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Royal Decree 1841 / 1991 Of 30 December, Which Approves The Regulation Of The Tax On Physical Persons Income And Other Tax Rules Are Modified.

Original Language Title: Real Decreto 1841/1991, de 30 de diciembre, por el que se aprueba el Reglamento del Impuesto sobre la Renta de las Personas Físicas y se modifican otras normas tributarias.

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TEXT

I

Law 18/1991, of June 6, of the Tax on the Income of Physical Persons, has not intended to create, as its Preamble points out, a new and radically different tribute from the current one until December 31, 1991. However, this does not mean that the new law has not dealt with the regulation of certain issues with a different approach to that of its predecessor, or that it has been limited to a mere reproduction of precepts. On the contrary, the Law of 6 June 1991 has sought to respond to the needs that time, social changes and the international environment have imposed.

To this end, along with modifications of perfectly known institutes since 1979, it has introduced important new and formal news, with the aim, among others, to simplify the tax. In this sense, the precise regulation of certain issues should be highlighted, which, although it is true-and the Law itself recognizes it-contributes to its extension, it is undoubtedly in a significant legal security effect.

This Royal Decree is structured into four articles, three additional provisions and two endings.

II

The first of the articles approves the Income Tax Regulation of the Physical Persons.

The rules contained in the Tax Regulation are based both on the specific referrals that the Tax Law itself makes to such a provision, and on the general enablement contained in the provision. The third final of Law 18/1991 of 6 June 1991 and the last paragraph of the third final provision of Law 61/1978 of 27 December 1978 on the Tax on Societies. Hence the issues developed by the new Regulation can be grouped into two fields.

First, the regulation of certain issues in which the Tax Law was expressly referred to this rule is addressed. These include: differentiation between business or professional assets and, in particular, the conditions for the exemption of certain literary, artistic or scientific awards; allowances and allowances for travel expenses other than lien; the requirements to be met in the exemption for reinvestment of the usual dwelling; the complete regulation of the objective estimate, which is structured in two modalities: one of signs, indexes or modules and another, of coefficients; the systematization of payments to account, distinguishing between holds, income to account and payments fractious or the regulation of certain aspects of the actual obligation to contribute, which will also be applicable to the liability taxable persons.

Secondly, and taking into account its traditional role, it completes the legal standard in those issues where greater regulatory accuracy has been believed. These include: the accuracy of the exception to the consideration of remuneration in kind provided for in Article 26 (g) of the Law; the definition of urban goods and the specification of their deductible expenses; legal complementation of the rule of temporary imputation of income and expenses; the precise definition of the concepts of habitual housing, accounts housing and housing acquisition or some aspects of the management of the tax.

To this end, the Regulation, in its structure (titles, chapters, sections and sub-sections), has sought to accommodate, for simplicity and as far as possible, the systematic of the Law, so that its articles, reproducing the It is only when it is essential, which is the case, in the case of new institutes, that it is a regulation of minimum standards, that is, that of a genuine development regulation.

Throughout its 75 articles, two additional provisions, five transitional and one final, aims to close the tax framework, offering timely solutions to cases also punctual.

The second article of the Royal Decree amends Articles 8 and 9 of Royal Decree 1041/1990 of 27 July, which regulates the census statements to be presented for tax purposes by employers, professional and other tax authorities, for the sole purpose of collecting the circumstances of the taxable person in relation to the simplified special scheme of value added tax and the new objective estimate.

The third article of the Royal Decree amends Article 2. of Royal Decree 2402/1985 of 18 December 1985, which regulates the duty to issue and deliver an invoice for businessmen and professionals, in order to facilitate the introduction, with the least formal obstacles, of the new system of the simplified special scheme and the objective estimation.

Finally, Article 4 (4) gives new wording to Articles 67, 93 to 103, 142, 145, 152 and 172 of the Value Added Tax Regulation, adopted by Royal Decree No 2028/1985 of 30 October 1985, thereby achieving party, to fulfill an aspiration of the Law of the Income Tax of the Physical Persons, the coordination between the objective estimate and the simplified special regime of the Tax on the Added Value and, moreover, to unify, now so much in the field of the simplified scheme as in that of the surcharge of equivalence, the subjects to whom it will be application.

All of the above is complete with three additional provisions and two final provisions.

In its virtue, on the proposal of the Minister of Economy and Finance, in accordance with the opinion of the Council of State and after deliberation of the Council of Ministers at its meeting on 27 December 1991,

DISPONGO:

Article 1. º Approval of the Income Tax Regulation of the Physical Persons.

The Income Tax Regulation of the Physical Persons listed as an annex to this Royal Decree is approved.

Article 2. Amendment of Articles 8. º and 9. of Royal Decree 1041/1990 of 27 July.

As of 1 January 1992, Articles 8 and 9 of Royal Decree 1041/1990 of 27 July 1990 regulating the census statements to be submitted for tax purposes by employers, professionals and others Tax authorities shall be drawn up as follows:

" Article 8. Tax Situations.

1. The following data shall also be found in the census of professional employers or retainers:

(a) The condition of the exempt Entity, for the purposes of the Company Tax, in accordance with Article 5. of the Law of this Tax.

(b) The subjection of the tax obligation to the special scheme of the equivalence surcharge for value added tax purposes.

(c) The waiver of the simplified special scheme or the special scheme for agriculture, livestock and fisheries, in the Value Added Tax.

d) The waiver of the objective estimation method in the Income Tax of the Physical Persons.

2. This census shall be formed in conjunction with the Register of Exporters referred to in Article 85 (4) of the Value Added Tax Regulation, including the consideration of the tax obligation as an exporter to effects of this tax.

Article 9. º Declaration of commencement.

1. Employers or professionals who are to start in Spanish territory the exercise of one or more business or professional activities shall submit a declaration of discharge in the census.

2. Legal persons or entities which, without being entrepreneurs or professionals, satisfy, pay or owe income from work, capital or professional, artistic or sporting activities, subject to retention, shall submit, also, a declaration of discharge in the census.

3. This declaration will allow the tax authorities to communicate the data collected in both Articles 4 and 7, as in the first paragraph of Article 8. of this Royal Decree.

4. This initial declaration will also serve the following purposes:

a) Request the allocation of the tax identification number, if not already available from it.

(b) Submit the prior declaration at the beginning of the operations referred to in Article 46 (2) of the Value Added Tax Act.

c) Give up the method of objective estimation in the Income Tax of the Physical Persons or the simplified special regimes or of the Agriculture, Livestock and Fishing of the Value Added Tax.

5. This declaration must be submitted before the start of the relevant activities or at the birth of the obligation to retain on the returns that are satisfied, paid or due.

For the purposes of this Royal Decree, the commencement of a business or professional activity shall be deemed to be the beginning of any delivery, performance or acquisition of goods and services. charges or payments or contracts for employment, in order to intervene immediately or in the future in the production or distribution of goods or services. "

Article 3. Amendment of Article 2. of Royal Decree 2402/1985 of 18 December.

As of 1 January 1992, Article 2. of Royal Decree 2402/1985 of 18 December, which regulates the duty to issue and deliver an invoice for employers and professionals, shall be worded as follows:

" Article 2. º

1. Employers and professionals are obliged to issue and deliver an invoice for each of the operations they carry out and to keep a copy or matrix of the same, even in the cases of self-consumption in the Value Added Tax. This duty is even for employers or professionals who are covered by the simplified value added tax regime or the objective estimation scheme in the Income Tax of the Physical Persons.

2. The entire supply of goods and services provided by employers or professionals in the development of their business must be invoiced in full.

The operations listed below are excepted from the provisions of the preceding paragraph, in cases where the addressees do not require the delivery of a complete invoice in order to be able to carry out the corresponding minorations or deductions on the basis or in the quota of those taxes of which they are taxable persons:

(a) Those made by taxable persons of the Value Added Tax to which the Equivalence Surcharge regime applies.

(b) The transactions exempt from the value added tax, in accordance with the provisions of Article 8. of its regulatory law, except those referred to in points 2, 3, 3, 4, 5, 5 and 15 of the first paragraph of the said Regulation. Article.

c) The use of toll motorways.

(d) Those which, with reference to particular business or professional sectors or undertakings, authorise the competent authority of the tax administration, in order to avoid disturbances in the development of activities economic operators and professionals.

e) Those made by taxable persons of the Income Tax of the Physical Persons in the exercise of activities that are in the regime of objective estimation by signs, indices or modules.

(f) Those made by taxable persons of the Value Added Tax in the exercise of activities that are taxed under the simplified special scheme.

3. By way of derogation from the first subparagraph of this Article, operations carried out for the same consignee may be included in a single invoice within the maximum period of one calendar month. '

Article 4. Amendment of the Value Added Tax Regulation.

As of 1 January 1992, Articles 67, 93 to 103, 142, 145, 152 and 172 of the Value Added Tax Regulation, approved by Royal Decree 2028/1985 of 30 October 1985, will be worded as follows:

" Article 67. Scheme of deductions in differentiated activities.

1. Taxable persons who carry out differentiated business or professional activities shall independently apply the deductions scheme in respect of each of them.

However, the option for the application of the special pro rata rule shall have effect in respect of all activities carried out by the taxable person, except those included in the simplified special arrangements, of the agriculture, livestock farming and fishing or the equivalence surcharge.

When acquisitions or imports of goods or services for use in common in several sectors of differentiated activity are carried out, it shall apply as set out in Article 70 (2) and (2) of this Regulation. Regulation to determine the percentage of deduction applicable to the purchase of such goods, taking into account the whole of the business or professional operations carried out by the taxable person.

For the calculation of the percentage referred to in the preceding paragraph, the right to deduct the operations included in the special arrangements for agriculture, livestock and fisheries and the surcharge of the equivalence, as well as the operations covered by the simplified scheme where the percentage of deduction is to be applied to goods other than those covered by Article 98 (7) of this Regulation.

2. For the purposes of the preceding number, differentiated business or professional sectors as defined in Article 6 (3) (3) of the Tax Act shall be considered as distinct sectors.

3. The Administration may discretionally authorise the application of a system of deduction common to the set of differentiated business and professional activities carried out by the same taxable person.

The provisions of the preceding paragraph shall not apply where the taxable person carries out transactions under the simplified special arrangements, in agriculture, in livestock and in fishing or in the charge of equivalence.

The application shall be made to the competent authority of the Tax Administration, and shall be deemed to have been granted, in the absence of an express agreement, where one month has elapsed from the date of the filing of the corresponding request.

Authorization will produce effects in successive years as long as it is not revoked. "

" Article 93. Purpose.

The simplified scheme will have as its object the determination of the amount of the value added tax and, where appropriate, the surcharge of equivalence to be entered by the taxable person during each of the years. natural conditions in which the special scheme is applicable, in relation to the sectors of its activity covered by this scheme.

Article 94. Subjective extension.

Tax taxable persons who meet the following requirements shall be taxed by the simplified scheme:

1. Other than natural persons or entities in the system of income allocation in the income tax of natural persons, provided that, in the latter case, all of its members, heirs, community members or members are persons physical.

The application of the simplified special regime to the Entities referred to in the preceding paragraph shall be made regardless of the circumstances that are individually present in the latter.

2. Do with any of the economic activities described in Article 97 of this Regulation.

3. Do not waive the application of the objective estimation method by signs, indices or modules of the Income Tax of the Physical Persons.

4. º that its volume of operations, during the calendar year immediately preceding, had not exceeded fifty million pesetas for all its business or professional activities not subject to the application of the method of objective estimation by signs, indices or modules of the Income Tax of the Physical Persons.

This limit does not affect the activities that are subject to the application of the latter method.

If the calendar year immediately preceding was the start of the activity, the amount of the volume of operations held therein shall be raised per year.

This limit will not be taken into account in the first year of the activity.

5. Do not give up the same, without prejudice to the third subparagraph of the number two of the fifth transitional provision of Law 29/1991 of 16 December 1991 on the adequacy of certain tax concepts Directives and Regulations of the European Communities.

Article 95. Waiver of the simplified scheme.

1. The waiver shall be made during the month of December preceding the beginning of the calendar year in which it is to take effect.

Such a waiver may refer to the activities of the activities of paragraphs 1. 1 or 2. of Article 97 of this Regulation, but where it relates to those in paragraph 1. the effects of such a waiver shall be extended to all activities the taxable person eligible for the simplified scheme.

2. The waiver shall take effect for a period of at least three years and shall be deemed to be tacitly extended for each of the following years in which the simplified scheme may apply, unless it is revoked within the time limit laid down in the previous.

3. The waiver and its revocation will be carried out in accordance with the provisions of Royal Decree 1041/1990 of 27 July 1990, which regulates the census statements to be submitted, for tax purposes, for employers, professionals and other tax authorities.

4. In the event of the start of activity, the waiver of the simplified special scheme shall be made as provided for in the preceding number.

5. The waiver of the special scheme simplified by the Entities under the attribution scheme shall be made by all the partners, heirs, community members or members.

Article 96. Exclusion from the simplified scheme.

1. The following are the determining circumstances of the exclusion of the simplified scheme:

1. º Haber exceeded the limit of operations provided for in Article 94 (4) of this Regulation.

2. The waiver of the simplified regime, in the terms provided for in Article 95 above.

3. The cessation of the business activity or sector thereof to which the simplified scheme is applicable.

4. ° Regulatory alteration of the objective scope of application of the simplified scheme determining the non-application of that special scheme to the economic activities carried out by the taxable person.

5. º Haber renounced the application of the objective estimation method by signs, indices or modules of the Income Tax of the Physical Persons.

2. The circumstances referred to in paragraphs 1, 2, 2 and 5 of the preceding number 1 shall produce effects in the immediate year after the year in which they occur or, where appropriate, the request for resignation is submitted.

The cessation of the activity shall determine the exclusion of the simplified scheme from the day following that in which it takes place.

3. Where the circumstance referred to in paragraph 1 (1) of this Article is concerned, the taxable person shall communicate it to the Administration in accordance with the procedure laid down in Royal Decree 1041/1990 of 27 July 1990.

The tax authorities may automatically exclude those taxable persons who have incurred the circumstance referred to in the preceding paragraph. The exclusion shall be notified to the taxable person.

4. If the Tax Inspectorate finds, as a result of the actions of verification or investigation of the taxable situation of the taxable person, the existence of circumstances determining the exclusion of the simplified scheme, it shall proceed to the appropriate regularisation of the same in general.

Article 97. Objective scope.

1. The simplified scheme shall apply in respect of each of the sectors of activity, in isolation considered, as follows:

1. No. Those included in the mode of signs, indices or modules of the objective estimation method of the Income Tax of the Physical Persons, except those to which any other of the regimes were applicable Special provisions of Title V of this Regulation.

2. The following are the following:

Economic Activity Tax Pool, Group or Heading

969.6

Economic Activity

012

Intensive exploitation of breeding cattle

013

Intensive Exploitation of Bait cattle.

022

Intensive exploitation of breeding sheep

023

Exploitation Bait sheep intensive.

032

Intensive exploitation of breeding pigs

033

Intensive exploitation of bait pigs.

041

Put Alog.

042.2

Chicken production for meat

162

Manufacturing ice for sale

231.2 and 3

Extraction building materials (rocks, whiteboards, sands, and gravas)

241

Manufacture of cooked land products for construction (except refractory items)

242.3

Manufacture of scales and casts.

242.3 and 4

Manufacturing of other articles derived from cement

244

Natural Stone Industries

246.5

Glass Manipulated.

247.2

Manufacture of paving tiles or unvarnished coatings or enameling.

247.4

Manufacture of dishware, household goods, and ornaments, of material ceramic.

253.3 and 4

Manufacture of paints, varnishes, lacquers, and printing inks.

255.1

Manufacture of remoteness.

255.2

Manufacture of soaps toiletries and other perfumery and cosmetic products

255.9

Manufacture of other inks.

311.1

Casting of iron parts.

314

Manufacture of structural metal products

316.1

Manufacture of manual tools.

316.2 and 3

Manufacture of hardware and locksmith items

319.9

Welding workshops for the public.

32

Building machinery and mechanical equipment

362

Construction of bodies, trailers, and flips

363

Manufacture of equipment, components, accessories, and spare parts for automobiles

383.5

Construction of accessories, parts, and parts of bicycles and motorcycles

411.2

Manufacturing of olive oil

413.2

Manufacture of meat products of all classes

414.3

Manufacture of cheeses.

414.4

Making ice-cream and the like

415.1

Manufacturing preserved vegetables

417.2

Manufacture of other milling products

419

Bread industries, bolleria, pastry, and cookies.

421

Cocoa industry, chocolate, and confectionery products.

423.1

Coffee Making.

423.9

Making crisps and other products for snacks and ice cream that do not contain milk

425.1

Making common wines

428.2

Manufacture of gaseous and other beverages analcoholic.

431.3

Fabric Manufacturing.

432.3

433.4

439.3

435

436

436

441.1

Curtition of hides and skins.

442.1

Manufacture of items

451.2 and 3

Manufacture of footwear, except rubber and wood

452

453

Garment of all class of garments and their add-ons

454

Custom Garment and its Add-ons

456.1

Natural fur.

Wood serrated for account

463

A series of carpentry parts, parks, and wooden structures for construction

464

Manufacture of packaging and packaging wood

465

Manufacture of various wooden objects (except furniture)

468.1

Manufacture of wood furniture for home

468.5

Activities annexed to the furniture industry (finished, varnished, upholstered, gilded, etc.

473

Paper and cardboard transformation

474.1

Printing of texts or images by any procedure or system

475.4

Encuaderation.

481.2

Recauchuting and rebuilding covers

482

Transformation of plastic materials.

491.2

Manufacture of jewelry items.

493.2 and 3

License Plates and Movies, Copies, and photo extensions

501.3

small build jobs in general

504.1

Power installations in general

504.2

Plumbing installations.

504.3

Cold installations, air conditioning and heat

504.4 and 7

Pararray installations, telephone, radio and television telegraphs, in buildings and constructs of any class

504.6

Assembly and installation of elevators of any class and type.

505

Finishing of works.

617.3

Wholesale trade of woods of all classes

62

Recovery of products.

642.1, 2, and 3

Making charcuteria products.

671.3

Services in kiosks, drawers, barracks, or others Similar premises, located in markets or places of supply, outdoors on public roads or gardens

676

Services in chocolate shops, ice cream and horbershops.

681

Hosting services in hotels and motels of three, two, and one star.

682

Hosting service in hostels and pensions

683

Service lodging in fondas and guesthouses

687

Tourist fields

691

Repair of household electrical items, motor vehicles, and other consumer goods

692

Industrial Machinery Repair.

699

Machine repair of all classes

721.1

Collective passenger transport by urban paths.

721.3

Collective road passenger transport

722

Road Freight Transport

751.1

Exploitation of car parks.

854

Car rental without driver

911

Gardening works

922

Cleaning Services.

933.1

Terrestrial vehicle driving education

945

Veterinary consultations and clinics

963.1

Display of movie movies and videos in movie theaters

963.2

Exhibition of film and outdoor videos

967.2

Sport perfecting schools and services

969.1

969.5

969.5

969.5

Recreational and gaming salons

971.1

Ink, dry cleaning, washing, and ironing of clothes and garments and used household items

972

Hairdressing salons and beauty institutes.

973.1

Services Photo graphics with open studio to the public

973.3

Document Copy Services with Coping Machines.

979.1

Funeral pomp services.

Chicken Fattening Service for Employed Meat

Porcine cattle fattening service for an employed person

2. The Ministerial Orders which approve the indices or modules applicable to the sectors referred to in paragraph 2. of the preceding number 1 shall not include those which, pursuant to the provisions of the Income Tax rules, are not applicable. Natural persons have been incorporated in the same into the mode of signs, indices or modules of the objective estimation method, in respect of which the net taxable income in the Income Tax and the Fees payable in the Value Added Tax.

3. The determination of the economic operations included in each of the sectors of activity referred to in Article 1 of this Article shall be carried out in accordance with the rules governing the tax on economic activities, in so far as are applicable.

Article 98. Content of the simplified scheme.

1. The taxable persons shall determine, with reference to each sector of activity to which this special scheme applies, the amount of the quotas to be entered in the value added tax and the equivalence surcharge.

2. The determination of the quotas referred to in the preceding number shall be made by the taxable person himself, by imputation to his economic activity of the indices or modules which, with specific reference to each sector of activity and for the period The Minister for Economic Affairs and Finance would have set a corresponding annual time.

The Ministerial Order under which the modules or indices applicable to each sector of activity are set for a given period shall contain the instructions necessary for their proper computation.

3. The initial allocation shall be made by the taxable person on the basis of the data prevailing at the beginning of each annual period of application of the special scheme, without prejudice to its regularisation in accordance with the provisions of the corresponding Ministerial Orders.

If, as a result of the regularisation referred to in the preceding paragraph, an amount is lower than that determined by the initial allocation of the indices or modules, the taxable person may apply for the return of the difference in the form provided for in Article 84 (2) of this Regulation.

4. In the case of initiation after 1 January or cessation before 31 December in the economic operations of a sector of the activity covered by this special scheme, the data used as the basis for determining the indices or modules shall be calculated in proportion to the period of time in which such an activity sector has been exercised by the taxable person during the calendar year concerned.

Season activities will be governed by the corresponding Ministerial Order.

5. Where the development of business activities to which the simplified scheme applies is affected by fires, floods or other exceptional circumstances affecting a particular sector or area, the Minister of State The economy and the Treasury may, by way of exception, authorise the reduction of indices or modules.

When the development of business activities to which the simplified scheme is applied is affected by fires, floods, sinks or major breakdowns in the industrial equipment involving alterations (a) serious in the development of the activity, the persons concerned shall bring it to the attention of the competent authority of the tax administration within 30 days from the date on which they are produced, providing the evidence they consider appropriate. The effectiveness of such alterations shall be accredited, the reduction of the relevant indices or modules shall be authorised.

6. Any taxable person who has incurred in default or is a distortion of the indices or modules referred to in the preceding number 2 shall be obliged to pay the total tax contributions resulting from the application of the simplified scheme, with the penalties and interest for late payment.

7. The following operations shall be excluded from the simplified scheme:

1. The imports of goods.

2. Intangible fixed assets, ships and fixed assets.

Value Added Tax, which is satisfied or incurred in the acquisition or import of the goods referred to in paragraph 2. above, shall be deductible in accordance with the provisions of Title IV of this Regulation.

Art. 99. Revenue-based reporting.

The taxable persons covered by the simplified scheme will be admitted to the public treasury, in respect of the activities to which the special scheme is concerned, a quarter of the amount of the quotas to be entered, determined in accordance with the provisions of the previous Article, during the time limits and in the form laid down in Article 101 of this Regulation.

Article 100. Formal obligations.

1. Taxable persons under this scheme shall not be required to carry accounting records in relation to the value added tax.

Except as provided in the preceding paragraph:

(a) Employers carrying out other activities to which the special arrangements for agriculture, farming and fishing or the special arrangements for the surcharge of equivalence apply, who shall carry the Book Register of invoices received, with due separation the invoices corresponding to acquisitions corresponding to each distinct sector of activity, even those concerning the simplified regime.

(b) Employers who undertake other activities to which the general tax regime or any other special scheme of the same, other than those referred to in (a) above, shall apply; comply with them with the formal obligations laid down in general or specific in this Regulation. In any event, invoices relating to acquisitions corresponding to activities to which the simplified scheme is applicable should be entered in the Register of invoices received with due separation.

2. The taxable persons covered by this scheme shall keep the supporting documents for the indices or modules applied in accordance with what, if any, provides for the Ministerial Order to approve them.

3. The obligation to issue an invoice and to keep a copy of the invoice shall be required only if the acquirer acts as an employer or a professional. In this case, the invoices must comply with the requirements laid down in regulation.

4. Also, taxable persons shall keep invoices received from suppliers numbered by order of dates and grouped by quarter.

Article 101. Statements-settlements.

1. The taxable persons covered by the simplified scheme shall submit four statements-settlements in accordance with the specific model determined by the Minister for Economic Affairs and Finance.

2. The first calendar days of April, July and October shall be submitted for the first twenty calendar days of the month of April, July and October.

The final declaration-settlement must be filed during the first thirty calendar days of January of the year after.

Article 102. Approval of indexes or modules.

1. It is up to the Minister for Economic Affairs and Finance to approve the indices or modules for determining the tax quotas under the simplified scheme.

2. The Ministerial Order or Orders may refer to a period of time exceeding the year, in which case the method of calculating the tax quotas for each of the years covered shall be determined separately.

3. The Ministerial Orders shall be published in the "Official State Gazette" before 1 December preceding the beginning of the corresponding annual period of application.

Article 103. Determining the volume of operations.

1. For the purposes of Articles 93 to 102 of this Regulation, the total amount, excluding the value added tax and the equivalence surcharge, for the supply of goods and goods shall be understood by volume of transactions. services provided by the taxable person during the calendar year, including those exempted or not subject to the tax.

The operations corresponding to the activities to which the objective estimation method is applied shall not be computed for the purposes of the preceding paragraph by means of signs, indices or modules of the Tax on the Income of the Physical Persons.

2. Operations shall be understood to be carried out when the value added tax has been incurred or, where applicable, the value added tax due in accordance with Article 23 of this Regulation.

3. For the purpose of determining the volume of transactions, they shall not be taken into account where they are occasional in relation to those made by the taxable person:

1. The real estate operations. You will have this consideration for real estate deliveries.

2. The financial operations referred to in Article 13 (1) (18) of this Regulation.

3. The deliveries of qualified goods as investment in respect of the transmitte.

For the purposes of the rating of investment goods, the provisions of Article 74 of this Regulation shall apply. "

" Article 142. Special regime of the equivalence surcharge.

1. The special scheme for the surcharge of equivalence shall apply to retail companies which are natural persons or entities in the form of income allocation in the Income Tax of the Physical Persons and to the retail trade. or products of any kind not excepted in number 2 of this article.

The entities under the income allocation regime referred to in the preceding paragraph shall only be subject to this scheme when all their partners, heirs, community members or unit-holders are natural persons.

2. Under no circumstances shall this special scheme be applied in relation to the following items or products:

1. No such persons whose deliveries or imports are applicable to the increased tax rate provided for in Article 29 of the Tax Act.

2. The original art objects, antiques and collectibles defined in Article 122 of this Regulation.

3. The goods that have been used by the taxable person or by third parties prior to their transmission.

4. The appliances for poultry and beekeeping, as well as their accessories.

5. The petroleum products whose manufacture, import or sale is subject to Excise.

6. º Vehicles, their trailers, accessories and spare parts, except bicycles, tricycles, children's cars and armchairs for invalid.

7. Industrial use machinery.

8. º Materials and articles for building buildings or housing estates.

9. Minerals, except coal.

10. º recorded magnetoscopic Cintas.

11. Hirons, steels and other metals and their alloys (not manufactured).

3. In the event that the taxable person to whom this special scheme applies, other business or professional activities which are subject to the value added tax, the retail trade subject to that special scheme it shall in any event be regarded as a distinct sector of economic activity, for the purposes of the scheme of deductions, formal, registered and accounting obligations and other specific features of this scheme, are the deduction percentages applicable in other sectors. "

" Article 145. Equivalence surcharge.

The surcharge of equivalence shall be required in the supply of movable or semi-movable goods which are subject to and not exempt from the value added tax which the employer shall make to the traders referred to in Article 1 (1). 142 of this Regulation, as well as the imports made by them. "

" Article 152. Formal and registration obligations of the special equivalence surcharge scheme.

1. The taxable persons referred to in Article 142 (1) of this Regulation shall be required to prove to their suppliers or, where appropriate, to the Customs Office, whether or not they are subject to the special scheme of the equivalence surcharge in respect of the relationship to the acquisions or imports they perform.

2. For the purposes of the Value Added Tax, retail traders who are eligible for this special scheme shall not be required to carry any of the records referred to in Article 164 of this Regulation.

Liabilities to other activities in different sectors of activity are exempted from the provisions of the preceding paragraph, which shall bear the Book of invoices received as referred to in the Article 166 of this Regulation, with due separation of invoices for each sector of differentiated activity, including those for this special scheme.

3. Such retail traders shall not be obliged to issue sales invoices or other substitute documents corresponding to the transactions carried out by them in the case where the sale to the retailer is made to persons who do not have the consideration of taxable persons in value added tax. "

" Article 172. Clearance of the Tax. General rules.

1. Except as provided for in relation to imports and, where appropriate, with certain special tax arrangements, taxable persons shall themselves be required to make the determination of the tax liability by means of statements-settlements. adjusted to the rules contained in the following numbers.

The obligation laid down in the preceding paragraph shall not apply to taxable persons, employers or professionals, who perform exclusively the transactions exempt from the tax referred to in Article 13 of this Regulation. Regulation.

2. The statements-settlements shall be filed directly or through the Collaborating Entities with the competent authority of the tax administration.

The taxable persons who choose to request the return of the balances in their favour at the end of each calendar year pursuant to Article 84 (2) of this Regulation shall submit the declaration-settlement through the Contributing Entity located in the province corresponding to its tax domicile in which they intend to receive the amount of the refund. Such statements-settlements shall bear the identification labels provided by the tax administration.

Declarations-settlements for which a return is requested in accordance with Article 85 of this Regulation shall be filed with the competent authority of the tax administration.

3. The settlement period shall coincide with the calendar quarter.

However, that settlement period shall coincide with the calendar month in the case of the taxable persons listed below:

1. Those whose volume of operations, calculated in accordance with the provisions of Article 103 of this Regulation, would have exceeded the previous immediate calendar year of one billion pesetas.

2. The persons authorised to request the return of the balances in their favour at the end of each period of liquidation under the provisions of Articles 84, number 3 and 85 of this Regulation, without prejudice to the cases referred to in the third subparagraph of Article 85 (1

.

Dealing with taxable persons who have entered the Register of Exporters pursuant to Article 85 (1), second and third paragraphs of this Regulation, the settlement periods subsequent to that in which the export figure referred to in that Article was exceeded shall coincide with the calendar month.

The provisions of the preceding paragraphs shall apply even if there are no quotas to be returned in favour of taxable persons.

4. The declaration-settlement shall be in accordance with the model which is approved by the Minister for Economic Affairs and Finance for each case and shall be submitted during the first 20 calendar days of the month following the corresponding monthly settlement period or quarterly, as applicable.

However, the statements-settlements listed below must be presented in the special deadlines mentioned:

1. The corresponding to the settlement period of the month of July, during the month of August and the first twenty calendar days of September immediately thereafter.

2. The corresponding to the last period of the year, during the first thirty calendar days of January.

5. The declaration-settlement shall be unique for each employer or professional, without prejudice to what is provided for by the Minister for Economic Affairs and Finance in the light of the characteristics of the special schemes established in the tax.

However, the tax administration may authorise the joint submission, in a single document, of the statements-settlements corresponding to various taxable persons, in the cases and with the requirements that each authorization is set.

The granted authorities can be revoked at any time.

6. In addition to the statements-settlements referred to in the previous number 4, the taxable persons shall make an annual statement-summary, in accordance with the model approved by the Minister for Economic Affairs and Finance.

This annual summary statement shall be accompanied by copies of the statements-settlements for all settlement periods of the year.

The aforementioned annual summary-statement shall be submitted in conjunction with the statement-settlement for the last settlement period of each year.

The liabilities included in joint statements-settlements, which shall be made separately by the filing of their annual statement-summary before the end of the year, are exempted from the provisions of the preceding two paragraphs. competent authority of the tax administration within the period of the first thirty calendar days of January. '

Additional disposition first. Allocation of powers to the State Tax Administration Agency.

It is attributed to the State Tax Administration Agency the powers conferred on the Directorate General of Taxation in Article 4. of Royal Decree 669/1986 of 21 March, for which the scope of the replacement of certain taxes by the value added tax in application of agreements with the United States of America; in Article 2 of Royal Decree 2696/1986 of 19 December 1986 on the processing of the grant of benefits In the case of the company, it is not possible to apply the tax to the company. Article 5 (3) of Regulation (EEC) No 325/86 of the European Parliament and of the Council of 15 October 1982 laying down detailed rules for the application of Council Regulation (EEC) No 2052/88 of 15 October 1982 on the approximation of the laws of the Member States

to the

Additional provision second. Indebtedness to related non-resident entities.

1. The coefficient referred to in Article 16.9 of Law 61/1978 of 27 December of the Company Tax shall be 2.

2. The ratio shall be applied on the average value of the fiscal capital in the financial year and the result obtained shall be compared to the average direct or indirect debt paid in the financial year with a person or entity not resident in the financial year. terms referred to in Article 16 (4) and (5) of Law 61/1978. Interest in excess of that interest shall be taken into account for tax purposes of dividends.

3. Those entities which, by law or regulation, are required to maintain a certain volume of own resources in relation to the investments made and the risks assumed are exempted from this provision.

Additional provision third. Tax havens.

For the purposes of the provisions of Article 17 (3) of Law 18/1991 of 6 June 1991 on the Income Tax of the Physical Persons; Article 23 of Law 61/1978 of 27 December of the Tax on Societies; and Article 24 of Law No 29/1991 of 16 December 1991 adapting certain concepts of taxation to the Directives and Regulations of the European Communities shall take into account the tax havens of the countries and territories determined by the Royal Decree 1080/1991 of 5 July.

Final disposition first. Entry into force.

The provisions of this Royal Decree will enter into force on 1 January 1992.

By way of derogation from the preceding subparagraph, the second provision shall apply to the tax periods which are initiated after 31 December 1991.

Final disposition second. Repeal effectiveness.

1. The following rules will be repealed at the entry into force of this Royal Decree:

(a) Royal Decree 2384/1981, of 3 August, approving the Regulation of the Income Tax of Physical Persons and their implementing rules.

(b) Article 21 of Royal Decree 2027/1985, of 23 October, which develops the Law on the Tax Regime of Certain Financial Assets.

(c) Articles 19 and 258 of the Company Tax Regulation, approved by Royal Decree 2631/1982 of 15 October 1982.

(d) Royal Decree 1203/1989 of 6 October 1989, pursuant to Article 4. of Royal Decree-Law 5/1989 of 7 June 1989 on urgent financial and fiscal measures.

2. On the entry into force of Royal Decree 1816/1991 of 20 December on Economic Transactions with the Exterior, Articles 305 and 344 of the Corporate Tax Regulation will be repealed.

Given in Madrid at December 30, 1991.

JOHN CARLOS R.

The Minister of Economy and Finance,

CARLOS SOLCHAGA CATALAN

PHYSICAL PERSONS INCOME TAX REGULATION

INDEX

TITLE I. Taxable.

Article 1. Property assets affected by an activity.

Article 2. Compensation for dismissal or termination of work.

Article 3. Exemption of certain literary, artistic and scientific awards.

TITLE II. Determination of income.

CHAPTER FIRST. Returns from work.

Article 4. Travel allowances and travel expenses.

Article 5. Special rules on remuneration in kind.

CHAPTER SECOND. Returns on capital.

Section 1. Real Estate Capital Rventures.

Article 6. Urban real estate.

Article 7. Specification of deductible expenses.

Article 8. Amortization of leased properties.

Section 2. Res of Capital Furniture.

Article 9. Capital income from insurance contracts and capitalization operations.

CHAPTER THIRD. Equity increases and decreases.

Article 10. Exemption from reinvestment in habitual housing.

Article 11. Insurance contracts.

CHAPTER FOURTH. Imputation of rents.

Article 12. Computation of securities for the purpose of imputation of income.

Article 13. Criteria for imputation to resident partners.

TITLE III. Temporary imputation of revenue and expenditure.

Article 14. Temporary imputation of revenue and expenditure. General rule.

Article 15. Temporary imputation proposed by the taxable person.

Article 16. Criterion of imputation in case of change of obligation to contribute.

TITLE IV. Objective estimation.

CHAPTER FIRST. General rules.

Article 17. Purpose.

Article 18. Scope of application.

Article 19. Embodiments.

Article 20. Waives the objective estimation method.

Article 21. Exclusion of the objective estimation method.

Article 22. Equity increases and decreases.

Article 23. Entities under attribution scheme.

Article 24. Compatibility.

Article 25. Coordination with the simplified value added tax regime.

Article 26. Independent activities.

CHAPTER SECOND. Objective estimation by signs, indexes, or modules.

Article 27. Objective scope.

Article 28. Content.

CHAPTER THIRD. Objective estimation by coefficients.

Article 29. Objective scope.

Article 30. Content.

TITLE V. Quota Deductions.

Article 31. Degree of invalidity giving entitlement to deduction in the quota.

Article 32. Deduction for sickness expenses.

Article 33. Housing accounts.

Article 34. Concept of habitual housing.

Article 35. Housing acquisition.

Article 36. Deduction for dividends.

Article 37. Income earned in Ceuta and Melilla.

TITLE VI. Tax Management.

CHAPTER FIRST. Obligation to declare.

Article 38. Obligation to declare.

Article 39. Self-validation and income.

CHAPTER SECOND. Payments on account.

Article 40. Payments on account.

Section 1. Retentions and Income to Account. General rules

Article 41. Withholding and income on account.

Article 42. Required to retain or enter into account.

Article 43. Income subject to withholding or income on account.

Article 44. Amount of the withholding or income on account.

Section 2. Retentions.

Subsection 1. Th Job Yields

Article 45. Holds on income from work.

Article 46. Table of retention percentages and rules for their application.

Article 47. Communications.

Subsection 2. Th Capital Returns.

Article 48. Withholding tax on capital income.

Article 49. Specific retention rules on explicit returns.

Article 50. Specific retention rules on implied returns.

Subsection 3. Th Returns of professional activities.

Article 51. Holds on income from professional activities.

Subsection 4. Awards.

Article 52. Holds on prizes.

Section 3. Revenue to account.

Subsection 1. Remuneration In Kind.

Article 53. Income on account of remuneration in kind of work.

Article 54. Income on account of remuneration in kind of capital.

Article 55. Income on account of remuneration in kind of professional activities.

Subsection 2. Other Income to account.

Article 56. Settlement of explicit returns on capital.

Article 57. Estimation of yields and valuation of related operations.

Article 58. Income to account for prizes.

Section 4. Obligations of the retainer and the obligation to enter into account.

Article 59. Obligations of the retainer and the obligation to enter into account.

Section 5. Application of Retentions and Revenue to Account.

Article 60. Application of holds and revenue to account.

Section 6. Fractional Payments.

Article 61. Obligated to split payment.

Article 62. Amount of fractionation.

Article 63. Declaration and income.

Article 64. Entities on the basis of income allocation.

CHAPTER THIRD. Provisional settlement.

Article 65. Provisional settlement.

CHAPTER FOURTH. Return of trade.

Article 66. Return of trade.

CHAPTER QUINTO. Formal obligations of taxable persons.

Article 67. Accounting and registration obligations.

CHAPTER SIXTH. Obligations of transparent companies.

Article 68. Obligations of transparent companies.

TITLE VII. Actual obligation to contribute.

Article 69. Scope.

Article 70. Income obtained in Spain by non-residents.

Article 71. Deductible items in real obligation to contribute without permanent establishment.

Article 72. Supplementary taxation on the income of the permanent establishment.

Article 73. Retention in the acquisition of non-resident real estate.

Article 74. Special Tax on Real Estate of Non-Resident Entities.

Article 75. Obligations.

ADDITIONAL PROVISIONS.

First. Withholding tax on capital income in the Company Tax.

Second. Transfer of income abroad.

TRANSIENT PROVISIONS.

First. Supplementary taxation.

Second. Waives the objective estimate.

Third. Deadline for the publication of the approval orders for signs, indexes or modules for the year 1992.

Fourth. Rules on the deadline for the submission of declarations and entry by non-resident taxable persons acting without permanent establishment mediation.

Fifth. Treatment of the amount obtained in the disposal of subscription rights.

FINAL DISPOSITION

Unica. Authorisation to the Minister for Economic Affairs and Finance.

PHYSICAL PERSONS INCOME TAX REGULATION

TITLE FIRST

Taxable

Article 1. ° Heritage items affected by an activity.

One. A business or professional activity developed by the taxable person shall be considered to be an asset, irrespective of whether his ownership, in the case of marriage, is common to both spouses, the following:

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

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

c) Any other assets that are necessary to obtain the respective returns.

In no case shall they be subject to any economic or professional activity that is intended for the particular use of the owner of the activity, such as recreation or recreation.

Two. Only those which the taxable person uses exclusively for the purposes of the liability shall be considered to be assets for the purposes of business or professional activity.

Not to be exclusively affected:

1. Those that are used simultaneously for business or professional activities and for private purposes, except that the use for the latter is incidental and notoriously irrelevant according to the provisions of the in paragraph 4 of this Article.

2. ° Those who, being of the liability of the taxable person, do not appear in the accounting or official records of the business or professional activity that is obliged to carry the taxable person.

Three. In the case of property assets which serve only partially for the purpose of the activity, the effect shall be limited to that part of the activity which is actually used in the activity in question. In this respect, only those parts of the assets that are susceptible to a separate and independent use of the rest shall be considered to be affected. In no case shall they be subject to partial affectation of indivisible assets.

Four. Assets of fixed assets acquired and used for the development of business or professional activity intended for the personal use of the goods shall be deemed to be used for private purposes in an ancillary and notoriously irrelevant manner. a taxable person in business days or hours during which the exercise of such activity is interrupted.

The provisions of the preceding paragraph shall not apply to passenger cars and their trailers, motorcycles, aircraft or sports or recreational craft, except those referred to in points (a) to (f) of paragraph 1. Article 62 (1) of Royal Decree 2028/1985 of 30 October 1985 approving the value added tax regulation and those intended to be the subject of a transfer of use with habituality and onpayment.

Article 2. Compensation for dismissal or termination of work.

For tax purposes it shall be deemed that there has been no dismissal or termination of the worker, in respect of the exempt allowances referred to in point (d) of Article 9 (1) of the Tax Act, where the a taxable person is rehired by the same Company or another Company linked to that company under parent-to-parent relations, or vice versa, in the three calendar years following the termination or termination effectiveness.

A parent-to-subsidiary relationship shall be deemed to exist where the first participant, directly or indirectly, is 25 per 100 in the share capital of the second or when, without such a circumstance, an entity exercises other determining functions of the power to decide.

Such a relationship shall also be considered to exist between the entities which, according to the previous rule, are subsidiaries of the same parent.

Article 3. Exemption of certain literary, artistic and scientific awards.

One. The relevant literary, artistic or scientific awards shall be exempt from the tax, which shall meet the conditions laid down in this Article.

For these purposes, the award of goods or rights to one or more persons, without consideration, in reward or recognition of the value of literary, artistic or scientific works, as well as the merit of their activity or work, in general, in such matters.

Two. 1. The grantor of the prize shall not be able to perform or be interested in the economic exploitation of the works or works awarded.

In particular, the prize may not imply or require the assignment or limitation of property rights over those, including intellectual or industrial property derivatives.

This requirement shall not be deemed to be in breach of the mere public disclosure of the work, for a non-profit purpose and for a period of not more than six months.

2. In any event, the prize shall be awarded in respect of works executed or activities carried out prior to its convocation.

No award consideration shall be granted for grants, grants and, in general, amounts intended for the prior or simultaneous financing of works or works relating to the subjects referred to in paragraph 1 above.

3. The call shall meet the following requirements:

a) Having national or international character.

b) Do not set any limitation on the contestants for reasons other than the very essence of the prize.

c) That their announcement be made public in the "Official State Gazette" or the Autonomous Community and in at least one newspaper of great national circulation.

Prizes that are awarded abroad or by International Organizations will only have to meet the requirement referred to in (b) above to access the exemption.

4. In the case of prizes called by private legal persons or natural persons resident in Spain, their convocation, in addition to meeting the requirements set out in the preceding number, must be given a certain frequency.

5. The exemption shall be declared by the competent authority of the tax administration.

The above statement will need to be requested, with input from the relevant documentation, by:

a) The person or entity convener of the prize, in general.

b) The award-winning person in the case of awards held abroad or by International Organizations.

The application must be made prior to the award of the prize or, in the case of point (b) above, before the start of the regulatory period for the declaration of the financial year in which it was obtained.

For the resolution of the file, a report from the competent ministerial department may be requested for the matter or, where appropriate, for the relevant organ of the Autonomous Communities.

The declaration shall be valid for successive calls, provided that the terms of that which prompted the file are not changed.

Three. Where the tax administration has declared the award exemption, the persons referred to in point (a) of the preceding paragraph shall be obliged to report to the tax administration, within the month following that of the grant, the date of the award, the award granted and the data identifying those who have benefited from it.

TITLE II

Determination of Income

CHAPTER FIRST

Returns from the job

Article 4. Travel allowances and travel expenses.

One. Allowances and allowances for travel expenses shall be considered as income from the work, except those for travel expenses and for normal subsistence and subsistence expenses in hospitality establishments.

Two. Locomotion expenses:

The amounts intended to compensate for the costs of the employee or employee who move out of the factory, workshop, office, etc. are exempted from taxation to carry out their work in a different place, in the The following conditions and amounts:

a) If the Company specifically satisfies the expense incurred:

1. Where the employee or employee uses public means of transport, the amount of expenditure to be justified by invoice or equivalent document.

2. In another case, the amount of the expenditure when the employee or employee justifies the reality of the posting. In the event of an inability to justify the amount of the expenditure, the amount resulting from the calculation of 22 pesetas per kilometre travelled shall be excluded.

(b) If the Company resarce to the worker or employee by means of a specific global remuneration, provided that the reality of the displacements is justified and that the amount of the remuneration coincides annually, in an approximate manner, with the total travel expenses. Where the amount of expenditure is not justified, the amount referred to in point 2 of the preceding point shall be the limit.

The excess over the above amounts will be subject to lien.

Three. Living and subsistence expenses:

1. Allowances and allowances for travel expenses that correspond to normal subsistence and subsistence expenses in restaurants, hotels and other hospitality establishments, payable for expenses in a municipality, shall be considered to be exempt from tax. different from the site of the perceptor's usual work.

Except in the cases provided for in the following numbers 4 and 5, in the case of displacement and permanence for a continuous period of more than one hundred and eighty three days to a municipality other than the place of the usual work, shall be deemed to be exempt from the duties and allowances for travel expenses corresponding to maintenance and subsistence expenses. For these purposes, the time of holiday, sickness or other circumstances that do not involve alteration of the destination shall not be deducted.

2. For the purposes of this paragraph, they shall be regarded as normal subsistence and subsistence expenses in hotels, restaurants and other hospitality establishments, which do not exceed the fixed amount of 33,500 pesetas per day, if they are produced by posting within the Spanish territory, or that of 55,400 pesetas daily, if they were to be moved to foreign territory.

3. No justification shall be given as to the amount of the subsistence and subsistence expenses referred to in the preceding number, which do not exceed 11,250 pesetas per day, if they are produced by displacement within the territory of Spain or of 20,500 pesetas daily, if they were to be moved to foreign territory.

By way of derogation from the preceding paragraph, where it has not been spent in a municipality other than the usual place of work and of the place of residence of the recipient, those amounts shall be fixed, respectively, in 3,250 and 7,000 pesetas daily.

For the purposes set out in the preceding paragraphs, the payer shall credit the day and place of the posting, as well as his reason or motive.

4. It shall be considered as an exemption from taxation of the excess levied by Spanish public servants with a foreign destination on the total remuneration which they would obtain for salaries, trienes, allowances or incentives, in the (a) to be found for use in Spain as a result of the application of the modules and the collection of the compensation provided for in Articles 3, 4 and 5 of Royal Decree 1404/1986 of 23 May 1986, as amended by the Royal Decree 1239/1988, dated October 14.

Identical consideration shall, provided that it is taxed by a personal obligation to contribute, the excess collected by the staff at the service of the Public Administration with destination abroad on the total remuneration obtained by salaries, trienes, supplements or incentives, in the case of being destined for Spain. For these purposes, the Ministry of Economy and Finance shall agree on the remuneration that may be equivalent to such staff if it is intended for Spain.

5. It shall also be regarded as a tax-exempt diet, provided that it is taxed by a personal obligation to contribute to the excess paid by the employees of undertakings, with a foreign destination, on the total remuneration which would be paid for wages, wages, seniority, overtime, even profit, family aid or any other concept, for the purpose of employment, employment, category or profession in the case of being employed in Spain.

6. The flight crew of the air carriers, once justified the costs of stay and lodging, will not need to justify the maintenance cats that do not exceed 6,500 pesetas daily, if they correspond to displacement within the territory Spanish or 11,900 if they were to be moved abroad.

7. Excess over the above limits shall be subject to taxation.

Four. The arrangements provided for in the preceding paragraphs shall also apply to allocations for the costs of locomotion, maintenance and subsistence expenses incurred by workers hired specifically to provide their services in enterprises with centres of mobile or roaming work, provided that those allocations correspond to movements to a municipality other than that which constitutes the worker's habitual residence.

Five. When the costs of locomotion, maintenance and stay are not specifically compensated by the companies to whom they provide their services, the taxable persons who obtain income from the work resulting from special industrial relations of a dependent character may undermine their income, for the purposes of determining their net income, in the quantities referred to in paragraph 2 (a) and 3 (3) of this Article, provided they justify the reality of the their displacements.

Six. The amounts to be paid to the taxable person on the basis of the transfer of the job to a different municipality shall be taken into account in respect of allowances for travel expenses which are exempt from tax, provided that such transfer requires the change of residence and the amounts correspond, exclusively, to the costs of locomotion and maintenance of the taxable person and of his relatives during the transfer and to the costs of moving his furniture and goods.

Seven. The quantities referred to in paragraph 2 (a), 2 (a) and 2 (3) and (6) of this Article shall be subject to review by the Minister for Economic Affairs and Finance at the same time and at the same time as they are reviewed. the diets of civil servants.

Article 5. Special rules on remuneration in kind.

One. No consideration shall be given to remuneration in kind, for the purposes of the second subparagraph of Article 26 (g) of the Tax Act, to studies prepared by institutions, undertakings or employers and directly financed by the for the updating, training or retraining of their staff, where they are required by the development of their activities or the characteristics of the jobs, even where their actual performance is carried out by other persons or Specialised entities. In such cases, the costs of subsistence and subsistence shall be governed by the provisions of Article 4 of this Regulation.

Two. The special rights of economic content reserved for the founders or promoters of a company as remuneration for personal services, when they consist of a percentage of the profits of the entity, shall be valued at least in the 35 per 100 of the equivalent value of share capital that permits the same participation in the profits as the one recognized for the rights.

CHAPTER II

Returns on capital

Section 1. Real Estate Capital Rventures

Article 6. Urban real estate.

One. For the purposes of Article 34 (b) of the Tax Act, the buildings and, where appropriate, the land annexed thereto, belonging to the owner or owners of the buildings and intended for use shall be considered as urban buildings. green spaces, gardens, parks, sports facilities or the like, for the exclusive use of such facilities, where such land or facilities belong to them, either individually or in common, as the case may be.

Two. Where the taxable person has not been the owner of the urban property or the actual right of enjoyment over the whole of the calendar year, or where he has been under construction or for urban reasons, he has not been eligible for use. of the real estate capital shall be determined in proportion to the number of days concerned.

Article 7. Specification of deductible expenses.

One. They shall have the consideration of deductible expenditure for the determination of the net return on property and property rights to which Article 34 of the Tax Act is redrawn:

A) Dealing with the goods and rights referred to in Article 34 (a) of the Tax Law, the costs necessary for obtaining them, and the amount of the deterioration suffered by the use or time in the goods of Those who are performing the returns.

In particular, they shall be considered to be included among the expenses referred to in the preceding paragraph:

(a) The interests of the foreign capital invested in the acquisition or improvement of the goods or rights and other financing expenses, provided that they are in fact the owner or owner of the actual right.

However, the deduction of the expenses provided for in this letter may not exceed, for each property or right, the amount of the full income earned by its disposal.

(b) Non-State taxes and surcharges, as well as fees, surcharges and special state contributions, not legally enforceable, whatever their denomination, provided they have an impact on the returns computed or on the goods or rights which produce the goods and are not sanctioning.

(c) The amounts accrued by third parties in direct or indirect consideration or as a result of personal services, such as administration, surveillance, goalkeeping or the like.

(d) Those occasioned by the formalisation of the provision of the contract, the provision or the transfer and the legal protection relating to the goods or the income.

e) The balances of doubtful recovery provided that this circumstance is sufficiently justified.

Such a circumstance shall be sufficiently justified:

-When the debtor is in a situation of suspension of payments, bankruptcy or other analogous.

-When between the time of the first recovery management carried out by the taxable person and the end of the tax period it would have been more than one year and no credit renewal would have occurred.

When a doubtful balance is subsequently charged to its deduction, it shall be computed as income in the year in which such collection occurs.

f) Conservation and repair expenses.

The amounts intended for the extension or improvement of goods such as those for security doors, contracts or lattice doors shall not be deductible for this purpose.

g) The amount of insurance contract premiums, whether they are civil liability, fire, theft, break-up of crystals or other similar nature, on the goods or rights producing the returns.

h) The amounts destined for services or supplies.

i) The amounts to be amortisation under the conditions set out in the following Article of this Regulation.

B) Dealing with the goods and rights referred to in Article 34 (b) of the Tax Act, exclusively the following:

(a) Fees and surcharges, other than that of the award, accrued by the Property Tax.

(b) The interests of the foreign capital invested in the acquisition or improvement of the usual dwelling up to a maximum of 800,000 pesetas per year.

In case of joint taxation, this maximum will be one million pesetas.

Two. They will not be deductible as expense:

a) Those that are passed on to the tenant or tenant.

(b) Payments made on the basis of claims that result in decreases in the value of the assets of the taxable person.

Article 8. Amortization of leased properties.

One. For the purposes of determining net income from leased buildings, the amounts intended for the depreciation of the immovable property and any other assets transferred to it shall be considered as deductible as long as they are in accordance with the effective depreciation.

Two. Amortisation shall be deemed to meet the effectiveness requirement:

(a) In the case of real estate: Where, in each year, they do not exceed the result of applying the 1,5 per 100 on the value for which they are computed or should, where appropriate, be computed for the purposes of the Heritage Tax, include in the computation the value of the soil.

(b) Dealing with goods of a movable nature, which may be used for a period of more than one year and which are transferred jointly with the building: When, in each year, they do not exceed the result of applying to the acquisition of the depreciation coefficients determined, as a general rule, by the Minister for Economic Affairs and Finance.

Three. In the event that the returns come from the ownership of actual rights of use and enjoyment, the right referred to above may be amortised provided that its acquisition has cost the taxable person.

Amortization, in this case, will result from the following rules:

(a) Where the right has a fixed term of duration, the right to divide the cost of acquisition of the right by the number of years of its duration.

b) When the right was lifetime, the result of applying to the acquisition cost the percentage of 1.5 per 100.

Four. In no case shall the sum of the amortisation made be exceed the acquisition value of the right or property in question.

You will not be admitted as a deductible expense for the write-downs computed in a tax period corresponding to a different tax period.

Neither shall be admitted as deductible expense any write-downs practiced after the maximum repayment term resulting from the provisions of this Article.

Five. For the purposes of the last subparagraph of Article 46 (1) of the Tax Act, any element shall be deemed to be amortised annually, at least, in the amount of the depreciation which could have been taken into account in accordance with the rules prior to, regardless of their effective consideration or not as deductible expense.

In the case of assets transferred jointly with the real estate, the minimum amortisation necessary to cover the item's acquisition value in the maximum depreciation period fixed in accordance with the Previous section.

Section 2. Capital Res of Furniture

Article 9. Capital income from insurance contracts and capitalization operations.

They will have the consideration of full capital income from those insurance contracts that combine an insured benefit for survival with any other for the event of death or invalidity when they have any of the following characteristics:

a) Duration less than one year.

(b) A duration equal to or greater than one year in which the total benefit provided for during the first three years for the case of death is less than 150 per 100 of the estimated benefit in the case of survival in the same period.

(c) Duration equal to or greater than one year in which a portion of the insured benefits is paid within the first year for the case of a survival of more than 50 per 100 of those provided for this contingency, unless (a) the capital or invalidity income.

(d) Duration equal to or greater than one year when there are cash or in-kind deliveries, within the first three years, of periodic amounts in respect of interest, participation in profits or any other equivalent to the above, regardless of how they are adopted.

They will also have the consideration of full capital income from capital transactions.

CHAPTER III

Heritage increases and decreases

Article 10. Exemption from reinvestment in habitual housing.

One. Capital increases shall be exempt which are shown in the transfer of the taxable person's habitual dwelling where the total amount obtained is reinvested in the acquisition of a new habitual dwelling, under the conditions which are set out in this article.

For these purposes, the acquisition of housing is treated as rehabilitation under the conditions referred to in Royal Decree 2329/1983 of 28 July on the protection of the rehabilitation of residential and urban heritage.

For the housing rating as usual, the provisions of Article 34 of this Regulation will be in place.

Two. The reinvestment of the amount obtained in the disposal shall be carried out, in one or on or in turn, in a period not exceeding two years.

Reinvestment shall be deemed not to be made out of time when the sale has been effected in instalments or with deferred price, provided that the amount of the time limits is intended for the purpose indicated within the tax period in question. they are being perceived.

When, in accordance with the foregoing paragraphs, reinvestment is not carried out in the same year of disposal, the taxable person shall be obliged to state in the tax return for the financial year in which he is obtain the increase in wealth of its intention to reinvest in the conditions and time limits specified.

They will also be entitled to the exemption by reinvestment of the amounts obtained in the disposal which are intended to satisfy the price of a new habitual dwelling which would have been acquired within the two years preceding the that.

Three. Where the amount of the reinvestment is less than the total amount obtained in the disposal, only the proportional share of the increase in equity corresponding to the amount actually invested in the securities shall be excluded from taxation. conditions of this article.

Four. Failure to comply with any of the conditions set out in this Article shall determine the submission to the charges of the part of the corresponding equity increase.

In such a case, the taxable person shall impute the part of the increase in his assets not exempt from the year of his acquisition, by practising a supplementary settlement, including interest on late payment, which shall be submitted within the period prescribed the average between the date on which the conditions were met and the end of the next period for the filing of the tax returns.

Five. The exemption from the equity increase shall be incompatible for the same goods and amounts in which the reinvestment with the deduction in the share for the purchase of housing materializes.

When the amount invested in the acquisition of the new home exceeds the reinvested as a result of the disposal of the previous one, the excess, if any, will be eligible for the said duction.

Article 11. Insurance contracts.

Where the alteration in the value of the equity proceeds from the insurance contracts referred to in point (i) of Article 48 (1) of the Tax Act, it shall be taken as a period of stay for the purposes of the provisions of the in point (a) of Article 45 (2) of that Law, the number of years, rounded up by excess, between the dates of the payment of each premium and the date of the benefit.

For the purposes of Article 45 (3) of the Tax Act, the insurance institution shall, within the amounts which it satisfies at the time of the benefit, disaggregate the share corresponding to each of the payments made.

However, in the case of insurance contracts at constant or increasing premiums per year, for the duration of the contract, and without exceeding this last assumption an increase of 5 per 100 in geometric progression, may be taken as a period of residence within the meaning of Article 45 (2) (a) of that Law, the ratio, rounded up by excess, of dividing by 1.4 the number of years between the dates of payment of the first the benefit and accrual of the benefit.

CHAPTER IV

Revenue Imputation

Article 12. Computation of securities for the purpose of imputation of income.

For the purposes of the last paragraph of point (A) of Article 52 (1) of the Tax Law, in relation to the representative securities of company capital, which they establish with these a lasting link to complement or develop the business or professional activities of the Company, it will be understood that they develop business or professional activities those societies that, having directly, at least, of the 50 per 100 of the voting rights in others, direct and manage the whole of the business activities of these through the appropriate organisation of personal and material means.

Article 13. Criteria for imputation to resident partners.

One. For the purposes of Article 52 of the Tax Law, the allocation of positive taxable bases to each partner shall be made in the proportion resulting from the social statutes and, failing that, in accordance with their participation in the social capital.

Two. The imputation to the members of the deductions which may correspond to the amount of the tax shall be made in the same proportion as that which would have been used for the allocation of the positive tax bases.

TITLE III

Temporary Revenue And Expense Imputation

Article 14. Temporary imputation of revenue and expenditure. General rule.

One. Without prejudice to the provisions of the following Article, the revenue and expenditure determined by the tax base shall be charged to the period in which each other was due and produced, irrespective of the time when the corresponding charges and payments.

For the purposes of the preceding paragraph, equity increases and decreases shall be understood to be accrued at the time the property alteration takes place.

Two. For the purposes of the preceding paragraph, it shall be understood that the revenue has been accrued at the time when the revenue is payable by the creditor.

Three. The allocation of positive tax bases for tax transparency to resident partners shall be made in the tax period in which the corresponding annual accounts have been approved, unless it is decided to charge them. in the tax periods corresponding to the closing dates of the social exercises.

The option will be stated in the first tax return in which it has to take effect, it will have to be maintained for three years and will not be able to produce as an effect that there will be a tax base without computing in the declarations of the partners.

Four. In the case of transactions in instalments or with deferred price, both the net yields and the property increases or decreases obtained in such transactions shall be allocated, in proportion, as the charges are payable. except that the taxable person decides to charge them in full at the time of the right of birth.

These shall be considered to be transactions in instalments or with deferred price those the price of which is collected, in whole or in part, by successive payments, provided that the period between the delivery and the expiry of the last period is higher than year.

When the payment of an operation in instalments or with deferred price has been instrumented, in whole or in part, by the issuance of currency effects and these were transmitted on a firm basis before maturity, the revenue will be charged at the time of its transmission.

In no case will they have this treatment, for the transmission, the operations derived from contracts of lifetime or temporary income. When goods and rights are transmitted in exchange for a lifetime or temporary income, the increase in the wealth for the rentier will be charged to the period of the constitution of the income.

Five. Any differences, whether positive or negative, which occur in the accounts representing balances in foreign currency or foreign currency, as a result of the change in their contributions, shall be taken into account at the time of recovery or payment. respective.

Six. Where, for reasons not attributable to the taxable person, income from the work is collected in tax periods other than those in which the taxable person was paid, the income shall be charged, if any, (a) additional statement-settlement, without penalty or interest for late payment or surcharge. The declaration shall be submitted within the period between the date on which the tax is received and the end of the following period for the submission of declarations for the tax.

Seven. Expenditure shall be deemed to have been incurred from the time the amount is payable by the person who receives the costs.

Eight. The provisions of the foregoing paragraphs shall be without prejudice to the provisions of Article 42 of the Tax Law in relation to the determination of the net performance of business and professional activities.

Article 15. Temporary imputation proposed by the taxable person.

One. Taxable persons may use imputation criteria other than those referred to in the previous Article, provided that the following requirements are met:

(a) That they do not cause any alteration in the tax classification of revenue and expenditure, and in particular that the necessary correlation between the two is not distorted.

(b) To be manifest and justified in submitting the declaration for the first financial year in which they are to take effect.

c) That the deadline for your application be specified. Within that period, the minimum duration of which shall be three years, the taxable person shall necessarily comply with the criteria by the same person.

Two. For these purposes, taxable persons shall include in their tax return a proposal for the temporary allocation of revenue and expenditure and the exposure of their basis. If the tax administration does not consider such a proposal to be adjusted to the above paragraph, it shall, of its own motion, rectify the self-validation carried out by the taxable person, notifying the person concerned of the liquidation, who may bring the resources from the same.

Three. In no case shall the changes in the criterion of temporary imputation mean that any expenditure or revenue is not counted.

Four. The chosen and accepted criterion and time limit must be the same for all the income to be integrated into the tax base of the corresponding financial years.

Article 16. Criterion of imputation in case of change of obligation to contribute.

In the event that the taxable person ceases to be subject to a personal obligation to contribute, all revenue or expenditure to be charged as a result of the proposal by the taxpayer and accepted by the Tax administration should be applied to the last tax period to be declared by personal obligation.

TITLE IV

Objective Estimation

CHAPTER FIRST

General rules

Article 17. Purpose.

The objective estimation method shall be aimed at determining the net income of small and medium-sized enterprises and professionals in relation to activities falling within their scope and during the tax periods in which the same applies.

Article 18. Scope of application.

The objective estimation method shall apply to business and professional activities that meet the requirements set out in the regulatory articles of each of the different modalities, except that the taxable persons give up on the terms prevented in Article 20 of this Regulation.

Article 19. Embodiments.

The objective estimation method will have two modes:

a) Signs, indexes, or modules.

b) Coefficient.

Article 20. Waives the objective estimation method.

One. The waiver of the method of objective estimation shall be made during the month of December preceding the beginning of the calendar year in which it is to take effect.

Two. The waiver shall be construed tacitly for each of the following years in which the method of objective estimation may be applicable, unless the time limit laid down in the preceding paragraph is revoked. In the mode of signs, indexes, or modules, the waiver will have effects for a minimum period of three years.

Three. The waiver and its revocation will be carried out in accordance with the provisions of Royal Decree 1041/1990 of 27 July, which regulates the census statements to be presented for tax purposes by employers, professionals and other tax authorities.

Four. In the case of commencement of activity, the waiver of the objective estimation scheme shall be made as provided for in the preceding paragraph.

Five. In the mode of coefficients, the waiver of the objective estimation method may be carried out with separation for all business or professional activities.

Article 21. Exclusion of the objective estimation method.

It will be a determining factor of the exclusion of the objective estimation method by having exceeded the limits that, depending on each mode, are set in the following items.

The exclusion will produce effects the immediate year after the year in which that circumstance occurs.

Article 22. Equity increases and decreases.

One. Net income calculated by means of the method of objective estimation shall be understood to include increases and decreases in assets derived from items affecting business or professional activities, with the exception of from immovable property, ships and intangible fixed assets.

Two. Where the development of business or professional activities to which the method of objective estimation is applied is affected by theft, fire, flooding, sinking or other similar exceptional circumstances, which (a) to determine the reduction of assets in items affected by that activity other than those exempted in the preceding paragraph, the persons concerned may undermine the net yield resulting from the amount of such decreases. To this end, the taxable persons shall bring that circumstance to the attention of the competent authority of the tax administration within 30 days from the date on which it is produced, providing, for that purpose, the justification corresponding. The tax administration will verify the certainty of the cause that motivates the reduction of performance.

Three. The reinvestment exemption referred to in Article 41 (4) of the Tax Act shall apply in the case of the disposal of immovable property or ships.

Article 23. Entities under attribution scheme.

One. The objective estimation method shall be applicable for the determination of the net performance of the business or professional activities developed by the entities referred to in Article 10 of the Tax Act, provided that all of its partners, Heirs, communes or members are natural persons.

Two. The waiver of the method, to be carried out in accordance with Article 20, shall be made by all the partners, heirs, community members or members.

Three. The application of the objective estimation method shall be carried out independently of the circumstances that are individually fulfilled in the partners, heirs, community members or unit-holders.

Four. The net yield shall be attributed to the partners, heirs, community members or unit-holders, in accordance with the applicable rules or covenants, and, if they are not established by the Administration in a feisty manner, shall be attributed equally.

Article 24. Compatibility.

One. Taxable persons who carry out business activities to which the mode of signs, indices or modules apply and give up, shall determine the net performance of all their business or professional activities by the method Direct estimate.

Two. The mode of coefficients will not proceed in relation to:

-Business activities developed by the same taxable person, if the performance of any of them is determined in direct estimation.

-Professional activities developed by the same taxable person, if the performance of any of them is determined in direct estimation.

Article 25. Coordination with the simplified value added tax regime.

One. The waiver of the mode of signs, indices or modules of the method of objective estimation of the Income Tax of the Physical Persons will mean the waiver of the simplified special regime of the Tax on the Value Added for all the business activities developed by the taxable person.

Two. The waiver of the simplified special scheme of value added tax on business activities to which the mode of signs, indices or modules of the objective estimation method of the Income Tax is applied. Natural Persons shall mean the waiver of the latter by all business-to-the-business activities of the taxable person.

Article 26. Independent activities.

One. For the purpose of applying the objective estimation method, independent activities shall be considered:

a) Each of the specifically collected in the Ministerial Orders that approve the signs, indexes, or modules.

(b) Those to which a different percentage of expenditure is applicable for the purposes of the method of coefficients, without prejudice to the limits which determine the possibility of benefiting from any of the Objective estimation is calculated with respect to all these activities, while separating the business from the professionals.

Two. The determination of the economic operations included in each activity shall be carried out in accordance with the rules of the Economic Activities Tax, in so far as they are applicable.

CHAPTER II

Objective estimation by signs, indexes, or modules

Article 27. Objective scope.

One. The objective estimation mode by signs, indices or modules shall be the only one applicable to those business activities determined by the Minister for Economic Affairs and Finance.

Two. This modality shall be applied in respect of each activity, in isolation considered, to be contemplated in the Ministerial Order for the purpose.

Article 28. Content.

One. The taxable persons shall determine, with reference to each activity to which this modality applies, the corresponding net performance.

Two. The determination of the net yield referred to in the preceding paragraph shall be determined by the taxable person himself, by imputation to his activity of the signs, indices or modules which the Minister of Economy and Finance would have fixed.

The Ministerial Order under which the signs, indices or modules applicable to each activity are fixed, shall contain the instructions necessary for its proper computation and shall be published in the "Official State Gazette" before 1 December preceding the period to which it is applicable.

The Ministerial Order may refer to a period of time higher than the year, in which case the method of calculating the performance for each of the years included shall be determined separately.

Three. In the case of initiation after 1 January or cessation of the operations of a host activity prior to the day 31 December, the signs, indices or modules shall, where appropriate, be applied in proportion to the period of time in which such activity has been exercised by the taxable person during the calendar year.

The provisions of this paragraph shall not apply to seasonal activities which shall be governed by the provisions of the relevant Ministerial Order.

Four. 1. Where the development of business activities to which this modality applies is affected by fires, floods or other exceptional circumstances affecting a particular sector or area, the Minister for Economic Affairs and Hacienda may, by way of exception, authorise the reduction of signs, indices or modules.

2. When the development of business activities to which this modality is applied is affected by fires, floods, sinks or major breakdowns in the industrial equipment, which involve serious alterations in the development of the activity, the persons concerned shall bring it to the attention of the competent authority of the tax administration within 30 days, from the date on which they are produced, providing the evidence they deem appropriate. The effectiveness of such alterations shall be credited, allowing for the reduction of the signs, indices or modules that apply.

3. Where the development of business activities to which this modality applies is affected by fires, floods, sinks or other exceptional circumstances determining extraordinary expenses outside the process In the case of the financial year, the person concerned may pay the net income resulting from the amount of such expenditure. To this end, the taxable persons shall bring that circumstance to the attention of the competent authority of the tax administration within 30 days, from the date on which it is produced, providing for that purpose the justification corresponding. The tax administration will verify the certainty of the cause that motivates the reduction of the yield. The sentence in this number shall be incompatible for the same assets with the one referred to in Article 22 (2

.

CHAPTER III

Objective Estimation by coefficients

Article 29. Objective scope.

One. The objective estimation mode by coefficient shall be applicable to taxable persons who carry out business or professional activities that meet the following template requirements and annual sales or revenue volume:

A) Business persons to whom the ministerial orders approving the signs, indices or modules do not apply and where the number of staff members does not exceed 12 on any day of the financial year and the volume of which Annual operations shall not exceed 50 million pesetas.

B) Professionals whose revenue volume is not more than 5,000,000 pesetas and without paid staff.

Two. For the purposes of the preceding paragraph, account shall be taken of all the revenue or volume of operations and the number of employees in the preceding year. If this has been the start of the activity, the amount of the volume of transactions in the activity shall be raised per year.

In the first year of the activity, only the number of workers will be taken into account at the start of the activity.

They shall not have the consideration of staff members who receive their remuneration for daily peonings or daily wages, without permanent employment with the taxable person, or the crews of vessel owners, in coastal and coastal fishing, with remuneration exclusively "to the party", nor the holder of the activity.

Three. When the taxable person develops several activities, the limits shall be computed as follows:

(a) If in the exercise of any of the business activities the mode of signs, indices or modules is accepted, they shall not be taken into account for the purposes of computing the template and the annual sales volume.

b) If several business activities are developed, the limits of the volume of operations and number of operators shall be those corresponding to the set of the indicated activities.

(c) If several professional activities are carried out, the income limit shall be that corresponding to all those activities.

(d) If the taxable person develops business and professional activities, the inclusion limits shall be applied separately to the set of business or professional activities.

Article 30. Content.

One. Net income shall be obtained by subtracting from the total amount of the corresponding sales, operations or revenue, exclusively the following expenditure for the financial year:

a) Cost of personnel, including the Social Security of the holder of the activities.

When duly accredited, with the appropriate employment contract and the affiliation to the corresponding social security scheme, the spouse or minor children of the taxable person living with him/her normally and with continuity in the business or professional activities carried out by it, they shall be deductible in the concept referred to in point (a), the remuneration stipulated with each of them, provided that they are not higher than the of the market for their professional qualifications and their work.

(b) Purchases of goods and other goods acquired to resell them, either without altering their form and substance or subject to processes of adaptation or transformation. Ancillary costs of purchase and sale, such as transport and freight, insurance and remuneration of intermediary agents, shall also be taken into account.

The purchases will be reduced, if any, in the amount of the discounts.

The amount of the purchase of the goods that are or are due to be part of the taxable person's asset on the last day of the tax period shall not be computed as an expense.

c) Consumption of energy and water, both for use in facilities and for transport elements affected by the activity.

(d) Rentals corresponding to the premises where the activity is carried out, as well as the leased licence fee on agricultural, forestry, livestock or mining holdings.

In no case will the part of the lease fee that corresponds to the recovery of the cost of the good be considered deductible.

(e) Interest in foreign capital and other financial charges applied to the activity and the insurance premiums or contributions of the goods or products of the holding.

(f) Non-State-owned Taxes on the basis of the development of the activity or the ownership of the property assets affected by the activity.

g) Repairs and preservation, as well as other works performed by other companies that have a direct relationship to the normal development of the activity.

The positive amount that results after subtracting the previous expenses will be deducted from the result of applying the following percentages to the same:

-20 per 100 in manufacturing, mining and construction activities.

-15 per 100 in commercial, service delivery, agricultural, livestock, forestry and fishing activities.

-10 per 100 in professional activities.

Two. Where the development of business or professional activities to which this modality applies is affected by fires, floods, sinkings or other exceptional circumstances which determine extraordinary non-profit expenses the normal process of the exercise of that year, the persons concerned may undermine the net yield resulting from the amount of such expenditure. To this end, taxable persons shall be required to bring that circumstance to the attention of the competent authority of the tax administration within 30 days of the date on which it is produced, providing, for that purpose, the corresponding. The tax administration will verify the certainty of the cause that motivates the reduction of the yield. The sentence referred to in this paragraph shall be incompatible for the same assets with the one referred to in Article 22 (2

.

TITLE V

Quota Deductions

Article 31. Degree of invalidity giving entitlement to deduction in the quota.

One. The degree of physical or mental decline referred to in point (d) of Article 78 (1) of the Tax Act is that of those who have the legal status of a person with a disability in a degree equal to or greater than 33 per 100. agreement with the scale referred to in the second provision of Law 26/1990 of 20 December 1990.

Two. In order to benefit from this deduction, the taxable person must prove that the determining circumstances of the disability are on the date on which the tax is due.

Three. The condition of a disabled person referred to in paragraph 1 of this Article may be credited to the tax authorities for any of the means of proof admitted in law.

However, the legal status of disabled person will be considered accredited when:

(a) Be certified by the National Institute of Social Services or the corresponding organ of the Autonomous Communities.

(b) The benefit is recognized by the Social Security, by the Special System of Passive Classes, by the National Social Security Mutual Fund or by Entities that replace them, as a consequence of permanent incapacity, provided that the degree of disability equal to or greater than 33 per 100 referred to in paragraph 1 of this Article is required for recognition.

Article 32. Deduction for sickness expenses.

One. Sickness costs shall be deducted by 15 per 100 of the costs incurred by the taxable person during the period of the tax for reasons of sickness, accidents or invalidity of his own or of the persons for whom he is entitled to deduction in the quota, as well as expenses satisfied by professional medical and medical fees on the occasion of the birth of the children of the taxable person and of the contributions paid to Mutual Mutual or Medical Insurance Companies.

As expenses for reasons of illness, accidents or invalidity, the following shall be considered:

1. Those of dentistry, including dental prostheses.

2. Those of ophthalmology, even graduated glasses and lenses.

3. Those of recovery treatments.

4. Braces.

5. The clinical ones that, if any, correspond to the patient's companion.

6. Those for sick care services provided by healthcare personnel.

7. Those produced to blind persons, physically or mentally handicapped, to the extent laid down in Article 31 of this Regulation which relate to both persons and to the means for their necessary care and possible normal life.

8. Travel and stays on the basis of medical consultations of the patient and an accompanying person.

9. Treatments in spas and thermal stations under duly accredited optional prescription.

This concept will not be deductible from cosmetic surgery, provided that it is not motivated by reasons of illness, accident or professional requirements.

Two. This deduction shall be conditional upon its documentary justification, adjusted to the requirements laid down by the regulatory rules of the duty to issue and deliver invoices for employers and professionals.

Article 33. Housing accounts.

One. They shall be deemed to have been intended for the acquisition or rehabilitation of the dwelling which constitutes or is to constitute the habitual residence of the taxable person the amounts deposited in credit institutions, in separate accounts of any other type of taxation, provided that the balances of the same are exclusively intended for the acquisition or rehabilitation of the taxable person's habitual dwelling.

Two. The right to deduction will be lost:

(a) Where the taxable person has amounts deposited in the housing account for purposes other than the purchase or rehabilitation of his or her usual dwelling. In the case of a partial provision, the quantities laid down shall be deemed to be the first deposited.

b) When four years elapse, from the date on which the account was opened, without the housing being acquired or rehabilitated.

(c) Where the subsequent acquisition or rehabilitation of the dwelling does not meet the conditions determining the right of deduction for that concept, as provided for in Article 78 (4) (b) of the Law of the Tax.

Three. Each taxable person may only maintain a housing account.

Four. The accounts shall be separately identified in the tax return, including at least the following data:

-Entity where the account was opened.

-Branch.

-Count number.

Failure to comply with this paragraph will result in the loss of the right to deduction.

Five. Where the right to deductions is lost, the taxpayer shall be obliged to add to the amount of the tax due in respect of the year in which the requirements have been breached, the amounts deducted, plus interest on late payment referred to in Article 58.2 (b) of the General Tax Act.

Article 34. Concept of habitual housing.

Normal housing is understood to constitute the residence of the taxable person for a continuous period of at least three years. However, it is understood that the dwelling was normal when, despite the expiry of that period, circumstances would necessarily require the change of domicile.

It is understood that the dwelling has not constituted the residence of the taxable person if within twelve months, counted from the date of acquisition or termination of the works, it has not been inhabited effectively and with character permanent by the taxable person himself, except as soon as he enjoys habitual housing on account of employment or employment, and the house acquired is not the subject of any other use, in which case the period indicated above shall begin to be counted from the date of date of termination.

Article 35. Housing acquisition.

One. The acquisition of housing is treated as the construction or expansion thereof, in the following terms:

-Housing expansion, when the increase of its habitable surface occurs, by means of a closed part enclosure or by any other means, permanently and during all times of the year.

-Construction, where the taxable person directly satisfies the costs arising from the execution of the works, or gives amounts to the promoter of the works, provided that they are completed within a period not exceeding four years from the start of the investment.

Two. On the contrary, housing acquisition will not be considered:

a) Conservation or repair. For these purposes, conservation and repair costs shall be considered:

-Those made regularly for the purpose of maintaining the normal use of material goods, such as painted, revoked and similar.

-The replacement of elements whose inuse is a consequence of the normal operation or use of the goods in which they are integrated, such as the arrangement of heating, lift, water, plumbing and the like.

b) Improvement, such as furniture, security doors, installation of counter-leads and the like.

c) The acquisition of garages, gardens, parks, swimming pools and sports facilities and, in general, the annexes or any other element that does not constitute the housing itself, provided that they are acquired independently of is.

Three. Where a habitual dwelling is acquired, having enjoyed the deduction for another previous dwelling, the basis of calculation shall be the difference between the price of the new house and the value of the previous dwelling, in so far as they have been the subject of deduction.

Article 36. Deduction for dividends.

One. The share of this tax shall be deducted from 10 per 100 of the dividends of companies received by the taxable person, provided that the benefit of the dividend in question had actually been taxed, without any reduction or bonus, by the Corporation Tax.

For these purposes they will not have the consideration of reductions or bonuses in Corporate Tax:

(a) The deductions of the fee that are the result of taxes satisfied by the society abroad.

(b) Those derived exclusively from special regimes for the purpose of territory.

(c) Deductions in the quota that come from the investment and employment incentive scheme established by the Company Tax Act.

(d) The allowance referred to in point (c) of Article 25 of Law 61/1978 of 27 December of the Company Tax.

e) The share of the profits of Spanish companies which obtain income abroad which, in accordance with the provisions of the agreements to avoid double taxation, should be exempt from the tax

Two. The deduction for dividends received, as referred to in the preceding paragraph, shall apply only in the case of holdings in profits or dividends distributed by:

a) Societies resident in Spanish territory.

(b) Companies whose profits do not benefit from any bonus or reduction in the Company Tax, as provided for in the previous paragraph.

Three. The provisions of the foregoing paragraphs shall apply to the part of the taxable amount charged which corresponds to dividends or shares in profits which a company receives in the form of tax transparency.

Four. The deduction shall be made by the recipient of the holding or dividend on the basis of the full amount.

Five. For the purposes set out in this Article, they will have the same consideration as dividends, the premiums for assistance to Juntas, and, in general, those perceptions obtained by the taxable person who, not having the strict concept of a dividend they represent for that performance derived from equity participation of any type of entity.

Six. In cases of dissolution of companies, the consideration of the dividend, for the purposes of the deduction regulated in this article, shall be the part of the settlement fee effectively subject to the Income Tax of the Physical Persons who corresponds to undistributed profits, provided that they have been taxed by the Company Tax in the form provided for in paragraph 1 of this Article.

Seven. In no case shall the income or increases in equity obtained from shares in the social capital or equity of Collective Investment Institutions subject to the special tax regime provided for in the Law be deducted. 46/1984, of December 26.

Eight. The partners of the specially protected cooperatives, whose performance has benefited from the allowance provided for in Article 34 (2) of Law 20/1990 of 19 December on the Tax Regime of Cooperatives, shall be deduction to 5 per 100.

Article 37. Income earned in Ceuta and Melilla.

One. If, among the yields or increases computed for the determination of the positive liquidable bases, one obtained in Ceuta, Melilla or its premises, 50 per 100 of the part of the full quota is deducted, corresponds to the income obtained in those territories.

For these purposes, they shall be considered as obtained in those territories, inter alia:

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

(b) The income of the real estate capital, where the buildings from which are derived are located in those territories.

(c) Equity returns consisting of dividends, where they derive from profits earned in those territories.

For these purposes, in the case of companies domiciled outside the indicated territories with permanent establishment in the same or vice versa, they shall be considered as income obtained in Ceuta, Melilla or their dependencies, the part of the total return of the Company equivalent to the proportion of the total tax capital of the Company with that corresponding to the permanent establishment, located within or outside those territories, as the case may be.

(d) Capital returns consisting of interest on bonds or loans, where the capital is invested in those territories and there generate the corresponding income.

e) The returns of business and professional activities performed in the indicated territories.

(f) The property increases and decreases arising from movable or immovable property located in Ceuta, Melilla or its premises, of rights over the same and of securities issued by Companies with domicile in such territories.

Two. The deduction in quota referred to in the preceding paragraph shall not apply to taxable persons not resident in those places, except as regards income from securities representing the social capital of institutions. (a) legal and/or direct-to-business legal entities located in the same Member State and the income of permanent establishments located therein.

TITLE VI

Tax Management

CHAPTER FIRST

Obligation to declare

Article 38. Obligation to declare.

One. They shall be required to submit and sign a declaration for this Tax:

(a) taxable persons under personal obligation.

(b) Liabilities to actual liabilities.

Two. However, they shall not be obliged to declare taxable persons under a personal obligation to contribute to the income of less than one million gross annual pesetas from one of the following sources:

(a) Work projects and those assimilated that do not have the character of business or professional returns.

b) Capital flows and capital increases subject to the tax that do not exceed the 250,000 gross annual pesetas together.

For the purposes of the limit of the obligation to declare, no account shall be taken of the income of the house itself which constitutes the habitual residence of the taxable person or, where applicable, of the family unit.

In the case of pensions and liabilities, the limit referred to in the first subparagraph of this paragraph shall be 1,200,000 pesetas.

However, a statement must be made to obtain returns on account of the payments made.

Three. In joint taxation, the limit of the obligation to declare referred to in the first subparagraph of paragraph 1 shall be 1,200,000 pesetas.

Four. The Minister for Economic Affairs and Finance may approve the use of simplified or special declaration procedures.

The declaration shall be made in the form, deadlines and forms set out by the Minister for Economic Affairs and Finance, who may authorise the use of computer readable media.

The Minister for Economic Affairs and Finance may, for justified reasons, establish special time limits for a particular portion of the taxpayer or for those territorial areas to be identified.

The taxable persons shall complete all the data concerning them contained in the declarations, accompany the documents and supporting documents to be established and present them in the places to be determined by the Minister of State. Economy and Finance.

Five. The joint taxation declaration shall be signed and submitted by the members of the older family unit, who shall act on behalf of the minors integrated into it, in accordance with Article 44 of the General Tax Law.

Article 39. Self-validation and income.

One. The taxable persons, at the time of filing their tax return, must determine the corresponding tax liability and enter it in the place, form and time limits determined by the Minister of Economy and Finance.

Two. The amount resulting from the reverse charge may be split, without interest or surcharge, in two parts: the first, 60 per 100 of its amount, at the time of filing the declaration, and the second, of the remaining 40 per 100, in the the time limit to be determined as set out in the previous paragraph.

To enjoy this benefit it will be necessary for the declaration to be submitted within the stated deadline.

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

CHAPTER II

Payments to account

Article 40. Payments on account.

In the Income Tax of the Physical Persons the payments to account may consist of:

a) Retentions.

b) Income to account.

c) Fracked payments.

Section 1. Retentions and Income to Account. General rules

Article 41. Withholding and income on account.

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

Equally, there will be an obligation to retain in the transmission of financial assets with implicit performance, under the conditions set out in this Regulation.

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

There will also be an obligation to make an income on account in the cases provided for in Articles 7 and 8 of the Tax Law.

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

Article 42. Required to retain or enter into account.

One. They shall be obliged to retain or enter into account:

(a) Legal persons and other entities, including owners ' communities and entities under the income allocation scheme.

(b) Individual entrepreneurs and professionals, when they meet or pay rents in the course of their activities.

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

(d) taxable persons under real obligation, operating in Spain without permanent establishment mediation, in respect of the performance of the work they satisfy.

Two. A person or entity shall not be deemed to satisfy or pay performance when it is limited to a simple payment mediation.

Simple payment mediation means the payment of an amount per account and order of a third party.

They do not have the consideration of simple payment mediation operations as specified below. In consequence, the persons and entities referred to in the previous paragraph shall be obliged to retain and enter the following cases:

-When they are depositories of foreign securities owned by residents in Spanish territory or are in charge of managing the collection of interest derived from such securities, provided that such income has not been incurred previous retention in Spain.

-When they satisfy their staff on behalf of Social Security.

-When they satisfy their staff amounts disbursed by third parties in terms of tip, service pay or similar.

Article 43. Income subject to withholding or income on account.

One. They shall be subject to withholding or entry into account under the following income:

a) The returns of the job.

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

c) The performance of professional activities.

(d) prizes that are awarded as a result of participation in games, contests, raffles or random combinations, whether or not they are linked to the offer, promotion or sale of certain goods, products or services, except that they are capital returns which are subject to retention or entry into account under point (b) above.

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

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

(b) The income derived from the popular savings plans under the conditions referred to in Article 37 (2) of the Tax Act.

(c) Treasury yields and securities issued by the Treasury or the Banco de España which constitute a regulatory instrument for intervention in the money market, except as provided for in Article 2. Decree-law 1/1989, of 22 March, regulating the tax treatment of the rights of subscription and of the Treasury bills for non-residents.

(d) The income of foreign currency deposits and foreign accounts in pesetas that are satisfied to non-residents in Spain, unless the payment is made to a permanent establishment, by the Banco de España and Banks, Savings Banks, Rural Banks and Credit Unions and other establishments with delegated functions of the same.

e) Dividends distributed by Mobiliaria Investment Companies whose representative values of the share capital are admitted to trading on the Stock Exchange, as soon as they are received by residents in other countries Community.

(f) The results distributed to the unit-holders in the Investment Funds, under the same conditions as the previous letter.

(g) Yields that are satisfied or paid to taxable persons under a real obligation to contribute to act without permanent establishment mediation, when the payment of the tax is credited.

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

(i) Return on capital as referred to in point (d) of Article 44 (4) of the Tax Act.

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

Article 44. Amount of the withholding or income on account.

One. The amount of the retention shall be the result of applying to the full amount that the corresponding percentage is satisfied or paid in accordance with the provisions of the following section.

Two. The amount of the payment to account which corresponds to the remuneration in kind shall be the result of applying to the value of the remuneration, determined in accordance with the rules contained in this Regulation, the percentage corresponding to the provided for in Subsection 1 of Section 3 below.

Three. Where the provisions of Articles 7 and 8 of the Tax Act are applicable, the withholding or entry into account may not be lower than that calculated on the basis of the yield fixed in accordance with those Articles.

When, as a consequence of the foregoing, a theoretical amount is higher than the actual yield, the debtor will retain on the basis of effective performance.

Additionally, the debtor shall make a calculated income on the difference between the minimum yield and the effective yield. This income will not have the consideration of fiscally deductible expenditure for the payer.

In the absence of effective performance, you will exclusively account for the minimum performance.

Section 2. Retentions

Subsection 1. Th Job Yields

Article 45. Holds on income from work.

The retention to practice on job returns will be the result of applying to full satisfaction the percentage that corresponds to the following:

1) As a general rule, the amount of the taxable person's income and personal circumstances is consistent with the table and instructions contained in the following article.

2) In the case of remuneration of the members of the Boards of Directors or of the Boards who make their time the percentage of retention shall be 30 per 100.

Article 46. Table of retention percentages and rules for their application.

One. Retention percentages table.

Performance Amount

-

Pesetas

Number of children and other descendants

0

1

2

3

4

5

6

7

8

9

10

11

or more

to

1,000,000

0

0

0

0

0

0

0

0

0

0

0

0

more of

1,000,000

2

0

0

0

0

0

0

0

0

0

0

0

than

1.100,000

3

1

1

0

0

0

0

0

0

0

0

1,200,000

6

4

3

0

0

0

0

0

0

0

0

0

more than

7

6

4

3

3

1

1

1

0

0

0

0

0

than

1.400,000

8

7

3

3

2

1

1

0

0

0

0

10

9

9

9

6

5

4

3

1

1

0

0

0

more than

1,800,000

12

11

10

9

8

6

5

4

3

0

13

12

12

11

10

9

8

7

6

5

4

3

1

over

2.200,000

14

13

12

11

10

9

8

7

7

6

5

3

16

14

14

14

14

13

12

9

9

9

8

7

5

more than

2,800,000

17

16

15

14

13

12

12

10

9

9

7

more than

3.200,000

18

17

16

16

15

14

13

13

12

11

10

9

3.600,000

19

18

18

18

17

16

16

15

14

14

13

12

11

more than

4,000,000

20

19

19

19

18

18

17

16

15

14

12

11

more than

4.600,000

21

21

21

20

20

19

18

17

17

16

15

14

more

23

23

23

23

23

22

22

21

20

19

18

17

16

15

more than

6,000,000

24

24

24

23

23

23

22

21

21

20

19

18

more than

7,000,000

26

26

26

25

24

24

24

24

23

23

22

21

28

28

28

27

27

26

26

25

24

22

22

9,000,000

30

30

30

29

29

28

28

27

26

25

24

23

more than

10.000.000

32

32

32

32

31

31

30

30

30

30

30

29

more than

12,000,000

35

35

35

35

35

34

34

34

33

33

33

32

than

14,000,000

38

38

38

38

38

37

36

36

35

35

35

34

of

16,000,000

40

39

39

39

39

38

37

37

36

36

36

35

more than

18,000,000

42

42

42

42

41

41

41

41

40

40

40

40

more than

20,000,000

43

43

43

43

43

43

43

42

42

42

42

42

Two. General rules for the application of the table.

1. The number of children and other descendants to be taken into account for the implementation of the table shall be those for which the deduction provided for in Article 78 (1) (a) of the Tax Act is entitled. For these purposes, the family situation shall be that existing on the day of the calendar year, or the date of the start of the relationship when the calendar year has started after that date.

2. The amount of remuneration to be taken into account for the implementation of the table shall be determined on the basis of the full perception that, in accordance with the applicable contractual rules or stipulations and other foreseeable circumstances, normally to receive the taxable person in the calendar year.

Annual full collection shall include both fixed remuneration and foreseeable variables, the amount of which may not be lower than that of those obtained during the preceding year, provided that there are no circumstances boast a noticeable reduction in them.

For the purposes of determining the annual full collection, remuneration in kind shall not be taken into account, without prejudice to the provisions of Article 53 of this Regulation.

If any of the previous remuneration is included as a result of the irregular performance rating, the calculation of the retention rate shall only take into account the ratio resulting from the split of the amount by the number of years in which it was generated.

3. The percentage of retention thus determined shall apply to all the remuneration paid or satisfied, even if these differ from those which were used for their determination.

However, if, at the end of the period initially provided for in a contract or duration of less than one year, the worker continues to provide services to the same employer, or to do so within the calendar year, calculate a new percentage taking into account both the remuneration previously paid and those that you would normally receive, always within the same calendar year.

Exceptionally, where, under general rules or collective agreements, changes in the amount of remuneration occur during the year, a new percentage of withholding tax shall be calculated taking into account the changes produced. This new percentage shall apply only from the date on which the said variations occur.

4. The retention rate resulting from the provisions of the preceding paragraphs shall not be less than 15 per 100 where the income is derived from special working relationships of a dependent character, or 2 per 100 in the case of contracts or relationships of duration less than year.

Three. Specific rules for the application of the table.

1. In the case of pensions and liabilities, the rate of retention of the column of the table for taxpayers with a child shall apply.

For the purposes of determining the rate of retention applicable, the increase shall be made per year of the amounts which, as such pensioners or holders of taxable assets, are acquired by persons who acquire such a condition during the exercise.

However, the taxable person may opt for the application of the general withholding table, taking into account the reality of his/her personal circumstances, without in this case raising the amount per year.

2. In the case of manual workers who receive their remuneration for daily wages or wages, the result of a sporadic and daily relationship with the employer, the amount of remuneration to be taken into account for the implementation of the table corresponding to the result of multiplying by 100 the amount of the collected daily or daily wage.

3. For the remuneration of the crews of fishing vessels, where they consist, in whole or in part, of a share in the value of the catch caught, the percentage of the catch shall be fixed in accordance with the rules following:

1. If minimum guaranteed wages are received and, in addition to, a share of the value of the catch caught, depending on the annual amount of the guaranteed minimum wage provided for in the Collective Agreements and Regulations. The minimum guaranteed wages which are in force at each moment in the various fishing ports shall be multiplied by the coefficients which, according to category, are shown in the following table:

coefficients

Person with or without a title, which meets the Fishing Practice function, also called the Fishing Pattern.

4.00

Person who, with sufficient titration for the dispatch or command of the ship, bears the responsibility of the machines (Chief Naval Machinist or Major Naval Mechanics with his/her command).

3.00

' Rest, with titration required for ship dispatch.

Restante crew on board.

2. If the wage structure is made up exclusively of a share in the value of the catch caught, on the basis of the estimated annual remuneration for the purposes of Decree 2864/1974, of 30 June 1974, August, recast text of the Special Regime of the seafarers.

3. In no case will the resulting retention percentage be less than 2 per 100.

4. Where the recipient of income from work is required to pay a compensatory pension to his or her spouse, the amount of the pension may decrease the amount of remuneration to be taken into account for the calculation of the percentage of retention.

To this end, the taxable person must inform his/her payer in the form provided for in the following article, accompanied by a literal testimony of the decision determining the pension.

The reduction provided for in this paragraph will only apply where the worker provides his services under the term of an indefinite contract and may only be invoked from the following tax period. the person in which the pension was judicially established.

In the assumptions referred to in this number, if the resulting retention rate is less than 2 per 100 the latter will be applied.

5. In the case of income which is satisfied with taxable persons who, as provided for in Article 28 (2) of the Tax Act, are entitled to a deduction of 15%, the amount of remuneration to be taken into account for the purposes of the Application of the table will be the result of applying the coefficient 0,85 to those remuneration. In such cases it shall not apply, if applicable, to the provisions of paragraph 4 of paragraph 2 above.

Article 47. Communications.

One. Taxable persons shall credit to the payer their personal situation for the calculation of the applicable retention rate.

Where the personal situation has an impact on the determination of the retention rate, the payer shall keep the supporting documents provided by the taxable person in respect of that situation.

Two. The option for the general retention table which may be exercised by pensioners must be made in writing to the paying payer or managing body in the month of December of each year, or in the immediate period preceding the date on which it is acquired. the status of pensioner or holder of liability.

Three. Taxable persons may request from their respective payers the application of retention rates higher than those provided for in the preceding Articles, in accordance with the following rules:

(a) The application shall be made in writing to the payers, who shall be obliged to take care of the requests made to them in good time for the preparation of the corresponding payrolls.

(b) The new type of retention requested may not be modified in the period of time between its application and the end of the year and shall apply to the taxable person during the successive financial years, as long as he does not resign, written, to the quoted percentage or do not request a higher retention type and provided there is no variation of circumstances that determines a higher type, depending on the retention tables.

The higher rate of retention referred to in this paragraph shall only apply to cash remuneration.

Subsection 2. Th Capital Returns

Article 48. Withholding tax on capital income.

One. The rate of retention applicable on returns on capital shall be 25 per 100.

Two. Where the loss of income from the income from the popular savings plans referred to in Article 37 (2) of the Tax Law is lost, the retention to be applied shall be made at the rate in force in the time when the disposal of the inverted quantities is available.

Article 49. Specific retention rules on explicit returns.

One. The obligation to retain shall be born at the time when the returns subject to retention are payable by the recipient.

In particular, interest shall be deemed to be payable on the due dates indicated in the deed or contract for settlement or recovery, or otherwise recognized, even if the recipient does not claim the collection, or the returns are accumulated to the principal of the operation.

Two. Where the frequency of the liquidations of the explicit returns is greater than 12 months, an income shall be made on account of the final withholding in the form provided for in Article 57 of this Regulation.

The final withholding tax shall be applied at the rate in force at the time of the enforceability and shall be regulated on the basis of the realised income.

Article 50. Specific retention rules on implied returns.

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

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

Two. The retention shall be made on the positive difference between the amount obtained on the transmission, redemption or redemption and the acquisition or subscription.

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

Four. For the transmission of financial assets with implicit performance, the following subjects shall be required to retain and enter the Treasury:

(a) The issuing person or entity in the case of returns obtained in the redemption or redemption of these financial assets. Where applicable, they shall be obliged to retain those who are required to pay such amortisation or refund in default of the person or broadcaster.

In the event that a Financial Entity is entrusted with the materialization of that operation, it shall be in charge of practicing and entering the withholding tax.

In the case of turn instruments converted after their issuance in financial assets, due to their maturity or transmission, the holder or financial institution involved in the transaction shall be retained. in accordance with the third paragraph of Article 7 of Royal Decree 2027/1985 of 23 October, which develops the Tax Regime Act of Certain Financial Assets.

(b) The Bank, the Fund or the Financial Entity acting on behalf of the transferor, in the case of returns obtained in transmissions relating to these assets, where such transmissions are channelled through one or more of the financial institutions.

Operations that are not documented in titles are included in this case.

For the purposes of this letter, it shall be understood to act on behalf of the transferor of the Bank, Fund or Financial Entity that receives the order for the sale of the financial assets with implicit return.

(c) The public purse must intervene in the other cases not referred to in the preceding letters.

Subsection 3. Th Professional Activity Yields

Article 51. Holds on income from professional activities.

One. Where yields are offset from a professional activity, the rate of retention of 15 per 100 shall be applied to the full income.

However, in the case of satisfied returns to guaranteed representatives of "Tabacalera, Sociedad Anonima", the retention rate will be 8 per 100.

Two. They shall be considered as being among the income of the professional activities:

1. In general, those arising from the exercise of the activities included in the second and third sections of the rates of the Tax on Economic Activities, approved by the Royal Legislative Decree 1175/1990, of 28 September.

2. In particular, they shall be regarded as professional income obtained by:

a) The authors or translators of works, coming from intellectual or industrial property. When authors or translators directly edit their works, their performance will be understood among those corresponding to the business activities.

b) The comists. It is understood that it is comionists that are limited to bringing together or approximating the interested parties for the conclusion of a contract.

On the contrary, it is understood that they are not limited to the conduct of their own operations when, in addition to the function described in the preceding paragraph, they assume the risk and venture of such commercial operations, in which case Performance shall be comprised of the performance of business activities.

c) Teachers, whatever the nature of the teachings, who exercise the activity, either in their home, private homes or in an open school or establishment. If the relationship from which the remuneration is to be worked or statutory, the income shall be included among the derivative of the work.

Teaching in academies or own establishments will have the consideration of business activity.

(d) Conferences, presentations in seminars or courses or other similar actions that are not provided as a result of a work relationship.

Three. No income from professional activities shall be regarded as the amounts collected by the persons who, at the salary of an undertaking, are obliged to register in their respective professional colleges or, in the case of a company, by virtue of their duties. (a) a general approach, which is derived from a working or dependent relationship. These amounts shall be included in the performance of the work.

Subsection 4. Awards

Article 52. Holds on prizes.

The applicable retention percentage on cash prizes will be 25 per 100 of your amount.

Section 3. Revenue to Account

Subsection 1. Remuneration In Kind

Article 53. Income on account of remuneration in kind of work.

One. The amount of the income to be taken into account for the remuneration paid in kind shall be calculated by applying to its value, determined in accordance with the rules laid down in Article 27 (1) of the Tax Law, the resulting percentage. of the provisions of Article 45 of this Regulation.

When the percentage referred to in the preceding paragraph is less than 15 per 100, the latter shall apply.

Two. There shall be no obligation to make income on account of the contributions paid by the promoters of Pension Plans, as well as the amounts paid by employers for alternative social welfare systems to Those who have been the subject of an imputation to the persons to whom the benefits are linked.

Article 54. Income on account of remuneration in kind of capital.

One. The amount of the income to account which corresponds to the remuneration paid in kind shall be calculated by applying to its market value the percentage resulting from the provisions of Subsection 2. of Section

.

Two. For the purposes of the preceding paragraph, the market value of the remuneration in kind shall be taken as the result of an increase in the value of purchase or cost for the payer by 25 per 100.

Article 55. Income on account of remuneration in kind of professional activities.

One. The amount of the revenue to be paid in respect of the remuneration in kind shall be calculated by applying the percentage resulting from the provisions of Subsection 3 of Section 2 above to its value.

Two. For the purposes of the preceding paragraph, the value of the remuneration in kind shall be taken as the value of the rules contained in Article 27 (1) of the Tax Act.

Subsection 2. Other Income to Account

Article 56. Settlement of explicit returns on capital.

When the frequency of the liquidations of the explicit returns of the capital is greater than twelve months, an income must be made, on account of the definitive withholding, on the basis of the interest or other Revenue generated in each calendar year.

Article 57. Estimation of yields and valuation of related operations.

When the provisions of Articles 7 and 8 of the Tax Law apply, the income to be realized, which, if any, is to be carried out shall be effected subject to the provisions of Article 44 (3) of this Law. Regulation.

Article 58. Income to account for prizes.

One. The amount of the income to account that corresponds to the satisfaction in kind awards shall be calculated by applying to its market value the percentage resulting from the provisions of subsection 4. of Section

.

Two. For the purposes of the preceding paragraph, the result of increasing the acquisition or cost value for the payer by 25 per 100 shall be taken as a market value.

Section 4. Obligations of the retainer and the obligation to enter into account

Article 59. Obligations of the retainer and the obligation to enter into account.

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

However, the declaration and entry referred to in the preceding paragraph shall be made in the first twenty calendar days of each month, in relation to the amounts withheld and the revenue to be borne by the (a) the date of the first subparagraph of Article 172 of Royal Decree No 2028/1985 of 30 October 1985, in the case of retainers or obliged to whom the circumstances referred to in Article 172 (3) of Royal Decree No 2028/1985 are met.

The retainers or obligated shall submit a negative statement when, despite having satisfied the income of those referred to in Article 43 of this Regulation, they have not carried out the practice of withholding or entering into account.

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

a) Name and last name.

b) Tax identification number.

(c) Withholding tax or income made, where applicable, and yield obtained, with indication of the identification, description and nature of the concepts, including the excepted allowances and yields exempt.

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

Three. The holder or the holder shall issue in favour of the taxable person certifying evidence of the withholding tax, or of the revenue to be incurred, and of the other data relating to the taxable person to be included in the summary Annual report referred to in paragraph

.

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

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

Five. The declarations referred to in this article shall be made in the models that the Minister of Economy and Finance establishes for each class of income, the holder being obliged to enter into account to complete all the data contained in the statements that affect you.

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

Section 5. Application of Retentions and Revenue to Account

Article 60. Application of holds and revenue to account.

One. The amounts actually paid to natural persons resident in Spanish territory by the persons required to retain shall be deemed to be, in any event, deducted from the amount of the withholding tax, except in the case of legally established remuneration.

Where the withholding tax would not have been or would have been lower than the amount resulting from the rules laid down in this Regulation, the recipient will count as full performance in its tax return. the quantity of which the retention is subtracted from, the actual perceived yield. It shall also deduct from the tax quota, as a withholding tax, the difference between the amount actually received and the amount by the amount entered in the said declaration.

In the case of legally established remuneration, the recipient shall count as full performance in his or her statement the legally established and deduct as a withholding tax that has been effectively practiced.

Two. Where there is an obligation to enter into account, it shall be presumed that such entry has been made. The taxable person shall include in the regular or irregular tax base, as appropriate, the valuation resulting from the rules contained in Section 3 of this Chapter and the income on account.

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

The corresponding retention and income, when the Performance Payment Entity is the State Administration, will be made directly.

Section 6. Fractional Payments

Article 61. Obligated to split payment.

Any taxable person who carries out business or professional activities shall be obliged to self-abolish and enter the Treasury, as a payment on account of the Income Tax of the Physical Persons, the amount that results from what is set in the following items.

Article 62. Amount of fractionation.

One. The taxable persons referred to in the preceding Article shall, within each period, enter the following quantities:

(a) For activities that are under direct estimation or objective estimation by coefficients, the largest of:

-6 per 100 of the net business or professional returns earned in the penultimate year prior to the fractional payments.

-2 per 100 of the quarter's sales or revenue volume, except for the following case.

-1 by 10 of the quarter's sales or revenue volume, in the case of wholesale merchants.

(b) For activities which are under objective estimation by signs, indices or modules, 5 per 100 of the net yields resulting from the application of that method, on the basis of the data-base of the first day of the year referred to in the split payment or, in the event of the commencement of activities, on the day on which they were commenced.

When the base data cannot be determined on the first day of the year, it shall be taken, for the purposes of the split payment, for the preceding year. In default, the split payment will consist of 2 per 100 of the quarter's sales volume or revenue.

Two. The amount resulting from the application of the foregoing paragraph shall be deducted, where appropriate, from the withholding tax and the revenue for account effected in accordance with Articles 51 and 55 of this Regulation. for the quarter.

Three. The taxable persons may apply in each of the split payments percentages higher than those indicated.

Article 63. Declaration and income.

One. Employers and professionals shall be required to declare and enter into the Treasury on a quarterly basis the amounts determined in accordance with the provisions of the preceding Article in the periods between 1 and 20 months of the April, July, October and January.

When the application of the provisions of the previous article does not result in amounts to be entered, the taxable persons shall submit a negative statement.

Two. The Minister for Economic Affairs and Finance may extend the time limits referred to in this Article, as well as to establish six-monthly income assumptions with the adjustments that come from the percentages determined in the previous article.

Three. The taxable persons shall submit the declarations to the competent authority of the tax administration and shall enter their amount in the Public Treasury.

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

Article 64. Entities on the basis of income allocation.

The split payment corresponding to the income of business or professional activities obtained by entities in the allocation of income shall be made by each of the partners, community members or unit-holders, in proportion to their participation in the benefit of the entity.

CHAPTER III

Interim settlement

Article 65. Provisional settlement.

One. The tax management bodies may, in accordance with the information declared and the supporting documents submitted with the declaration or required by the said bodies, rotate the provisional settlement as appropriate. In the same way, provisional liquidation may be made where the information available to the Administration is based on the existence of the determining income from the obligation to declare or which have not been included in the declarations. submitted.

Provisional settlements requiring the accounting documentation of business or professional activities are exempted from the provisions of the preceding paragraph.

Two. The provisions of the above paragraph shall be without prejudice to the subsequent verification and investigation which may be carried out by the Tax Inspectorate.

CHAPTER IV

Return of trade

Article 66. Return of trade.

One. Where the sum of the quantities withheld from the source and the revenue on account, including broken payments, exceeds the amount of the quota resulting from the reverse charge, the Administration shall be obliged to carry out provisional liquidation. within six months of the end of the period for the submission of the declaration.

The Administration will proceed to return the amount resulting from the indicated provisional settlement on its own initiative within one month.

If the provisional liquidation has not been carried out within six months, the Administration shall, within the following month, return the excess of the amount resulting from the self-settlement made by the subject. passive.

This paragraph shall be without prejudice to the subsequent verification of the tax return and the circumstances referred to in Articles 109 et seq. of the General Tax Act.

In any case, the right of the taxable person to the interposition of the relevant resources shall remain safe.

Two. After the period laid down in the preceding paragraph for the repayment without taking place, the taxable person shall be entitled to the interest on late payment referred to in Article 45 of the recast of the General Law. Budget, approved by Royal Decree No 1091/1988 of 23 September 1988, from the date on which it is requested in writing.

Three. The trade returns referred to in this Article shall be made by bank transfer. The Minister for Economic Affairs and Finance may authorise the return by cross-check if circumstances warrant it.

CHAPTER V

Formal obligations of taxable persons

Article 67. Accounting and registration obligations.

One. Taxable persons who carry out business activities whose performance is determined by direct estimation shall be obliged to keep accounts in accordance with the provisions of the Trade Code, as well as ancillary records. established or to be established for the purposes of Corporate Tax.

Two. By way of derogation from the above paragraph, where the business activity carried out is not of a commercial nature, in accordance with the Trade Code, the accounting obligations shall be limited to the keeping of the following records:

a) Book sales and revenue record.

b) Book of purchases and expenses.

c) Book record of investment goods.

Three. Taxable persons engaged in professional activities whose performance is determined under direct estimation shall be obliged to carry the following records:

a) Book record revenue.

b) Spending record book.

c) Book record of investment goods.

d) Book of funds and supply provisions.

Four. Taxable persons who carry out business activities and who determine their net performance by means of signs, indices or modules of the objective estimation method shall keep, numbered by order of dates and grouped by quarters, the invoices issued in accordance with the provisions of Royal Decree 2402/1985, of 18 December, for which it is regulated the duty to issue and to deliver invoice which is incumbent on the businessmen and professionals and the invoices or supporting documents Other type of documentaries received. They shall also keep the supporting documents of the signs, indices or modules applied in accordance with the provisions of the Ministerial Order which approves them.

taxable persons under this modality shall not be required to carry, for the activities concerned, books or accounting records in relation to the Income Tax of the Physical Persons.

Five. Taxable persons who carry out business or professional activities and who determine their net performance by means of coefficients of the method of objective estimation shall be obliged to carry out the books referred to in the paragraphs two and three above, as appropriate.

Six. An entity under a revenue allocation scheme which carries out business or professional activities shall carry a number of compulsory books corresponding to the activity carried out, without prejudice to the allocation of appropriate returns. to carry out in relation to its partners, heirs, community members or unit-holders.

Seven. Once completed, all the records referred to in the preceding paragraphs must be submitted for completion in the competent authority of the Tax Administration, between the closing of the tax period and the completion of the of the time limit for the submission of tax returns.

The books required by the Code of Commerce are exempted from this obligation.

The Minister of Economy and Finance will be able to set specific deadlines for groups or sectors of taxpayers. Such specific time limits shall be initiated after three months after the end of the tax period.

Eight. The Minister for Economic Affairs and Finance is authorised to:

(a) Determine the manner of keeping of the records referred to in this Article.

b) Exclude from the obligation of carrying or diligent of books recorded in this article to sectors of small contributors.

CHAPTER VI

Obligations of transparent societies

Article 68. Obligations of transparent companies.

One. Transparent Societies shall, in conjunction with their Company Tax Declaration, submit a relationship of their resident partners, in relation to the charges to be made to them, with the following data:

a) Identification, tax domicile and percentage of partner participation.

b) Total amount of amounts to be imputed, relating to the following concepts:

1) Accounting result.

2) Tax base.

3) Compensation for loss of financial years in which the Company is not in a transparent manner.

4) Base of double taxation deduction.

5) Base of the international double taxation deduction.

6) Bonifications.

7) Base of deduction for investments.

8) Income to account and holds.

c) Dividends or distributions of agreed reserves, distinguishing those that correspond to exercises in which the Company is not in a tax transparency regime.

Two. At the same time, they shall notify their partners of the total amounts to be charged and the individual allocation made.

Three. The Minister for Economic Affairs and Finance will approve the model to which the relationship provided for in this article should be adjusted.

TITLE VII

Actual obligation to contribute

Article 69. Scope.

The provisions of this Title shall apply to both the taxable persons of the Income Tax of the Physical Persons and, where applicable, those of the Company Tax.

Article 70. Income obtained in Spain by non-residents.

One. The following shall be considered as income obtained or produced in Spanish territory:

(a) The income of business or professional activities obtained through permanent establishment located in Spanish territory. For the qualification of the permanent establishment, the provisions of the Corporate Tax will be prevented.

(b) The income from business activities obtained without permanent establishment mediation when the activities are carried out on Spanish territory. However, yields resulting from the installation or assembly of machinery or installations imported into Spanish territory shall not be considered to have been obtained or produced in Spanish territory where the installation or assembly is carried out by the supplier of machinery or installations and their amount does not exceed 20 per 100 of the purchase price of the imported items.

(c) Yields derived from services such as studies, projects, technical assistance, management support, as well as professional services, when the performance is performed or used in the Spanish territory. Benefits which serve business or professional activities carried out on Spanish territory or which relate to goods located in the Spanish territory shall be understood to be used in Spanish territory.

d) Yields of dependent work when the work is performed on Spanish territory.

e) The income obtained in relation to the personal performance of artists and sportsmen in Spanish territory, even if they are attributed to a person or entity other than the artist or sportsman.

(f) dividends and other income derived from participation in the own funds of public or private entities resident in Spain.

(g) Interest, royalties and other income from capital, satisfied by public or private persons or entities, resident in Spain or by permanent establishments located in Spanish territory, or who pay back capital benefits used in Spanish territory.

However, they will not have the consideration of income obtained in Spanish territory from deposits and transactions that perform similar functions in foreign currency and foreign accounts in pesetas that are satisfy non-resident persons or entities in Spain, unless the payment is made to a permanent establishment, by the Bank of Spain and Banks, Savings Banks, Rural Banks and Credit Unions and other performing establishments delegated to it.

(h) Yields derived, directly or indirectly, from real estate located in Spanish territory or from rights relating thereto.

i) Equity increases derived from securities issued by persons or entities, public or private, resident in Spain.

(j) increases in equity, directly or indirectly, derived from immovable property located in Spanish territory or from rights relating thereto.

In particular, they will be considered included in this letter:

1. Equity increases derived from rights or shares in a company or entity, resident or not, the asset of which is primarily made up of real estate located in Spanish territory.

2. Increases in assets arising from the disposal of rights or shares in a company or entity, whether resident or not, which attribute to its holder the right to enjoy real estate located in Spanish territory.

k) increases in assets arising from other movable property located in Spanish territory or from rights to be fulfilled or exercised in that territory.

Two. Without prejudice to the provisions of the preceding paragraph of this Article, they shall also be understood to be obtained or produced in Spanish territory:

a) Yields satisfied by:

-Individual or professional entrepreneurs residing in Spanish territory.

-Legal persons or entities, public or private, resident in that territory.

-Permanent establishments located on Spanish territory.

(b) The provisions of the preceding subparagraph shall not apply in the case of the following returns:

1. Those satisfied by business activities other than those mentioned in the following number, when those activities are carried out in full abroad. In particular, they shall be understood to include in this number those satisfied by the international purchase of goods, including the mediation fees, as well as ancillary and related expenses.

2. Those satisfied by reason of the services or benefits referred to in point (c) of paragraph 1 of this Article, where such services or services are made entirely outside the Spanish territory and are directly linked to business or professional activities of the payer carried out abroad, unless they relate to goods located on Spanish territory.

3. Those satisfied to persons or entities not resident by permanent establishments located abroad, under the same conditions, where the corresponding benefits are directly linked to the activity of the establishment permanent abroad.

Article 71. Deductible items in real obligation to contribute without permanent establishment.

One. In general, the taxable amount of the tax corresponding to the income of taxable persons under real obligation without permanent establishment mediation shall be the amount of the amount payable.

Two. In the case of service provision, technical assistance, installation or assembly costs arising from engineering contracts and, in general, from business or professional activities carried out in Spain without establishment mediation The following items may be deducted from the full amount due:

(a) Salaries, salaries and social charges for staff posted to Spain, or contracted on Spanish territory, directly employed in income-producing activities, provided that the right is justified or guaranteed income from tax or payments on account corresponding to the income from the work being satisfied.

(b) Imported materials for definitive incorporation into the works or works carried out on Spanish territory, for the amount declared for the purposes of the settlement of tariff duties or the value added tax.

(c) Provisions made in Spanish territory of materials for their definitive incorporation into the works or works carried out therein, provided that the invoices have been issued with the formal requirements required by the regulatory rules of the duty to issue and deliver invoices for employers and professionals.

Article 72. Supplementary taxation on the income of the permanent establishment.

One. The supplementary tax on the income of the permanent establishment referred to in the second subparagraph of Article 19 (2) of the Law on the Income Tax of Physical Persons and Article 23 (4) of the Tax Law on Companies, it shall be payable in respect of the amounts transferred abroad from the income obtained by it.

Two. The tax shall be settled at the general rate applicable to income obtained by non-residents without permanent establishment mediation.

Three. For this purpose, the amount of the tax in the form, time-limits and forms laid down for the income obtained without permanent establishment shall be entered and entered.

Article 73. Retention in the acquisition of non-resident real estate.

One. In the case of transfers of immovable property located in Spain, carried out by a non-resident taxable person without permanent establishment mediation, the acquirer shall be obliged to retain and enter 10 per 100 of the total agreed price, as a payment on account of the tax corresponding to that tax.

Two. The acquirer shall be released from the obligation to retain in the following cases:

(a) When the transmitte accredits its subjection to the personal obligation of the tax by certification issued by the competent organ of the tax administration or by the display of the declaration of the Tax on the Income of the Physical Persons corresponding to the last tax period for which the period of the declaration has expired.

(b) In the case of buildings acquired more than 20 years in advance of the date of transmission, which have not been subject to improvements during that time. For these purposes, the taxable person must expressly state in public document that the property has not been subject to improvements in the period concerned.

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

Four. The taxable person must declare and enter the definitive tax, compensating in the quota the amount retained by the acquirer, within three months from the end of the period established for the entry of the withholding tax.

The Administration shall, if necessary, make prior the necessary checks, to the return to the taxable person of the excess entered into account.

Five. Derogation from the cases referred to in paragraph 2 above, where the retention referred to in paragraph 1 has not been entered, the goods transmitted shall be affected by the payment of the tax.

Six. The Ministry of Economy and Finance shall establish the models for the declaration to be used to comply with the provisions of this Article.

Article 74. Special Tax on Real Estate of Non-Resident Entities.

One. Non-resident entities that own or hold in Spain for any title real estate or real rights of enjoyment or enjoyment over them shall be subject to a Special Tax on immovable property of non-resident entities, on the cadastral value of the immovable property, which shall be payable at 31 December of each year and shall be entered in the following January.

The declaration shall be submitted by each building to the competent authority of the tax administration in whose territorial scope the respective building is located or on which the actual right of enjoyment or enjoyment falls.

Two. The rate of the Special Tax will be 5 per 100 and may be modified in the General Budget Laws of the State.

Three. The lack of self-validation and entry by the taxable persons of the Special Tax within the time limit set out in paragraph one of this article, will give rise to its enforceability by the procedure of aaward on the real estate, being title Sufficient for its initiation of the certification issued by the Tax Administration of the expiration of the voluntary period of entry without having entered the Tax and the amount of the same.

Four. The Special Tax on immovable property of non-resident entities shall not be payable to:

(a) Foreign States and Public Institutions and International Organizations.

(b) Entities which were resident, prior to 4 August 1990, in countries with which Spain has signed the Convention to avoid Double Taxation with a clause for the exchange of information, in respect of goods property or actual rights of enjoyment or enjoyment that they were holders prior to that date.

(c) Entities that develop in Spain, on a continuous or regular basis, economic holdings that are differentiable from those of real estate.

(d) Entities that sufficiently credit to the tax authorities the origin of the resources invested in Spain and the personality of the direct or indirect holders of the social capital, assuming the commitment of notify any alteration or modification and the causes of the alteration to the competent authorities.

Five. For the purposes of point (c) of the preceding paragraph, a differentiable economic exploitation shall be considered to exist when any of the following circumstances apply:

(a) That the real value of the real estate or real estate owned or held by the non-resident entity or on which the actual rights of enjoyment or enjoyment fall does not exceed five times the actual value of the items These are the property of the economic exploitation. For this purpose, the part of the building which is actually used therein shall be taken into account in the case of buildings which partially serve the purpose of the holding.

When in accordance with the provisions of this letter it cannot be considered that there is a differentiable economic exploitation, the tax base of the Special Tax will be constituted only by the corresponding cadastral value to the part of the immovable property not used for economic exploitation.

(b) The annual volume of operations of the economic exploitation shall be equal to or greater than four times the cadastral value of the buildings.

(c) The annual volume of operations of the economic exploitation shall be equal to or greater than one hundred million pesetas.

Six. For the purposes of point (d) of paragraph 4 of this Article, the origin of the resources invested in Spain shall be deemed to be sufficiently accredited where it is justified that the corresponding investment has been made and formalised in accordance with the rules in force on foreign investment, without prejudice to any additional information which may be necessary.

The personality of the direct or indirect holders of the social capital of the entity shall be credited by authentic communication of the legal representative of the non-resident entity to the tax administration in which natural persons are identified who, directly or indirectly, are the holders of their registered capital or have the majority of them, indicating their nationality, current country of residence and permanent address. In cases where the majority of the share capital of the non-resident entity is directly or indirectly owned by legal persons with more than 50 shareholders, natural persons or companies listed on secondary stock markets officially recognised, the ultimate decision-making centre of those entities and the natural person or persons legally responsible for the management of the entities shall be identified.

The non-resident entity will request from the tax administration the exemption declaration of the Special Tax by identifying the properties of its property located in Spain that can determine the accrual of the tax, together with the latest receipts of the Real Estate Tax satisfied by the same. This application shall be accompanied by an authenticated copy of the public instruments and supporting evidence of the legal conduct of the investment on its day, as well as the timely identification of the direct or indirect holders of its share capital, (a) as set out in the preceding paragraph and expressly assuming the commitment to communicate to the Administration within three months of the occurrence of any alteration or modification and its causes.

The application will be dealt with by the General Tax Directorate, which, prior to the checks or reports it deems appropriate, will dictate a resolution recognizing or denying the exemption from the Special Tax.

Against such a resolution, the resources provided for in the current regulations may be brought in.

The exemption statement shall not have an effect on the tax due prior to its filing.

Seven. The share of the Special Tax of non-resident entities shall be considered as deductible expenditure for the purposes of determining the tax base of the Corporate Tax which, where applicable, is serious in respect of the income derived from the holding of the property.

Article 75. Obligations.

Any taxable person who has an income subject to the tax, without any permanent establishment mediation, shall be obliged to make a statement in the form, time and form to be established by the Minister of Economy and Finance, which may authorise the use of computer readable media.

The taxable persons, at the time of filing their tax return, must determine the corresponding tax liability and enter it in the place, form and time limits determined by the Minister of Economy and Finance.

Additional disposition first. Withholding tax on capital income in the Company Tax.

1. The rate of withholding tax on capital income laid down in this Regulation shall also apply for the purposes of the Company Tax.

2. There shall be no obligation to practise withholding tax on corporate income in respect of the following income:

(a) The income of the Treasury and the securities issued by the Treasury or the Bank of Spain which constitute a regulatory instrument for intervention in the money market, except as provided for in Article 2. Royal Decree-Law 1/1989 of 22 March, regulating the tax treatment of the subscription rights and the Treasury bills for non-residents.

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

c) The interest and commission of loans that constitute income of the Institute of Official Credit, Banks, Savings Banks, Credit Unions and Mediators in the Money Market, as well as of the registered companies in the Special Records of Financial Entities under the Ministry of Economy and Finance, resident in Spanish territory and subject to Corporate Tax.

However, interest and income from bonds, bonds or other securities issued by public or private entities, domestic or foreign, and which integrate the securities portfolio of the entities to which the Previous paragraph, will be subject to retention.

(d) Interest and commissions constituting the entry of a permanent establishment of a non-resident financial institution in Spain as soon as they are the result of loans made by that permanent establishment, except as provided in the second paragraph of the preceding letter.

e) The interest of the loan, credit or advance operations, both active and passive, carried out by the National Institute of Industry and the National Institute of Hydrocarbons with Societies in which it has a stake majority in the capital, not being able to extend this exception to the interests of cards, bonds, bonds or other similar securities.

(f) Interest arising from the issuance of obligations which are transferred by the Companies of Companies to their members, in proportion to the shares in the credit transaction, in accordance with the provisions of the Law 196/1963 of 28 December on Associations and Unions of Companies, until the period provided for in the transitional provision of Law 12/1991 of 29 April of the Economic Interest Groups is found alive.

g) The income of foreign currency deposits and foreign accounts in pesetas that are satisfied to non-residents in Spain, unless the payment is made to a permanent establishment, by the Banco de España and Banks, Savings Banks, Rural Banks and Credit Unions and other establishments with delegated functions of the same.

h) The consideration obtained by the deferred price in the sale when it constitutes an ancillary operation of the business or usual activity.

(i) Lleasing of movable property, of rights, of business, of mines, of cinematographic films, of the transfer of industrial or intellectual property and of the provision of technical assistance, where they constitute income from the usual activity of entities subject to Corporate Tax on a personal obligation to contribute.

(j) Those who are satisfied or paid to taxable persons with a real obligation to contribute to the non-mediation of permanent establishment, when the payment of the tax is credited.

(k) Interest received by the Securities Companies as a result of the loans granted in connection with the purchase or sale of securities referred to in point (i) of Article 71 of Law 24/1988, 28 of July, of the Securities Market, as well as the interest received by the Companies and Securities Agencies in respect of the active loan or deposit operations referred to in Article 21 (2) of Royal Decree 276/1989 of 22 March 1989, on Companies and Securities Agencies.

l) dividends distributed by Mobiliaria Investment Companies whose representative shares of the capital are admitted to trading on the Stock Exchange, as soon as they are received by residents in other countries Community.

m) Results distributed to participants in Mutual Funds, under the same conditions as the previous letter.

n) Return on capital as referred to in the third subparagraph of Article 15 (2) of Law 61/1978 of 27 December of the Company Tax.

(o) The conversion premiums for equity bonds, when they have the consideration of capital returns.

Additional provision second. Transfer of income abroad.

Without prejudice to the provisions of Article 8. of Royal Decree 1816/1991 of 20 December 1991 on Economic Transactions with the Exterior, from its entry into force the need to credit the payment of the Corporation tax or the Income Tax of the Physical Persons, prior to the transfer of income abroad obtained by persons or entities not resident in Spain, as well as the provisions so far in force on (a) actions of preferential verification in respect of the actual obligation to contribute.

First transient disposition. Supplementary taxation.

The supplementary income tax on the permanent establishment referred to in the second subparagraph of Article 19 (2) of the Income Tax Act, and Article 23 (4) of the Corporation Tax Act shall be payable in respect of transfers of foreign funds corresponding to the income of the tax periods to be closed from 1 January 1992.

Second transient disposition. Waives the objective estimate.

The taxable persons of the Income Tax of the Physical Persons to whom the method of objective estimation is applied and who wish to renounce it, shall have until 31 March 1992 to exercise that option. The waiver must be made in accordance with the provisions of Royal Decree 1041/1990 of 27 July 1990, which regulates the census statements to be submitted for tax purposes by employers, professionals and others. tributaries.

Transitional provision third. Deadline for the publication of the approval orders for signs, indexes or modules for the year 1992.

The ministerial orders referred to in the second subparagraph of Article 28 (2) of this Regulation, referred to in the year 1992, may be published in the Official Gazette until 29 February of the year. Cited year.

Transitional disposition fourth. Rules on the deadline for the submission of declarations and entry by non-resident taxable persons acting without permanent establishment mediation.

Until such time as the form and time limits for the filing of the tax declaration and income are determined by non-resident taxable persons who obtain income in Spain without permanent establishment mediation, according to Article 75 of this Regulation shall apply to the provisions of the Order of 29 July 1983 and to the provisions of this Regulation.

Transient disposition fifth. Treatment of the amount obtained in the disposal of subscription rights.

To determine the acquisition value of the increases or decreases in equity that come from the transmission of securities representative of the capital of Companies, the amount of the subscription rights shall be deducted have not been taxed by the tax as a result of the regulations before Royal Decree-Law 1/1989 of 22 March.

Single end disposition. Authorisation to the Minister for Economic Affairs and Finance.

The Minister of Economy and Finance is authorised to:

(a) Dictate the provisions necessary for the implementation of this Regulation.

b) Determine the competent bodies of the tax administration referred to in this Regulation.