part of the amount, provided that the following requirements are met: to) that goodwill it has become apparent under an acquisition against payment.


(b) that the acquirer is not, with respect to the person or entity transferring, in any of the cases provided for in article 42 of the code of Commerce. For these purposes, means that the cases of article 42 of the code of Commerce are those referred to in section 1 of chapter I of the rules for the formulation of the annual accounts consolidated, approved by the Royal Decree 1815 / 1991, of 20 December. Requirement provided for in this letter shall not apply with respect to the purchase price of goodwill satisfied by the person or entity transferring when you acquired it from persons or entities not linked.


Allowance for depreciation of goodwill which does not meet the requirements provided for in the letters a) and b) above will be deductible if it is proven that they respond to an irreversible depreciation thereof.


5 when the requirements provided for in the letters a) and b) of the preceding paragraph will be deductible up to the annual maximum of tenth of its amount allowance for: a) amortisation of brands.


(b) the amortization of the rights of transfer, except that the contract had a duration of less than ten years, in which case the maximum annual limit will be calculated according to the duration.


(c) the remaining assets of fixed assets intangible that they did not have certain date of extinction.


When not met the requirements laid down in points a) and b) of the preceding paragraph above allowance will be deductible if it is proven that they respond to an irreversible depreciation of the aforementioned assets.


Article 12. Value: loss of value of the assets.


1 will be deductible allowance for coverage of the reduction of the value of publishing, phonographic and audiovisual funds of entities performing the corresponding production activity, a time within two years after the placing on the market of the respective productions. Before the course of that period, they may also be deductible if the depreciation is proved.


2 will be deductible allowance for covering the risk derived from the possible insolvency of the debtors, when at the time of the accrual of the tax if any of the following circumstances: to) that within a year has elapsed since the expiration of the obligation.


(b) that the debtor is declared in bankruptcy, insolvency, receivership or in a procedure of remove and wait, or similar situations.


(c) that the debtor is prosecuted for the offence of concealment of assets.


(d) obligations have been legally claimed or are the subject of judicial proceedings or arbitration whose solution depends on their Bill.


Allocations with respect to credits then cited, except that are the subject of an arbitral or judicial proceedings on its existence or amount will not be deductible: to) the due or secured by public law bodies.


b) the secured by credit institutions or reciprocal guarantee companies.


(c) the guaranteed by rights in rem, reservation of ownership and liens Covenant, except in cases of loss or lowering of the warranty.


d) the guaranteed under a contract of insurance of credit or bond.


(e) those who have been subject to renewal or extension Express.


Allowance for covering the risk derived from the possible insolvency of individuals or entities linked to the creditor, except in case of insolvency judicially declared, nor allocations based on global estimates of the risk of insolvency of clients and debtors will not be deductible.


By regulation standards for determining circumstances resulting from the possible insolvency of the debtors of the financial institutions and those relating to the amount of allowance for coverage of the aforementioned risk will be established.


3. the deduction in respect of provision for depreciation of participation in own funds of entities that are not listed on an organized secondary market securities may not exceed the difference between the theoretical book value at the beginning and at the end of the exercise, and must take into account the contributions or refunds of contributions made in the same. This same criterion applies to shares in the capital of Group companies or associated in the terms of the commercial law.


To determine the difference referred to in the preceding paragraph, the values will be taken to the end of the year whenever they pick up on balance sheets formulated or approved by the competent authority.


The appropriations corresponding to the participation in entities resident in countries or territories qualified by law as tax havens, except that such entities consolidate their accounts with the entity that performs the endowment in the sense of article 42 of the code of Commerce, nor those relating to the subject's own equity securities shall not be deductible.


4 will be deductible allowance for depreciation of fixed income securities admitted to trading on secondary markets organized, with a global depreciation in the tax period limit by the set of values of debt owned by the taxable person admitted to trading in those markets.


Allowance for depreciation of securities that have a true value will not be deductible reimbursement are not admitted to trading on organized secondary markets or which are admitted to trading on organized secondary markets in countries or territories qualified by law as tax havens.


Article 13. Provision for risks and charges.


1 allocations to provisions for foreseeable risks, any losses, expenses or debts likely coverage will not be deductible.


However 2 as laid down in the previous paragraph, will be deductible: to) allocations relating to liabilities from litigation in course or arising from compensation or justified pending payments whose amount is not definitely established.


(b) allowance for the recovery of the assets appropriated, according to the conditions of reversal in the granting, without prejudice to the amortization of the elements that are susceptible to the same, in such a way that the balance of the reversion Fund is equal to the carrying amount of the asset at the time of reversal, including the amount of the repairs required by the institution awarding for the reception of the same.



(c) allocations companies dedicated to marine fisheries and maritime and air navigation intended for the provision for major repairs that is needed because of the General revisions to that necessarily must be subjected ships and aircraft.


(d) allowance for coverage of extraordinary repairs of assets other than those provided for in the previous letter and charges of abandonment of economic exploitations of temporary, provided that they correspond to a plan formulated by the individual passive and accepted by the tax authorities.


Regulations will establish the procedure for the resolution of the plans formulated.


(e) allocations to technical provisions made by the insurance entities, up to the amount of the minimum amounts established by applicable standards.


The allocation to the provision for premiums or contributions receivable shall be, for the same balances, with the provision to cover possible insolvencies of debtors.


(f) the allocations that the reciprocal guarantee companies carried out in the background of technical provisions charged to the profit and loss account, up to the mentioned Fund reaches claims the compulsory minimum referred to in article 9 of the law 1/1994 of 11 March, on legal regime of the reciprocal guarantee companies. The endowments which exceed the mandatory amounts will be deductible in a 75 by 100.


Not be integrated into the taxable subsidies granted by public authorities to the reciprocal guarantee companies or income arising from such subsidies, provided that a and others intended to fund technical provisions.


Provisions of this letter shall also apply to societies of rebonding activities which in accordance with the provisions of article 11 of the law 1/1994 on legal regime of the reciprocal guarantee companies, have necessarily integrate its social object.


(g) allowance for coverage of guarantees of repair and overhaul, up to the amount needed to determine a balance of providing no more than the result of applying the percentage determined by the proportion in which it had found expenses to meet guarantees existing in the tax period and the two previous in relation to sales made guarantees sales guaranteed alive at the end of the tax period in These tax periods.


The provisions of the preceding paragraph also applies to allocations for costs for refunds of sales coverage.


Newly created entities may also deduct allocations referred to in the first subparagraph, by fixing the percentage referred to therein with regard to costs and sales made in the tax periods that had elapsed.


3. the contributions of supporters of pension plans regulated in law 8/1987 of 8 June, plans and pension funds will be deductible. These contributions shall be charged to each participant in the share.


Shall also be tax-deductible contributions for coverage of contingencies similar to pension schemes, provided that the following requirements are fulfilled: to) that are fiscally imputed to persons to whom benefits are linked.


(b) irrevocably transmitted right to the perception of future benefits.


(c) that is transmitted to the ownership and management of resources that consist of these contributions.


Article 14. Non-deductible expenses.


1 shall not fiscally deductible expenses: to) that represent a remuneration of own funds.


(b) the derivatives of tax accounting. Not from such posting shall be regarded as income.


(c) fines and penal and administrative sanctions, urgency surcharge and the surcharge for late of due and self-assessment filing.


(d) the loss of the game.


(e) donations and donations.


Not be construed as covered in this letter expenses for public relations with customers or suppliers or which pursuant to customs carried out is with respect to the personnel of the company or those carried out to promote, directly or indirectly, the sale of goods and provision of services, or which are correlated with income.


(f) the allocations to provisions or internal funds for coverage of contingencies that are identical or similar to those that are object of the law 8/1987 of 8 June, plans and pension funds.


(g) costs of services relating to operations carried out, directly or indirectly, with persons or entities resident in countries or territories by regulation qualified for its nature of tax havens, or that are paid through persons or entities resident therein, unless the taxable person try the accrued expenditure responds to an operation or transaction effectively made.


International tax transparency standards do not apply in relation to qualified as tax non-deductible expenses for income.


2 will be deductible met quantities and the book value of the goods delivered by way of donation, insofar as they are applicable to the achievement of the purposes of beneficiary institutions: to) the societies of regional industrial development.


(b) the Spanish, territorial autonomous sports federations and sports clubs, in relation to amounts received for the promotion and development of non-professional sports, sports public limited companies provided that between concerned institutions has been established a onerous contractual relationship necessary for the realization of the object and purpose of the concerned federations and sports clubs.


The transmissions referred to in this paragraph not determined for the entity transferring the obtaining of income, positive or negative, provided for in paragraph 3 the following article.


Article 15. Valuation rules: general rule and special rules in the case of non-profit and corporate transmissions.


1. the assets will be valued at the cost of acquisition or production cost.


The amount of accounting revaluations not will be taxable, except when carried out under legal or regulatory rules that force to include the amount in the accounting profit. The revaluation not integrated in the taxable amount not determined a higher value, for tax purposes, of the revalued elements.


2 will be assessed by their normal market value of the following assets: to) the transmitted or acquired a lucrative title.


(b) provided to entities and the securities received in Exchange.


(c) transmitted to the partners due to dissolution, separation thereof, reduction of capital with repayment of contributions, sharing the premium from issuance and distribution of benefits.


d) the transmitted under fusion, absorption, and partial or total excision.


e) acquired by Exchange.


f) acquired by redemption or conversion.


Normal value means the market which had been agreed in normal market between independent parties. The methods provided for in article 16.3 of this law shall apply to determine such value.


3 in the cases provided for in the letters to), b), c) and (d)), the transferor entity will integrate in your taxable income the difference between the normal market value of the transferred items and its book value.


In the cases referred to in subparagraphs e)) and (f) the entity integrated into taxable income the difference between the normal market value of the purchased items and the book value of the delivered.


4. in reduction of capital with repayment of contributions will be integrated into the taxable income of the partners the excess of the normal market value of items received on the book value of the participation.


The same rule shall apply in the case of distribution of the premium from issuance of shares.


5. in the distribution of benefits the normal market value of the received elements will be integrated into the taxable income of the partners.


6. on the dissolution of entities and separation of partners will be integrated into the base of the same the difference between the normal market value of items received and the carrying amount of the cancelled participation.


7. in the merger, absorption or partial or total excision will be integrated into the base of members the difference between received participation market value and the book value of the cancelled participation.


8. the reduction of capital whose purpose is different from the return of contributions will not determine for partners income, positive or negative, can be integrated into the tax base.


9. in the transmission of shares and other holdings in the capital of companies transparent acquisition value will increase by the amount of social benefits that, without effective distribution, had been charged to partners as income from their shares or participations in the period of time between their acquisition and transmission.



In the case of mere possession of property companies, transmission to compute value is, at least, the last approved balance sheet resulting theoretician, once replaced the accounting value of the property by the value they would have for the purposes of heritage or the normal market value tax if it is less.


10. the acquisition and amortization of own shares will not determine, for the acquirer, positive or negative incomes.


11 a the effects of integrating the taxable income positive obtained in the transmission of assets non-current assets, material or immaterial, it will be deduct, up to the limit of such positive income, the amount of the monetary depreciation produced since January 1, 1983, calculated according to the following rules: a) multiply the price of acquisition or production cost of the transferred assets and accumulated depreciation relating thereto by the coefficients 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: 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 record during the time of ownership of the asset transmitted or in the five years prior to the date of transmission; If this time period is smaller at the choice of the taxable person.


Provisions of this letter shall not apply when the coefficient is higher than 0.4.


Article 16. Rules of valuation: related-party transactions.


1. the tax administration estimate, within the period of prescription, by normal market value, transactions between related entities or persons when the agreed assessment had determined, whereas the set of persons or entities related, taxation in Spain less than which has been reciprocated by application of the normal value of market or a deferral of the taxation.


The resulting tax debt of the administrative assessment will fall, for all purposes, including the calculation of interest on arrears and the calculation of the limitation period, the tax period in which operations were conducted with persons or entities linked to.


The administrative assessment will not determine the tax for this tax and, where appropriate, by the tax on the income of the physical persons, of an income exceeding the effectively derived from operation for the set of entities that would have made it. By regulation the procedure will be established to practice estimation by the normal market value.


2 are considered to be persons or entities related the following: to) a society and its partners.


(b) a company and its directors or administrators.


(c) a company and spouses, ascendants or descendants of members, directors or administrators.


d) two companies which, in accordance with article 42 of the code of Commerce, meet conditions required to form part of the same group of companies, unless they are of application, to these effects, the causes of exclusion provided for in article 43 of the same.


(e) a society and members of another company when both companies belong to the same group of companies as defined in article 42 of the code of Commerce, unless they are of application, to these effects, the causes of exclusion provided for in article 43 of the same.


(f) a company and the directors or managers of another company when both belong to the same group of companies as defined in article 42 of the code of Commerce, unless they are of application, to these effects, the causes of exclusion provided for in article 43 of the same.


(g) a company and spouses, ascendants or descendants of the partners or directors of another company when both companies belong to the same group of companies as defined in article 42 of the code of Commerce, unless they are of application, to these effects, the causes of exclusion provided for in article 43 of the same.


(h) a company and another company in which the first indirectly in, at least 25 per 100 of the share capital.


(i) two companies in which the same partners or their spouses, ascendants or descendants will participate, directly or indirectly in, at least 25 per 100 of the share capital.


(j) a company resident in Spanish territory and its permanent establishments abroad.


(k) a company resident abroad and its permanent establishments in Spanish territory.


(l) two entities that are part of a group that tribute in the regime of the groups of cooperative societies.


(m) two societies, when one of them has the power of decision on the other.


In the cases where linking is defined based on the socio-sociedad relationship, participation must be equal or superior to 5 per 100 or 1 by 100 if it's quoted on an organized secondary market values.


For the purposes of this paragraph means that the Group of companies referred to in article 42 of the code of Commerce is referred to in section 1 of the first chapter of the rules for the formulation of the annual accounts consolidated, approved by the Royal Decree 1815 / 1991, of 20 December.


3 for the determination of the normal value of market the tax administration shall apply the following methods: to) market price of the good or service in question or other similar features, making, in this case, the necessary corrections to obtain equivalent, as well as to consider the peculiarities of the operation.


((b) supplementary will be applicable: to ') sale of goods and services price calculated by increasing the value of acquisition or production cost in the margin that usually gets the taxable person in comparable operations agreed upon with people or independent entities or in the margin that usually get the companies operating in the same sector in comparable operations agreed upon with persons or entities independent.


(b') price of resale of goods and services established by the same buyer, discounting in the margin that usually gets quoted buyer in comparable operations agreed upon with people or independent entities or in the margin that usually get the companies operating in the same sector in comparable operations agreed upon with persons or entities independent whereas in your case , the costs which it had incurred the aforementioned buyer to transform the aforementioned goods and services.


(c) where not applicable none of the above methods, apply the price resulting from the distribution of the joint result of the operation in question, taking into account the risks involved, the assets involved and the duties performed by the related parties.


4 the deduction of the cost of contributions to research and development performed by a related entity will be conditioned to the fulfillment of the following requirements: to) that are payable under a contract written, held prior, in which project or projects are identified to carry out and which grant the right to use the results of the same.


(b) that the criteria for distribution of expenditures supported effectively by the entity that performs the activity of research and development rationally correspond to the content of the right to use the results of the project or projects by entities making contributions.


5. the deduction of the cost of management support services between related entities will be conditioned to its amount is established on the basis of a written contract entered into with previous character, through which established the criteria of distribution of the expenses incurred for this purpose by the entity that provides. The Pact or contract shall meet the following requirements: to) will specify the nature of the services to provide.


(b) establish the methods of distribution of the expenses according to criteria of rationality and continuity.


6. taxable persons may submit a proposal for the evaluation of operations carried out between people or entities related to prior to the completion of the same to the tax administration. Such a proposal shall be based on the normal market value.


The proposal may also refer to the costs referred to in paragraphs 4 and 5.


The adoption of the proposal will take effect with respect to operations that are initiated after the date which is carried out the aforementioned approval provided that they are carried out according to the terms of the approved proposal, and is valid for three tax periods.


In the event of significant change in economic circumstances existing at the time of the adoption of the proposal, the same may be modified to adapt to the new economic circumstances.


The tax administration may establish agreements with administrations of other States for the purposes of determining the normal market value.


The proposals referred to in this paragraph may understood ignored after expiry of the period of resolution.



Regulations will establish the procedure for the resolution of the proposals for the evaluation of related-party transactions.


Article 17. Valuation rules: changes of residence, cessation of permanent establishments, or transactions by persons or entities resident in tax havens and subject to withholding amounts.


1 will be integrated into the taxable income the difference between the market value and the book value of the following assets: to) which is owned by an entity resident in Spanish territory, which moved their residence out of the same, except that such assets are affected to a permanent establishment situated in Spanish territory of the mentioned entity. In this case shall apply to such assets as provided for in article 99.


(b) those who are subject to a permanent establishment situated in Spanish territory that ceases its activity.


(c) those who previously being affections to a permanent establishment situated in Spanish territory are transferred abroad.


2. the tax administration estimate, by their market value, operations carried out with or by persons or entities resident in countries or territories qualified regulations as tax havens when the agreed assessment had determined taxation in Spain less than which has been reciprocated by application of the normal value of market or a deferral of the taxation.


3. the amounts effectively paid by the subjects bound to retain shall be perceived, in any case, with deduction of the amount of the corresponding retention, unless it is legally established remuneration.


Article 18. Effects of substitution of the book value for the normal market value.


When an asset or service have been valued for tax purposes by the normal market value, the acquirer of the same will integrate into your taxable income the difference between that value and the value of acquisition, in the following manner: a) in the case of patrimonial elements of the current assets in the tax period in which they motivate the accrual of income.


b) in the case of nonamortising assets of the fixed assets in the tax period in which they are transmitted.


(c) in the case of depreciable assets of the fixed assets in the tax periods remaining useful life, applying the aforementioned unlike the depreciation method used with respect to those elements.


d) in the case of services, within the tax period of receipt, except that its amount should join an asset in which case will be as provided in the previous letters.


Article 19. Temporary allocation. Accounting registration of revenues and expenses.


1. the revenue and expenditure shall be charged in the tax period in which accrued, according to the actual stream of goods and services they represent, regardless of when the monetary or financial flow occurs respecting the proper correlation with one another.


2. the fiscal effectiveness of criteria for temporary allocation of income and expenses, other than those provided for in the preceding paragraph, used exceptionally by the taxable person to get the true picture of the heritage of the financial situation and results, as laid down in articles 34.4 and 38.2 of the commercial code, shall be subject to approval by the tax administration , in the form determined by law.


3 will not be fiscally deductible expenses that not will have imputed accounted for in the profit and loss account or in a reserve account setting of a rule by law or regulation, with the exception of provisions with respect to the assets that can pay for itself freely.


The income and the expenses charged for the account of profit and loss in a tax period other than that in which appropriate their temporary imputation, as provided for in the preceding paragraphs, shall be charged in the tax period that you run ponda pursuant to those paragraphs. However, in the case of expenses charged on the account of profit and loss in a tax period subsequent to that in which appropriate their imputation temporary or income imputed on the mentioned account in a previous tax period, the temporary allocation of some and others accounted for it shall be in the tax period in which the accounting allocation is completed , provided that it is not derived taxation below which has been reciprocated by application of the rules of temporary allocation provided for in the preceding paragraphs.


4. in the case of operations in instalments or with deferred price, pensions shall be obtained proportionally to carried out the corresponding charges, unless the entity chooses to apply the criterion of accrual.


Operations in instalments or with deferred price, sales and execution of work whose price is perceived, wholly or partly, by successive payments or a single payment, provided that the period between delivery and the last or only deadline is over the year will be considered.


In case of endorsement, discount or advance payment of the deferred amounts, shall be obtained, at that time, the income imputation pending.


The provisions of this paragraph applies to anyone who has been the way in which any posted revenue and expenditure corresponding to the affected incomes.


5. allocations made to provisions and internal funds for coverage of contingencies that are identical or similar to those that are object of the law 8/1987 of 8 June, plans and pension funds, will be chargeable in the tax period in which benefits should be paid. The same rule shall apply with respect to contributions to the coverage of contingencies similar to the pension that has not been deductible schemes.


6. the recovery of value of the assets which have been subject of a correction value will fall in the tax period in which this recovery has occurred, either in the entity that practiced the correction or other linked with it.


The same rule shall apply in the event of loss arising from the transmission of assets fixed assets which have been newly acquired within six months following the date in which they were transmitted.


7. by law, for the sole purpose of determining the taxable base, is can dictate rules for the application of the provisions in paragraph 1 to activities, operations or certain sectors.


Article 20. Thin capitalisation.


1. when the net debt paid, directly or indirectly, of an entity, excluding financial institutions, with another or other persons or entities not resident in Spanish territory that is linked, exceed the result of applying the coefficient 3 the number of the equity, accrued interest corresponding to the excess shall be regarded as dividends.


2. for the implementation of the provisions of the preceding paragraph, both paid net borrowing and the capital tax will be reduced to its average during the tax period.


Equity means the amount of own funds of the entity, not including the profit for the period.


3. when to mediate an agreement for avoidance of double taxation and on condition of reciprocity, the taxable person may submit to the tax administration, in terms of article 16.6 of this Act, a proposal for the application of a coefficient other than that provided for in paragraph 1. The proposal shall be based on the debt that the taxable person had been able to obtain under normal market of individuals or entities not linked.


Article 21. Reinvestment of windfall profits.


1 will be integrated into taxable income obtained, once corrected by the amount of the monetary depreciation in the onerous transfer of assets non-current assets, material or immaterial, and of the participation in the capital or own funds of all kinds of entities which grant a participation of not less than 5 per 100 on the social capital of the same and who have owned securities at least, with one year's notice, provided that if the proceeds of the above transmissions invested in any of the asset items mentioned above, within the covered period between the year prior to the date of delivery or put at the disposal of the asset and the three subsequent years.


Reinvestment means effected on the date in which occurs the making available of the assets that will materialize.


2. the tax administration may approve special reinvestment plans when there are specific circumstances that justify it.


Regulations will establish the procedure for the approval of plans formulated.


3. the amount of the non-integrated in the taxable income will be added to the same equally in the tax periods completed in the next seven years at the end of the tax period in which beat the deadline referred to in paragraph 1, or, in the case of depreciable property, in the tax periods during which you amortize the assets in which materializes the reinvestment , at the choice of the taxable person.



4. the assets object of the reinvestment must remain in the assets of the taxable person, except justified losses, until the seven-year period referred to in the previous paragraph, except that its service life in accordance with the method of depreciation of students admitted in article 11(1), that applies, is less. Transmission of these elements before the expiry of the mentioned deadline will determine integration into the tax base of the part of income pending integration, except that the amount obtained is subject to reinvestment in the terms set out in paragraph 1.


5. in the case of not be reinvested within the designated period, the portion of total tax corresponding to the obtained income, as well as the interests of delay, enter together with the corresponding share of the tax period in which he beat.


Article 22. Charitable work of savings.


1 will be deductible tax amounts savings intended results for the financing of social benefit works, in accordance with the regulations by which they are governed.


2. the amounts allocated to the charitable work of the savings should apply, at least in a 50 by 100, in the same period that corresponds to the assignment, or in the immediate following, to the affected investments, or to cover costs of sustaining the institutions or establishments welcome to it.


3 not be integrated into the taxable base: to) maintenance costs of charitable work, even though they exceeded carried out assignments, without prejudice of having consideration of application of future assignments.


(b) income derived from investments affected to charitable work transmission.


Article 23. Carryforwards compensation.


1. the carryforwards may be compensated with the positive incomes of the tax periods that concluded in seven immediate and successive years.


2 the negative taxable income liable to compensation shall be reduced by the amount of the positive difference between the value of the contributions of the partners, by any title, corresponding to the acquired participation and acquisition cost, when the following circumstances occur concurrently: to) the majority of share capital or rights to participate in the results of the entity has been acquired by a person or entity or a group of persons or entities linked subsequent to the conclusion of the tax period the negative tax base corresponds to that.


(b) the persons or entities referred to in the previous letter would have had a share of less than 25 per 100 at the time of the conclusion of the tax period corresponding to the negative tax base.


(c) the entity would have not made economic holdings within the six months prior to the acquisition of the stake which gives the majority of the share capital.


3. the newly created entities can compute the term of compensation referred to in paragraph 1 from the first tax period whose taxable income is positive.


Title V tax period and accrual of tax article 24. Tax period.


1. the tax period will coincide with the fiscal year of the institution.


2 in any case will conclude the tax period: to) when the entity is extinguished.


(b) where takes place a change of residence of the entity resident in Spanish territory abroad.


3. the tax period shall not exceed twelve months.


Article 25. Accrual of the tax.


The tax is accrued the last day of the tax period.


Title VI tax debt chapter i. type of assessment and total tax article 26. The type of assessment.


1. the general tax rate for taxable persons by personal obligation to contribute will be 35 per 100.


2 will be taxed at the rate of 25 per 100: to) mutual general insurance, social welfare institutions and the mutual of accidents at work and occupational diseases from Social security that meet your regulatory requirements.


(b) the societies of mutual guarantee and rebonding societies regulated by law 1/1994 of 11 March, on the legal regime of the reciprocal guarantee companies, registered in the special register of the Bank of Spain.


(c) the rural savings and credit cooperative societies except by what refers to extracooperativos results, which will be taxed at the general rate.


(d) professional bodies, business associations, official Chambers, workers unions and political parties.


(e) foundations, establishments, institutions and non-profit associations that do not meet the requirements to enjoy the tax regime established in law 30/1994 of 24 November, foundations and tax incentives to private participation in activities of General interest.


(f) funds for the promotion of employment constituted on the basis of article 22 of law 27/1984, of 26 July, about conversion and reindustrialization.


(g) unions, federations and confederations of cooperatives.


3 will be taxed at 20 per 100 fiscally protected cooperative societies, except for the extracooperativos results, which will be taxed at the general rate.


4 they will be taxed 10 per 100 entities who meet the requirements to enjoy the tax regime established in law 30/1994 of 24 November, foundations and tax incentives to private participation in activities of General interest. 5 will you be taxed at the rate of 7 per 100 real estate investment companies and real estate investment funds regulated by law 46/1984, of 26 December, collective investment institutions, than with the character of collective investment institutions relate to exclusive investment in real estate of urban nature for its renting, and also dwellings represent at least 50 per 100 of the total of the assets.


The implementation of the type of assessment laid down in this paragraph will require real property comprising the assets of the collective investment institutions referred to in the preceding paragraph is not alienated until not after four years from its acquisition, unless, exceptionally, mediate express authorisation from the National Commission of the stock market.


6 will be taxed at the rate of 1 per 100: to) investment companies regulated by law 46/1984, of 26 December, collective investment institutions, whose equity securities are admitted to trading on stock exchange.


(b) investment funds and investment funds in the money market assets regulated by law 46/1984, of 26 December, collective investment institutions.


(c) real estate investment companies and real estate investment funds regulated by law 46/1984, of December 26, that the character of collective investment institutions relate to social exclusive investment in homes for lease.


The implementation of the type of assessment laid down in this paragraph will require real property comprising the assets of the collective investment institutions referred to in the preceding paragraph is not alienated until not after four years from its acquisition, unless, exceptionally, mediate express authorisation from the National Commission of the stock market.


(d) the Fund's regulation of public character of the market mortgage, laid down in article 25 of the law 2/1981, dated March 25, of regulation of the mortgage market.


7 they will be taxed at the rate of 40 per 100 entities engaged in research and exploitation of hydrocarbons in the terms established by the law 21/1974, of 27 June, on research and exploitation of hydrocarbons.


Refining activities and any other non-research, exploitation, transportation, storage, treatment and sale of extracted hydrocarbons, shall be subject to the general tax rate.


8 they will be taxed at the rate of 0 per 100 pension funds regulated by law 8/1987 of 8 June, plans and pension funds.


Article 27. Total tax.


The amount resulting from applying to taxable the tax rate means total tax.


Chapter II deductions for avoidance of double taxation article 28. Deduction for double internal taxation: dividends and shares in profits.


1. where between the taxable income is included taxable dividends or interests in other entities resident in Spain benefits will be deducted 50 per 100 of the total tax that corresponds to the taxable income derived from such dividends or shares in the profits.


The taxable income derived from dividends or shares in the profits will be the full amount thereof.


2. the deduction referred to in the preceding paragraph shall be 100 by 100 when dividends or shares in profits come from entities owned, directly and indirectly, in, at least, 5 per 100, provided that such participation is any possessed continuously during the year preceding the day which will be callable profit that is distributed.


The deduction will also be 100 per 100 about the perceived benefits of mutual general insurance, social welfare institutions, associations and mutual guarantee societies.



3 the deduction provided for in this article shall also apply in the following cases: a) liquidation. In this case members will practice the deduction on the undistributed profits contained in the final balance sheet of the liquidated company.


(b) acquisition of shares for their amortization. In this case members will practice the deduction on the undistributed profits to be applied to the repayment of the shares or participations acquired.


(c) separation of partners. In this case members will practice the deduction on the undistributed profits to be applied to the depreciation of the shares or participations refunded.


(d) dividends corresponding to benefits from periods prior to that which is acquired participation and the agreed previously and paid subsequent to the acquisition, provided that concerned participation you have continuously during the six months following the date of purchase.


(e) dissolution without liquidation operations of merger, total excision or global transfer of the assets and liabilities. In this case the absorbent, beneficiary entity of excision or assignee, will practice the deduction on the undistributed profits contained in the last balance sheet approved prior to carrying out the above operations, in proportion to the participation owned.


The deduction is also practiced on income that the company which carries out the operations referred to in the previous letters must integrate the taxable pursuant to article 15.3 of this law.


4 the deduction shall not 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.


(b) those derived from profit-sharing existing at the time of the acquisition of the stake whenever it is acquired to persons or entities not resident in Spanish territory, or resident in Spanish territory individuals linked with the acquirer, or a related entity when the latter, in turn, acquired the stake to such persons or entities.


The provisions of this letter shall not apply where any of the following circumstances: to ') in the case of a share acquired from persons or entities not resident in Spanish territory, or an entity linked with the acquirer which, in turn, acquired the participation of concerned individuals or entities, when it is proven that the amount of undistributed profits has paid in Spain through any transmission of participation.


(b') in the case of a share acquired from resident in Spanish territory individuals linked with the acquirer or an entity linked with the latter which, in turn, acquired the participation of concerned individuals, when you try that more than 50 per 100 heritage obtained by these individuals increase has been integrated into the taxable income of the tax on the income of physical persons.


(c') the investee entity quoted in some markets secondary values officers provided for in law 24/1988, of 28 July, the stock market, and participation has been owned continuously during the year preceding the day which is payable profit that is distributed.


(d') the investee entity not quoted any officials secondary markets of securities provided for in the law 24/1988, of 28 July, the stock market, when the amount of the participation is less than 5 per 100 of the social capital and participation has been owned continuously during the year prior to the day that the profit that is distributed is enforceable.


(e') profit-sharing has not determined a reduction in the value of participation. For these purposes the price paid for the acquisition, value means of participation including, where appropriate, the agreed and dividends not paid at the time of the acquisition.


(c) referred to in the preceding paragraphs, when prior to its distribution there has been a reduction of capital constitute reserves to offset losses, or 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.


d) the distributed by the Fund's regulation of public character of the mortgage market.


5 amounts not deducted for failure of total tax may be deducted from quotas intact the tax periods that concluded in seven immediate and successive years.


Article 29. Deduction for double international taxation: tax borne by the taxpayer.


1 in the case of personal obligation to contribute, when tax based on the taxable incomes obtained and taxed abroad to integrate the smaller of the two following amounts shall be deducted from the total tax: to) the actual amount of the satisfied abroad by reason of nature identical or analogous to this tax assessment.


Taxes not paid pursuant to exemption, bonus or any other tax benefit will not be reduced.


Application being a Convention to avoid double taxation, the deduction may not exceed the tax that corresponds according to the same.


(b) the amount of the total tax that would pay for the above-mentioned incomes if they were caught within Spanish territory in Spain.


2. the amount of the tax paid abroad will be included in income for the purposes specified in the preceding paragraph, and also will be part of the tax base, even though it was not fully deductible.


3. where the taxable person has been obtained in the tax period several foreign income, deduction will be grouping from a same country unless the incomes of permanent establishments, to be computed separately for each of them.


4 amounts not deducted for failure of total tax may deduct in the tax periods are completed in seven immediate and successive years.


Article 30. Deduction for double international taxation: dividends and shares in profits.


1. in the case of personal help, obligation when taxable income is counted dividends or bonuses paid by an entity not resident in Spanish territory shall be deducted the tax actually paid by the latter with regard to benefits which are paid dividends, the amount corresponding of such dividends, provided that this amount is included in the taxable income of the taxpayer-funded.


The application of this deduction will require that direct or indirect participation in the capital of the non-resident entity is, at least, 100 5, and that it is has been owned continuously during the year preceding the day which is enforceable profit that is distributed.


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.


2 will also have consideration of tax actually paid the tax paid by entities owned directly by the company that distributes the dividend, and by which, in turn, are owned directly by those, partly attributable to the benefits charge to which dividends are paid, provided that such shares are not inferior to 5 per 100 and comply with the requirement that referred to earlier concerning the time of holding of participation.


3. This deduction, together with the established in the article above with respect to the dividends or bonuses, may not exceed the total tax that would pay these rents if they have obtained in Spanish territory in Spain.


The excess over that limit will not have the consideration of tax deductible expense.


4 amounts not deducted for failure of total tax may deduct in the tax periods are completed in seven immediate and successive years.


5. do not it will integrate in the taxable income of the taxable person who perceives the dividends or participation in benefits depreciation derived the distribution of the benefits of participation, anyone that is the form and the tax period on such depreciation is put of manifest, except that the amount of these benefits has been paid in Spain through any transmission of participation.


The amount of depreciation will be that corresponding to the profits obtained by the entity that distributes them prior to the acquisition of the stake on it.


Chapter III bonus article 31. Bonus for income obtained in Ceuta and Melilla.


1 have a bonus of 50 per 100 the share of total tax that corresponds to the incomes obtained by entities that operate effectively and materially in Ceuta, Melilla or their dependencies.


The entities referred to in the previous paragraph shall be as follows: to) Spanish entities fiscally residing in those territories.


b) Spanish entities domiciled tax purposes outside those territories and that operate in them by means of establishment or branch office.


(c) foreign entities not resident in Spain and that they operate in such territories through permanent establishment.



2. it is understood by operations effectively and materially carried out in Ceuta and Melilla or their dependencies of those that will close a business cycle that determine economic performance in these territories.


He is not estimated that such circumstances mediate in the case of isolated extraction, manufacture, purchase, transportation operations, input and output of genres or effects on them and, in general, when operations do not conclude on single incomes.


3 exceptionally, for the determination of the income attributable to Ceuta and Melilla, obtained by fishing entities, shall be assigned the following percentages: a) the 20 per 100 of total income to the territory in which the place of effective management is.


b) a 40 by 100 of such income will be distributed in proportion to the volume of landings of catches which carried out in Ceuta and Melilla and separate territory.


Exports shall be charged to the territory where the place of effective management.


(c) the remaining 40 per 100, compared to the book value of the ships as they enrolled in Ceuta and Melilla and in different territories.


The expected percentage in point (c)) shall apply only when the entity in question has the place of effective management in Ceuta and Melilla. In another case this percentage intermediations on the letter b).


4. in maritime navigation entities will be income to Ceuta and Melilla in accordance with the same criteria and percentages applicable to fishing companies, replacing the reference to landings of catches by passages, freights and leases there contracted.


Article 32. Bonus for export activities and provision of local public services.


1 will have a bonus of 100 99 the portion of total tax corresponding to the income from the export of films or audiovisual Spanish, books, activity booklets and elements whose content is usually homogeneous or edited together with those, as well as any manifestation of publishing of didactic character, provided that the profits are reinvested in the same tax period to which refers the bonus or the next in the acquisition of items pertaining to the implementation of the above activities or in any of the assets referred to in articles 34 and 35 of this Act.


Elements in which materializes the reinvestment will not enjoy the deduction provided for in articles 34 and 35.


The part of the total tax for subsidies for the implementation of the activities referred to in this paragraph will not be subject to bonus.


2 will have a bonus of 100 99 the portion of total tax that corresponds to income derived from the provision of the services included in paragraph 2 of article 25 and paragraph 1, letters to), b) and (c)), article 36, of the law 7/1985, of 2 April, Bases of the Local regime, of territorial local authorities powers municipal and provincial, except when is exploited by the system of joint venture or entirely private capital.


The bonus also applies where the provision of services referred to in the preceding paragraph by fully subsidiaries of the State or the autonomous communities.


Chapter IV deductions to encourage certain activities article 33. Deduction for the realization of research and development activities.


1. the realization of research and development activities entitle to practice a deduction from the total tax of 20 per 100 of expenses incurred in the tax period for this concept.


In the event that the costs incurred in carrying out research and development in the tax period are higher than the average of the made in the previous two years, shall apply the percentage established in the preceding paragraph until the Middle, and 40 by 100 on the excess with respect to the same.


The amount of expenditure on research and development referred to in the preceding two paragraphs will be reduced in 65 per 100 of grants received for the promotion of such activities and chargeable as income in the tax period.


2. for the purposes of the provisions of the preceding paragraph shall be considered research to the original and planned investigation which pursues to discover new knowledge and a greater understanding in the scientific and technological field, and development to the implementation of the results of research or any other type of scientific knowledge for the manufacture of new materials or products or for the design of new processes or production systems , as well as for the substantial technological improvement of materials, products, processes or pre-existing systems.


You will also be research and development design and preparation of the sample for the launching of products.


3 research and development activities are not considered as the consistent: to) the supervision of engineering, even in the early stages of production, quality control and standardization of the product, the solution of glitches of interrupted production processes, the efforts of routine to improve the quality of materials, products, processes or systems, the adaptation of a system or process of production to the specific requirements of a customer's existing , periodic or changes of season in the design of materials or already existing products, equipment, processes and systems of the production process, and planning of productive activity.


(b) legal and administrative services including those related to industrial property or contracts, business and operations related to technology, teaching, training and staff training, market research and feasibility plans, the preparation of programmes for electronic equipment, prospecting in social science and the exploitation and research of minerals and hydrocarbons.


(c) any other activity that does not incorporate new technologies, although whether the design of processes, systems, tools, utensils, mounts, molds and dies, the construction of all facilities and equipment including design engineering, installation and installation of equipment and facilities and the creation of materials or products.


The activities referred to in previous may benefit from the deduction when they are part of a research and development project which meets the requirements to take advantage of the tax incentive.


4 shall be considered as expenditure on research and development by the taxable person insofar as they are directly related to the activity of research and development carried out in Spain and have been applied effectively to the realization of it, consisting specifically tailored for projects.


Also shall be regarded as expenses of research and development amounts paid to carry out research and development activities carried out in Spain, on behalf of the taxable person individually or in collaboration with other entities.


Article 34. Deduction for export activities.


1 export activities entitle to practice the following deductions from the total tax: to) 25 per 100 of the amount of investments that actually occur in the creation of branches or permanent establishments abroad, as well as in the acquisition of shares of foreign companies or the creation of subsidiaries directly related to the exportation of goods or services or the contracting of travel services in Spain , provided that participation is less than 25 per 100 of the capital stock of the subsidiary. 25 shall be deducted in the tax period in which 25 is reached by participation 100 per 100 of its total investment in it and the two preceding tax periods.


For the purposes of this paragraph the financial and insurance activities are not considered as directly linked to the export activity.


(b) 25 per 100 of the amount paid in costs of advertising and publicity screening multiannual for launch of products, opening and prospection of foreign markets and attendance at fairs, exhibitions and other events similar, including in this case those held in Spain with an international character).


2. do not proceed the deduction when investment or expenditure is carried out in a State or territory by regulation qualified as a tax haven.


3. the basis of the deduction will be reduced in 65 per 100 of the subsidies received for the realization of investments and expenses referred to in paragraph 1.


4. the deduction provided for in this article may not exceed 15 per 100 of income or 4 per 100 of income corresponding to the totality of the export activities of goods or services and the procurement of travel services in Spain.


The amounts not deducted may be applied respecting equal limit, in settlements of the tax periods that concluded in the five immediate and successive years.


The computation of the time limit for the application of the deduction may be extended to the first year in which, within the period of prescription, producing positive results, the income derived from the activities of export of goods or services and the provision of tourist services in Spain are positive.



Article 35. Deduction for investment in assets of cultural interest, film production and book publishing.


1. investments in assets of cultural interest shall be entitled to practise a deduction from the total tax from 10 per 100 of investments actually carried out on goods that 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 the good remains in equity of the holder for a period of not less than three years. Which expenses corresponding to the amount of the sums intended for the acquisition, conservation, repair, restoration, dissemination and exhibition of declared property of cultural interest entered in the register shall be considered as investments for this purpose.


2. investments in Spanish cinematographic or audiovisual productions that permit the making of a physical, prior to its industrial production series, support shall be entitled to a deduction of 10 per 100.


3. investments in the publication of books that allow the making of a physical, prior to their mass industrial production support, shall be entitled to a deduction of 5 per 100.


4. the part of the investment, financed with grants will not give right to deduction.


Article 36. Deduction for training expenses.


1. the implementation of vocational training activities entitle to practice a deduction from the total tax from 5 per 100 of the expenditures incurred in the period tax, accounted in 65 per 100 of the amount of received subsidies for these activities, and chargeable as income in the tax period.


In the event that the costs incurred in the implementation of vocational training in the tax period are higher than the average of the made in the previous two years, shall apply the percentage established in the previous paragraph to half that, and also 10 per 100 over the excess with respect to the same.


2. for the purposes of the provisions of the preceding paragraph shall be considered training the whole of formative actions developed by a company, directly or through third parties, aimed at updating, training or recycling of its staff and demanded by the development of their activities or by the characteristics of the jobs. In any case they shall be understood as training expenses which, in accordance with provisions in the law 18/1991 of June 6, the tax on the income of physical persons, with consideration of the personal work performance.


Article 37. Rules common to the deductions provided for in this chapter.


1. the deductions provided for in this chapter may not exceed jointly 35 per 100 of the total tax, reduced in deductions to avoid domestic and international double taxation and subsidies.


Not deducted amounts apply, respecting equal limit, in settlements 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.


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.


Chapter V payment article 38. The payment by installments.


1. in the first twenty natural days of the months of April, October and December, taxable persons by contributing personal obligation and taxable persons by actual obligation contribute through permanent establishment shall make a payment instalments to the settlement account for the tax period which is in progress the first day of each of the months indicated.


2. the basis for calculating the installments will be the full fee of the last tax period whose statutory declaration period is expired the first day of the twenty natives referred to in the preceding paragraph, discounting in the deductions and allowances referred to in chapters II, III and IV of this title, as well as withholdings and payments on account associated with that.


When the last completed tax period is less than the year be also taken into account the proportional part of the quota of tax periods previous to complete a period of twelve months.


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 paragraph is valid and produces effects, it must be exercised in the corresponding census Declaration, during the month of February of the calendar year in which should be valid.


The taxable person will be linked to this modality of payment instalments on payments for the same tax period.


4. the amount of the payment will be the result of applying to the bases provided for in the two preceding paragraphs the percentage that is set in the General State budget Act.


In the form provided for in the preceding paragraph, the resulting fee shall be deducted withholdings and payments on account that are practiced on the income of the taxpayer, as well as fractionated payments made for the tax period.


5. the payment will be considered tax debt.


Chapter VI deduction of payments article 39. Deduction of withholdings, payments and instalments.


They will be deductible from the total tax: to) the deductions to account.


(b) payments on account.


(c) the instalments.


(d) the fee paid by companies subject to the system of fiscal transparency.


When these concepts exceeded the amount resulting from practice in the total tax from tax deductions referred to in chapters II, III and IV of this title, the tax administration shall return, ex officio, the excess.


Title VII obligation real chapter I elements contribute personal article 40. Taxable person.


Taxable persons for real obligation are entities that without being resident in Spanish territory in accordance with article 8 of this law, obtain income in it.


Article 41. Responsible.


1. the payer of yields, earned without mediation of permanent accommodation for non-resident taxpayers, or the depositary, or Manager of the property or rights of taxpayers not residents, not affected to a permanent establishment, liable severally income tax debts for yields that has satisfied or income from property or rights whose deposit or management has mandated.


2. do not means that a person or entity pays a performance when he sticks to make a simple means of payment. It means by simple means of payment, the payment of an amount, account and order of a third party.


3. in the case of the payer of income earned without mediation of permanent settlement by non-resident taxable persons, the joint and several liability of the income of the tax debt will be payable without requiring prior administrative act of derivation of liability referred to in paragraph 4 of article 37 of the General tax law, and may, for this purpose, understood the actions of the tax administration directly responsible for.


In the case of the receiver or Manager of the property or rights of non-resident taxpayers not affected to a permanent establishment, joint and several liability shall be required in the terms provided for in the fourth paragraph of article 37 of the General tax law.


Article 42. Representatives of the non-resident in Spain.


1 taxable persons not resident in Spanish territory will be obliged to appoint a person or legal entity with residence in Spain, to represent them before the tax administration in relation to its obligations by this tax, when they operate through a permanent establishment, in the cases referred to in article 56.2 of the Act, or when due to the amount and characteristics of the revenue gained in Spanish territory by the taxable person, required by the tax administration.


The taxpayer or his representative shall be obliged to inform the tax administration the appointment, duly accredited, in the period of two months from the date thereof.



The designation shall be communicated to the delegation of the State Agency for tax administration which has of filing a tax return, indicated communication accompanying the express acceptance of the representative.


2. will be considered permanent establishments representatives who appear as such in the commercial register or, failing that, who are entitled to contract on behalf of them. When these people were not resident in Spanish territory, shall apply the provisions of the preceding paragraph.


3. the breach of the obligations referred to in paragraph 1 shall constitute a tax offense simple, punishable by a fine of 25,000 to 1,000,000 pesetas.


Article 43. Fiscal domicile.


Taxable persons resident abroad will have their fiscal domicile, for the purpose of compliance with their tax obligations in Spain: to) when they operate in Spain through a permanent establishment in the place where the effective administrative management and direction of their businesses in Spain, applying them, insofar as they are relevant, the rules relating to the entities resident in Spanish territory.


b) in the case of real estate revenue in the fiscal domicile of the representative and, failing that, at the place of location of the corresponding property.


(c) in other cases, the fiscal domicile of the representative or, in absence thereof, of the supportive Manager.


Chapter II taxable and forms of subject article 44. Revenue for real obligation.


1. taxable persons by actual obligation will only be subject to tax for income which, in accordance with the following article, are considered to be obtained or produced in Spanish territory.


2 make up the taxable incomes, yields and increases of heritage.


Article 45. Income obtained in Spanish territory.


1 revenues obtained or produced in Spanish territory the following will be considered: to) the incomes of economic operations carried out through permanent establishment situated in Spanish territory.


Means that an entity operates through permanent establishment on Spanish territory, when by any title available, continuous or habitual way of facilities or places of work of any kind, in which perform all or part of its activity, or act on it by means of an authorized agent to hire, on behalf and on behalf of the non-resident entity with habitual exercise such powers.


In particular, means that they are permanent establishment headquarters address, branches, offices, factories, workshops, warehouses, shops or other establishments, mines, oil or gas wells, quarries, agricultural, forestry or livestock farms or anywhere else exploration or extraction of natural resources, and the works of construction, installation or Assembly whose duration exceeds twelve months.


(b) the returns of economic operations carried out in Spanish territory without mediation of permanent establishment therein. However, not be considered obtained or produced in Spanish territory yields resulting from the installation or Assembly of machinery or installations imported into Spanish territory when the installation or Assembly is carried out by the supplier of the equipment or facilities and its amount does not exceed 20 per 100 of the purchase price of the imported elements.


(c) yields derived from provision of services, such as conducting studies, projects, technical assistance, management support, as well as professional services, when the provision or be used in Spanish territory.


Benefits which would serve business or professional activities carried out on Spanish territory or relating to property situated therein shall be used in Spanish territory.


(d) the income derived, directly or indirectly, from the personal performance, in Spanish territory, artists and athletes, or any other activity related to such action, attributed to entities.


(e) dividends and other income derived from the participation in the own funds of entities resident in Spain.


(f) the interests, cannons and other income from the capital, satisfied by persons or entities, resident in Spanish territory, or by permanent establishments situated in the same, or they pay own capital services used in Spanish territory.


(g) the income derived, directly or indirectly, of immovable property located in Spanish territory or rights relating thereto.


(h) increments of heritage arising from securities issued by persons or entities, resident in Spanish territory.


(i) increases in heritage real estate situated in Spanish territory or rights that must be met or exercise in that territory. En_particular is considered to be included in this letter: to ') increases heritage derived from rights or shares in a company, resident or not, whose asset is constituted mainly by real estate situated in Spanish territory.


(b') heritage increases arising from the transmission of rights or shares in an entity, resident or not, that attributed to its holder the right of enjoyment of real estate situated in Spanish territory.


(j) increases of heritage arising from other movable property situated in Spanish territory, or rights that must be met or exercise in that territory.


2 without prejudice to the provisions of the preceding paragraph of this article, shall be also obtained or produced in Spanish territory: to) yields satisfied by: to ') professional, or individual entrepreneurs resident in Spanish territory.


(b') legal persons or entities, residing in that territory.


(c') permanent establishments situated in Spanish territory.


(((b) the provisions of the previous letter shall not apply in the case of the following performances: to ') the satisfied by reason of holdings other than those referred to in point (b), economic ') following, when those are entirely made overseas. In particular shall be considered included in this paragraph the satisfied by reason of international sales of goods, including mediation in these committees and other accessories and related expenses.


((b') the satisfied by reason of services or benefits referred to in letter c) of paragraph 1 of this article, when such services or benefits are carried out entirely outside the Spanish territory and directly linked to business or professional from the taxpayer activities carried out abroad, unless they relate to property situated in Spanish territory.


(c') the satisfied to non-resident entities by permanent establishments located abroad, with charge to them, when the corresponding benefits are directly related to the activity of the permanent establishment abroad.


Article 46. Cases of exemption.


1 exempt the following income: a) interests and heritage increases derived from property, obtained without mediation of permanent establishment, by entities resident in another Member State of the European Union.


The provisions of the preceding paragraph shall not apply, to the heritage increases arising from the transmission of shares, participations or other rights in an entity in the following cases: to ') when the asset of this Organization consist mainly, directly or indirectly, real estate situated in Spanish territory.


(b') when, at some point, during the period of twelve months preceding to the transmission, the taxable person has participated, directly or indirectly at least 25 per 100 of the capital or assets of that entity.


(b) interest and heritage increases arising from debt, obtained by non-resident entities without mediation of permanent establishment in Spain.


In no event shall apply provisions of letters a) and b), interests or heritage increases obtained through countries or territories according to the rules determined by its character of tax havens.


(c) the income from capital and heritage increases arising from securities issued in Spain by natural persons or legal nonresidents without mediation of permanent settlement, anyone who is the place of residence of the financial institutions that act as agents of payment or medien in the emission or transmission of values.


However, when the holder of the securities a resident entity or a permanent establishment in Spain, returns or increases of assets referred to in the preceding paragraph shall be subject to this tax and, where appropriate, to the system of withholding tax, to be practiced by the resident financial institution acting as depository of values.


(d) yields accounts of non-residents, who are satisfied to entities not resident in territory Spanish, unless the payment is made to a permanent establishment situated in Spain, by the Bank of Spain, banks, saving banks, Cajas Rurales, cooperative credit and other registered entities.



(e) income or increments heritage obtained in Spanish territory, without mediation of permanent establishment therein, from the lease, disposal or transfer of containers and ships and aircraft bareboat, used for international maritime or air navigation.


((f) the profits distributed by the subsidiary companies resident in Spain to its parent companies resident in other Member States of the European Union, when there are the following requirements: to ') that both companies are subject and not exempt any of the taxes levied on the benefits of legal entities in the Member States of the European Union, referred to in item 2.c) of Directive 90/435/EEC , of the Council, of 23 July 1990 on the arrangements applicable to the parent-subsidiary companies of different Member States.


(b') that the distribution of the profit is not the result of the liquidation of the subsidiary company.


(c') which both companies are one of the ways provided for in the annex to the directive 90/435/EEC of the Council, of 23 July 1990 on the arrangements applicable to the parent-subsidiary companies of different Member States.


Consideration of parent company will have that entity having a direct participation of at least 25 per 100 in the capital of another company. This institution will be considered subsidiary. Mentioned participation must have been kept continuously during the year preceding the day which is enforceable profit that is distributed.


Residence shall be determined in accordance with the legislation of the Member State concerned, without prejudice to the provisions of the conventions for avoidance of double taxation.


However, as provided above, the Ministry of economy and finance may declare, on condition of reciprocity, provisions of this letter applicable to parent companies and subsidiaries that are a legal form other than those provided for in the annex to the directive.


Provisions of this letter shall not apply when the majority of the voting rights of the parent company holds, directly or indirectly by natural or legal persons who do not reside in the Member States of the European Union, except when that actually make a business directly related to the business activity of the subsidiary or aims at the direction and management of the subsidiary company by the appropriate organization of material and personal or test that it has been established for valid economic reasons and not to unduly enjoy the regime laid down in this paragraph.


Nor shall apply this point when the parent company has its tax residence in a country or territory qualified by law as a tax haven.


2. the Minister of economy and finance may declare to the condition of reciprocity, exemption from yields corresponding to sea or air navigation entities resident abroad whose ships or aircraft touch Spanish territory, although they have in this shipping agents or agents.


Article 47. Subject to the obligation to real forms.


1. non-resident institutions that obtain income through a permanent establishment situated in Spanish territory, will be taxed by the totality of the income attributable to that establishment, whatever that is the place where you would have obtained or produced, pursuant to the General rules of the tax, except as provided in the following articles.


2. when they obtain incomes without mediation of permanent establishment, they will be taxed separately by each total or partial accrual income subject to assessment, in the terms provided for in articles 56 and following of this Act.


For these purposes, such income shall be earned: to) trying to be returns, when they become due or the date of the payment if this is earlier.


b) dealing with heritage increments, when heritage alteration takes place.


3. except as provided in the case of income attributable to the permanent establishment, the incomes obtained in Spain by entities not resident in Spanish territory will undergo assessment by this tax with total separation, without having any possible compensation between them.


4 assessment separate from the income obtained in Spanish territory by a non-resident entity does not limit in any way enforceable responsibility to it with respect to debts and enforceable tax obligations in Spain, in connection with any of them.


Chapter III income obtained through permanent establishment article 48. Income attributable to permanent establishments.


1 make up the income attributable to the permanent establishment the following concepts: to) the returns of economic operations carried out by the permanent establishment.


(b) the income derived from the transfer of assets pertaining to the same.


(c) increases or decreases equity arising from the assets allocated to the permanent establishment.


Assets pertaining to the permanent establishment, the linked will be considered functionally to the development of the activity which is its object.


2 in case of re-export of goods previously imported by the same entity non-resident, shall be considered: to) that there has been no heritage alteration, without prejudice to the treatment applicable to payments made for the period of use, if it's elements of fixed assets imported temporarily.


(b) that there has been altered property, if it's elements of fixed assets acquired for use in the activities carried out by a permanent establishment.


(c) that there have been performance, positive or negative, of an economic exploitation, if it's parts having consideration of stock.


Article 49. Diversity of permanent establishments.


1 where a non-resident entity has different centers of activity in Spanish territory, be deemed that these constitute different permanent establishments, and therefore is taxed separately, when the following circumstances occur concurrently: to) that activities clearly distinguishable.


(b) that the management of them is carried separately.


2. in any case, the compensation of incomes between different permanent establishments will be possible.


Article 50. Determination of the tax base.


1 the taxable income of the permanent establishment shall be determined in accordance with the provisions of the general regime, without prejudice to the provisions of the following letters: to) for the determination of the tax base, will not be deductible payments made by the permanent establishment to the headquarters or any of its permanent establishments by way of royalties, interest, commissions in consideration of technical assistance or by the use of other property or rights.


Notwithstanding the provisions above, will be deductible interests paid by permanent establishments of foreign banks to its headquarters or other permanent establishments, for the realization of its activity.


((b) for the determination of the tax base will be deductible to the reasonable part of address expenses and General Administration, which corresponds to the permanent establishment provided that the following requirements are met: to ') reflection in the financial statements.


(b') perseverance, through informative report with the Declaration of the amounts, criteria and distribution modules.


(c') rationality and continuity of the allocation criteria adopted.


Requirement of rationality of the allocation criteria shall be fulfilled when these are based on the use of factors by the permanent establishment and the total cost of these factors.


In those cases in which it was not possible to use the criteria referred to in the preceding paragraph, the allocation may be attending the relationship in which they are any of the following quantities: to ') turnover.


(b') costs and direct costs.


(c') investment mean in elements of tangible fixed assets on economic holdings.


(d') total average investment on elements subject to economic exploitation.


(c) under no circumstances will prove attributable amounts corresponding to the cost of the capital and reserves of the entity affected, directly or indirectly, to the permanent establishment.


2. operations carried out by the permanent establishment with the headquarters of the non-resident entity or other permanent establishments of the same, are situated in Spanish territory or abroad, or with other companies it linked, will be valued in accordance with the provisions of article 16 of this law.


3. the permanent establishment may be offset their negative taxable in accordance with the provisions of article 23 of this law.


4 when the operations carried out in Spain by a permanent establishment not close a cycle commercial determining income in Spain, ending is this by the non-resident entity or one or more of their permanent establishments, without causing any consideration, apart from the coverage of the costs incurred by the permanent establishment, and while intended for all or part of products or services to third parties other than the non-resident entity the following rules shall apply:



(a) the income and expenses of the permanent establishment will be assessed according to the rules of article 16 of this law, determining the tax debt according to the rules applicable in the general scheme and the provisions of the preceding paragraphs of this article.


((b) subsidiarily, the following rules shall apply: a') the tax base shall be determined by applying the percentage indicated for this purpose the Ministry of economy and finance on the total of the expenses incurred in the development of the activity that is the object of the permanent establishment. To that amount will add the full amount of income accessory in nature, such as interests or cannons, which do not constitute its corporate object, as well as increases and decreases of heritage arising from the assets allocated to the establishment.


For the purposes of this rule, the permanent establishment costs will be calculated by the full amount, without the allowable deduction or compensation.


(b') the total tax will be determined by applying on the tax base the general tax rate, as applicable in the same deductions and allowances covered in the aforementioned general scheme.


5 in the case of permanent establishments whose activity in Spanish territory consists in, construction, installation or Assembly whose duration exceeds twelve months, economic seasonal or seasonal farms, or resource exploration activities, the tax shall be required in accordance with the following rules: to) pursuant to the incomes of economic holdings obtained in Spanish territory without mediation of permanent establishment in the articles 56.2-57 (, being applicable to these effects, the following standards: to ') the rules on accrual and submission of declarations concerning the incomes obtained without mediation of permanent establishment.


(b') taxable persons shall be relieved from compliance with registration and accounting obligations of a general nature.


However, they must be kept at the disposal of the tax administration proof of income received, and payments made by this tax, as well as, where appropriate, of withholdings and payments on account that are practiced and declarations relating to them.


Also, come forced to enroll in the index of entities and declare their fiscal domicile in Spanish territory, as well as the changes that could experience.


(b) However, the non-resident entity may opt for the application of the general regime provided for permanent settlements in the preceding articles. It will be mandatory, in any case, the application of the system referred to in the letter to) earlier when the permanent establishment not available for separate accounting of income derived in Spanish territory. The option must manifest itself at the time apply for enrollment in the index of entities.


((c) not to be applicable, in any case, the non-resident entities that follow the system referred to in to) earlier, the rules laid down in the conventions to avoid double taxation for the assumptions of income obtained without mediation of permanent establishment.


Article 51. Tax debt.


1 for taxable profits determined in accordance with the preceding article shall be the type of assessment of 35 per 100, except when the activity of the permanent establishment is that of investigation and exploitation of hydrocarbons, in which case the rate of assessment shall be 40 per 100.


2 Additionally, when obtained incomes transferred abroad, will be enforceable an imposition of supplementary, at the rate specified in the letter to) of paragraph 1 of article 57 of this law, on the amounts transferred with charge to the income of the permanent establishment, including payments referred to in article 50.1, a), of this law.


The filing and payment of such additional tax shall be made in the manner and deadlines for income obtained without mediation of permanent establishment.


3. the additional imposition shall not apply, on condition of reciprocity, to the obtained incomes in Spanish territory through permanent establishments, by entities that have their fiscal residence in another Member State of the European Union.


4 in the full share of the tax may be applied: to) allowances and deductions referred to in articles 28 and 31 to 37 of this law.


(b) the amount of withholdings that had practiced to the permanent establishment, to account revenues and fractionated payments that had been made.


5. the various deductions and allowances is practice based on conditions that occur on the permanent establishment, without that ladders are others than the same entity in Spanish territory.


6 when the withholdings, instalments and payments on account exceed the amount resulting from practice in the full quota of tax deductions of the concepts referred to in the letter to) of paragraph 4, the tax administration shall return, ex officio, the excess.


Article 52. Tax period.


1. the tax period will coincide with the financial year declared by the permanent establishment, unless it does not exceed twelve months.


When not had declared another one, the tax period shall be referred to the calendar year.


Communication of the tax period must be made at the time that the first statement by this tax, understanding subsisting insofar as not expressly modify be submitted.


2 the tax period, shall be concluded when the permanent establishment ceases its activity or otherwise do the deallocation of its investment in its day with respect to the permanent establishment, as well as in cases causing the transmission of the permanent establishment to another entity, and those in which the headquarters move their residence.


3. the tax is accrued the last day of the tax period.


Article 53. Tax Declaration.


1. the permanent establishments are obliged to submit Declaration for this tax in the manner, place and time limits for taxable persons by personal obligation to contribute.


2. when the assumptions of the article 52.2 from this law are produced, the presentation will be provided generally for the income obtained without mediation of permanent settlement from the date in which occurs the event, unless its decline in index of entities can be authorized insofar as not such a statement has been filed.


Article 54. Accounting, registration and formal obligations.


1. the permanent establishments are obliged to keeping accounts separate, concerned operations carrying out and the assets that had affections.


2 they will come, also required the fulfilment of the remaining obligations in accounting, registration or formal nature applicable to taxable persons by personal obligation.


Article 55. Payments on account.


1 permanent establishments are subject to the general regime of prepayments for income received.


2. in addition, compelled to practise withholdings or payments on account in the same terms as the entities subject by personal obligation.


Chapter IV income obtained without mediation of permanent establishment article 56. Taxable base corresponding to the income obtained without mediation of permanent establishment.


1. in General, the taxable base corresponding to yields which entities subject for real obligation to obtain without mediation of permanent establishment will be constituted by the full accrued amount.


2. in cases of performance of services, technical support, installation or Assembly works derived from engineering contracts and, in general, economic holdings in Spain without mediation of a permanent establishment, for the determination of the tax base will be deductible integrity revenues costs of personnel and procurement of materials under the conditions established by law.


3 case of income arising from reinsurance, the tax base will come constituted by the amounts of the ceded premiums, net of reinsurance, to the non-resident reinsurer.


4 the case of increments of heritage, the tax base shall be determined by difference between acquisition cost and the value of the transmission of the item concerned. When the increase of heritage derives from an acquisition to lucrative title their amount shall be the normal market value of the purchased item.


5. the rules on compensation for losses shall not apply to non-resident entities in Spanish territory who obtain incomes without mediation of permanent establishment.


Article 57. Tax fee.


1 the taxable income determined in accordance with the preceding article shall apply the following types of assessment: to) as a general rule, 25 per 100.


(b) in the case of income arising from reinsurance, the 1.5 per 100.


(c) the 4 by 100 in the case of maritime or air navigation entities resident abroad, whose ships or aircraft touch Spanish territory.


(d) in the case of increments of heritage, 35 per 100.



2 for transmissions of immovable property situated in Spain by non-resident taxable persons acting without a permanent establishment, the purchaser will be obliged to retain and enter 10 per 100, or to make entry into account, of the agreed consideration, in respect of payment of the tax to those.


The provisions of the preceding paragraph shall not apply when the owner of the property transmitted was a natural person and the property had been acquired over twenty years prior to the date of the transmission unless you have undergone improvements during that time.


If retention or income account refered above has had entered, transmitted goods will be subject to the payment of the tax.


Article 58. Deductions.


The fee will be deducted only withholdings and payments on account which has been practiced on the income of the taxpayer.


Article 59. Accrual.


The tax is accrued when, pursuant to the provisions of article 47.2 of this law, the corresponding income accrued.


Article 60. Statement.


1. the entities not resident in Spanish territory who obtain incomes without mediation of permanent establishment come obliged to submit this tax declaration in form, place and time limits established by law.


2 may also pay the filing and payment of debt responsible for solidarity defined in article 41 of this law.


Article 61. Formal obligations.


1 entities not resident in Spanish territory who obtain incomes without mediation of permanent establishment shall not be required to comply with the obligations of accounting, registration or formal nature laid down a general rule for this tax, except as provided in the following sections.


2 taxable persons who obtain income from the referred in article 56.2 of the Act will be required to carry the corresponding records of income and expenses.


3. when they have practice holds, they will be forced to enroll in the index of entities and take records of income and expenses.


Article 62. Retentions.


Taxable persons for real obligation that operate in Spain without mediation of permanent establishment will be required to practice the withholdings and payments on account with respect to yields work that meet, as well as with regard to other income subject to withholding, which constitute deductible expense for the obtaining of income referred to in article 56.2 of the Act.


Article 63. Extra rules.


In the non-regulated specifically, result from application regulations contained in the preceding titles.


Article 64. Special lien on real estate of nonresident entities.


1. non-resident entities that are proprietary or possess in Spain by any title real estate or real rights of enjoyment or enjoy about them, are subject to tax through a special tax that accrued to December 31 of each year and shall be entered in next January.


2. the tax base of the special tax will be constituted by the cadastral value of the real estate. When it did not exist rateable value will be used the value determined pursuant to the relevant provisions for the purposes of the wealth tax.


3. the type of the special charge will be 3 by 100.


4. the lack of autoliquidación and income from taxable persons from the special tax in the time limit set in paragraph 1 give rise to its enforceability by the enforcement procedure on real estate, being sufficient title for his initiation of the certificate issued by the tax administration of the voluntary deadline entry without entering the tax and the amount of the same.


5 the special lien on real estate shall not be enforceable a: to) States and foreign institutions and international organizations.


(b) institutions with the right to the application of a Convention to avoid the international double taxation, where applicable Convention contains clause of exchange of information, and provided that natural persons who ultimately have, directly or indirectly, the capital or assets of the entity, are resident in Spanish territory or entitled to the application of a Convention to avoid double taxation containing clause of exchange of information.


For the application of the exemption referred to in this letter, non-resident entities will be forced to file a statement which are related to real estate located in Spanish territory that possess, as well as persons physical holding of its capital or heritage, stating the residence tax, nationality and address of the entity and these individuals. The Declaration, which must be presented in the management or delegation of the State Agency of tax administration in whose territory the property is situated, must be accompanied certification of tax of the entity and the final holders of residence persons physical, issued by the tax authorities of the State concerned. The Declaration would be submitted within the same period provided for income tax.


(c) the entities that develop in Spain, in continuous or habitual way, differentiable economic exploitations of simple ownership or lease of the property.


(d) the societies that traded on secondary markets of officially recognized values.


(e) entities of charity and cultural non-profit, recognized under the law of a State that has entered into with Spain a Convention to avoid double taxation with information-sharing clause, provided that real estate used in the exercise of activities which constitute its object.


6. in cases involving a non-resident entity in the ownership of the property or rights along with another or other persons or entities, the special tax on real estate property of non-resident entities in Spain will be callable by the part of the value of the property or rights that corresponds proportionally to their participation.


When the conditions of residence of partners, participants, or beneficiaries of the non-resident entity referred to in point (b)) paragraph 5 are met partially, the share of the special tax on real estate property of non-resident entities in Spain shall be reduced by the corresponding proportions.


7. the share of the special tax on real estate property of non-resident entities will be considered deductible expenses for purposes of the determination of the taxable income for corporation tax, which, in his case, applicable pursuant to the preceding articles of this title.


Title VIII regimes tax special chapter I regimes tax special particular article 65. Definition.


1 are the regulated special tax regimes under this title, or by reason of the nature of the affected taxable by reason of the nature of the facts, acts or operations concerned.


2. the rules contained in the remaining titles shall apply as supplementary to those contained in this title.


Chapter II groupings of economic interest, Spanish and European Article 66. Spanish economic interest grouping.


Economic interest groupings regulated by law 12/1991, of 29 April, economic interest groupings, will be taxed in regime of fiscal transparency with the following exceptions: to) cited entities will not be taxed by tax on the part of taxable base corresponding to partners resident in Spanish territory, which charged to these partners.


(b) do not apply to limitations with respect to the imputation of carryforwards.


This tax regime shall not apply in those tax periods that are carried out activities other than suitable for your object or holding, directly or indirectly, interests in companies which are their members, or directing or controlling, directly or indirectly, activities of its partners or third parties.


Article 67. European economic interest grouping.


1 European economic interest groupings covered by the regulation 2137 / 1985, of 25 July, the Council of the European communities, will be taxed in regime of fiscal transparency with the following exceptions: to) the aforementioned entities will not be taxed by tax.


(b) do not apply to limitations with respect to the imputation of carryforwards.


2 members of European economic interest groupings are resident in Spanish territory will be taxed in the following way: to) if they are resident in Spanish territory, be integrated into the taxable corporate income tax or the tax on the income of physical persons, as appropriate, the corresponding part of the base tax, positive or negative, determined in the grouping.


(b) if they are not resident in Spanish territory, shall be subject by real obligation to contribute only if, in accordance with article 45 of this law or the respective agreement to avoid international double taxation, is that the activity carried out by them through the group determines the existence of a permanent establishment in that territory.


3. the members of the European economic interest groupings not resident in Spanish territory will be taxed in the following manner:



(a) if they are resident in Spanish territory, they will integrate the taxable corporate income tax or the tax on the income of physical persons, as appropriate, the corresponding part of the gain or loss determined in the grouping, corrected by the application of the rules for determining the taxable base.


When the activity carried out by partners through the Association has determined the existence of a permanent establishment abroad, they shall apply the rules laid down in this law or the respective Convention to avoid double international taxation.


(b) if they are not resident in Spanish territory, shall be subject by real obligation to contribute only if, in accordance with article 45 of this law or the respective agreement to avoid international double taxation, proves that the activity carried out by them through the group determines the existence of a permanent establishment in that territory.


4. the benefits charged to members not resident in Spanish territory which have been subject to the obligation to contribute real will not be subject to taxation by reason of its distribution.


5. the arrangement provided for in the preceding paragraphs shall not be of application in the tax period in which the European economic interest grouping carried out activities other than suitable for its purpose or prohibited in paragraph 2 of article 3 of Regulation EEC 2137 / 1985, of 25 July.


Chapter III temporary unions of companies article 68. Temporary unions of companies.


1 temporary unions of companies registered in the special register of the Ministry of economy and finance will be taxed in regime of fiscal transparency with the following exceptions: to) quoted companies will not be taxed by tax, for the part of taxable income attributable to member companies resident in Spanish territory, which charged to these member companies.


(b) do not apply to limitations with respect to the imputation of carryforwards.


2 entities members of a temporary union of companies that operate abroad may qualify for income from abroad to the exemption method.


3. the entities that participate in works, services or supplies that perform or provide abroad, through formulas of cooperation similar to temporary unions, enjoy exemption with respect to income from abroad.


Entities must apply for the exemption to the Ministry of economy and finance, providing information similar to that required for the temporary unions of companies incorporated in Spanish territory.


4. the exemption option will determine the application of the same until the expiry of the temporary union. Negative income that has obtained the temporary union throughout the years of its existence will be integrated into the base tax of the member entities, corresponding to the tax period in which the extinction occurred.


5. the tax system laid down in this article shall not apply in those tax periods where the taxable person carried out activities other than those that must be its social object.


Chapter IV corporate and venture capital funds and companies of regional industrial development article 69. Companies and venture capital funds.


1. companies and venture capital funds regulated by Royal Decree-Law 1/1986, of March 14, will enjoy partial exemption for income obtained in the transmission of shares and participations in capital of the companies referred to in article 12(1) of the aforementioned Royal Decree-law in which participate in accordance with the following scale of coefficients (, according to the year of transmission, computed from the date of acquisition: to) from the beginning of the third year and up to the sixth inclusive, the 0.99.


(b) the seventh and eighth years, the 0.80.


(c) ninth and tenth year, the 0.50.


In the first two years and starting from the eleventh, the exemption shall not apply.


2. dividends and, in general, the stakes in perceived benefits of the societies that companies and venture capital funds to promote or encourage will enjoy the deduction provided for in article 28.2 of this law anyone who is the participation rate and the time of holding of the shares or participations.


3. dividends and, in general, the stakes in perceived benefits of the companies and venture capital funds will enjoy the deduction provided for in article 28.2 of this law anyone who is the participation rate and the time of holding of the shares or participations.


Article 70. Societies of regional industrial development.


1. the regulated societies of regional industrial development Act 18/1982, of 26 May, on taxation of groups and temporary unions of companies and societies of regional industrial development, will enjoy partial exemption for income obtained in the transmission of shares and participations in capital of the companies that participate in the terms set forth in paragraph 1 of the preceding article.


2. dividends and, in general, the stakes in perceived benefits of the companies by the societies of regional industrial development will enjoy the deduction provided for in article 28.2 of this law anyone who is the participation rate and the time of holding of the shares or participations.


Chapter V collective investment institutions article 71. Taxation of collective investment undertakings.


1. the collective investment institutions regulated in law 46/1984, of 26 December, collective investment institutions, with the exception of the subject to the general tax rate, is not entitled to any deduction of dues.


2. when the amount of fractionated payments, withholdings and payments on account, practiced on the income exceeds the amount of the total tax, the tax administration shall return the excess of trade.


Article 72. Taxation of partners or participants in collective investment undertakings.


1. the provisions of this article shall apply to members or participants subject to this tax obligation to contribute personal or actual obligation by permanent establishment on Spanish territory, the collective investment institutions referred to in the preceding article.


2 taxable persons who referred to above be integrated into taxable income the following concepts: to) income, positive or negative, obtained as a result of the transmission of the shares or participations or reimbursement of the latter.


(b) the benefits distributed by the collective investment institution. These benefits will not give right to deduction for double taxation.


Article 73. Posted income from shares or shares of collective investment institutions.


Amount accounted for by the taxable income derived from shares or shares of collective investment institutions will be integrated into the taxable.


Article 74. Taxation of partners or participants in collective investment undertakings incorporated in countries or territories qualified by law as tax havens.


1. taxable persons by personal obligation to contribute for this tax or actual obligation through permanent establishment on Spanish territory, participating in collective investment institutions incorporated in countries or territories qualified by law as tax havens, be integrated into the tax base the positive difference between the net asset value of the share on the day of the end of the tax period and their acquisition cost.


Integrated in the taxable amount will be considered greater value acquisition.


2. the benefits distributed by the collective investment institution will not integrate the taxable 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.


Chapter VI transparency Prosecutor article 75. Regime of transparency.


1 shall be regarded as transparent societies: to) societies in which more than half of its assets is constituted by values and mere possession of property companies, when in them is given to any of the following circumstances: to ') more than 50 per 100 equity belong to a family group, meaning to these effects, it is made up of people United by kinship in the direct or collateral line inbred or by affinity up to the fourth grade, inclusive.


(b') that more than 50 per 100 equity belong to 10 or fewer partners.


For the purposes of this rule, shall be mere ownership of property companies those that more than half of its assets is not fond of business or professional activity as defined in article 40 of the law 18/1991 of June 6, the physical personal income tax.


To determine whether an asset is or not fond of business or professional activities, it will be the provisions of article 6 of the law 18/1991 of June 6, the physical personal income tax.



Both the value of the asset as the of the assets not related to business or professional activities, will be which be deducted from accounting, provided that this accurately reflects the true patrimonial situation of the society.


They are not counted as values, for the purposes of this letter in relation to the societies in which more than half of its assets is made up of values, as follows:-the possessed to comply with legal and regulatory obligations.


-Those who incorporate credit rights born of contractual relations established as a result of the development of business or professional activities.


-The possessed by securities as a result of the exercise of the constitutive activity of its object.


-Those who give at least 5 per 100 of the voting rights and possess in order to lead and manage the participation provided that, for these purposes, the corresponding organization of personal and material resources available, and the investee entity is not included in this letter or in any of the following two.


For the purposes of this letter they will not be considered values or as elements not pertaining to business or professional activities, those whose cost does not exceed the amount of undistributed profits obtained by the entity, provided that these profits come from business or professional activities with the limit of the amount of the profits obtained in the same year as in the last ten years prior.


(b) the societies in which more than 75 per 100 of their income for the year from professional activities, when professionals, individuals, who, directly or indirectly, are linked to the development of such activities, are entitled to participate, on their own or in conjunction with relatives up to the fourth degree inclusive in, at least 50 per 100 of those benefits.


(c) the societies in which more than 50 per 100 of their income from the exercise come from artistic or sports performances of individuals or any other activity related to artists or athletes when between them and their relatives up to the fourth degree inclusive are entitled to participate in, at least 25 per 100 of those benefits.


2. the positive taxable basis obtained by transparent societies shall be charged to partners who are taxable persons by personal contribute by physical persons income tax or obligation by this tax.


The allegation will not proceed when all of the members are legal entities not subject to the system of fiscal transparency. In this case affected society will have no consideration of any effect transparent society.


The allocation will be applicable when the circumstances referred to in the preceding paragraph are more than 90 days of the fiscal year.


3 taxable income attributable to partners is the result of this tax rules.


The carryforwards not be charged, and can be offset with positive taxable basis obtained by the company in the tax periods that concluded in seven immediate and successive years.


4 shall be charged to partners who are taxable persons by personal contribute this tax obligation: to) deductions and allowances in the quota that entitled the transparent society. The bases of deductions and allowances will be integrated in the liquidation of the partners, reducing the fee according to the rules of this tax.


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


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


(c) the quota fulfilled by this tax transparent society, as well as the share that had been imputed to that society.


5. transparent societies will be taxed by this tax and paid the fee in the same conditions as any other taxpayer. The refund referred to in article 39 of this law in the part attributable to partners who need to support the attribution of the positive tax base will not proceed.


Dividends and shares in benefits that apply to members not resident in Spanish territory will be taxed in such a concept, in accordance with the General rules on taxation of non-residents and conventions to avoid double taxation signed by Spain. Dividends and shares in profits corresponding to partners who need to support the attribution of the positive tax base and come from tax periods during which the society was in regime of transparency, not will be taxed for this tax or the tax on the income of physical persons. The amount of these dividends or shares in profits will not be integrated the acquisition value of the shares of the shareholders who had been charged. For members who need to support the allocation of taxable income positive purchase values subsequent to the allocation, the value of the acquisition shall be reduced by this amount.


6. in no event shall apply the system of fiscal transparency in the tax periods in which securities participation in the capital of the company were admitted to trading on any of the official secondary markets of predicted values in the law 24/1988, of July 28, the stock market. Neither the fiscal transparency regime shall apply where a legal person of public law is holder of more than 50 per 100 of the capital of one of the societies referred to in point a) of paragraph 1 of this article.


Article 76. Allocation criteria.


1. the charges shall be persons or entities that hold the economic rights inherent in the quality of partner the day of the conclusion of the tax period of the transparent society, in the proportion resulting from the articles of Association and, in their absence, in accordance with their participation in the share capital.


2 the allegation will be: to) when partners are transparent societies, on the date of the closing of the investee exercise.


(b) when are the partners taxable persons by personal obligation to contribute by physical persons income tax or this tax in the tax period in which had approved the annual accounts, unless it decides to do so continued on the same date of the year-end of the investee.


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


Article 77. Identification of participants.


Transparent societies must maintain or become a nominee of shares in its capital securities.


The failure to comply with this requirement will be considered tax offense simple, punishable by a fine of 25,000 to 1,000,000 pesetas, for each tax period in which non-compliance, which will be accountable to has given supportive administrators of society, except those who have proposed expressly measures necessary to give effect to the provisions of the preceding paragraph , without that had been accepted by the other.


When as a consequence of the breach of the obligation established in the first paragraph of this article not might know each other, in whole or in part, the partners, the part of taxable income that cannot be imputed will be taxed, in corporation tax, at a rate equal to the marginal maximum of the scale of the tax on the income of physical persons.


Chapter VII regime of the groups of companies article 78. Definition.


1. the groups of companies may elect to the tax regime laid down in this chapter. In such a case the societies that they integrate will not be taxed in individual regime.


2. it is understood by individual regime of taxation which would correspond to each society should not be application regime for groups of companies.


Article 79. Taxable person.


1. the Group of companies will be considered taxable.


2. the parent company will have the representation of the Group of companies and will be subject to the compliance of the material and formal tax obligations arising from the regime of the groups of companies.


3. the parent company and the subsidiaries are also subject to tax obligations arising from the individual regime of taxation, except for the payment of the tax debt.


4 administrative actions of verification or research carried out front of the parent company or any entity of the Group of companies, with the formal knowledge of the dominant society, shall interrupt the limitation period of tax which affects the aforementioned group of companies.


Article 80. Tax responsibilities arising out of the application of the regime of the groups of companies.


The companies of the group will respond jointly and severally from the payment of the tax debt, excluding sanctions.


Article 81. Definition of the Group of companies. Parent company. Subsidiaries.


1 means group of companies the Group of anonymous, limited and audited companies by shares resident in Spanish territory comprising a parent company and all subsidiaries of the same.



Also shall be deemed dominant corporate entities that have legal personality and are not exempt and subject to corporation tax.


2 refers to dominant society that meets the following requirements: to) have a direct or indirect holding at least 90 per 100 of the social capital of one or more other companies the first day of the tax period in which is this tax regime.


(b) that such participation has been maintained uninterrupted so at least with one year's notice to this day in the previous letter and stays also during the entire tax.


The requirement of maintenance of participation during the entire tax will not be payable in the event of dissolution of the investee entity.


(c) that is not dependent on any other resident in Spanish territory, which meets the requirements to be considered dominant.


(d) that it is not subject to the fiscal transparency regime.


3 means dependent society one in which the parent company own participation that meets the requirements contained in letters a) and b) of the preceding paragraph.


4 may not be part of the groups of companies, entities in which any of the following circumstances concur: to) that benefit from this tax exemption.


(b) that at the end of the tax period they are in a situation of cessation of payments or bankruptcy, or falling on the patrimonial situation envisaged in the number 4th of paragraph 1 of article 260 of the revised text of the law of corporations, even if they did not have the form of corporations, except that prior to the conclusion of the year in which annual accounts are approved this last situation would have been exceeded.


(c) the subsidiaries that are subject to corporate income tax at a rate of assessment different from the dominant society.


d) the subsidiaries whose participation is achieved through another company that it does not meet the requirements to form part of the Group of companies.


5. the Group of companies shall terminate when the parent company lost that character.


However, in the event that another company take a stake in the parent company of a group of companies by means of any of the regulated operations in Chapter 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 notification to the tax administration and from the time of the extinction of the existing group.


Article 82. Inclusion or exclusion of companies in the group.


1 societies on which a holding as defined in paragraph 2.a is acquired) of the preceding article, will integrate obligatorily in the Group of companies with effect from the next tax period. In the case of newly created companies integration will occur from the moment of its establishment, provided that at the same meet the remaining requirements to be part of the Group of companies. The parent shall notify the tax administration the identity of these companies.


2. the subsidiaries who lose such a condition will be excluded from the Group of companies with effect of the own tax period in which such circumstance occurs. The parent shall notify the tax administration the identity of these companies.


Article 83. Determination of the indirect domain.


1. when a society have in another company at least 90 per 100 of its share capital, and at the same time, this second is in the same situation with respect to a third, and so on, to calculate the indirect participation of the first about other societies, the percentages of participation in share capital, multiply, respectively, so that the result of such products shall be at least 90 per 100 indirectly owned society can and should be integrated into the Group of companies and, in addition, must be that all intermediate societies integrated the Group of companies.


2. If in a group of societies coexist participation, direct and indirect relationships, to calculate the total participation of one company in another, directly and indirectly controlled by the first, the percentage of direct and indirect participation will be added. Participatory society can and should be integrated into the Group of companies, such amount shall be, at least 90 per 100.


3 if participation reciprocal, circular or complex relationships exist, proof must be supplied, where appropriate, objective data the participation of at least 90 per 100 of the share capital.


Article 84. Application of the scheme of the groups of companies.


1. the regime of the groups of companies applies just as well all agree and each of the companies that need to integrate the Group of companies. The dominant society inform the tax administration, prior to the beginning of the tax period in which this procedure is of application mentioned agreements.


2. the agreements referred to in the preceding paragraph may be taken on a date in the immediate tax period previous to whatever application the regime of the groups of companies, and shall have effect when they have not been contested or not susceptible to challenge.


3. the societies that are integrated into the Group of companies hereinafter shall comply with the obligations referred to in the preceding paragraphs, within a period that will end the day in which completed the first tax period in which must file returns in the regime of the groups of companies.


4 Ejercitada option, the regime of the groups of companies applies during three consecutive tax periods, and can the companies making up the group agree to join the other three tax periods and so on, through the implementation of the provisions of paragraphs 1 and 2.


Article 85. Determination of the taxable income of the Group of companies.


1 the taxable income of the Group of companies shall be determined by adding: to) the taxable bases corresponding to all and each one of the companies making up the group.


(b) deletions.


(c) additions deletions carried out in previous years.


2. do not will be considered fiscally deductible starting the positive difference between the book value of the participations in capital of the subsidiaries that owns, directly or indirectly, the parent company and the proportion that these values represent in relation to the equity of such subsidiaries.


Negative will not be considered taxable income.


The difference referred to in the two preceding paragraphs is the existing at the date in which the company or subsidiaries include first in the Group of companies.


Article 86. Eliminations.


1. for the determination of the consolidated tax base eliminations results all will practice for internal operations carried out during the tax period.


You will understand by internal operations made between companies in the group in the tax periods in that both are part of the same and apply the system provided for in this chapter.


Eliminations results, positive or negative, by internal operations, 2 practice as soon as the above-mentioned results are included in the taxable basis for the entities that form part of the group.


3. not included in the individual taxable dividends which has failed the deduction by double internal taxation as laid down in article 28.4 of the law will be deleted.


Article 87. Incorporations.


1. deleted results will be incorporated into the taxable income of the Group of companies when they are made to third parties.


2. when a society has intervened in internal operation and subsequently ceases to be part of the Group of companies, the eliminated result of this operation will be incorporated into the taxable income of the Group of companies corresponding to the tax period previous to the one that has taken place in cited separation.


Article 88. Carryforwards compensation.


1. If under the rules applicable to the determination of the taxable income of the Group of companies this is negative, the amount may be compensated by the taxable positive Group of companies in terms pevistos in article 23 of this law.


2. the taxable negative of any outstanding compensation at the time of its integration into the Group of companies will be compensated at the base of the same with the limit of the tax base of society itself.


Article 89. Reinvestment.


1. the societies of the Group may benefit from the reinvestment of extraordinary benefits, can make the reinvestment society obtained the extraordinary profit or other belonging to the group. Reinvestment will materialize into an item purchased from another company of the Group provided that the item is new.


2. the reinvestment of windfall profits will not proceed in the course of transmissions made between companies of the Group of companies.


Article 90. Tax period.


1. the tax group of companies period will coincide with the dominant society.



2. when any of the subsidiaries concludes a tax period in accordance with the rules governing taxation in individual regime, this conclusion will not determine the Group of companies.


Article 91. Total tax for the Group of companies.


The resulting amount refers to total tax of the Group of companies apply the type of assessment of the parent company to the taxable income of the Group of companies.


Article 92. Deductions and allowances of the total tax of the Group of companies.


1 total tax of the Group of companies will be reduced by the amount of deductions and allowances provided for in chapters II, III and IV of title VI of this law.


The requirements to enjoy the above deductions and allowances refer to the Group of companies.


2 deductions of any pending deducted at the time of its inclusion in the Group of companies may deduct in full share the same limit that has corresponded to that in the single tax regime.


Article 93. Information obligations.


1. the parent must formulate, for tax purposes, balance and account bound, applying the method of global integration to all the companies that comprise the Group profit and loss.


2. the consolidated annual accounts refer to the same closing date and period that the annual accounts of the parent company, and the subsidiaries must close its fiscal year on the date that the parent company to do so.


3 a the documents referred to in paragraph 1, will accompany the following information: a) deletions in earlier tax periods pending incorporation.


(b) the eliminations practiced in the tax period duly justified in their source and amount.


(c) additions made in the tax period, equally justified in their source and amount.


(d) differences, properly explained, that may exist between deletions and additions made for the purpose of determining the taxable income of the Group of companies and those carried out for the purposes of the preparation of the documents referred to in paragraph 1.


Article 94. Determining causes of the loss of the regime of the groups of companies.


1 the scheme of the groups of companies will be lost for the following reasons: to) in any concurrency or some of the companies making up the Group of any of the circumstances that determine the application of the system of indirect estimate in accordance with provisions of the General tax law.


(b) non-compliance with reporting obligations referred to in paragraph 1 of the preceding article.


2. the loss of the regime of the groups of companies will happen with effects of the tax period in which if any or some of the causes referred to the preceding paragraph, and the companies in the group must pay in individual regime for the same.


Article 95. Effects of the loss of the system of consolidated statement and the extinction of the Group of companies.


1 in the course of that existed, in the tax period in the Group of companies is extinguished or miss the regime for groups of companies, deletions pending incorporation, carryforwards of Group companies or unpaid compensation fee deductions, proceed as follows: to) pending incorporation deletions will be integrated into the taxable income of the Group of companies for the last tax period where applicable the regime of the groups of companies.


(b) the companies that integrate the group in the tax period in which occurs the loss or extinction of this regime will assume the right to compensation pending the carryforwards of the Group of companies, in the proportion that have contributed to its formation.


The compensation will be done with positive taxable bases to be determined in individual regime of taxation the tax periods remaining to complete seven years counted from the next or following him or those which were determined carryforwards of the Group of companies.


(c) the companies that integrate the group in the tax period in which occurs the loss or extinction of this regime will assume the right to the compensation slope of the deductions of the share of the Group of companies, in the proportion in which contributed to the formation of the same.


The compensation shall be intact quota to be determined in the tax periods that they left to complete seven numbered from or of the following him or those in which the amounts were determined to deduct in the case of deduction for domestic and international double taxation and five in the case of the remaining deductions.


2. companies that integrate the group in the tax period in which occurs the loss or extinction of this regime, will assume the right to the deduction of the instalments that have been made, in the proportion in which may have contributed to them.


3. the provisions of the preceding paragraphs shall apply when one or more of the companies belonging to the Group of companies no longer belong to the same.


Article 96. Declaration and the Group of companies autoliquidación.


1. the parent shall be bound, at the time of presenting the Declaration of the Group of companies, to pay off the tax debt owed to it and enter it in the place, form and time limits to be determined by the Minister of economy and finance.


Identical obligation is up to with respect to the payment in instalments.


2. the Declaration must be made within the period corresponding to the statement in regime of individual taxation of the parent company.


3. supplementary statements which should be practiced in case of extinction of the Group of companies, loss of the regimen of corporate groups or separation of the Group companies, shall be submitted within the twenty-five calendar days after the six months following the day in which the determining causes of extinction, loss or separation occurred.


Chapter VIII special regime for mergers, divisions, transfers of assets and exchanges of values article 97. Definitions.


1 will be considered melting operation whereby: to) one or several entities transmitted en bloc to another entity already exists, as a result and at the time of its dissolution without liquidation, their respective social heritage, by attribution to their members of securities in the capital stock of the other entity and, where appropriate, compensation in cash not exceeding 10 per 100 of the value or nominal in the absence of nominal value, of a value equal to the nominal value of these securities deducted from their accounts.


(b) two or more entities transmitted in block to another, as a result and at the time of its dissolution without liquidation, their social heritage, by attributing all their partners of the social capital of the new entity and, where appropriate, compensation in cash not exceeding 10 per 100 of the value of securities rated o in the absence of nominal value, of a value equal to the nominal value of these securities deducted from their accounts.


(c) an entity transmits, as a result and at the time of its dissolution without liquidation, the whole of its assets to the entity that is the owner of all of its equity securities.


2 will be considered excision operation by which: a) an entity divided into two or more parts all of their social heritage and transmits them in block two or more entities existing and new, as a result of its dissolution without liquidation, by the attribution to its partners, according to a proportional rule, of the capital stock of the acquiring entities of the contribution securities and where appropriate, compensation in cash not exceeding 10 per 100 of the nominal value or, in the absence of nominal value, of a value equal to the nominal value of these values deduced from its accounting.


(b) an entity segregates one or more parts of their social heritage that form branches of activity and transmits them in block one or more entities new or already existing, receiving in Exchange securities of the social capital of the latter, which should be attributed to its partners in proportion to their respective holdings, reducing the share capital and reserves in the required amount , and, where appropriate, compensation in money under the terms of the previous letter.


3 will be considered no cash for activity input operation by which an entity provides, without being dissolved, to another entity's newly created or existing all or one or more branches of activity, receiving in Exchange securities in the capital stock of the acquirer.


4 means branch of activity the set of assets that constitute an autonomous economic unit determinant of economic exploitation, i.e. a set capable of functioning by its own means from the point of view of the organization. Debts incurred for the organization or operation of the elements that are transferred can be attributed to the acquirer company.



5 will be an exchange of equity securities considered the operation by which an entity acquires a stake in the share capital of another that allows you to obtain the majority of the voting rights in it, through the attribution to the partners, in Exchange for their values, others representing the social capital of the first entity and where appropriate, compensation in cash not exceeding 10 per 100 of the nominal value or, in the absence of nominal value, of a value equal to the nominal value of these values deduced from its accounting.


Article 98. Income derived from the transmission system.


1 following income derived from operations referred to in the preceding article will not integrate tax base: to) that become manifest as a result of transmissions made by entities resident in Spanish territory of goods and rights in it located.


When the acquirer resides abroad only will be excluded from the taxable income derived from the transfer of those elements that are affected by a permanent establishment situated in Spanish territory.


The transfer of these items outside the Spanish territory will determine integration into the base of the permanent establishment, in the tax period in causing that, of the difference between the market value and the value to that referred to in the following article, discounting, where applicable, by the amount of depreciation and other value adjustments reflected for accounting purposes have been fiscally deductible.


(b) that become evident as a result of transmissions made by entities resident in Spanish territory, of permanent establishments situated on the territory of countries outside the European Union in favour of entities resident in Spanish territory.


(c) the put manifest as a result of transmissions made by non-resident entities in Spanish territory, the permanent establishments located.


When the acquirer resides abroad only will be excluded from the taxable income derived from the transfer of those elements that are affected by a permanent establishment situated in Spanish territory.


The transfer of these items outside the Spanish territory will determine the integration into the taxable income of the permanent establishment, in the exercise thereof that, of the difference between the normal market value and the value referred to in the following article, discounting, where applicable, by the amount of depreciation and other value adjustments reflected for accounting purposes that have been fiscally deductible.


(d) the put manifest as a result of transmissions made by entities resident in territory Spanish, permanent establishments located in the territory of Member States of the European Union, in favour of entities residing in them, shall take one of the forms listed in the annex of Directive 90/434/EEC of 23 July 1990 on the common tax system applicable to mergers, divisions and contributions of assets and exchanges of shares, are subject to and not exempt any of the taxes referred to in article 3 of the same.


Not will be excluded from the taxable income from the operations referred to in letters to), b), c) above, where the acquirer is exempt by this tax.


2 you can forgo the regime established in the preceding paragraph, by integrating the taxable income derived from the transmission of all or part of the assets.


3. in any case, income derived from ships or aircraft will be integrated into the tax base, or of movable property pertaining to their exploitation, put clear in entities engaged in international maritime and aviation navigation when the acquirer is not resident in Spanish territory.


Article 99. Tax assessment of the property acquired.


1. the property and rights acquired through transmissions resulting from operations that has been application the system provided for in the previous article will be valued, for tax purposes, by the same values that had in the transferring entity before undergoing the operation, also keeping the date of acquisition of the transferring entity for the purposes of applying the provisions of article 15.11 of this law. These values will be corrected in the amount of income that have actually paid at the time of the operation.


2. in cases not application the procedure is laid down in the previous article the value agreed upon between the Parties shall be the limit of normal market value.


Article 100. Tax valuation of shares or shares received in Exchange for the contribution.


Shares received as a result of a contribution of branches of activity or actions will be assessed, for tax purposes, the accounting value of the autonomous economic unit, fixed in the amount of income that have integrated in the base of the transferring company at the time of the operation.


Article 101. Taxation of the exchange of values.


1 not will be integrated into the taxable income of physical persons income tax or tax incomes that are highlighted on the occasion of the exchange of values, provided that they meet the following requirements: to) that partners who carry out the exchange of values are resident in Spanish territory or in a Member State of the European Union or in any other State provided that , in the latter case, the received values are representative of the equity of an entity resident in Spain.


(b) that both the entity who acquires the values as the investee are resident in Spanish territory or are included in the scope of Directive 90/434/EEC.


2 the values received by the entity that performs the exchange of values is carried at the value that they had in the heritage of the partners who made the contribution, according to standards of this tax or the tax on the income of the physical persons, except that normal market value is lower, in which case will be assessed by the latter.


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.


4. in the event that the partner lost the quality of resident in Spanish territory, it will be integrated into the taxable income of physical persons income tax or the tax of the tax period in which occurs this circumstance, the difference between the normal market value of the shares or participations and the value referred to in the preceding paragraph corrected, where appropriate, the amount of the losses that have been fiscally deductible.


The part of debt tax corresponding to such income may defer, entering together with the corresponding declaration to the tax period in which are transmitted values, provided that the taxable person guaranteeing payment of the same.


5 will be integrated into the base of physical persons income tax or tax the incomes obtained from operations involving entities domiciled or established in countries or territories qualified by law as havens tax or obtained through them.


Article 102. Taxation of the partners in the operations of merger, absorption, and partial or total excision.


1. not will be integrated into the taxable incomes that put revealed on the occasion of the attribution of values of the acquirer the entity transferring partners provided that they are resident in Spanish territory or in a Member State of the European Union or in any other State provided that , in the latter case, the values are representative of the equity of an entity resident in Spanish territory.


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.


3. in the event that the partner lost the quality of resident in Spanish territory, it will be integrated into the taxable income of physical persons income tax or the tax of the tax period in which occurs this circumstance, the difference between the normal market value of the shares or participations and the value referred to in the preceding paragraph corrected, where appropriate, the amount of the losses that have been fiscally deductible.


The part of debt tax corresponding to such income may defer, entering together with the corresponding declaration to the tax period in which are transmitted values, provided that the taxable person guaranteeing payment of the same.



4 income will be integrated into the taxable income of physical persons income tax or VAT obtained in operations involving entities domiciled or established in countries or territories qualified by law as havens tax or obtained through them.


Article 103. Shareholdings in the capital of the transferring entity and the acquirer.


1. when the acquirer participates in the capital of the transferring entity, at least 5 per 100, not will be integrated into the taxable income of that positive income for the cancellation of participation, provided that correspond with reserves of the entity transferring, or negative income that gets revealed by the same cause.


Deduction the double internal taxation of dividends, with respect to the reservations referred to in the preceding paragraph shall not apply in this case.


2. when the amount of participation is less than indicated in the preceding paragraph cancellation will determine an income by the amount of the difference between the normal market value of the assets received proportionally attributable to the participation and the book value of the same.


3. the acquired assets will be valued, for tax purposes, in accordance with article 99 of this law.


When the acquirer participates in the capital of the transferring entity, in at least 5 per 100, the amount of the difference between the acquisition price and its theoretical value will fall within property and acquired rights, in accordance with the accounting standards of valuation, and part of that difference that had not been liable in accordance with the aforementioned valuation (, it will be tax deductible up to the annual maximum of the tenth part of the amount, provided that the following requirements are fulfilled: to) that participation has not been acquired to persons or entities not resident in Spanish territory or to individuals resident in Spanish territory linked to the acquirer, or a related entity when the latter, in turn acquired the participation to such persons or entities.


Requirement provided for in this paragraph shall be fulfilled: to ') in the case of a share acquired from persons or entities not resident in Spanish territory, or an entity linked with the acquirer which, in turn, acquired the participation of concerned individuals or entities, when the amount of the difference referred to in the preceding paragraph has shown in Spain through any transmission of participation.


(b') in the case of a share acquired from resident in Spanish territory individuals linked to the related entity when the latter, in turn, acquired the participation of concerned individuals, when proven that more than 50 per 100 of the increase of patrimony obtained by physical persons has been integrated into the taxable income of the tax on the income of physical persons.


(b) that the acquirer of the participation is not subject of the entity who transmitted it in any of the cases provided for in article 42 of the code of Commerce. These purposes means that the cases of article 42 of the code of Commerce are those referred to in section 1 of the first chapter of the rules for the formulation of the annual accounts consolidated, approved by the Royal Decree 1815 / 1991, of 20 December. Requirement provided for in this letter shall not apply with respect to the acquisition of the participation price satisfied by the person or entity transferring when in turn had acquired it from people or unlinked entities resident in Spanish territory.


When it does not meet the requirement laid down in point (b)), allocations to amortisation of the difference between the acquisition price and its theoretical value will be deductible if it is proven that they respond to an irreversible depreciation.


4 when the transferring entity participates in the capital of the acquirer does not will be integrated into the tax base of the incomes that are highlighted on the occasion of the transfer of the participation, even if the Organization had exercised the Faculty of resignation established in paragraph 2 of article 98 of this Act.


Article 104. Subrogation in the rights and tax obligations.


1. where the operations referred to in article 97 determined a succession to universal title, shall be transmitted to the acquirer rights and tax obligations of the transferring entity.


The acquirer will assume the fulfilment of the necessary requirements to continue to enjoy tax benefits or consolidate the enjoyed by the transferring entity.


2. where the succession is not a universal title, transmission occurs only with respect to rights and tax obligations relating to goods and rights transmitted.


The acquirer will assume the requirements derived from the tax incentives of the transferring entity, insofar as they are related to property and rights transferred.


3. the carryforwards pending compensation in the transferring entity may be compensated by the acquirer, on the assumption that the acquirer participates in the capital of the transferring company, negative taxable income liable to compensation shall be reduced by the amount of the positive difference between the value of the contributions of the partners, by any title corresponding to such participation and its book value.


4. the subrogation will exclusively understand rights and obligations born under the protection of Spanish laws.


Article 105. Allocation of income.


Income from activities undertaken by entities extinguished because of the operations referred to in article 97 of this law shall be charged in accordance with commercial standards.


Article 106. Losses of permanent establishments.


When you transmit a permanent establishment and may apply the system provided for in point (d)) of paragraph 1 of article 98 of this Act, the taxable entities resident transceivers in Spanish territory will increase in the amount of the excess of the losses on the benefits charged by the permanent establishment in the seven previous years.


Article 107. Accounting obligations.


1 the acquirer shall include in the annual report the information then cited, unless the transferring institution has exercised the power referred to in article 98.2 of this Act in which case only shall be completed as listed in the letter d): to) exercise in which the entity transferring acquired transmitted goods that are subject to amortization.


(b) final balance closed by the transferring entity.


(c) relationship of acquired goods that have joined the accounting books by a different value to the one that appeared in the transferring entity prior to the completion of the transaction, expressing both values as well as funds amortization and provisions made in the books of account of the two entities.


(d) relationship of the tax benefits enjoyed by the entity transferring, regarding which entity should assume the fulfillment of certain requirements in accordance with paragraphs 1 and 2 of article 104 of this law.


For the purposes specified in this section, the transferring entity shall be obliged to communicate such data to the acquirer.


2 partners legal persons must mention in the annual report the following information: to) book value of supplied values.


(b) value which have been recorded in the received values.


3. the terms set out in the previous paragraphs must be carried out while remaining in the inventory values or acquired assets or the requirements derived from the tax incentives enjoyed by the transferring entity must be met.


The acquirer may choose, with reference to the second and subsequent annual reports, to include the mere indication that days mentions listed in its first annual report approved after the operation, which should be preserved as if the circumstance to which the preceding paragraph refers.


4 failure to comply with the obligations set out in the previous issues will be considered tax offense simple, punishable by a fine of 25,000 to 1,000,000 pesetas for each omitted tip, with a limit of 5 per 100 of the value by which the acquirer has reflected the assets and rights in its accounting.


Article 108. Special non-monetary contributions.


1 the system provided for in this chapter shall apply, at the option of the taxpayer, to the non-monetary contributions that comply with the following requirements: to) that the entity that receives the contribution is resident in Spanish territory or carry out activities through a permanent establishment that provided goods are affected therein.


(b) that once made the contribution the contributor entity participation in the equity of the entity that receives the contribution, at least 5 per 100.



2. the arrangement provided for in this chapter shall apply to contributions from branches of activity, and the contributions of assets related to business activities which comply with the requirements provided for in the preceding paragraph, carried out by natural persons, provided that carry its accounting pursuant to the provisions of the commercial code.


3. the contributed assets can not be valued, for tax purposes, by a value greater than its normal value in the market.


Article 109. Rules for avoidance of double taxation.


1 the effects of double taxation which might result from application of the valuation rules laid down in articles 100, 101.2 and 108 of this Act shall apply the following rules: to) benefits distributed without charge to contributed assets attributable income shall be entitled to deduct the double internal taxation of dividends referred to in article 28.2 of this law whichever the percentage of participation of partner.


(b) the benefits distributed without charge to contributed assets attributable income shall be entitled to the deduction by international double taxation of dividends matter what the degree of participation of the partner.


The depreciation of participation for the distribution of the benefits referred to in the previous paragraph, will be fiscally deductible, anyone who is the degree of participation of the partner.


2. when on the way in as he counted the acquirer has not been possible to avoid double taxation by application of the rules laid down in the preceding paragraph that entity shall, at the time of its extinction, settings of opposite to which they had practised by application of the valuation rules laid down in articles 100, 101.2 and 108 of this Act.


Article 110. Application of the tax system.


1. the regime established in this chapter shall apply in cases in which so decide the taxable person. The option for the same should contact the Ministry of economy and finance prior to the registration of the respective deed.


2. where as a result of the administrative verification of the operations referred to in article 97 of this law, is determined that they were mainly for the purpose of fraud or tax evasion, forfeited to the regime laid down in this chapter and shall be by the tax administration to the regularization of the tax status of taxpayers.


Chapter IX tax regime of the mining article 111. Mining entities: accelerated depreciation.


1. institutions that develop activities of exploration, research and exploitation or benefit from mineral deposits and other geological resources classified in section C, paragraph 1 of article 3 of the law 22/1973, of 21 July, mines, or in section D, created by the Law 54/1980, of 5 November, amending the law of mines , and that implementing regulations shall determine in general among those listed in sections A and B of the aforementioned article, can enjoy, in connection with their investments in active mining and with the amounts paid in fees of surface, of accelerated depreciation over ten years counted from the beginning of the first tax whose taxable period to integrate the operating result.


2 it will be considered among the activities mentioned in the previous paragraph, the mere provision of services for the making or development of the aforementioned activities.


Article 112. Depletion factor: scope and modalities.


1 will reduce taxable income, in the amount of the sums which, in concept of exhaustion factor, intended for taxable persons carrying out, under cover of law 22/1973, of 21 July, mines, the use of one or more of the following resources: to) falling within section C of article 3 of the law 22/1973 21 July, mines, and in section D created by law 54/1980, of 5 November, amending the law of mines.


b) obtained from sites of non-natural origin belonging to section B of the referred article, provided that the recovered or processed products are classified in section C and section D created by law 54/1980, of 5 November, amending the law of mines.


2. the exhaustion factor shall not exceed 30 per 100 of the part of taxable income corresponding to the uses set out in the previous section.


3 entities that make use of one or more mineral raw materials declared priority in the national supply Plan, eligible, in the activity concerning these resources, that the exhaustion factor is up to the 15 per 100 of the value of minerals sold, also considering as such the consumed by the same companies for further treatment or processing. In this case, the Endowment for the exhaustion factor shall not exceed the part of taxable income corresponding to the treatment, processing, marketing and sale of the substances obtained from the designated uses and products incorporating such substances and others derived from the same.


4. in the event that several natural or legal persons have partnered to mining activities without constituting an independent legal personality, each of the participants may be, in proportion to their participation in the common activity, the corresponding amount of factor of exhaustion with the obligations set out in the following articles.


Article 113. Depletion factor: investment.


Quantities that reduced the tax base on concept of depletion factor just may be reversed in expenditures, work and immobilized directly related to mining activities listed below: to) exploration and research of new ore deposits and other geological resources.


(b) research that can improve recovery or quality of the products obtained.


((((c) subscription or acquisition of securities of the share capital of companies dedicated exclusively to the activities referred to in the lyrics to), b) and d) of this article, as well as the exploitation of mineral deposits and other geological resources of section C of article 3 of the law 22/1973, of 21 July, mines, provided that, in both cases the values are maintained continuously in the patrimony of the entity for a period of ten years.


Companies that subscribed the shares or participations, subsequent to subscription, to undertake activities other than those listed, the taxable person must be completed the settlement referred to in article 115.1 of this law, or reinvest the amount corresponding to that subscription, in other investments that meet the requirements. If the nine reinvestment in securities referred to in point (c)), these must be kept during the period that it extend to complete the term of ten years.


(d) research that allow to obtain a better understanding of the reserve of the deposit exploitation.


(e) laboratory and research equipment applicable to the company's mining activities.


(f) actions included in restoration plans provided for in Royal Decree 2994 / 1982, of 15 October, on restoration of natural areas affected by extractive activities.


Article 114. Depletion factor: requirements.


1. the amount that concept of depletion factor reduce the taxable base in each tax period should invest in within ten years, counted from the conclusion of the same.


2 investment shall be carried out when made expenses or work referred to in article above or received assets.


3. in each tax period must increase reserves of the entity accounts in the amount that reduced the tax base on concept of exhaustion factor.


4. the taxable person should collect in the memory of the ten years following the day in which was the corresponding reduction, the amount of this, investments made with charge to the same and made repayments, as well as any decrease in accounts of reserves that were increased as a result of the provisions of the preceding paragraph and the fate of the same. These facts may be subject to verification during this same period.


5. only you can freely dispose of the reserves formed in accordance with the provisions of paragraph 3, to the extent that investments are amortized, or, once after ten years since signed the relevant shares or participations financed with these funds.


6. investments financed by application of the exhaustion factor may not be eligible to the deductions provided for in chapter IV of title VI.


Article 115. Depletion factor: failure to meet requirements.


1. within ten years elapsed without having invested or having been invested improperly the corresponding amount, will be integrated into the taxable income of the tax period concluded at the expiration of that period or exercise that is done the improper disposal, having settled the interest of delay which is shall accrue from the day in which end of the period for voluntary payment of the debt owed to the tax period in which the correlative reduction was made.



2. in the case of liquidation of the entity, the pending application of the exhaustion factor amount will be taxable in the manner and with the effects laid down in the preceding paragraph.


3. in the same way proceed in cases of assignment or alienation total or partial mining and in the merger or transformation of entities, except that the entity arising, continuation of the mining activity, assume the fulfilment of the necessary requirements to consolidate the benefit enjoyed by the transferring entity or transformed, in the same terms that had been appearing in the previous entity.


Chapter X taxation of research and exploitation of hydrocarbons article 116. Investigation and exploitation of hydrocarbons: exhaustion factor.


The companies whose corporate purpose is solely the research and exploitation of natural, liquid, or gaseous hydrocarbons in A zones and subzones to), b), c) zone C referred to in article 2 of the law 21/1974, 27 June, legal regime for the exploration, investigation and exploitation of hydrocarbons, and complementary nature of these (, those of transport, storage, treatment and sale of extracted products, shall be entitled to a reduction in its tax base, in concept of exhaustion factor, which may be, at the choice of the entity, either of the following two: to) 25 per 100 of the gross value of sold hydrocarbons, with the limit of the tax base.


(b) the 40 by 100 of the tax base).


Article 117. Depletion factor: requirements.


1. the quantities that reduced the tax base on concept of depletion factor will need to invest by the concessionaire in research activities that will develop, in the areas referred to in the previous article, in the period of five years.


For these purposes means investigation preliminary studies of geological, geophysical or seismic nature, as well as all expenditures made in the area of a research, such as the drilling of exploration permit, costs of works for access and preparation of the land and location of such probes. Also be considered research costs in a concession and that relate to work on location and drilling of a structure capable of containing hydrocarbons, other than which contains the site that gave rise to the granting of exploitation granted.


In no event will be considered for subsidized this investment expenses incurred subsequent to the time in which production tests give positive.


They will not be included as research, to these effects, evaluation surveys or of development even if they are negative.


2 in each tax period must increase reserve of the company accounts in the amount that reduced the tax base on concept of exhaustion factor.


3. only available is freely of the reserves established pursuant to the preceding paragraph, insofar as will be amortized assets financed with these funds.


4. the taxable person should collect in the memory of the five following exercises to the one that was carried out corresponding reduction, the amount of this, investments made with charge to the same and made repayments as well as any decrease in accounts of reserves that were increased as a result of the provisions in paragraph 2 and the destination of the same. These facts may be subject to verification during this same period.


5. investments financed by application of the exhaustion factor may not be eligible to the deductions provided for in chapter IV of title VI.


Article 118. Depletion factor: failure to meet requirements.


1. within five years elapsed without having invested or having been invested improperly the corresponding amount, will be integrated into the taxable income of the tax period concluded at the expiration of that period or exercise that is done the improper disposal, having settled the interest of delay which is shall accrue from the day in which end of the period for voluntary payment of the debt owed to the tax period in which the correlative reduction was made.


2. in the case of liquidation of the entity or of change of its corporate purpose, the pending application of the exhaustion factor amount will be taxable in the manner and with the effects laid down in the preceding paragraph.


3. in the same way will proceed in cases of transfer or total or partial disposal, merger or transformation of the entity, except that the resulting continuation activity, institution as social object exclusively, provided for in article 116 of the law and assume the fulfilment of the necessary requirements to consolidate the benefit enjoyed by the transferring entity or transformed , in the same terms that had been appearing in the previous entity.


Article 119. Shared ownership.


In the event that several societies have shared ownership of a research or a granting of exploitation permit, will be attributed to each of the entities partners, revenues, expenses, income derived from the transmission assets and investments, that are attributable, in accordance with their level of participation.


Article 120. Amortization of intangible investments and research costs. Carryforwards compensation.


1. intangible assets and expenses of a research nature made in existing concessions and permits will be considered as intangible asset, from the time of its completion, and must pay for itself with a maximum of 25 per 100 annual fee. Previous geological, geophysical and seismic work and works of access and preparation of land, as well as the drilling of exploration, evaluation and development and workover of wells and reservoir conservation operations are included in this concept.


In the case of permits and concessions expired or extinguished, the part of investments and expenses not amortized by application of the preceding paragraph may be amortization using a maximum of 10 per 100 fee. In any case the amortization of costs and investments made prior to periods of inactivity more than five years or the costs incurred prior to the obtaining of ownership of research permits will be possible.


There is no maximum period for amortization of intangible assets and research costs.


2. the entities referred to in article 116 of this Act offset the negative taxable bases through the procedure of reducing the taxable bases of the following exercises in an annual maximum amount of the 100 from each of those 25.


This procedure of compensation of carryforwards replaces that provided for in article 23 of this law.


Chapter XI fiscal transparency international article 121. Inclusion in the tax base of certain positive income derived by non-resident entities.


1 entities subject by personal obligation to contribute will be included in your taxable income 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 and the following circumstances are fulfilled: to) alone or together with persons or entities related in the sense of article 16 of this law have a share 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 linked entities not resident in Spanish territory shall 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 the participation in results and, failing that, in proportion to the participation in the capital, the equity or voting rights.


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


2 only will be included in the tax base 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 the provisions of articles 6 and 40 of the law 18/1991 of June 6 , personal income tax, 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 the equity of any entity and transfer to third parties of own capital, in the terms provided for in article 37.1 and 2 of the law 18/1991, June 6, from the tax on the income of physical persons.


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 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)), where the transferor and the transferee belongs to a group of companies within the meaning of article 42 of the code of Commerce and income of the assignee will come, at least in 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, as determined tax deductible expenses in resident entities.


Positive income where 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 in the sense of article 16 is not included.


((d) transmission of the assets and rights referred to in letters a) and b) that generate income.


Does not include income referred to in the lyrics 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 shares, 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.


These purposes means that they come from the exercise of business income provided for in the letters to), b) and d) that had their 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 does not include income referred to in the lyrics to), b) and d) above where the sum of the amounts thereof is less than 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 include an amount greater than the total income of the non-resident entity.


4. does not include income referred to in paragraph 2 of this article, when you match expenses tax non-deductible of entities resident in Spain.


5 will be required to include the entities resident in Spanish territory included in the letter to) paragraph 1 to 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.


6. the inclusion will be held 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 taxable person chooses to perform the 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.


7. the amount of the positive to be included in the taxable income is calculated according to the principles and criteria established in this law and the remaining provisions relating to this 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.


8. do not will be integrated into the taxable dividends or shares in benefits in the part that corresponds to the positive income that has been included in the tax base. 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 can only be inclusion only once, any object that is the shape and the entity that occurs.


9 will be deductible from the total tax the following concepts: to) taxes or assessments of nature identical or analogous to this tax actually satisfied, in the part that corresponds to the positive income included in the tax base.


Shall be considered as tax actually satisfied, those paid by the non-resident entity and its affiliates alike, having on these that the participation rate established in article 30.2 of the Act.


b) tax or tax actually satisfied overseas because of the distribution of dividends or shares in benefits, be subject to an agreement for avoidance of double taxation or in accordance with the domestic legislation of the country or territory concerned, in the part that corresponds to the positive income included earlier in the tax base.


When the participation of the non-resident entity is indirectly through one or more other entities non-residents, shall be deducted the tax or assessment of nature identical or analogous to this tax actually satisfied by that or those in the part that corresponds to the positive income included earlier in the tax base.


These deductions are practiced even though taxes corresponding to tax periods different to the one that was included.


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


The amount of the deductions of the letters a) and b) does not exceed the total tax that corresponds to pay for the positive income included in the tax base in Spain.


10. to calculate the income derived from the transfer of the participation, direct or indirect, shall apply the rules laid down in paragraph 9 of article 15 of this law. The benefits referred to in the mentioned precept will be the corresponding positive income included in the tax base.


11 taxable persons who may apply as provided in this article must be submitted together with the Declaration by this 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) positive income that should be included in the taxable amount.


(e) justification of taxes satisfied with respect to the positive income that should be included in the tax base.


12 when the investee entity resident in a country or territory described as a tax haven 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.


13. the provisions of this article shall be without prejudice in articles 3 and 8(2) of this Act.


14. for the purposes of this article means that the Group of companies referred to in article 42 of the code of Commerce is provided in sections 1 and 2 of the first chapter of the rules for the formulation of consolidated annual accounts approved by the Royal Decree 1815 / 1991, of 20 December.


Chapter XII tax incentives for enterprises of small size article 122. Scope: turnover.


1. tax incentives set out in this chapter shall apply provided that the net amount of the turnover in the immediate preceding tax period is less than 250 million pesetas.


When the immediate preceding tax period lasts less than a year having had the net amount of the turnover will rise a year.



When the entity is new the amount of turnover shall refer to the first tax period.


2. when the entity is part of a group of companies within the meaning of article 42 of the code of Commerce, the net amount of the turnover shall refer to the set of entities belonging to the group. This criterion shall also apply when an individual alone or in conjunction with other individuals United by ties of kinship in the direct or collateral, inbred line or by affinity, up to the second degree inclusive, are in relation to other entities that are partners in one of the cases referred to in article 42 of the code of Commerce.


For the purposes of this paragraph, means that the cases of article 42 of the code of Commerce are those referred to in section 1 of the first chapter of the rules for the formulation of the annual accounts consolidated, approved by the Royal Decree 1815 / 1991, of 20 December.


Article 123. Accelerated depreciation.


1. the new tangible elements, made available to the taxpayer in the tax period in which the conditions of the previous article, are met shall be accelerated depreciation provided that, during the twenty-four months following the date of the beginning of the tax period in acquired assets come into operation, the average total enterprise template will increase with respect to the average of the twelve months template above and this increase is maintained during an additional period of other twenty-four months.


The amount of investment that may benefit from the accelerated depreciation regime will be the result of multiplying the figure of 15,000,000 pesetas by the concerned increase calculated to two decimal places.


For the calculation of the total average template of the company and of its increase will take the persons employed, in terms which provided for in labour legislation, taking into account the day engaged in relationship to the whole day.


Accelerated depreciation shall apply from the entry into operation of items that are eligible for the same.


2. the arrangement provided for in the preceding paragraph also shall apply to items charged under a work contract signed in the tax period whenever making it available within the twelve months following the conclusion of the same.


3. as provided for in the two preceding paragraphs shall also apply to tangible elements built by the company itself.


4 accelerated depreciation will be incompatible with the following tax benefits: to) bonus for export activities, on elements that will invest the benefits subject to the same.


(b) the reinvestment of windfall profits and the exemption for reinvestment, on elements where you reinvest the amount of transmission.


5. in the case of transmission elements that have enjoyed accelerated depreciation, only may qualify for exemption for reinvestment income obtained by the difference between the value of transmission and its accounting value once corrected by the amount of monetary depreciation.


6. in the event you fail to fulfil the obligation to increase or maintain the template must proceed to enter the total tax that has corresponded to the deduction amount in excess more interest on late payments.


The total tax and interest income will be made jointly with the autoliquidación for the tax period in which has breached one or other obligation.


7. the provisions of this article also shall apply to new items of tangible object of a financial lease, provided that they exercise the purchase option.


Article 124. Accelerated depreciation for investments of little value.


New items of plant and equipment made available to the taxpayer in the tax period in which conditions of article 122 of this Act, whose unit value does not exceed 100,000 pesetas, can pay for itself freely, up to the limit of 2 million pesetas referred to the tax period.


Article 125. Depreciation of property, plant and new equipment.


1. the elements of tangible new, put at the disposal of the taxpayer in the tax period in which met the conditions of article 122 of this Act, may pay according to the coefficient resulting from multiplying by 1.5 the maximum straight-line depreciation coefficient provided for in officially approved depreciation tables.


2. the arrangement provided for in the preceding paragraph also shall apply to items charged under a work contract signed in the tax period whenever making it available within the twelve months following the conclusion of the same.


3. as provided for in the two preceding paragraphs shall also apply to tangible elements built by the company itself.


4. the depreciation regime provided for in this article shall be compatible with any tax benefit that could proceed on the basis of the assets subject to the same.


5. the deduction of the excess of the resulting depreciable amount as provided in paragraph 1 with respect to effectively taking depreciation will not be conditioned to its accounting charges to the profit and loss account.


Article 126. Provision for possible bad debts of debtors.


1. in the tax period in which the conditions of article 122 of the law are met, will be deductible to an endowment to cover the risk of possible bankruptcies up to the limit of 1 per 100 over the existing debtors at the end of the tax period.


2. borrowers that the provision for bad debts established in article 12(2) of this law and those of others whose endowments do not have the character of deductible pursuant to that article, has been endowed with will not be included among the debtors referred to in the preceding paragraph.


3. the balance of the provision endowed as laid down in paragraph 1 may not exceed the limit referred to in that paragraph.


4. provisions for the coverage of the risk of possible insolvencies of debtors, made in the tax periods in which no longer fulfil the conditions of article 122 of this Act, shall not be deductible up to the amount of the balance of the provision referred to in paragraph 1.


Article 127. Exemption for reinvestment.


1. in the tax period in which the conditions of article 122 of the law are met, obtained incomes, not will be integrated into the taxable once corrected in the amount of the monetary depreciation in the onerous transmission of elements of tangible, subject to economic exploitation, whenever cited income amount does not exceed 50 million pesetas, and if the total amount of transmission in other tangible elements are invested subject to economic exploitation, within the time limit referred to in article 21(1) of this law.


2. in the case of not be reinvested within the designated period, the portion of total tax corresponding to the obtained incomes, as well as the interests of delay, enter together with the corresponding autoliquidación of the tax period in which overcame this period.


3. when the amount of the income is higher than 50 million pesetas, the exemption referred to in paragraph 1 will reach this amount.


The amount of the remaining income may qualify for the reinvestment of windfall profits.


Chapter XIII taxation of certain contracts of leasing article 128. Leasing contracts.


1. the provisions of this article shall apply to contracts of lease referred to in paragraph 1 of the additional provision seven of law 26/1988, of July 29, on discipline and intervention of the credit institutions.


2. the contracts referred to in the preceding paragraph shall have a minimum duration of two years when relate to movable and ten years when relate to real estate or industrial establishments. However, by law, to prevent abusive practices, can be established other minimum periods of duration thereof according to the characteristics of different goods that may constitute its object.


3. the lease fees shall appear expressed in the respective contracts, differentiating the part that corresponds to the recovery of the cost of the property by the leasing entity, excluding the value of the purchase option and the financial burden required by the same, without prejudice to the application of indirect assessment that corresponds.


4. the annual amount of the part of financial lease for the recovery of the cost of the asset shall remain the same or be increased throughout the contractual period.


5 will be, in any case, considered fiscally deductible expense the satisfied financial burden to the leasing entity.



6. the same consideration will have the part of satisfied leasing fees corresponding to the recovery of the cost of the good, except in the case that the contract is intended to land, lots, and other non-depreciable assets. In the event that such a condition if only a part of the good object of the operation, may deduct only the proportion corresponding to the elements subject to depreciation, which must be differentially expressed in the respective contract.


The amount of the deductible amount in accordance with the provisions of the preceding paragraph shall not exceed the result of applying the double of the coefficient of linear depreciation according to officially approved depreciation tables that correspond to the aforementioned well at the cost of good. The excess will be deductible in the tax periods thereafter, respecting equal limit. The calculation of this limit shall be given into account the time of sunset in good working condition.


For taxable persons referred to in title VIII, chapter XII(66)(A), will be the duplo of straight-line depreciation according to officially approved depreciation tables coefficient multiplied by 1.5.


7. the deduction of the quantities referred to in the preceding paragraph is not conditioned to its accounting charges in the profit and loss account.


8. the leasing entities must amortize the cost of all and each of property acquired for its leasing, deducted the value contained in each contract for the exercise of the purchase option, in the term stipulated for the respective contract.


9. as provided for in article 11.3 of this law shall not apply to leasing contracts regulated by this article.


10. the new tangible elements which are the subject of a financial lease can enjoy the tax incentive provided in paragraph 2 of the ninth final disposal, in terms which provide for the corresponding law of the State budget.


Chapter XIV regime of holdings of foreign securities article 129 entities. Holdings of foreign securities institutions.


1. the entities whose primary purpose is the direction and management of the own funds of non-resident entities in Spanish territory that determine a percentage of participation, direct or indirect, equal to or greater than 5 per 100 and the placement of the financial resources derived from the constituent activities of the social object, through the corresponding organization of personal and material resources securities they may benefit from the system provided for in this chapter.


2. in those tax periods in which the entity has the consideration of open society, you can not enjoy the arrangements laid down in this chapter.


3 entities benefiting from the regime provided for in this chapter may not be part of the groups of companies referred to in Chapter VII of this title.


Article 130. Income derived from the holding of securities of the own funds of non-resident entities in Spanish territory.


1 dividends or shares in profits from entities not resident in Spanish territory not will be integrated into the tax base, provided that the following requirements are fulfilled: to) that the percentage of participation had been owned continuously during the year prior to the day that are payable dividends or shares in profits. For the computation of the said term will also note the period in which participation has been continuously owned by another entity of the same group of consolidation referred to in article 42 of the code of Commerce.


(b) that the investee entity is not exempt and subject to a tax identical or analogous to the corporate income tax and does not reside in a country or territory by regulation qualified as a tax haven.


(c) that the incomes that come from dividends or shares in benefits arising from business activities abroad. To these effects shall be taken into account the following rules: a') with general revenues obtained by the investee entity should proceed, at least in 90 per 100, of carrying out business activities within the meaning of article 40 of the law 18/1991 of June 6, from the tax on the income of physical persons. Also derived from the transfer of assets pertaining to the realization of business activities and dividends or shares are understood to be included among such income in profits and income derived from the transfer of the participation of non-resident entities in Spanish territory which meet the requirements provided for in this paragraph with respect to which the resident entity in Spanish territory has a stake direct or indirect, more than 100 5.


(b') in the case of trade to the wholesale shall be regarded as income from business activities in overseas derivatives transactions in which goods are made available to purchasers in the country or territory in which resides the entity owned or in any other country or territory different from the Spanish when they are carried out through the Organization of personal media and materials available to the investee entity.


(c') in the case of services shall be regarded as income from business activities abroad derived from the provision of services that are used in the country or territory in which you reside the investee entity or in any other country or territory different from the Spanish when they are carried out through the Organization of personal media and materials available to the investee entity.


(d') in the case of credit and financial operations shall be regarded as income from business activities abroad derivatives of loans and credits granted to persons or entities resident in the country or territory in which resides the entity owned or in any other country or territory different from the Spanish when they are carried out through the Organization of personal media and materials available to the investee entity.


(e') in the case of operations of insurance and reinsurance shall be regarded as income from business activities abroad derivatives operations in which the insured risks are in the country or territory in which resides the entity owned or in any other country or territory different from the Spanish when they are carried out through the Organization of personal media and materials available to the investee entity.


((((d) that the investee entity does not get income from those provided for in point (c)) (2) of article 121 of this Act, or in the lyrics to), b) and d) of that paragraph and article whose amount exceeds any of the limits set out in paragraph first paragraph 3 of the aforementioned article 121.


2 income derived in the transmission of participation will not be integrated into the tax base, provided that: a) the requirements set out in the preceding paragraph. ((The requirements laid down in points b), c) and (d)), must be met in each and every holding of participation exercises. The requirement laid down in the letter to) shall be referred to the day in which transmission occurs.


(b) the purchaser, if he is resident in Spanish territory, is not linked with the transferring entity.


3. do not it will integrate in the taxable income of the entity that perceives the dividends or participation in benefits depreciation derived the distribution of the benefits of participation, anyone that is the form and the tax period on such depreciation is put of manifest, except that the amount of these benefits has been shown in Spain on the occasion of a previous transmission of participation.


The amount of depreciation will be that corresponding to the profits obtained by the entity that distributes them prior to the acquisition of the stake on it.


4. dividends or shares in profits and incomes obtained in the transmission of participation have not been integrated in the taxable are not entitled to the deductions provided for in articles 29 and 30 of this Act.


Article 131. Distribution of benefits.


The benefits distributed without charge to non-integrated the taxable incomes will receive the following treatment: to) when the beneficiary institution subject to this tax perceived benefits will not give right to the deduction for double taxation of dividends but this perceptual organization may apply the deduction for double international taxation in the terms provided for in articles 29 and 30 of this Act with respect to tax paid overseas income to they have contributed to the formation of the concerned perceived benefits.


(b) when the beneficiary of the benefits is a person subject to the tax on the income of natural persons, the distributed profit will not give right to the deduction for double taxation of dividends.


For the purposes of the provisions of this article means that the first distributed profits come from income in the tax base.



The entity that distributes the benefit must mention the amount of pensions not integrated into the taxable income and taxes paid abroad corresponding to them in memory and partners provide necessary information so that they can comply with provisions of the previous letters.


Article 132. Application of this regime.


1 subjects who wish to enjoy the arrangements laid down in this chapter shall request it to the tax administration, in the form determined by law.


Requests shall be estimated after expiry of the period of resolution.


2. the enjoyment of the system provided for in this chapter shall be subject to the fulfillment of fact related to the assumptions, that should be tested by the taxable person at the request of the tax administration.


3. the non-cash contributions of securities of the own funds of institutions not resident in Spanish territory will enjoy the arrangements laid down in article 108 of this law, anyone who is the percentage of participation that these contributions confer.


Chapter XV regime of partially exempt entities article 133. Scope of application.


This scheme applies to the following entities: to) foundations, establishments, institutions and non-profit associations that do not meet the requirements to enjoy the tax regime established in law 30/1994 of 24 November, foundations and incentives to private participation in activities of General interest.


(b) unions, federations and confederations of cooperatives.


(c) the professional associations, business associations, official Chambers, workers unions and political parties.


(d) the funds employment promotion constituted on the basis of article 22 of law 27/1984, of 26 July, Reconversion and reindustrialization).


e) the mutual of accidents and professional illnesses of the Social security that meet your regulatory requirements.


Article 134. Exempt income.


1 the following income obtained by the entities referred to in the preceding article shall be exempt: to) that coming from activities that constitute its corporate purpose or specific purpose.


(b) the resulting from acquisitions and transmissions as lucrative, ones and others obtained or made in compliance with its corporate purpose or specific purpose.


(c) the put manifest onerous transmission of assets pertaining to the accomplishment of the corporate purpose or specific purpose when the total product obtained is intended for new investments related to the corporate purpose or specific purpose.


New investments must be made within the period between the year prior to the date of delivery or put at the disposal of the asset and the three subsequent years and staying in the heritage of the institution for seven years, except that its useful life according to the method of depreciation of students admitted in article 11(1) of this Act , it applies, is less.


If not to make the investment within the designated period, the portion of total tax corresponding to the obtained income enter, plus interest, together with the fee for the tax period in which he beat.


The transmission of these elements before the end of the mentioned term will determine integration into the tax base of the part of income not taxed, unless the amount obtained is the subject of a new reinvestment.


2. the exemption referred to in the preceding paragraph will not reach yields arising out of the performance of economic holdings, derivatives of the heritage, or to heritage increases other than those specified in the preceding paragraph.


3. shall be deemed yields one economic exploitation all those that proceeding from personal work and capital together, or one only of these factors, pose management on their own the means of production and human resources or one of the two in order to intervene in the production or distribution of goods or services by the taxable person.


Increases or decreases of heritage are considered variations in the value of the assets of the taxable person that is highlighted on the occasion of any alteration in the composition of that.


Article 135. Determination of the tax base.


1. in the direct estimate scheme the tax base is determined by the algebraic sum of the net, positive or negative, yields obtained in the exercise of economic exploitation, yields from property and rights that make up the heritage of the entity and the increases and decreases of heritage.


The amount of net income is determined by applying the rules laid down in title IV of this law.


The amount of the increases and decreases of heritage will be determined in the following manner: a) in the case of transmission onerous or profit, the difference between the acquisition and transmission of the assets values.


(b) in other cases, the purchase price of the assets.


Normal market value will be taken in the event of transfer or acquisition to lucrative title.


As provided for in article 15.11 of this law shall apply for the purposes of integrating heritage increases the taxable.


2 not shall be regarded as tax deductible expenses: to) expenses attributable, directly or indirectly to the obtaining of incomes that come from activities that constitute the corporate purpose or specific purpose.


(b) the quantities which constitute implementation of pensions and, in particular, surpluses, resulting from economic operations is intended to exempt activities support.


(c) excess value attributed to the benefits of personal work received on the amount declared for purposes of withholding tax on the income of physical persons.


Title IX management tax chapter I the index of entities article 136. Index of entities.


1. in each delegation of the State tax administration agency will be an index of entities in which shall be entered which have their fiscal domicile within its territorial scope, except for the entities referred to in article 9.


2. by regulation procedures high, enrollment and low will be established in the index of entities.


Article 137. Low on the index of entities.


1 the Agency State of the Administration tax issue, after hearing of the interested parties, agreement of temporary low in the following cases: to) when the tax debts of the entity to the public Treasury of the State be declared failed in accordance with the provisions of the General Regulation of fundraising.


(b) where has the entity failed the corresponding to three consecutive tax periods tax statement.


2. the low provisional agreement will be notified to the corresponding public record, which must proceed to extend the blade open the entity affected a marginal note which shall be recorded that, hereafter, may not be no registration concerning the same without submission of certification of high index of entities.


3. the low provisional agreement does not exempt the affected entity of any tax obligations that may concern you.


Article 138. Obligation of collaboration.


1. holders of public records be sent monthly to the State Agency for tax administration of their fiscal domicile a relationship of the entities whose Constitution, establishment, modification or extinction registered during the previous month.


2. the same obligation is for notaries in the Scriptures and other documents authorizing the creation, modification, transformation or extinction of all kinds of entities.


Chapter II accounting obligations. Property and rights not recorded. Article 139 voluntary revaluations. Accounting obligations. Powers of the tax administration.


1. taxable persons of the tax must bear its accounting as laid down in the code of Commerce or with the provisions of the rules by which they are governed.


2. the tax administration can perform verification and investigation by examining the accounting, books, correspondence, documentation and supporting documents concerning the taxable businesses, including accounting programs and files and magnetic media. Tax administration can directly analyze the documentation and the other elements referred to in the preceding paragraph, and may note through their agents of accounting entries that may be accurate and copy in his office, even in magnetic storage media, of any of the information or documents referred to in this section.


Article 140. Property and rights not accounted or not declared: presumption of obtaining of incomes.


1. it shall be presumed that they have been acquired charged to income not declared the assets whose ownership corresponds to the taxable person and are not recorded in its books of account.


The presumption will proceed likewise in the case of partial concealment of the acquisition value.



2. it shall be presumed that the assets not recorded in accounting are owned by the taxable person when it holds on the same possession.


3. it shall be presumed that the amount of unreported income is the value of acquisition of the property or rights not recorded in accounting books, discounting in the amount of effective debts incurred to finance such acquisition, likewise not accounted for. In any case the net amount may be negative.


The amount of the purchase price will be tested through the supporting documents or, if it is not possible to apply the valuation rules laid down in the General tax law.


4 the existence of undeclared income will be presumed when they have been registered in the books of account of the taxable non-existent debts.


5. the amount of income because of the assumptions contained in the foregoing paragraphs will fall within the tax period oldest from among the non-prescribed, unless the taxable person test which corresponds to another or others.


6. the value of the assets referred to in paragraph 1, insofar as it has been incorporated into the tax base, will be valid for all tax purposes.


Article 141. Voluntary accounting revaluations.


1 taxable persons who carry out accounting revaluations whose amount has not included in the taxable base must mention in memory the amount of them, the affected items and period or tax periods in which it is practiced.


The cited mentions must be performed on each of the reports relating to the years that revalued elements are present in the heritage of the taxable person.


2 will be simple tax infraction the breach of the obligation established in the preceding paragraph.


Such violation shall be punished, only once, with a fine of 5 per 100 of the amount of the revaluation, the payment will not determine that the amount be incorporated for tax purposes, the value of the asset subject to the revaluation.


Chapter III statement autoliquidación and provisional liquidation article 142. Statements.


1. the taxable person will be required to submit and sign a statement by this tax at the place and in the form determined by the Minister of economy and finance.


The Declaration will be presented at the time of the twenty-five calendar days after the six months following the conclusion of the tax period.


2. the exempt taxable persons referred to in article 9 of this law are not obliged to testify.


3. the taxable persons referred to in the fifteenth chapter of title VIII of this law shall be obliged to testify with respect to non-exempt income, except that these incomes were subject to obligation to withhold and are the only ones that get.


Article 143. Autoliquidación and income of the tax debt.


1 taxable persons, at the time of filing your return, shall determine the corresponding debt and enter it in the place and in the form determined by the Minister of economy and finance.


2. 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.


Not will be integrated into the taxable income that is manifest at the time of the enactment in payment of the goods concerned.


Article 144. Provisional liquidation.


Tax management bodies may turn the provisional liquidation which proceed in accordance with the provisions of article 123 of the General tax law, without prejudice to subsequent verification and investigation that can perform the inspection of the tributes.


Chapter IV refund of trade article 145. Return of trade.


1. when the sum of the amounts referred to in article 39 of this law exceed the amount of the resulting share of the autoliquidación, the tax administration shall be bound to practice provisional liquidation within six months from the end of the period for the submission of the Declaration.


2. when the resulting provisional liquidation fee is less than the sum of the concepts referred to in the preceding paragraph, the tax administration shall return ex officio, within the period of one month, entered on that quota excess.


3. If the provisional liquidation had not practiced in the six months period specified in paragraph 1, the tax administration shall return automatically in the following month excess entered on the autoliquidada share, without prejudice to subsequent provisional liquidations resulting from practice.


4. once the period for return without having taken place is, the taxable person may request in writing that you are paid interest on arrears in the form provided for in article 45 of the text of the General budget law, approved by Royal Legislative Decree 1091 / 1988, of 23 September.


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


Chapter V obligation to retain and enter with article 146. Withholdings and payments on account.


1. the authorities, including the communities of goods and owners, who will meet or paid income subject to this tax, will be required to retain or make payments on account in respect of payment, the amount to be determined according to the rules and enter the amount in the Treasury in the cases and forms established. They will also be required to retain and enter individual entrepreneurs and professionals with respect to pensions that meet or paid in the course of their business or professional activities as well as natural persons, legal and other entities not resident in Spanish territory which operate on it through permanent establishment.


2. the subject required to retain must submit in terms, form and places established by regulation, Declaration of the retained amounts or negative statement when the practice of the same shall not be occurred. It will also present a yearly overview of retentions with content to be determined by regulation.


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


3. the subject required to retain shall be required to issue, under conditions to be determined according to the rules, supporting certification practiced retention or other payments on account.


4. by law the cases in which there is no retention will be established. En_particular, shall not be retention in: to) income derived by the entities referred to in article 9 of this law.


(b) dividends or shares in profits coming from tax periods during which the entity was in fiscal transparency regime.


(c) dividends or shares in profits and interests satisfied among companies that are part of a group that tribute in the regime of the groups of companies.


(d) dividends or shares in the benefits referred to in paragraph 2 of article 28 of this law.


Article 147. Obligations of taxable persons in relation to the fiscal domicile.


1. taxable persons shall be obliged to put in knowledge of the State tax administration agency change its fiscal domicile.


2. the State tax administration agency may promote fiscal domicile change, after hearing the interested party, in the form determined by law.


Chapter VI powers of management to determine the taxable item 148. Powers of the Administration to determine the taxable base.


For the sole purpose of determining the tax base, the tax administration may determine the accounting profit, applying the rules referred to in article 10(3) of this law.


Title X jurisdiction order article 149. Competent jurisdiction.


The Supreme jurisdiction, prior exhaustion of administrative track, will be the only competent to settle disputes in fact and law arising between the tax authorities and taxable persons in relation to any of the matters referred to in this law.


First additional provision. Application of the special arrangements for mergers, divisions and contributions of assets and exchange of values.


The tax regime provided for in Chapter VIII of title VIII of this law shall equally apply to operations involving the payers of the tax on companies that do not have the legal form of commercial company, provided that they produce equivalent results to the derivatives of the operations referred to in article 97 of this law.


Second additional provision. Restrictions on the deduction for double taxation of dividends.


Not entitled to the deduction provided for in article 28 of this law: to) the benefits distributed without charge to the reserves constituted with the results relating to increases of assets referred to in paragraph 1 of article 3 of the law 15/1992 of 5 June, on urgent measures for the progressive adaptation of the oil Sector to the Community framework.



(b) dividends distributed charged to profits bonus yields as laid down in article 2 of the law 22/1993, of 29 December, which approved tax measures, reform of the legal regime of the public function and the unemployment protection, and yields from companies benefiting from the allowance established in article 19 of the Foral law 12/1993 15 November, and the fifth additional provision of law 19/1994, July 6, or societies that is applicable to the exemption provided for in rules regional law 5/1993, 24 June, Vizcaya, 11/1993, 26 June, Guipúzcoa, and 18/1993, of 5 July, Alava.


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


Third additional provision. Group of companies the State industrial holdings company.


The State industrial holdings company and its companies participated mostly will be taxed on corporation tax according to the regime of the groups of companies. Inclusions and exclusions of companies in the group will be produced in the same period in which the aforementioned State society acquires or loses, as the case may be, the majority stake.


The calculation of tax incentives will be made with exclusive reference to the companies making up the group.


Fourth additional provision. Rules on retention, transmission and formal obligations concerning financial assets and other securities.


1 a the effects of the obligation to withhold about implicit returns from the capital, on account of physical persons income tax and corporation tax, this retention shall be made by the following persons or entities: to) in the yields obtained in the transmission or reimbursement of financial assets that is statutorily established the obligation to withhold the retainer will be the issuer or the financial institutions responsible for the operation.


(b) the yields obtained in transmissions relating to operations that are not document titles, as well as a financial institution responsible for transmissions, the retainer will be Bank, box or entity acting on behalf of the transferor.


(c) in cases not collected in previous letters, the intervention of a notary public who will practise the corresponding retention will be required.


2. in order to proceed to the alienation or obtaining of repayment of the securities or assets with implicit returns that must be subject to retention, shall register the previous acquisition involving the jurymen or financial institutions referred to in the previous paragraph, as well as the price that the operation was carried out.


The issuer or the financial institutions responsible for the operation which, in accordance with the preceding paragraph, must not be refund the holder of the title or active, must be constituted by that number depot at the disposal of the judicial authority.


3. the public notaries that intervene or mediate in the issuance, subscription, transmission, Exchange, conversion, cancellation and repayment of Treasury bills, securities or any other securities and financial assets, as well as operations relating to rights in rem over them, will be obliged to inform such transactions to the tax administration list of involved subjects with indication of their domicile and tax identification number class and number of public effects, equities, securities and assets, as well as the price and date of the operation, within the time limits and according to the pattern determined by the Minister of economy and finance.


The same requirement will fall on entities and financial credit establishments, companies and securities agencies, other financial intermediaries and any physical or legal person who engages habitually to the brokerage and placement of bills, securities or any other securities of financial assets, indices, futures and options on them; even documents with annotations into account, with respect to transactions involving, directly or indirectly, recruitment or placement of resources through any class of securities or effects.


Also the management companies of collective investment with respect to the shares and participations in such institutions are subject to this obligation of information.


Reporting obligations referred to in this section shall be deemed fulfilled with respect to operations subject to retention referred to in it, with the presentation of the relationship of percipients, adjusted to the official model of the annual summary of retentions corresponding.


4 should contact the tax administration the issuance of certificates, guards or documents representing the acquisition of metals or precious objects, stamps of philatelic value or pieces of Numismatic value, by physical or legal persons habitually engaged in the promotion of investment in such securities.


Fifth additional provision. Tax treatment in the tax on the income of physical persons of certain preferential subscription rights.


The amount obtained by the transmission of preferential subscription rights resulting from capital increases carried out in order to increase the degree of diffusion of the shares of a company prior to its admission to trading in any of the official secondary markets of predicted values in the law 24/1988, of July 28, of securities markets (, you will have the tax treatment provided for in article 48.uno.a for taxable persons of the tax on the income of physical persons) law 18/1991 of June 6, the tax on the income of physical persons.


The non-submission of the application for admission in the period of two months, starting from the capital increase, the withdrawal of the application for admission, refusal of admission or exclusion of the negotiation takes place before the expiry of two years from the start of it, will determine the tax on the total amount obtained by the transfer of the subscription rights.


Sixth additional provision. Investments by non-residents in Treasury bills.


Market managing entities of public debt in book-entry will be required to retain and enter in the Treasury, as a substitute for the taxpayer, the physical personal income tax or corporate tax, corresponding to the Treasury bills yields obtained by non-resident investors in Spain, without a permanent establishment, provided that it is not application exemption on yields from the various instruments of the public debt in the terms provided for in article 17 of the law 18/1991, 6 June, personal income tax, and article 46 of this law.


Seventh additional provision. Taxation of increases of assets for the purposes of the real help in tax obligation.


The taxation of heritage in the obligation to contribute real increases will be governed by the provisions of article 18, paragraph 3, of the law 18/1991 of June 6, the tax on the income of the physical persons, not being applied, in any case, the rules provided for in article 45, paragraph 2, of the aforementioned Act.


The eighth additional provision. References to the law 29/1991, of December 16, adaptation of certain tax concepts to the directives and regulations of the European communities contained in various provisions. Regime of the tax on the increase of the value of the land of urban nature in certain operations.


(1. the references to article 7, 1, b), of the law 37/1992 of 28 December, value added tax, makes operations of article 1 and the definition of branch of activity of the article 2, paragraph 4, of law 29/1991, of December 16, adaptation of certain tax concepts to the directives and regulations of the European communities , whenever the operations are entitled to the tax system regulated in the title first of the aforementioned Act, be construed as references to the special regime for mergers, divisions and contributions of branches of activity and an exchange of values defined in article 97 of this Act.


2 the references to article 21 and article 45.1. b).10 of the law on property transfer and stamp tax made to the definitions of mergers and spin-offs of article 2, paragraphs 1, 2 and 3, of the Act 29/1991, of 16 September, adaptation of certain tax concepts to the directives and regulations of the European communities They construed as references to article 97, paragraphs 1, 2, 3 and 5, and article 108 of this law and references to the special scheme for title I of law 29/1991, be construed as references to Chapter VIII of title VIII of this law.


3 the tax on the increase of the value of the land of urban nature is not accrue on the occasion of the transmissions of land in urban nature arising from operations to applicable special regime regulated in Chapter VIII of title VIII of this law, with the exception of those provided for in article 108.



In the subsequent transmission of mentioned land means that the number of years over which it has become apparent the increment of value not has been interrupted because of the transmission for the operations provided for in Chapter VIII of title VIII.


Shall not apply the provisions of article 9(2) of the Act 39/1988, of 28 December, regulator of the local estates.


Ninth additional provision. Payment in instalments and coefficient of monetary correction for 1996.


1. with regard to the tax periods beginning in 1996, the percentage referred to in paragraph 4 of article 38 of this law, shall be 15 per 100 for the modality of payment provided for in paragraph 2 of the same. When the total tax taken as a basis to calculate the instalment payment has been determined according to the rules of law 61/1978, of 27 December, the corporation tax, deductions and allowances referred to in paragraph 2 of that article, shall be those laid down in the aforementioned law 61/1978.


Mode provided for in paragraph 3 of article 38 of this law, the percentage will be the result of multiplying by four-sevenths the type of lien rounded by default.


In the instalments that will be carried out in 1996, corresponding to tax periods that had begun in 1995 and completed in 1996, base and percentages to calculate such payments, in any of the two modalities, shall be determined in accordance with article 73 of the law 41/1994, of 30 December, from the State budget for 1995.


Transparent societies will not be required to make payments fractionated with respect to the part of the tax base that should pay tribute to the type of assessment concerning the twenty second transitional provision of this law.


2 in relation to the tax periods that begin during 1996 the coefficients referred to in article 15.11. to) of this law, on the basis of the time of acquisition of the asset transmitted will be as follows: coefficient prior to January 1, 1984 / 1,810 in the financial year 1984 / 1,640 in the year 1985 / 1,520 in the year 1986 / 1,430 in the year 1987 / 1,360 in the year 1988 / 1,300 in the year 1989 / 1,240 in the year 1990 / 1,190 in the period 1991 / 1,150 in the financial year 1992 / 1,130 in the 1993 exercise / 1.110 in the 1994 financial year / 1,090 in the 1995 financial year / 1,050 in 1996 / 1,000 coefficients will be applied in the following manner: to) about the price of acquisition or production cost, according to the year of acquisition or production of the asset. The coefficient applicable to improvements will be the year that there had been.


(b) over depreciation accounted for, according to the year they were.


Tenth additional provision. Aid of the common fisheries policy.


Not will be integrated into the taxable income of the tax revenues that are highlighted as a result of the perception of the aid of the common fisheries policy, by the permanent cessation of fishing activities of a vessel and its transmission to the establishment of ventures in third countries, being applied to the latter provisions of Act 42/1994 Fifth additional provision 30 December, measures fiscal, administrative and Social order, from the date of entry into force of the same.


Eleventh additional provision. Modification of the law on personal income tax.


Modification of article 48.1. to) the law 18/1991 of June 6, the tax on the income of the physical persons, through the addition of a new paragraph: «a) transmission...»


For the purposes of the provisions of the preceding paragraph they are understood by official secondary securities markets, both provided in law 24/1988, of 28 July, the stock market, as the second stock markets in accordance with the provisions in the Royal Decree 710/1986, of 4 April.


«For the determination of the...»


Twelfth additional provision. Deduction for investment in new plant and equipment elements.


1. purposes for tax periods starting in 1996, taxpayers may deduct from the total tax 5 per 100 of the amount of the investments in new tangible elements, excluded the land, affects the development of the economic exploitation of the institution, which are made available to the taxpayer within such tax periods.


2. the basis of the deduction will be the price of acquisition or production cost.


3 it will be required for the enjoyment of the deduction for investments that elements remain in operation in the company of the same taxable person for five years, except that its service life in accordance with the method of depreciation of students admitted in article 11(1) of this Act, which applies, is lower.


4. an investment shall not lead to the application of the deduction in more than one entity.


5 they will be subsidized to the deduction referred to in paragraph 1 the investments made under financial leases, except for the buildings.


6 the deduction for investments will be incompatible to the same elements with: to) those set out in the law 31/1992, of 26 November, incentives tax applicable to the Cartuja'93 project.


(b) the re-investment of benefits subject to the allowance established in paragraph 1 of article 32 of this law.


(c) the exemption for reinvestment established in article 127 of this law, with respect to the items in which you reinvest the amount of transmission.


7. the amount of the deduction shall not exceed 15 per 100 of the total tax, reduced in deductions to avoid domestic and international double taxation and subsidies.


Not deducted amounts apply, respecting equal limit, in settlements of the tax periods that concluded in immediate and successive five years, provided that those amounts are included among the deductions referred to in paragraph 4 of the eleventh transitional provision.


Thirteenth additional provision. Amendment of the Act of ordination and Supervision of private insurances.


Amending the additional provision seven of the law 30/1995 of 8 November, of management and Supervision of private insurances, with the following wording: shall be deleted in article 15.3. to), paragraph 2.ºde the law 6/1992 of 30 April, mediation of private insurance, the following paragraph: «or the credit institutions listed in paragraph 2 of article 1 of the Royal Legislative Decree 1298 / 1986» «, of 29 June».


Fourteenth additional provision. Modification of the law on personal income tax.


The letter b) of paragraph 1 of article 71 of the law 18/1991 of June 6, the tax on the income of physical persons, shall be worded as follows: «b) one million pesetas per year.»


First transitional provision. Regularization of balance adjustments.


Balance, positive and negative, adjustments performed to determine the taxable base of corporate tax for tax periods that are initiated prior to the entry into force of this law shall be taken into consideration for the purpose of determining the taxable base corresponding to the tax periods where is application thereof, in accordance with the rules which regulated them.


In no event shall be admissible that same income do not take into consideration or is it two times for the purposes of the determination of the tax base for corporate income tax.


Second transitional provision. Amortization of items pertaining to the exploitation of hydrocarbons.


The assets that the entry into force of this law were amortized in accordance with the maximum depreciation rates set out in paragraph B.1 of article 47 of the Royal Decree 2362 / 1976, of 30 July, which approved the regulations of the law on research and exploitation of hydrocarbons, of June 27, 1974 they may pay for itself by applying the above coefficients, and must be fully depreciated in the maximum period of twenty years, from the above date of entry into force.


Third transitional provision. Outstanding balances of investment allocations to the exhaustion factor.


The outstanding balances of investment allocations to the exhaustion factor carried out under cover of law 21/1974, June 27, on the legal system for exploration, investigation and exploitation of hydrocarbons, and the law 6/1977 of 4 January, mining development, prior to the entry into force of this law, shall be reversed in the conditions and with the requirements laid down in their respective laws for the purpose of consolidating the deduction on their day they practiced.


Fourth transitional provision. Exemption for reinvestment.


Heritage increases charged in tax periods regulated by Act 61/1978, of 27 December, corporate income tax, subject to the exemption for reinvestment provided for in article 15.8 of the same, shall be regulated by the the established, even though the reinvestment occurs subsequent to the entry into force of this law.


Fifth transitional provision. Tax benefits of reconversion and reindustrialization.



Taxpayers affected by the Royal Decrees of reconversion will enjoy tax benefits established by law 27/1984, of restructuring and reindustrialization, in terms that those expected.


Sixth transitional provision. Tax benefits of law 12/1988, law 5/1990 and law 30/1990.


Entities to which referred to in articles 2 and 16 and the available additional first law 12/1988, of 25 may, profits tax relating to the Universal Exposition of Seville 1992 and the acts commemorative of the V centenary of the discovery of America and to the Olympic Games of Barcelona 1992, as well as those refers to which the law 5/1990-Fifth additional provision 29 June, on measures in budgetary, financial and tax, and the fourth additional provision of law 30/1990, of 27 December, Madrid Capital European of the culture 1992-related tax benefits, they will retain the tax regime referred to in the above-mentioned standards during the period necessary for its complete liquidation.


The entity referred to in article 2 of the law 30/1990, will retain the tax regime referred to therein, during the period necessary for its liquidation in accordance with the second final disposition of the same.


Seventh transitional provision. Societies for the promotion of companies.


1. societies for the promotion of companies that adapt its statutes of the companies of venture capital or be transformed into, will enjoy the regime established by this law for the same. The adaptation or transformation must occur within a period of five years from the entry into force of this law. Until there is such adaptation or transformation will be taxed as established in the Royal Decree 2631 articles 243-252 / 1982, of 15 October, which approves the regulation of tax, which for this purpose shall be in force. After the mentioned deadline unless the adaptation or transformation that has occurred you will be taxed according to the General rules.


Also, during this period of time, the amounts donated to the societies of promotion of enterprises, will enjoy the arrangements laid down in article 14.2. to) of this law.


Operations of adaptation or transformation referred to in paragraph first of this provision shall be exempt from the property transfer and stamp tax.


2 promotion of companies companies may also choose to its dissolution and liquidation within the period of five years after the entry into force of this law, in which case the following rules shall apply: to) until there is such dissolution and liquidation, they will be taxed as established in the Royal Decree 2631 articles 243-252 / 1982 , for these purposes, shall be applicable. In the tax period that ends with extinction will be integrated into taxable income the difference between the theoretical values of their shares deducted from the last balance sheet approved by the investee companies and their accounting values. Tax debt for this integration you will apply the deduction provided for in article 243 of the Royal Decree 2631 / 1982.


(b) for the purposes of the income tax of physical persons or corporate tax partners will increase the value of his share in the amount of allocated debts and decrease in the credit and money or sign representing it awarded.


If the result of the operations described in the paragraph above is negative, the result is considered increase of assets for the purposes of the tax on the income of physical persons. Equally, for the purposes of corporation tax, this result will be integrated into the base of partners, being applied to the same deduction provided for in article 28 of this law, except that participation in the society for the promotion of companies has been acquired below their nominal value, in which case the deduction will not proceed in the amount of the difference between both values.


Contributions credited to the heritage of the successful tenderer for its theoretical value and the remaining elements by their normal market value, except that these values are lower than the result of the operations described in the first paragraph of this letter, in which case, those elements will be assessed by the amount of such results.


Active elements awarded to partners people physical, other than appropriations, money or sign that represents it, will be considered acquired by them on the same date in which their participation in the society for the promotion of companies was acquired.


Eighth transitory provision. Financial leasing.


They shall be governed through total fulfillment by the rules laid down in the additional provision seven of law 26/1988, of July 29, on discipline and intervention of the credit institutions, leasing contracts entered into prior to the entry into force of this Act which related to goods whose delivery to the user has been equally prior to the entry into force of this , or real property whose delivery is made within the period of two years subsequent to the date of entry into force.


Ninth transitional provision. Funds of Commerce, trademarks, rights of transfer and other elements of intangible assets acquired prior to the entry into force of this law.


1. the provisions of paragraphs 4 and 5 of article 11 of this law shall apply with respect to the acquisition value of the funds of Commerce, trademarks, rights of transfer and other elements of intangible assets acquired prior to the entry into force of this law, which had not been deducted for the purposes of the determination of the tax base even when they were depreciated for accounting purposes.


2. as provided for in the second subparagraph of article 103.3 of the Act also shall apply to operations covered in article 10 of law 29/1991, of December 16, of fitness of certain tax concepts for directives and regulations of the European communities, although there has been the depreciation for accounting purposes.


3. in no case the amortisation of trade arising in operations covered by law 76/1980, of 26 December, on Fiscal regime of mergers of enterprises it will be considered deductible expenses, except that the amount of these funds trade has integrated into the tax base and the corresponding fee has not been subsidised.


Tenth transitional provision. Mergers covered by the Act 76/1980, of 26 December, on Fiscal regime of mergers of enterprises.


If subsequent to the completion of any of the operations that were covered by the Act 76/1980, of 26 December, on Fiscal regime of corporate mergers, and before five years if it were real estate and three of movable assets to be transmitted which on the occasion of the same they have been revalued not shall be calculated on the purchase price the amount of the aforementioned revaluation, except that the effective value obtained in the transmission is reinvest as laid down in article 21 of this law being application requirements that are set in the same.


Eleventh transitional provision. Outstanding investment deduction balances.


1 outstanding amounts from deduction for tax benefits set out in article 26 of law 61/1978, of 27 December, the corporate income tax; in law 12/1988, of 25 may; in law 30/1990, of 27 of December; law 31/1992, of 26 November; at the disposal additional seventh of the law 39/1992, 29 December, apply payments corresponding to the tax periods starting from the entry into force of this law, in the conditions and requirements provided for in the above-mentioned laws.


2. If the taxable person, in accordance with article 218.3 of the Royal Decree 2631 / 1982, of 15 October, which approves the regulation of tax, had chosen to apply the deduction for investments in new tangible fixed assets in the tax periods in which payments are made, the deduction will apply in the settlement of the tax periods starting from the entry into force of the present law in which stage is referral payments, on the conditions and requirements provided for in the aforementioned norm.


3. the deductions referred to in the preceding paragraphs shall be deducted while respecting the limit on liquid share provided in related laws and the corresponding laws of the State budget.


For this purpose it means liquid share the resultant lower the total tax on deductions and allowances provided for in chapters II and III of title VI of this law.


4. deductions from different modalities or tax periods of article 26 of the law 61/1978, of 27 December, the corporation tax, except for the creation of employment, may not exceed a set limit of 35 per 100 of liquid share.



5. the deduction referred to in the preceding paragraphs is practiced once made deductions and allowances set out in chapters II and III of title VI of this law, then, the deductions laid down in chapter IV of title VI, which limit shall be calculated independently of the provisions of paragraph 4.


Twelfth transitional provision. Carryforwards prior to the entry into force of this law.


The carryforwards pending compensation at the beginning of the tax period that will be of application this law may be offset in the time limit set in paragraph 1 of article 23 of the same, from the beginning of the tax period following that in which these carryforwards were determined.


Thirteenth transitional provision. Exempt entities under a rule of assimilation with the tax system of the State or of any exempt entity.


The entities that were exempt from tax under a rule that established the extension to the same by the regime of the State or of any exempt entity, at the time of the entry into force of this law will continue to enjoy the exemption during the tax periods that are initiated within the three years following the entry into force of this law.


Fourteenth transitory provision. Balance of the provision for bad debts covered by article 82 of the Royal Decree 2631 / 1982, of 15 October.


Taxpayers that the entry into force of this law had constituted a Fund for provision of loan losses through the system regulated in paragraph 6 of article 82 of the Royal Decree 2631 / 1982, of 15 October, which approves the regulation on companies, apply your balance to the coverage of existing at that date and the excess appropriations for doubtful debts , in your case, go is producing that subsequent to total extinction. Meanwhile will not be deductible allowance carried out for coverage of these credits.


Fifteenth transitional provision. Diet of consolidated statement.


Groups of societies which they have granted the regime of Declaration strengthened the entry into force of this Act continue in the enjoyment of it, being of application the rules contained in Chapter VII of title VIII of this law.


Groups that, in accordance with the Royal Decree-Law 15/1977, of 25 February, have been able to request the extension of the regime of statement consolidated within the first tax period starting from the entry into force of this Act, may agree to qualify for the arrangements for other three tax periods according to the rules set out in Chapter VII of title VIII. The obligations referred to in article 84 may fulfill until the day that concludes the first tax period.


Sixteenth transitional provision. Transitional regime of the profits on financial operations.


The concessionary companies of toll roads that would have recognized this tax benefits on January 1, 1979, for financing and refinancing operations depending on their specific laws and provisions in the third transitional provision, paragraph 2, of the law 61/1978, of 27 December, and its implementing rules, shall retain such right acquired in its current terms. In addition, taxable persons who enjoy the bonus referred to the date of entry into force of this law: article 25 c) of law 61/1978, of 27 December, the corporate income tax; Article 1 of the Royal Decree-Law 5/1980, of 29 may, on bonus of tax fees, corresponding to the interests that have to meet local corporations, autonomous and State, because of certain loans or loans; the articles 6.5. th and 20 of the Act 12/1988, on 25 may, profits tax relating to the Seville 1992 Universal exhibition, the memorials of the V centenary of the discovery of America and the Olympic Games in Barcelona 1992, and article 6.5. of law 30/1990, of 27 December, profits tax relating to Madrid Capital European of the culture 1992 pursuant to resolution agreed by the Ministry of economy and finance, will continue applying it in the terms established in the respective norms.


Seventeenth transitory provision. Tax value of shares of collective investment institutions.


For the purposes of calculating the excess of the net asset value as it referred to article 74 of this law will be taken as purchase value 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 taxable person. 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.


Dividends and shares in profits distributed by collective investment undertakings that 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. These purposes means that the first distributed reserves have been equipped with the first earned benefits.


18th transitional provision. Update accounts.


1. from the entry into force of this law, balances of accounts «Update law of budgets for 1979», «Update active abroad, law of budgets for 1980» and «Update law of budgets for 1983», passed on to the legal reserve and the remainder, if any, to unrestricted reserves.


2. the rules on depreciation of the updated elements will continue to be applicable until the extinction of the life of the same.


Nineteenth transitional provision. Special real estate tax exemption.


Non-resident entities that it has been recognized or recognition of exemption from excise duty on real estate, pursuant to point (d)) paragraph four of the additional provision of law 18/1991 6th, shall enjoy the same until December 31 of the year following the entry into force of this law.


Twenty transitional provision. Deduction for double international taxation.


Amounts outstanding of deduction corresponding to the deduction for double international taxation established in article 24, paragraphs 4 and 5, of law 61/1978, of 27 December, the corporation tax, apply payments corresponding to the tax periods starting from the entry into force of this law, in the conditions and requirements laid down in that article.


Twenty first transitory provision. Filing and payment in real contribute obligation.


Up to not be determined the form, place and deadline for the Declaration and income of the tax to non-resident taxpayers who obtain income in Spain without mediation of permanent establishment, according to provisions of article 60 of this law, remain in force:-the Royal Decree 1285 / 1991, of 2 August, which establishes the procedure for payment of interests of government debt in annotations to non- residents who invest in Spain without mediation of permanent establishment, - the order of 31 January 1992 by which dictate rules of the tax on the income of the physical persons, on societies and on the accrued obligation real heritage, - the order of 7 January 1992 approving model of statement of withholding on the acquisition of real estate to non-residents without permanent establishment, and - the order of 28 December 1992 by which dictate standards for the management of the special tax on immovable property of non-resident entities.


Twenty second transitional provision. Taxation of transparent entities.


The type of assessment applicable to transparent societies will be in each of the first three tax periods in which it is of application this law, zero, 10 and 20 per 100, respectively, except making it refers to the part of not imputed tax base, which will be taxed at the general type.


Twenty third transitional provision. Deduction for double taxation of dividends on shares accounts.


The results of the venture accounts for not managing venturer which, in accordance with the provisions of article 14 b) of law 61/1978, of 27 December, the tax on companies, or in article 37.1 of the law 18/1991 of June 6, the tax on the income of physical persons, had been integrated in the base of the venturer Manager shall be entitled to the deduction for double taxation of dividends.


Sole repeal provision.


1 the entry into force of this law shall be repealed the following rules: 1. articles 45, 46, 47, 48, 49, 50, 52, 53, 54, 55 and 56 of the Act 21/1974, June 27, on research and exploitation of hydrocarbons, in which affects tax.


2. the articles 26, 30, 31, 32, 33, 34, 35.1, 36, 37, 38 and 39 of the law 6/1977, of 4 January, promotion of mining.



3 articles 3, 4.3, 5, 6, 7, 8, 9, 10, 11, 12, 13 and 14 of the Royal Decree-Law 15/1977, of 25 February, fiscal measures, financial and public investment.


4. the law 61/1978, of 27 December, the corporate income tax.


5. the Royal Decree-Law 5/1980, 19 of may, on bonus of tax fees corresponding to the interests that have to meet local corporations, autonomous and State, because of certain loans or loans.


6. the article 25.5 of the law 2/1981, dated March 25, regulation of the mortgage market.


7. paragraphs 1 and 2 of article 10, articles 12, 13, 14, 15, 16, 17, 18 and 22 of the Act 18/1982, of 26 May, on Fiscal regime of temporary unions of companies and societies of Regional Industrial development, as well as all of its additional provisions.


8. the Royal Decree 2631 / 1982, of 15 October, which approves the regulation of the tax.


9. articles 12, 15, 16, 17 and 18 of the law 5/1983, of 29 June, on urgent measures in budgetary, financial and tax.


10. Article 35 of law 27/1984, of 26 July, Reconversion and reindustrialization.


11. Title III of the law 46/1984, of 26 December, regulating collective investment institutions, in what refers to the tax.


12. the articles 1, 2, 3, 7, 8 and 9, and the additional provision third, law 14/1985, may 29, of Fiscal regime of certain financial assets.


13. Article 71 and the transitional provision fourth of law 16/1985, of 25 June, of the Spanish historical heritage.


14. the additional provision thirteenth law 46/1985, of 27 of December, of the State budget for 1986.


15. Article 16.2 of Royal Decree-Law 1/1986, of March 14, urgent, administrative, financial, tax, and labor.


16. the article 20.2 and 3 of law 15/1986 of 25 April, industrial corporations.


(17 article 9, letters a) and b) of law 10/1987, of 15 June, provisions for the development of actions in the field of gaseous fuels.


18. the additional provision of law 33/1987, of 23 December, ninth of General State budget for 1988.


19. paragraphs 2, 3, 4, 5, 6 and 7 of the additional provision seven of law 26/1988, of July 29, on discipline and intervention of the credit institutions.


20. the Royal Decree-Law 1/1989, of 22 March, which regulates the tax treatment of rights of preferential subscription and the Treasury bills for non-residents.


21. the Royal Decree-Law 5/1989, of 7 July, on urgent fiscal and financial measures.


22. Article 17 of the law 5/1990 of 29 June, on budgetary, financial and tax measures.


23 articles 28 and 45.2 of the law 10/1990 of 15 October, the sport.


24. the seventh final disposition of Royal Decree 1643 / 1990, of 20 December, which approves the General Accounting Plan.


25. Article 27 of the law 12/1991, of 29 April, economic interest groupings, and articles 24 and 30 of the same Act on which affect the tax.


26. the additional provision 6th of law 18/1991, and other provisions relating to the special tax on real properties of entities non-residents insofar as they oppose the provisions of this law.


27 titles I and II of the Act 29/1991, of December 16, adaptation of certain concepts tax policies and regulations of the European communities and the additional provisions first and second of it.


(28. the second subparagraph of the letter g) of paragraph 1 of article 70 of the regulation of the tax on physical persons income, approved by Royal Decree 1841 / 1991 of 30 December.


29 Article 5.10 of the Law 19/1992 of 7 July, on regime of the companies and real estate investment funds and regulation of mortgage securitisation funds, in what affects the corporate income tax.


30 letters c), d), e)) and (f) of paragraph one of article 68 of the law 1/1994 of 11 March, on legal regime of the reciprocal guarantee companies.


31. the articles 10, 11 and 12 of the law 42/1994 of 30 December, measures fiscal, administrative and Social order.


32. Article 13.2 of the Royal Decree-Law 5/1995, of 16 June, creation of certain entities of public law.


33. Article 14 of law 19/1995, of 4 July, modernization of the agricultural holdings in regards to accelerated depreciation.


All legal and regulatory standards relating to the obligation to contribute by this tax will also be repealed.


2. Notwithstanding the provided for in the preceding paragraph, shall remain in force: 1. articles 243-252 of Royal Decree 2631 / 1982, of 15 October, which approves the regulation of the tax. Expiry of the period referred to in the seventh transitional provision will be repealed.


2. the seventh additional provision of law 10/1985, of 26 April, of partial modification of the tax General Law, as afectare to the corporate income tax.


3. the law 22/1986, of 23 December, which are granted certain exemptions to tax and customs to the Institute of relations Europea-Latinoamericanas, law 3/1986, of 7 January, entry of Spain into the Inter-American Investment Corporation, and all those relating to the taxation of international organizations of which Spain is a part, insofar as they affect to the tax.


4. the law 8/1987 of 8 June, adjustment of plans and pension funds.


5. the sixth additional provision second Act 10/1990 of 15 October, sport, according to the wording contained in the law 31/1990 of December 27, of General State budget for 1991.


6. the law 20/1990 of 19 December on Fiscal regime of cooperatives.


7. Article 12 of the law 17/1991, 27 of may, on urgent fiscal measures.


8. the additional provision fifteenth law 18/1991 of June 6, from the tax on the income of physical persons.


9. the articles 93 and 94 of the law 20/1991 of June 6, modification of the aspects of the regime economic tax Canary Islands.


10. the Royal Decree 1080 / 1991, of 5 July, by which determine the countries or territories referred to in articles 2, paragraph 3, number 4, of law 17/1991, 27 of may, on urgent fiscal measures, and 62 of the law 31/1990, of 27 December, the State budget for 1991. References contained in the text of this law to countries or territories considered as tax havens according to the rules shall be made to the related in the Royal Decree 1080 / 1991.


11. the twenty sixth additional provision, first of the law 31/1991 of 30 December, of the General State budget for 1992.


12. Article 3(3) of the Act 15/1992 of 5 June, on urgent measures for the progressive adaptation of the oil Sector to the Community framework.


13. the order of 13 July 1992, on application of the provision for bad debts to credit institutions subject to the administrative supervision of the Bank of Spain.


14. the law 31/1992, of November 26, applicable tax incentives to the project realization of Cartuja 93, in which affects tax.


15 article 12(2) of the law 34/1992, of 22 December, management of the oil Sector.


16 articles 11, 12 and 14 of the Royal Decree-Law 3/1993, 26 February, on urgent fiscal measures on tax, financial matters and employment.


17. the order of 12 May 1993, which approve annual depreciation rates tables.


18. 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.


19. Article 2 and the first law 22/1993, December 29 additional provision of fiscal measures, reform of the legal regime of the public function and the unemployment protection.


20. the Law 19/1994, of 6 June, modification of the economic regime and Canarias Fiscal.


21. the Royal Decree-Law 7/1994 of 20 June, on accelerated depreciation for employment-generating investment.


22. the law 30/1994 of 24 November, foundations and tax incentives to private participation in activities of General interest.


23. the seventh additional provision, paragraphs 8, 9, 10 and 11 of the additional provision eight, (2) of the third transitional provision and the sixth transitional provision of the law 40/1994, management of the national electric system.


24. the fifth additional provision and the twenty-eighth of the law 42/1994 of 30 December, measures fiscal, administrative and Social order.


25. the Royal Decree-Law 2/1995, of 17 February, on freedom of amortization for investments creators of employment.


26. the orders by which declares the exemption, on condition of reciprocity, the yields corresponding to sea or air navigation entities residents abroad.



27. paragraph 2 of article 24 of the Statute Legal of the consortium of compensation of insurance approved by article 4 of law 21/1990, of 19 December, adaptation of the Spanish law to Directive 88/357/EEC on freedom of services in non-insurance the of life and updating of legislation of private insurance, as well as the transitional provisions fourteenth fifteenth and sixteenth of the law 30/1995 of 8 November, management and Supervision of private insurances, all in affecting corporate income tax.


3. until the entry into force of the regulatory standard issued under the authorization provided for in article 146 of this law, they shall remain in force the rules concerning the obligation to withhold, in relation to tax liabilities, current subjects to the entry into force of the same.


4. the repeal of the provisions referred to in paragraph 1 shall not prejudice the rights of the Treasury concerning tax obligations accrued during his term.


Tax liabilities tax periods previously-initiated and concluded subsequent to the entry into force of this law, shall be charged in accordance with regulations in force at the time of the initiation of the abovementioned tax periods.


First final provision. Entities benefiting from the law 30/1994 of 24 November, foundations and tax incentives to private participation in activities of General interest.


1. the entities who meet the characteristics and comply with the requirements laid down in title II of law 30/1994 of 24 November, foundations and tax incentives to private participation in activities of General interest, will have the tax regime that is set in the same.


2. articles 52, 65 and the additional provision ninth, four of the law 30/1994 of 24 November, foundations and tax incentives to private participation in activities of General interest, shall be drawn up as follows: «article 52. Exemption for reinvestment.


They will enjoy exemption increases heritage posts shown in the taxable transfer of assets non-current assets, material or immaterial, and of participation in the own funds of all kinds of entities securities that grant a participation of not less than 5 per 100 on the social capital of the same and which had possessed, at least with one year's notice When the total product obtained is intended for new investments related to the exempt activities.


New investments must be made within the period between the year prior to the date of delivery or put at the disposal of the asset and the three subsequent years and staying in the heritage of the institution for seven years, except that its useful life according to the method of depreciation of students admitted in article 11(1) of the law of corporation tax , the taxable person to choose, is less.


If not performed within the designated time reinvestment, the part of total tax corresponding to the income obtained, plus interest, is enter together the amount corresponding to the tax period in that beat him.»


«Article 65. Treatment of the resulting income from donation.


«(No se someterán ael Impuesto las rentas, positivas o negativas, que se pongan de manifiesto con ocasión de donaciones de los bienes, a los que se refieren el artículo 63, apartado 1, letras a) and b), and article 69 of this law, carried out on behalf of the entities referred to in those provisions.»


«Ninth additional provision, paragraph four: establishments, institutions and entities that do not meet the requirements laid down in title II of this Act, had their tax equated to the entities without profit, benefico-docente, benefico-privadas, or similar order, shall be governed by the provisions of Chapter XV of title VIII of the tax law on societies.»


Second final provision. Entities under law 20/1990 of 19 December, on Fiscal regime.


1. the cooperatives will be taxed in accordance with provisions of law 20/1990, of 19 December, on Fiscal regime.


(2 articles 15.3, 17.4, 24 and 36.b) of law 20/1990 of 19 December, on Fiscal regime, will be written in the following way: «article 15.3 Notwithstanding the provisions in the previous issue, when they will try to consumers and users, housing, agricultural cooperatives or those which, in accordance with its statutes, performing services or supplies to partners» will it be calculated as price of the corresponding operations that which actually has been completed, provided that it is not less than the cost of such services and supplies, including the relevant part of the general expenses of the entity. Otherwise applies the latter. «In the agricultural cooperatives, this system will apply both for services and supplies made by the cooperative members so members performed or delivered to the cooperative.»


«Article 17.4 allegations to the fiscal year grants as provided in the accounting rules that apply to capital.» «» Article 24. Compensation of losses.


1 if the algebraic sum referred to in the preceding article proves negative, the amount may be offset by the cooperative the positive intact quotas of the tax periods that concluded in seven immediate and successive years.


2. this procedure replaces carryforwards compensation envisaged in article 23 of the law of corporation tax which, therefore, does not apply to cooperatives.»


«(Artículo 36.b) exemption of corporate tax in the terms established in the fifteenth chapter of title VIII of the tax law on societies. "


3 groups of cooperative societies may be taxed on basis of statement consolidated in accordance with the provisions of the Royal Decree 1345 / 1992, of November 6, whereby the rules for adaptation of the provisions regulating the taxation on profit consolidated groups of cooperative societies.


4. is added a new additional provision fifth in law 20/1990 of 19 December, on the tax regime of cooperatives with the following wording: «Not be considered heritage increases obtained as a result of the asset allocation of property and rights of the agricultural chambers, which have taken place from January 1, 1994.»


Third final provision. Integration and compensation of yields implied by the tax on the income of physical persons.


The last paragraph of the letter to) of paragraph 2 of article 37 of the law 18/1991 of June 6, the tax on the income of the physical persons, is worded in the following terms: «the computation, integration and compensation implied yields is practiced according to the following rules: 1st the computation of each performance will be individually for each title or active.»


2nd positive implied yields will be integrated into the taxable income of the tax.


3rd do not proceed the integration of implicit negative yields.


4th accessories costs of acquisition and disposition will be computed for the quantification of the performance, as long as they are adequately justified.'


Fourth final provision. Changes in the fiscal transparency regime.


1. Article 52 of the law 18/1991, of June 6, the tax on the income of physical persons, will be drafted in the following way: «article 52. Regime of transparency.


Members resident in Spanish territory be integrated into their taxable income taxable income imputed by the societies referred to in article 75 of the law of corporation tax-transparent.


Provisions of article 75.3 of the law of corporation tax, 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 apply provisions of the third subparagraph of paragraph 1 of article 37 of this law.'


2. Article 53 of the law 18/1991, of June 6, the tax on the income of physical persons, will be drafted in the following way: «article 53. Allocation of other concepts. Members resident in Spanish territory of transparent societies are entitled to imputation: a) of deductions and allowances in the share to which the society is entitled. The bases of the deductions and allowances will be integrated in the liquidation of the partners, 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."


3. Article 55 of the law 18/1991, of June 6, the tax on the income of physical persons, will be drafted in the following way: «article 55. Individualisation of income.



One. The imputation of taxable positive societies referred to in the letters to)) and (c) of paragraph 1 of article 75 of law 43/1995, of the tax, shall be subject to the same rules laid down in this law for the individualization of the income from the capital.


Two. (La imputación de bases imponibles positivas de las sociedades a que se refiere la letra b) (1) of article 75 of law 43/1995, of the tax, shall be made to those who have the status of partner of the same, although the ownership of the values was common. "


4. Article 100 of the law 18/1991, of June 6, the tax on the income of physical persons, shall be drafted in the following way: «article 100. Return of trade.


One. When the sum of the amounts withheld at source, the entered account and the fees paid by the companies subject to the system of fiscal transparency exceeds the amount of the resulting share of the autoliquidación, the tax administration shall be bound to practice provisional liquidation within six months from the end of the period for the submission of the Declaration.


Two. When the resulting provisional liquidation fee is less than the sum of quantities actually retained, made payments and amounts charged in respect of fees paid by the companies subject to the system of fiscal transparency, the tax administration shall ex officio, within the period of one month, return excess entered on the quoted fee.


3. If the provisional liquidation had not practiced in the six months period established in paragraph one above, the tax administration shall return ex officio, in the following month, the excess entered on the autoliquidada share, without prejudice to subsequent provisional liquidations resulting from practice.


Four. After the deadline to make the return without having taken place is, the taxable person may request in writing that you are paid interest on arrears in the form provided for in article 45 of the text of the General budget law, approved by Royal Legislative Decree 1091 / 1988, of 23 September.


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


Fifth final provision. Changes in the obligation to contribute real.


The articles of the law 18/1991 of June 6, from the tax on the income of the physical persons, which are listed below, are amended as follows: 1. Article 17.


Article 17 shall be worded as follows: «article 17. Cases of exemption.


Exempt the following income: a) interests and heritage increases derived from property, obtained without mediation of permanent establishment, by physical persons resident in another Member State of the European Union.


The provisions of the preceding paragraph shall not apply, to the heritage increases arising from the transmission of shares, participations or other rights in an entity in the following cases: to ') when the asset of this Organization consist mainly, directly or indirectly, real estate situated in Spanish territory.


(b') when, at some point, during the period of twelve months preceding to the transmission, the taxpayer, spouse or people linked to him by kinship to the third degree inclusive have participated, directly or indirectly, at least 25 per 100 of the capital or assets of that entity.


(b) interest and derivatives debt heritage increases, obtained by non-resident individuals without mediation of permanent establishment in Spain.


In no event shall apply provisions of letters a) and b), interests or heritage increases obtained through countries or territories according to the rules determined by its character of tax havens.


(c) the income from capital and heritage increases arising from securities issued in Spain by natural persons or legal nonresidents without mediation of permanent settlement, anyone who is the place of residence of the financial institutions that act as agents of payment or medien in the emission or transmission of values.


However, when the holder of the securities a resident entity or a permanent establishment in Spain, yields and increases of assets referred to in the preceding paragraph shall be subject to this tax and, where appropriate, to the system of withholding tax, to be practiced by the resident financial institution acting as depository of values.


(d) yields "accounts non-residents", which has been satisfied to individuals not resident in Spanish territory, unless the payment is made to a permanent establishment by the Bank of Spain, banks, saving banks, Cajas Rurales, cooperative credit and other registered entities.


(e) yields or increments heritage obtained in Spanish territory, without mediation of permanent establishment therein, from the lease, disposal or transfer of containers and ships and aircraft bareboat, used for international maritime or air navigation."


2. Article 19.


Paragraphs one and three article 19 shall be drawn up as follows: «article 19. Tax fee.


One. To certain taxable according to the preceding article, shall apply to the following types of assessment: to) as a general rule, 25 per 100.


(b) in the case of increments of heritage, 35 per 100.


For transmissions of immovable property situated in Spain by non-resident taxable persons acting without a permanent establishment, the purchaser will be obliged to retain and enter 10 per 100, or to make entry into account, of the agreed consideration, in respect of payment of the tax to those.


Provisions of the preceding paragraph shall not apply in the case of immovable property acquired more than twenty years prior to the date of transmission and who has not been subject to improvements during that time.


(c) pensions and passive assets that do not exceed the annual amount of 1,600,000 pesetas, perceived by people resident in Spain, what ever the person who generated the right to their perception, are not taxed at the rate of 8 per 100.


«(d) yields the work of individuals not resident in Spanish territory, always non-taxable persons by obligation to contribute personnel, who provide their services in the diplomatic missions and consular representations of Spain abroad, when not appropriate specific rules derived from international treaties to which Spain is a party, is charged to 8 per 100.»


«Three. Payer of yields, earned without mediation of permanent accommodation for non-resident taxpayers, or the depositary, or Manager of the property or rights of taxpayers not residents, not affected to a permanent establishment, liable severally income tax debts for yields that has satisfied or income from property or rights whose deposit or management has mandated.


Not mean that a person or entity pays a performance when he sticks to make a simple means of payment. It means by simple means of payment, the payment of an amount, account and order of a third party.


For payer of income earned without mediation of permanent settlement by non-resident taxable persons, the joint and several liability of the income of the tax debt is callable without requiring prior administrative act of derivation of liability actions of the tax administration referred to in paragraph 4 of article 37 of the General tax law, and may, for this purpose, understood directly with responsible for solidarity.


In the case of the receiver or Manager of the property or rights of non-resident taxpayers not affected to a permanent establishment, joint and several liability shall be required in the terms provided for in paragraph 4 of article 37 of the General tax law.


(Si la retención a que se refiere el párrafo segundo de la letra b) of paragraph one of this article has been entered, transferred assets will be subject to the payment of the tax. "


3. Article 22 shall be worded as follows: «article 22. Representative of non-residents and fiscal domicile.


One. Taxable persons not resident in Spanish territory will be required to appoint a person or legal entity with residence in Spain, to represent them before the Administration in relation to its obligations by this tax, when they operate through a permanent establishment, in the cases referred to in article 18.2, or when, because of the amount and characteristics of income obtained in Spanish territory by the taxable person required by the tax administration.


The taxpayer or his representative shall be obliged to inform the tax administration the appointment, duly accredited, in the period of two months from the date thereof.


The designation shall be communicated to the delegation of the State Agency for tax administration which has of filing a tax return, indicated communication accompanying the express acceptance of the representative.



Two. Permanent establishments representatives who appear as such in the commercial register or, failing that, who are entitled to contract on behalf of them will be considered. When these people were not resident in Spanish territory, shall apply the provisions of the preceding paragraph.


3. Failure to comply with the obligations referred to in paragraph 1 shall constitute a tax offense simple, punishable by a fine of 25,000 to 2,000,000 pesetas.


Four. Taxable persons resident abroad will have their fiscal domicile, for the purpose of compliance with their tax obligations in Spain: to) when they operate in Spain through a permanent establishment in the place where the effective administrative management and direction of their businesses in Spain, applying them, insofar as they are relevant, the rules relating to the entities resident in Spanish territory.


(b) in the case of real estate rents, at the place of location of the corresponding property.


(c) in other cases, the fiscal domicile of the solidarity responsible or, where appropriate, of the representative."


4 article 45, paragraph 4, shall be worded as follows: «article 45. Amount of increases or decreases. General rule.


Four. In the case of fully paid-up shares, will be considered the same seniority which correspond to the actions which come from."


5 article 48, paragraph one, letter to), last paragraph, shall be worded as follows: «article 48. Specific rules.


In the case of partially paid-up shares, acquisition cost is the amount actually paid by the taxable person. In the case of fully paid-up shares, the purchase price of these both of that coming will be distribute the cost between the number of titles, both the ancient as the released corresponding.»


(6 Article 48, paragraph one, letter b), last paragraph, shall be worded as follows: «article 48. Specific rules.


In the case of partially paid-up shares, acquisition cost is the amount actually paid by the taxable person. In the case of fully paid-up shares, the purchase price of these both of that coming will be distribute the cost between the number of titles, both the ancient as the released corresponding.»


Sixth final provision. Integration of taxes on corporations and physical persons income.


1. the article 37.1 of the law 18/1991, of June 6, the tax on the income of physical persons, shall be worded as follows: ' 1. yields obtained by participation in own funds of any type of entity. "


Dividends, premiums of attendance at meetings and shares in the profits of corporations or associations as well as any other perceived utility of an entity pursuant to the status of partner, shareholder or partner, are included within this category. Also include income from any kind of assets, 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 a society or association other than the remuneration of work because.


A_efectos_de integration into the tax base, the returns referred to in the previous paragraphs, as soon as they come from societies, associations or entities resident in Spanish territory are multiplied by the following percentages: a) 140 per 100 in General.


(b) 125 per 100 when they come from the entities referred to in article 26.2 of the tax law on societies.


(c) 100 by 100 when they come from the entities referred to in article 26.5 and 6 the tax law on societies and cooperatives protected and specially protected, regulated by law 20/1990, of 20 December, and the reduction of capital with repayment of contributions."


2 article 78, seven, to), law 18/1991 of June 6, the tax on the income of physical persons, shall be drafted in the following way: «seven. Other deductions: a) the percentages listed below in the case of the returns referred to in the fourth subparagraph of paragraph 1 of article 37 and the part of imputed tax base of an open society that corresponds to those yields:-40 per 100 in General.


-25 by 100 when they come from the entities referred to in article 26.2 of the tax law on societies.


-0 for 100 when they come from the entities referred to in article 26.5 and 6 of the tax law on societies and cooperatives protected and specially protected, regulated by law 20/1990, of 20 December, and reduction of capital with repayment of contributions.


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


The deduction for double taxation for returns of cooperatives protected and specially protected, regulated by law 20/1990, of 20 December, will attend to the provisions of article 32 of this law.»


3. dividends or shares in profits to income subsidized as laid down in article 2 of law 22/1993, of 29 December, or article 19 of the Foral law 12/1993, of 15 November, of Navarre, in the fifth additional provision of law 19/1994, of 6 July , or come from entities to which applies the exemption provided for in statutory standards 5/1993, 24 June, Vizcaya; (11/1993, 26 June, Guipúzcoa, and 18/1993, of 5 July, Alava, will not give right to the deduction provided for in article 78, seven, to), the law 18/1991 of June 6, the tax on the income of natural persons. In the taxable income of the tax will be 100 per 100 of such dividends and interest benefits.


In case of distribution of reserves by the entities referred to in the previous paragraph, you attend the designation contained in the social agreement, understanding is applied the first amounts paid to such reservations.


Seventh final disposition. Modification of law 19/1991 of June 6, the wealth tax.


Article 6 of law 19/1991, of June 6, the wealth tax, shall be worded as follows: «article 6. Representatives of the non-resident taxable persons in Spain.


One. Taxable persons not resident in Spanish territory will be required to appoint a person or legal entity resident in Spain to represent him before the tax in relation to their obligations by tax administration, when they operate through a permanent establishment or when the amount and characteristics of the assets of the taxable person located in Spanish territory required by the tax administration.


The taxpayer or his representative shall be obliged to inform the tax administration the appointment, duly accredited, in the period of two months from the date thereof.


Two. Failure to comply with the obligations referred to in paragraph one shall be a tax offense simple, punishable by a fine of 25,000 to 1,000,000 pesetas.


3. In any case, the depositary or Manager of the property or rights of non-residents it will respond jointly and severally the income in the tax debt owed to this tax for goods or rights deposited or whose management is entrusted under the terms provided in paragraph 4 of article 37 of the General tax law.


Disposal the eighth. International fiscal transparency of the tax on the income of physical persons.


Article 2, paragraph one, letter a), of the law 42/1994 of 30 December, measures fiscal, administrative and Social order, is worded in the following terms: "one. Subject by personal obligation of contributing natural persons be included in its taxable positive income obtained by an entity not resident in territory Spanish, 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 the law of corporation tax , or with natural persons subject by personal obligation to contribute United by ties of kinship in the direct or collateral, inbred line or by affinity up to the second degree inclusive, have a share equal to or exceeding 50 per 100 in the capital, own funds, results or voting rights of the entity not resident in territory Spanish, on the date of the closing of the fiscal 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, the equity or voting rights.»


Ninth final disposition. Qualifications to the General State budget Act.


1 the General State budget Act may: to) modify the types of assessment.


(b) modify the quantitative limits and fixed percentages.


(c) modify the exemptions.


(d) modify determining the obligation to contribute real circumstances.



(e) modify the regime of transparent societies.


(f) introduce and modify the precise rules to meet the obligations of the Treaty on European Union and of the right arising from the same.


(g) amend the tax management and procedural aspects.


(h) change the deadlines for submission of statements.


(i) establish the coefficients to apply as provided in article 15.11 of this law.


2. the law of the State budget will establish relevant in relation to this tax fiscal incentives, when he is so suitable for the implementation of economic policy. In particular, the investment will stimulate through the total tax deductions based on the acquisition of new tangible elements.


Tenth final disposition. Enabling legislation.


The Government will dictate how many provisions are necessary for the development and implementation of this law.


Eleventh final disposition. Entry into force.


This law shall enter into force on January 1, 1996 and applies to the tax periods starting from the date expressed.


Therefore, command to all Spaniards, private individuals and authorities which have and will keep this law.


Madrid, 27 December 1995.


JUAN CARLOS R.


The President of the Government, FELIPE GONZÁLEZ MÁRQUEZ

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