JOHN CARLOS I

KING OF SPAIN

To all who present it and understand it.

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

EXPLANATORY STATEMENT

I

Background

Article 31 of the Spanish Constitution requires the contribution of all ... to the maintenance of public expenditure in accordance with its economic capacity through a fair tax system based on the principles of equality and progressiveness ... ".

The Income Tax of the Physical Persons is, together with the Tax on Heritage, a tribute of fundamental importance to make that mandate effective.

The income tax model for the general, personal and progressive physical persons was introduced in Spain at the beginning of the tax reform begun in 1977 and has constituted the most characteristic manifestation of the values policy, tax and budgetary policies of the same.

However, the erosion of the tax model implemented in 1979 has been in these twelve years, apart from specific events that have influenced it, very important as a consequence of factors such as: the theoretical nature of the reform, its close link with the political transition process, the transformation of the economic framework into which it was designed, the delay in the reform of the tax administration charged with implementing it, and the significant levels of fraud in the declaration of any income subject to the tax.

Precisely, some of these factors played a decisive part in the partial reform carried out by Law 48/1985 of 27 December, which modified such important aspects as the taxation of increases and property decreases.

Later, however, the ruling of the Constitutional Court of February 20, 1989, has culminated in the aforementioned process of attrition, by declaring certain articles of the Law on Income Tax Physical Persons concerning the taxation of family units, which forced their urgent and transitory adaptation by Law 20/1989, of July 28, thus opening the doors of the global reform of the tribute.

II

The reform in your social context

The reform of the Income Tax of the Physical Persons, in an advanced society like the Spanish one, cannot be configured outside the socio-economic interests in it represented. This statement, which can be topical in any tax reform process, is certainly realistic in terms of the Spanish Income Tax and the historic moment in which its reform is unravels because the tax is In the light of its general nature, it is a category of authentic citizenship, as it implies in its annual declaration a number of taxpayers that exceeds 15 million people and the reform of personal taxation falls within the framework of a process of social consensus, with a view to the integration of the Spanish economy into the Single Market in 1993, The greatest possible number of social partners should be involved in their preparation.

Therefore, the elaboration of this Law has been the subject of a process of reflection and debate that over the last few months has involved from the technical of the Tax Administration to the scholars of the Universities in the areas of Public Finance and Tax Law, through the Business Organisations, Trade Unions and Professional Colleges.

The results of this process were taken on a provisional basis, in the "Report on the Reform of Personal Imposition" known as the "White Paper".

This Law sets out the initial proposals of that Law, supplemented or modified as a result of the discussions following the publication of the Report, as well as the observations produced in the Bill.

III

Scope of the Reform

The reform is not about getting a radically different tribute from the current one. Neither society, nor the doctrine of the axes, nor the budgetary needs allow a leap in the void of such a nature. It is not, as was the case in the period 1978-1979, to transform our tax system from the root of the 19th century to a European tax system, but to adapt a tax to the needs of time, social and social changes. the international environment imposes. This is the general framework of the proposed amendments, the basic limit of the reform, accepted, with rare unanimity, by all sectors consulted.

The "White Paper" designed, in a flexible way and combining political and technical factors, a reform that not only covers this tax, but also the set of fiscal policy measures needed to meet a set of objectives. Fiscal and economic, the idea of which is to make a long-term approach to the welfare gap that still separates us from the countries of the European Economic Community.

Therefore, it is not possible to understand the changes in the regulations of the Income Tax of the Physical Persons proposed in this Law, without taking into account the general framework in which the reform is registered, as well as the changes in other taxes and certain aspects of fiscal policy to be undertaken in the near future. In this sense, this Law has been accompanied in its parliamentary procedure by the Tax on the Heritage, given the complementary nature and closure that the patrimonial imposition has in relation to the taxation of the income of the physical persons.

Likewise, the parallel modifications to the change of the Income Tax of the Physical Persons mentioned in the "White Paper" are a good indicator that the Fiscal Policy is a unitary one, that a system As its own name indicates, it is a coordinated structure for the service of some ends and, finally, it is not enough to change normative to achieve objectives of Fiscal Policy, being necessary an effective Tax Administration, with ability to make such objectives feasible.

Here, the final objectives of the reform will be raised in the 1993 horizon towards which the transformation of the structural elements of the tax affected by the reform should gradually converge, so that The results of a tax reform that it intends to have been declared since the first years of life of the Tax, the results of a tax reform that it intends to to achieve a fairer and more general distribution of the tax burden among the different sources of income.

IV

Major Aspects of Reform

One of the main findings of the judgment of the Constitutional Court of 20 February 1989 is that the conception of the Income Tax of the Physical Persons as a 'group tax' should be considered as a exceeded. The Constitutional Court, in ruling on such an extreme, points out in the Seventh Foundation of its Judgment:

"This" group taxation " to which the system of pure accumulation seems to respond effectively does not block, however, nor with the own budgets of which it starts Law 44/1978, for which, as we previously highlighted the the only possible taxable person of a tax on the income of the natural persons is the person himself, the individual (a formal proclamation that covers a very different reality), nor, with the requirements that are derived from our Constitution. Not only with those deriving from the principles of equality and economic capacity, which can be referred only to natural or legal persons, but also to those which are deducted from the concept of family and marriage, which is an incentive in Articles 39 and 32 and which is incompatible with a group conception in which it is only "sui iuris" the head and "alieni iuris" all other members, even if only for tax purposes. "

In short, the Income Tax of the Physical Persons must obviate, as a starting point, the idea of the "group", to focus its focus on the "individual", on the natural person, unique that can be considered " subject "liability" for such a tribute.

This approach is essential to understand the following: the new regulation of the tax has as its central axis the individual, the isolated person, thus configuring an "individual" tribute. Thus, the joint tribulation, the previous general rule, is configured as an "optional" regime, so that, by means of the modification of the system in its day designed by Law 20/1989, of July 28, of adaptation, the new tax contemplates as "option" means the possibility of being taxed cumulatively for the members of a "family unit". To this is dedicated the Eighth Title of the Law, which collects the assumptions of family unity that are in accordance with the pronouncement of the Constitutional Court.

It's about getting a simple cumulative taxation system. To this end, all regulatory norms of the individual obligation apply to the case of joint tribulation, with two exceptions: the applicable scale, which tends to level the effective tribulation of the family units with income levels means and the low, which represents greater simplicity, less regression and more neutrality than those that would result from the "splitting" formula, and, on the other hand, the deduction in any income from personal work, which will be applied for each Member of the family unit who receives income from that nature.

As already warned at a previous moment, the Constitutional Court's ruling has not been the sole driver of this reform, but along with it have co-existed other determining factors, in turn, of adaptations analyze below.

The Law, since its inception, has a vocation for simplification. It is true that it incorporates more articles than that which it replaces, since it has 105. However, its structuring and systematic (Titles, Chapters, Sections and Subsections) will allow to identify perfectly the scope in which it is found who needs to handle it. The experience gained since 1978 shows that the regulation requires, at the legal level, certain issues-which contributes to its extension-to the taxable person's important legal security effects.

In the field of taxable fact (Title II), the Law is intended to define and clarify clearly the cases of exemption, which until now (in the Law of 1978) were non-subjectable. To this end, it incorporates a precept, Article 9, which, under a closed enumeration, tries to go out of the interpretative problems that were generated by paragraph four of article 3 of the Law that is repealed.

In terms of the personal obligation to contribute (Chapter 2 of Title III), the attempt to regulate a notion of "habitual residence" should be highlighted which allows people to be attracted to such a form of taxation. The wording is repealed, which is outside the scope of the tax despite being authentic residents.

With regard to the actual obligation to contribute (Chapter 3 of Title III) the new treatment must be highlighted in the light of the interests and increases in assets resulting from movable property whose ownership is held by residents, on a Community horizon of free movement of capital.

In the performance of the work (Section 1 of Chapter 1 of Title V), it is necessary to stress, on the one hand, the regulation of remuneration in kind, a remuneration which is taking a great boom and which lacked a framework. Appropriate policy. Secondly, the increase in the percentage and the limits of those that were being known as "expenses of difficult justification".

In the income of the real estate capital (Subsection 2. of Section 2. of Chapter 1 of Title V) highlights the modification in the case of leased properties, of the deductibility of interest, which previously had a joint limitation with deductibles for housing acquisition. The Law puts a single limit: performance cannot be negative as a consequence of deducting interest. In the case of non-leased buildings, the ceiling of 800,000 pesetas is maintained for the case of acquisition of habitual housing, eliminating the deductibility of the interests satisfied in the acquisition of buildings other than housing usual.

With regard to capital returns (Subsection 3 of Section 2 of Chapter 1 of Title V), subject to a thorough review in the light of the new objectives of efficiency and neutrality Two new developments must be distinguished from the tax system. On the one hand, the creation of popular savings plans, whose income is excluded from taxation and, on the other hand, the fixing of a minimum exempt from which yields of this nature will not form part of the tax base.

Without a doubt, one of the most important aspects of this reform is the regulation of the taxation of business or professional activities (Section 3 of Chapter 1 of Title V). In relation to the same, the Law chooses to refer to the Company Tax, with certain clarifications, regarding the determination of the tax base, in the case of taxable persons under direct estimation. In this way, it is possible to unify the tax treatment applicable to determine the business income regardless of the subject that generates it (natural or legal person) and thus avoid the differences that have so far occurred. In view of this approach, the Law allows a reduction in the quota to be entered in cases where increases in the assets form part of the performance of the activity. This is linked to the regulation of the objective estimate (Title VI), the novelty of which is to abandon the traditional system of determining the performance by applying a coefficient on the sales figure, in order to a more realistic one: a set of signs, indexes, modules or general or characteristic coefficients of certain sectors of activity.

In terms of increases and decreases in equity (Section 4. of Chapter 1 of Title V) and without prejudice to what will be seen when dealing with the reforms that the tax-liquidating mechanics is experiencing, the main novelty consists in the replacement of the traditional coefficients actuators of the acquisition value, by a system that reduces the increases and decreases of the patrimony according to the length of time of the element assets in the assets of the taxable person, so that, after a certain period of time temporary, which varies according to the property elements in question, the non-subjection is reached. In addition, the exemption of equity instruments should be mentioned in the light of the small amount of transmissions carried out by the taxable person and of the person known as 'the surplus value of the deceased'. On the contrary, increases in wealth generated by donations will definitely be taxed in the same way as those produced by onerous transmissions.

With regard to the "imputation of rents" (Section 5. of Chapter 1 of Title V), the fundamental novelty consists in the treatment of societies which, being partners of transparent societies, have, in turn, the circumstances of 'transparency'. In such cases, the partner company will be taxed in the Company Tax at a rate equal to the maximum marginal income tax of the Physical Persons, in order to avoid tax planning structures designed to annul the tax. personal taxation of professional or capital income.

Irregular income will be annualised only in the case of income from work, capital or positive irregular activities of business or professional activities. The ratio of annualisation shall be treated as regular income.

Both types of income will be integrated and compensated, in each type and separately, their different components, thanks to which a regular part of the tax base and an irregular part will be reached. The Law provides for certain reduction cases only for regular income. At this point, the elevation to 750,000 pesetas of the "reducible" amount due to contributions to Pension Plans should be highlighted. Such elevation determines the elimination of the previously existing quota deduction for such an investment.

Reduced the base " will be the regular liquidable base, taxed according to scale. The irregular basis does not allow for reductions, hence the coincidence between irregular settlement and irregular income. The tax on the latter is delimited by the amount of the irregular income and by the average rate of the taxpayer.

In terms of deductions, apart from their generalized updating, the reduction to sixty-five years of age is new, which is necessary to enjoy the deduction of "major taxable persons", certain manifestations of the Non-remunerated accommodation, deduction for rent and deduction for recipients of income from dependent personal work, which experiences a sharp rise in the lower income brackets.

Finally, the Law provides for the aspects relating to the management of the tax, which substantially maintains its previous characteristics in terms of self-validation, retention and formal obligations.

In the margins of the article, the Law is followed by a series of Additional, Transitional and Final Provisions of varied content.

V

Complementary aspects

The modifications that the Income Tax is experiencing transcend it and are projected on the whole of the tax system, given the general aims of this reform. So:

Corporate Tax is the subject of adaptation to changes in Income Tax, particularly in the area of taxation of non-residents, increases and losses of assets and tax transparency.

A Special Tax on the Real Estate of Non-Resident Entities that are the owners or holders in Spain of real estate or real rights of enjoyment or enjoyment that falls on them, to do in the face of known phenomena of societary interposition from tax havens. The Special Tax shall be applicable at the rate of 5 per 100 on the cadastral value of the immovable property and its non-compliance shall result in its charge for the award procedure.

TITLE FIRST

Nature, object and scope of application of the Tax

Article 1. Nature.

One. The Income Tax of the Physical Persons is a tribute of direct character and personal and subjective nature that taxes the income of the natural persons in the terms provided for in this Law.

Two. By way of derogation from the preceding paragraph, the charge for the tax on non-resident taxable persons shall be effected in accordance with the rules governing the actual obligation to contribute contained in Chapter 3 of the Title. Third of this Act.

Article 2. Object.

It constitutes the income of the natural persons, the totality of their net returns and increases of assets determined in accordance with the provisions of this Law.

Article 3. Scope of application.

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

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

Article 4. Treaties and Conventions.

The provisions of the foregoing Article shall be without prejudice to the provisions of the Treaties and International Conventions which have become part of the internal order.

TITLE II

The taxable fact

Article 5. Taxable fact.

One. The taxable person shall be liable to obtain income from the taxable person.

Two. Income shall be understood to be obtained by taxable persons according to the origin or source of the income, whichever is the case, the economic regime of the marriage.

Three. In the system of tax transparency, the taxable person shall be deemed to have earned the taxable amount of the positive tax bases of the companies under this scheme.

Four. Make up the income of the taxable person:

a) The returns of the job.

(b) Yields derived from any assets that are not found to be exclusively affected by the activities referred to in the following point.

c) The returns of the business or professional activities that you exercise.

d) Equity increases determined in accordance with the provisions of this Law.

e) The imputations of positive tax bases of the companies in the tax transparency regime.

Five. They shall not be subject to the Income Tax of the Physical Persons, the increases in patrimony that are subject to the Tax on Successions and Donations.

Article 6. Property assets affected.

One. Property assets shall be considered to be business or professional:

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

(b) Goods intended for the economic and sociocultural services of the staff at the service of the activity, not being considered to be the property of recreation and recreation or, in general, of particular use of the owner of the activity business or professional.

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

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

Without prejudice to the provisions of the preceding paragraph and Article 5 (4) (b), the conditions under which, however, their use for private needs may be determined, may be determined. Ancillary and notoriously irrelevant, certain assets may be considered to be affected by a business or professional activity.

Two. The consideration of property assets shall be independent of the fact that the ownership of such elements, in the case of marriage, is or is not common to both spouses.

Article 7. Estimation of yields.

One. Personal work benefits and disposals of goods or rights in their various forms shall be presumed to be paid for their normal value on the market, unless otherwise proved.

Two. Normal value shall be understood in the market for consideration to be agreed between independent subjects.

However, in the case of loans and operations for the collection or use of foreign capital in general, consideration shall be given to the legal interest rate of the money in force on the last day of the tax period.

Article 8. Related operations.

The valuation of transactions between a company and its members or directors or those of another company in the same group, as well as with the spouses, ascendants or descendants of any of them, shall be carried out at their normal value in the market, in the terms provided for in Article 16 of the Company Tax Act.

Article 9. Exempt income.

One. The following income shall be exempt:

(a) Extraordinary public services for acts of terrorism.

(b) the benefits recognised by the taxable person for social security or by the institutions which replace it as a result of permanent incapacity, and the unemployment benefits recognised by the respective entity Gestora.

(c) Pensions for uselessness or permanent incapacity for the service of civil servants.

(d) Compensation for dismissal or termination of the worker, in the amount laid down in the Staff Regulations, in his or her regulatory framework for development or, where appropriate, in the regulations governing the the execution of judgments, without it being considered as such as established under Convention, Pact or Contract.

e) Compensation for physical or mental damages to persons, in the legal or judicially recognized amount, as well as the perceptions derived from insurance contracts for the same type of damages up to 25 million pesetas.

f) The prizes, games and bets of the National Lotteries and Gambling Agency of the State or organized by the Autonomous Communities.

g) The prizes of the draws organized by the Spanish Red Cross.

h) The prizes of the National Organization of the Blind draws.

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

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

k) Annuities for food received from parents by judicial decision.

l) The perceived amounts of public institutions in the reception of persons with disabilities or over 65 years of age.

Two. The Minister for Economic Affairs and Finance may declare, on condition of reciprocity, the exemption from the income of foreign-resident air or sea-shipping entrepreneurs whose vessels or aircraft touch Spanish territory, even if they have in this consignees or agents.

Article 10. Allocation of income.

One. The income corresponding to the civil society, whether or not they have legal personality, heretics, communities of property and other entities referred to in Article 33 of the General Tax Law, shall be attributed to the members, heirs, (a) the common rules or covenants applicable in each case and, if they do not involve the Administration in a feisty manner, shall be attributed equally.

Two. The income attributed shall have the nature derived from the activity or source from which it comes.

Three. The income allocation scheme shall not apply to the Agricultural Processing Societies which shall be taxed by the Company Tax.

Four. Entities under the income allocation scheme shall not be taxed by the Company Tax.

TITLE III

The taxable person

CHAPTER FIRST

General rules

Article 11. Taxable persons.

One. They are taxable persons of the Tax:

(a) By personal obligation, natural persons who have their habitual residence on Spanish territory.

(b) By actual obligation, natural persons other than those mentioned in the preceding letter who obtain income or equity increases produced in Spanish territory.

For the purposes of the preceding paragraph, the following shall be understood to be obtained or produced in Spanish territory, among others, the yields satisfied by:

-Individual or professional entrepreneurs residing in Spanish territory.

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

-Permanent settings located in the same.

Two. Where the persons referred to in point (a) of the previous paragraph are integrated into a family unit, they may choose to pay jointly and severally for this tax, in accordance with the scheme provided for in Title Eighth of this Law.

Article 12. Habitual residence.

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

(a) To remain more than 183 days, during a calendar year, on Spanish territory.

b) That radiating in Spain the core core or the basis of its business or professional activities or economic interests.

Two. Unless proof to the contrary, the taxable person is presumed to have his habitual residence on Spanish territory, where the legally-separated spouse and the minor children who are dependent on him are habitually resident in Spain.

Three. In order to determine the period of stay in Spanish territory of a taxable person, temporary absences shall be taken into account, unless he demonstrates his habitual residence in another country for 183 days in the calendar year.

CHAPTER II

Personal obligation to contribute

Article 13. Personal obligation to contribute.

taxable persons under a personal obligation to contribute will be taxed for all the income they obtain, regardless of where they were produced and whatever the residence of the payer.

Article 14. Special assumptions of obligation.

One. Persons of Spanish nationality, their non-legally separated spouse or children under their age who have their nationality, shall be bound by a personal obligation to contribute, by way of derogation from Article 11 (a) (a) of this Law. domicile or habitual residence abroad, for the purposes of:

(a) Members of Spanish diplomatic missions, as Head of Mission, as members of the diplomatic, administrative, technical or service personnel of the Mission.

(b) Members of the Spanish consular offices, either as the Head of the same or as an official or staff of services to which they are attached, with the exception of honorary viceconsules or consular agents and of the personnel dependent on them.

(c) Head of office or official employment of the Spanish State as members of the delegations and Permanent Representations accredited to International Organizations or part of Delegations or Missions of Observers in abroad.

(d) Active officials engaged in foreign employment or official employment not having a diplomatic or consular status.

Two. The provisions of the preceding paragraph shall not apply where the persons referred to are not public servants or holders of official employment or employment and who are habitually resident abroad prior to the acquisition of any of the conditions listed therein.

Article 15. Exceptions to the personal obligation

One. Where the application of specific rules deriving from the International Treaties in which Spain is a party does not proceed, they shall not be regarded as being subject to a personal obligation, on the basis of reciprocity and without prejudice to the obligation to submit real to contribute, the foreign nationals resident in Spain, when this circumstance was the result of some of the assumptions mentioned in the previous article.

Two. The provisions of the preceding paragraph shall apply to officials and other servants of the European Communities who, as such, have their residence in Spain.

CHAPTER III

Actual obligation to contribute

Article 16. Actual obligation to contribute.

One. Taxable persons under a real obligation to contribute shall be subject to the tax in the terms provided for in this Chapter, without prejudice to the provisions of the Treaties and International Conventions which have become part of the internal.

Two. In particular, the following rules apply to them:

1. When they operate in Spain by permanent establishment, they shall be taxed for the entire income attributable to that establishment, if it is obtained in Spanish or foreign territory. For the qualification of the permanent establishment, the tax on Societies shall be prevented.

2. When operating in Spain without permanent establishment, they will be taxed separately for each total or partial accrual of income under tax, as provided for in the following Articles of this Chapter.

For the purposes of this rule, the income shall be earned:

(a) In the case of yields, where they are payable or at the date of recovery if they were earlier.

(b) In the case of returns on own-use immovable property, on the last day of the calendar year.

c) Dealing with asset increases, when the estate alteration takes place.

Article 17. Special exemption scenarios: income not obtained in Spain.

One. By way of derogation from Article 11 (1) (b) of this Law, interest and increases in the assets derived from movable property shall be exempt in Spain, where they correspond to natural persons not subject to obligations staff to contribute to their habitual residence in other Member States of the European Economic Community and not to operate through permanent establishment in Spain.

The provisions of the preceding paragraph shall not apply, except as provided for in International Conventions or Treaties, to increases in equity arising from the transfer of shares, units or other rights in a company, legal person or entity in the following cases:

(a) Where the asset of that company, legal person or entity consists primarily, directly or indirectly, in real estate located on Spanish territory.

(b) Where, during the 12-month period preceding the transmission, the taxable person, his spouse or persons connected with that person by relationship to the third degree, including, directly or indirectly, participated in the less than 25 per 100 of the capital or assets of that company, legal person or entity.

Two. Interest and increases in the assets derived from the Public Debt, obtained by non-resident natural persons who do not operate through permanent establishment in Spain, shall not be considered as obtained or produced in Spain.

Three. In no case shall the provisions of the two preceding paragraphs be applied to interests or increases in assets obtained through the countries or territories which are determined by their nature as tax havens.

Four. Capital returns and increases or decreases in equity derived from securities issued in Spain by non-resident natural or legal persons without permanent establishment mediation shall not be considered as produced in Spanish territory, for the purposes of the Income Tax of the Physical Persons corresponding to the holder of the securities, irrespective of the place of residence of the financial institutions acting as payment agents or measure in the emission or transmission of the values.

However, where the holder of the securities is a resident or a permanent establishment in Spain, the income or increases in equity referred to in the preceding paragraph shall be subject to this Tax and, if applicable, the withholding tax system, which shall be applied by the resident financial institution which, in accordance with the current rules of change control, acts as a securities depository.

Five. No income or capital increase obtained in Spain shall be considered as income from the leasing or disposal of containers or vessels and aircraft with a bare hull, used in international maritime or air navigation.

Article 18. Tax base.

One. In general, the taxable amount of the tax corresponding to the income which the natural persons subject to a real obligation obtain without permanent establishment is constituted by 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 economic holdings carried out in Spain without permanent establishment mediation, the The taxable amount shall be equal to the difference between the total revenue and the expenditure on staff and supplies of materials incorporated in the works or works, subject to conditions which may be laid down in regulation.

Three. In respect of natural persons subject to a real obligation without permanent establishment, the determination of the increases in the assets shall be carried out in accordance with the applicable rules of the Articles 44 to 49 of this Law, with the exception of the provisions of the second subparagraph of paragraph 1 and Article 44 (4

.

Four. For natural persons subject to a real obligation without permanent establishment, the performance of immovable property shall be determined in accordance with the rules laid down in Article 34 of this Act.

Five. Taxable persons who are liable for real income without permanent establishment mediation shall not be entitled to compensation of any kind in relation to them.

Six. In the case of income obtained by non-residents through a permanent establishment, the rules contained in Section 3 of Chapter 1 of Title V of this Law shall apply.

Article 19. Tax liability.

One. On the basis determined in accordance with the preceding Article, the following types of charges shall apply:

a) With a general character, 25 per 100.

b) In the case of equity increases, the 35 per 100.

Dealing with transfers of real estate located in Spain by non-resident taxable persons acting without permanent establishment, the acquirer will be obliged to retain and enter the 10 per 100 of the agreed price in concept of payment on account of tax for those.

The above paragraph shall not apply in the case of immovable property acquired more than 20 years in advance of the date of transmission and which have not been subject to improvements during that time.

(c) Pensions and liabilities that do not exceed the annual amount of 1.500,000 pesetas, received by non-resident persons in Spain, whichever person has generated the right to their perception, will be taxed at type 8 per 100.

(d) 14 per 100 in the case of the overheads charged as referred to in Article 13 (n) of Law 61/1978 of 27 December, as regards their consideration as income obtained by the central house without any mediation permanent establishment.

e) the income from the work of non-resident natural persons on Spanish territory, provided that they are not taxable persons under a personal obligation to contribute, who provide their services in the Diplomatic Missions and Consular representations of Spain abroad, where the application of specific rules derived from the International Treaties in which Spain is a party does not proceed, will be taxed at 8 per 100.

(f) In the case of returns derived from reinsurance transactions, 4 per 100.

For these purposes, income derived from reinsurance transactions shall be understood, gross amounts satisfied by this concept in each tax period to the non-resident insurer, after deduction of the amount of the commissions and compensation received from this.

Capital returns satisfied to non-resident insurers will, in any case, be taxed by the general rate.

Two. In the case of yields or increases in equity earned by non-residents through a permanent establishment, the rate of 35 per 100 shall apply.

Where the income obtained is transferred abroad, the rate provided for in paragraph 1 (a) shall be applied in addition to the amount transferred.

Three. In any event, the depositary or manager of the goods or rights of non-residents without permanent establishment or the paying agent shall be jointly liable for the income of the tax debts corresponding to the income of the property or rights the deposit or management of which has been entrusted or to the income that they have satisfied.

If the retention referred to in the second subparagraph of point (b) of paragraph one of this article has not been entered, the goods transmitted shall be affected by the payment of the tax.

Article 20. Deductions.

One. From the fee of the Income Tax of the Physical Persons corresponding to the non-residents who act in Spain without mediation of permanent establishment, only the withholdings that have been effectively practiced and others will be deducted payments on account, without prejudice to the provisions of Law 14/1985 of 29 May on Tax Arrangements for Certain Financial Assets and deductions for donations in the terms of the following paragraph ..

Two. Taxable persons under a real obligation to contribute operating in Spain by way of permanent establishment may, on the same terms and conditions as are provided for taxable persons under a personal obligation to contribute, following deductions:

a) By incentives and incentives to business investment.

b) For donations.

c) For dividends received from companies.

(d) By means of income or increases in assets obtained by permanent establishments located in Ceuta and Melilla and their dependencies.

e) By withholding or other payments on account, without prejudice to the provisions of Law 14/1985 of 29 May of Tax Regime of Certain Financial Assets.

Article 21. Formal obligations and duties.

Non-resident natural persons in Spain who obtain income subject to actual obligation shall be subject to the obligations laid down in the Title Tenth of this Law.

Article 22. Representatives of non-residents.

One. Non-resident taxable persons in Spanish territory shall be required to appoint a natural or legal person with a registered office in Spain, to represent them before the Tax Administration in relation to their obligations under this Tax.

The taxable person or his/her representative shall be required to inform the Administration of the appointment, duly accredited, within two months of the date of the appointment.

Two. For the purposes of this Tax, representatives of permanent establishments who appear as such in the Trade Register or, failing that, who are entitled to contract on behalf of them shall be considered.

Where these persons are not domiciled in Spanish territory, the provisions of the preceding paragraph shall apply.

Three. Failure to comply with the obligations referred to in paragraph 1 shall constitute a simple tax breach punishable by a fine of 25,000 to 2,000,000 pesetas.

TITLE IV

The tax base

Article 23. Tax base. General rule.

One. The taxable amount shall consist of the amount of the income in the period of the tax, determined in accordance with the rules contained in the following Titles.

Two. The tax base shall, where appropriate, be divided into as many parts as may be necessary for the application of miscellaneous tax rates.

TITLE V

Determination of Income

CHAPTER FIRST

General rules

Section 1. Work Res

Article 24. Full performance of the work.

One. Full income from work shall be considered as any consideration or profit, whatever its name or nature, which results directly or indirectly from the personal work of the taxable person and does not have the character of business or professional returns.

Two. The consideration or profit referred to in the preceding paragraph shall include both cash and cash obtained in kind, in so far as they give back or are derived from the personal work of the taxable person or are the result of the relationship work.

Article 25. Consideration or utilities.

Including, in particular, income from work:

a) The salaries and their allowances.

b) The wages and wages.

c) Bonuses, incentives, bonuses and extra pay.

d) The awards and indemnities not included in Article 9 of this Law.

e) Unemployment benefits, without prejudice to the provisions of Article 9 of this Law.

f) Remuneration for representation expenses.

g) Pensions and liabilities, whichever person has generated the right to their perception, without prejudice to the provisions of Article 9 of this Law.

(h) Family allowances and grants, without prejudice to the provisions of Article 9 of this Law.

i) Diets and allowances for travel expenses, other than those of locomotion and normal maintenance and stay in hospitality establishments, with the limits to which they are regulated.

j) Special rights of economic content reserved for the founders or promoters of a company as remuneration for personal services.

k) Benefits received by the beneficiaries of the Pension Plans and the alternative systems governed by Law 8/1987 of 8 June, except where they are to be taxed on the Succession and Donation Tax.

(l) Remuneration arising from special employment relationships.

m) The amounts paid by reason of his position to the Deputies and Senators of the General Courts, to the members of the Autonomous Legislative Assemblies, City Council Councilors and members of the Provincial Diputations or other Local Entities, excluding, in any case, the part of the same as those institutions assigned to travel and travel expenses.

n) The amounts paid on the basis of his position to the Spanish Members of the European Parliament, excluding, in any case, the part of the same that the institution allocates for travel and travel expenses, without prejudice to the provisions of the International Conventions or Treaties.

n) The remuneration of Spanish officials in international bodies, without prejudice to the provisions of the International Conventions or Treaties.

or) The amounts obtained by the performance of functions of minister or priest of the legally recognized religious confessions.

p) The remuneration of the members of the Boards of Directors or of the Boards who do their times.

q) Compensatory pensions in favour of the spouse and annuities for food, without prejudice to the provisions of Article 9 of this Law,

Article 26. Remuneration in kind.

constitute remuneration in kind for the use, consumption or procurement, for particular purposes, of goods, rights or services free of charge or at a price lower than the normal market price, even if they do not entail actual expenditure for who grants them.

Among others, the following shall be considered as remuneration in kind:

(a) The use of housing by reason of charge or by the condition of public or private employee.

b) The use or delivery of motor vehicles.

c) Loans with interest rates lower than legal money.

d) Benefits in respect of maintenance, accommodation, tourism travel and the like.

(e) premiums or fees paid by the company under the insurance or similar contract, other than those for occupational accident insurance or civil liability insurance.

f) The contributions paid by the promoters of Pension Plans, as well as the amounts paid by employers for alternative social welfare systems to Pension Plans when they are charged to those people to whom the benefits are linked.

g) The amounts intended to satisfy the costs of studies and maintenance of the taxable person or of other persons linked to it by relationship of kinship.

Studies organized directly by and directly funded by institutions, companies or employers are excluded.

In no case shall the consideration of remuneration in kind be given to the deliveries of products at discounted prices to be carried out in canteens and in eaters of a social character, or the use of the goods intended for the social and cultural services of staff.

Article 27. Assessment of remuneration in kind.

One. The benefits referred to in the previous Article shall be assessed as follows:

a) In the case of point (a):

If this is a rented dwelling, made available to the taxable person, for the amount of the rent satisfied.

In other cases, in accordance with the provisions of Article 34 (b) of this Law. The remuneration thus determined shall be limited to 10 per 100 of the remaining consideration of the personal work that the taxable person receives for the job or job.

b) In the case of point (b):

In the delivery case, the acquisition cost for the employer, including the taxes that are taxed by the operation.

In the case of use, the 15 per 100 year of the cost referred to in the preceding paragraph if the vehicle is the property of the employer or, in other cases, the amount paid by the company for use.

In the case of use and subsequent delivery, the assessment of the latter shall be carried out in accordance with the provisions of point (f) of this paragraph.

(c) In the case of point (c), the difference between the interest paid and the legal interest of the money in the period.

d) In the case of points (d), (e) and (g), for the cost to the employer, including the taxes on the operation.

e) In the case of point (f), for its amount.

f) In the remaining cases, by their normal value in the market.

Two. The income for which, where applicable, is established for remuneration in kind, as provided for in Article 98 of this Law, shall be calculated on the basis of the values referred to in the preceding paragraph.

Three. In the case of remuneration in kind, the valuation resulting from the rules contained in paragraph one of this Article and, where applicable, the income to be realised by the person who satisfies the same shall be included as net performance of the personal work. mode of pay.

Article 28. Deductible expenses.

You will have the following exclusively deductible expense consideration:

1. Contributions to Social Security or to the compulsory general mutual benefits of civil servants and to the payment of liabilities and contributions to the Colleges of orphans or similar institutions, as well as the contributions paid to trade unions.

2. For other expenses, the amount resulting from the application of the 5% on the amount of the full income, excluding the contributions that the promoters of Pension Plans impute to the members, with a maximum of 250,000 pesetas. This percentage will be 15 per 100, with a limit of 600,000 pesetas, for disabled persons with disabilities, including those with total blindness, who must move to their place of work and not be able to do so for themselves and to credit their disability by certificate issued by the National Institute of Social Services or by the corresponding organ of the Autonomous Communities.

The government may adapt these percentages, as well as their limit, to the characteristics of certain employment relationships, where they are manifestly insufficient to include the specific expenses of the same.

Article 29. Net work performance.

Net work performance will be the result of decreasing the total returns in the amount of deductible expenses.

Article 30. Individualization of the performance of the work.

The performance of the work will correspond exclusively to those who have generated the right to their perception.

However, pensions and liabilities shall correspond to the natural persons in whose favour they are recognised.

Section 2. th Capital flows

Subsection 1. General Rules

Article 31. Full returns on capital.

One. They shall have the consideration of full capital returns for all profits or for consideration, whatever their denomination or nature, that come directly or indirectly from assets, property or rights, whose ownership corresponds to the taxable person and is not affected by business or professional activities carried out by him.

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

(a) Those coming from real estate, both rustic and urban, that are not affected by business or professional activities carried out by the taxable person.

(b) Those that come from the capital and, in general, from the other assets or rights held by the taxable person, who are not affected by business or professional activities carried out by the taxable person.

The full income of assets, property or rights, which are exclusively affected by business or professional activities carried out by the taxable person shall be considered as income of the the indicated activities.

Article 32. Net return on capital.

Net return on capital will be the result of decreasing the total returns on the amount of deductible expenses.

Article 33. Individualisation of returns on capital.

Capital returns shall be deemed to be obtained by taxable persons who, as provided for in Article 7 of the Law on the Tax on Heritage, are holders of the assets, property or rights, of These yields are derived.

Subsection 2. Th Real Estate Capital Yields

Article 34. Full income from real estate capital.

They will have the consideration of full income from the ownership of rural and urban real estate or real rights that fall on them:

(a) In the case of leased or sub-leased properties, the amount to be received from the lessee or sub-tenant, including, where appropriate, the amount corresponding to all assets transferred to the property and excluding Value Added Tax.

If the owner or the owner of the real right reserves some use, the amounts corresponding to it shall be computed as revenue, provided that such use does not constitute an activity in itself business, in which case they will be included in the revenue of the said activity.

(b) In the case of other urban buildings, excluding unbuilt land, the amount resulting from the application of the 2 per 100 to the value for which they are computed or should, where appropriate, be computed for the purposes of the tax on the Heritage.

When there are real rights of enjoyment, the performance of these effects in the holder of the right shall be the performance of the owner.

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

Article 35. Deductible expenses.

They shall have the consideration of deductible expense for the determination of the net performance of the assets and property rights referred to in the previous article:

A) Dealing with the goods and rights referred to in point (a):

-The necessary expenses for obtaining it. The deduction of the interest of foreign capital invested in the acquisition or improvement of such assets or rights and other financing costs shall not exceed the amount of the full income obtained by the sale of the immovable property or right.

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

B) Dealing with the goods and rights referred to in point (b), only the following:

-Fees and surcharges, other than the award, accrued by the Real Estate Tax.

-The interests of foreign capital invested in the acquisition or improvement of the usual dwelling with a maximum of 800,000 pesetas per year.

Article 36. Performance in case of kinship.

In the case of leased or sub-leased buildings, where there is parentage, up to and including the third degree, between lessor and lessee or between sub-tenant and sub-tenant, the net yield may not be lower than the computable as provided for in point (b) of Article 34.

Subsection 3. Th Capital Returns

Article 37. Full income of the capital.

One. The following shall be taken into account for full capital income:

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

dividends, bonuses for joint assistance and shares in the profits of companies or associations, as well as any other perceived utility of an entity under the same category, are included within this category. partner, shareholder, or associate condition.

Also included are yields from any asset class, except for the release of shares released, which, in the statutory or by decision of the social bodies, empower to participate in the profits, sales, operations, income or similar concepts of a company or association for reasons other than the remuneration of the personal work.

The results of the participating accounts will be considered yields of this nature to the non-manager participant.

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

They have this consideration for consideration of any kind, whatever their denomination, money or in kind, obtained by the transfer to third parties of their own capital.

The following concepts are included within this category:

a) Implicit flows. Such consideration is given to those generated by difference between the amount satisfied in the issue, first placement or endorsement and the commitment to repay at maturity in those transactions whose performance is fixed, in whole or in part, of implicit form, through any transferable securities used for the collection of foreign resources.

Emissions, amortization, or redemption premiums are included as implied returns.

Where the stay of the asset in the lender or investor's portfolio is less than the total lifetime of the lender or investor, the positive difference between the value of the acquisition or the subscription and the value of the disposal, amortisation or reimbursement.

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

The provisions in this letter are without prejudice to what, in respect of assets with mixed performance, the letter (c) of this same number provides.

Implied returns shall be computed and integrated in accordance with the provisions of Law 14/1985 of 29 May of the Tax Regime of Certain Financial Assets, without prejudice to the provisions of Article 56 of this Law.

b) Explicit flows. Interest and any other form of remuneration agreed as a consideration to the transfer to third parties of own capital and which is not included in the concept of implied returns in the terms of the term, are included within this category. which sets the above letter.

c) Mixed flows. Income derived from securities representing the transfer to third parties of own capital shall follow the scheme of explicit returns where the annual cash which they produce of this nature is equal to or greater than that which would be to apply the interest rate which, to this effect, is set out in the General Budget Law of the State corresponding to the year in which the issue occurs or, failing that, the legal interest rate of the money in force on that date, although in the conditions of issue, amortisation or repayment would have been fixed, in whole or in part, in a manner implicit, other additional performance.

For the purposes of this letter and in respect of issues of financial assets with floating or floating performance, their internal rate of return shall be taken as the effective interest of the transaction, taking into account only the returns of an explicit and calculated nature, where applicable, with reference to the initial valuation of the parameter for which the final amount of the accrued income is periodically fixed.

3. Other returns of) capital furniture. They are included under this heading, among others:

a) Those from intellectual property when the taxable person is not the author.

(b) Those from industrial property not found to be affected by business or professional activities carried out by the taxable person.

(c) Those arising from the provision of technical assistance, unless such provision takes place in the field of a business activity.

d) Those from the lease of movable property, business or mines that do not constitute business activities.

(e) For life income or other temporary income for the imposition of capital, provided that its constitution is not subject to the Tax on Successions and Donations.

In the case of lifetime income subject to this Tax, capital performance shall be considered as the result of applying to each annuity the following percentages:

-70 per 100, when the recipient is less than fifty years old.

-50 per 100, when the recipient is fifty-fifty-nine years old.

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

-30 per 100, when the recipient is more than sixty-nine years old.

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

For temporary income subject to this Tax, the capital's return will be 60 per 100 of its amount.

(f) Those from capitalization operations and those insurance contracts that do not incorporate the minimum risk and duration component to be determined by regulation.

Two. Income from capital that is derived from popular savings plans that are regulated by regulation shall be exempt, subject to the following conditions and requirements:

(a) Stay of the amounts invested over a minimum period of five years, to be counted since their imposition.

(b) Investment in assets of this nature shall not exceed the amount of 10 million pesetas per taxable person.

(c) The annual investment, which must comply with the requirement laid down in Article 81 of this Law, may not, in turn, exceed one million pesetas per taxable person.

d) Each taxable person may be the holder of such a plan only.

People's savings plans may be implemented in insurance contracts and in public securities or securities under conditions that are determined to be regulated.

The income from the investments referred to in this paragraph shall not be subject to withholding tax. However, if, before the time limit laid down in subparagraph (a), the amounts invested are available, the yields corresponding to the quantity disposed of shall be forfeited and shall, where appropriate, be taxed as an irregular income, take the appropriate withholding tax to be deducted from the amount disposed of. For these purposes, the amounts withdrawn shall be deemed to be the last to be invested.

Article 38. Assumptions that do not have the consideration of capital returns.

You will not have the consideration of capital performance, without prejudice to your taxation of the concepts that correspond, the consideration obtained by the taxable person for the deferral or fractionation of the price of operations carried out in the course of their business or business as usual.

Article 39. Deductible expenses and other reductions.

One. They shall have the consideration of deductible expenses for the determination of the net return on capital, exclusively for administration and custody.

Two. In the case of income derived from the provision of technical assistance and the leasing of movable property, business or mine, the costs necessary for the purpose of obtaining it and the amount of the deterioration shall be deducted from the income. suffered by the goods from which the proceeds come.

Three. Capital returns, after deduction of the costs referred to in the previous two paragraphs, shall be reduced by an annual amount of 25 000 pesetas, without, as a result of such a decrease, the net yield may be negative.

Section 3. Business or Professional Activities

Article 40. Full performance of business or professional activities.

One. The following shall be considered to be full income from business or professional activities which, by way of personal and capital work together, or one of these factors, involves the liability of the taxable person (a) its own means of production and human resources or of one of the two, in order to intervene in the production or distribution of goods or services.

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

Two. For the purposes of the preceding paragraph, the term 'lease' or 'sale' of real estate shall be understood as a business activity, only where the following circumstances are present:

(a) That the development of the activity is at least counted with a local exclusively intended to carry out the management of the activity.

b) That for the performance of that one has at least one person employed with a labor contract.

Article 41. Net performance.

One. The net performance of business or professional activities shall be determined, without prejudice to the objective estimate, by the difference between all revenue, including self-consumption, subsidies and other transfers and the costs necessary for their procurement and the amount of the deterioration suffered by the goods from which the revenue comes.

Two. For the purposes of determining the net performance of business or professional activities, the increases and decreases in assets arising from any assets shall be included, and, where appropriate, that resulting from the 'inter-living' transmission of the entire business or professional assets of the taxable person.

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

Without prejudice to the provisions of the preceding paragraph, in the case of the disaffection of business or professional elements which are intended for the personal property of the taxable person, the value of the acquisition of such assets for purposes of future property changes, will be the net book value they had at that time.

It is understood that there has been no disaffection, except in the cases of cessation of the exercise of the activity, if the disposal of the goods or rights is carried out before three years after the date of the activity.

On the contrary, in the event of affectation to the business or professional activities of property or rights of the personal property, their incorporation into the accounts of the taxable person will be made by the value of the same as results from the criteria set out in the Heritage Tax rules.

It is understood that there has not been the latter, for all purposes, if the disposal of the goods or rights is carried out before three years after its accounting, without reinvesting the amount of the disposal in the terms provided for in the following paragraph.

Four. The increases in assets which are shown in the transfer of tangible assets fixed to business or professional activities, which are necessary for the performance of those activities, shall not be taxed provided that the the total amount of the disposal is reinvested in material assets of fixed assets affected by business or professional activities, developed by the same taxable person, under the same conditions established for the purposes of the tax on Companies.

In the event that the amount of the reinvestment made is less than the total disposal, the proportional share of the increase in equity corresponding to the amount invested shall be excluded from taxation.

Five. The normal value on the market of the goods or services covered by the activity shall be treated, which the taxable person gives to or provides to third parties free of charge or in the same way as for his own use or consumption.

In addition, when consideration is given to consideration and is significantly lower than the normal value in the market for goods and services, the latter shall be treated.

Article 42. Rules for the determination of net performance.

In determining the net performance of business and professional activities, the rules of the Corporate Tax shall apply, without prejudice to the objective estimate, taking into account, in addition, the following special provisions:

1. You will not have the consideration of deductible expenses:

(a) The concepts referred to in points (m) and (o) of Article 13 of Law 61/1978 of 27 December of the Company Tax.

b) The pure and simple donations of goods that form part of the Spanish Historical Heritage, without prejudice to the right to deduct in the quota provided for in Article 78 of this Law.

(c) The amounts paid on a compulsory basis to Employment and Mutual Affairs, where, among others, the risk of death, without prejudice to the provisions of this Law for the determination of the liquidable basis regular.

2. Deductible Expenses:

a) The shares that are satisfied with Corporations. Professional associations, chambers and associations of employers or employers legally constituted and the contributions to compulsory mutual contributions of officials, other than those referred to in Article 28 of this Law and to the Colleges of Orphans or Similar institutions.

(b) 1 per 100 on the amount of the full income for necessary expenses of difficult justification, in the case of professional activities.

The government may adapt this percentage to the characteristics of certain professional activities, where it is manifestly insufficient to include the specific costs of such activities.

Article 43. Individualization of the returns of business or professional activities.

One. The performance of business or professional activities shall be deemed to have been obtained by those who carry out regular, personal and direct management of the means of production and human resources affected by the activities.

It shall be presumed, unless otherwise proved, that those requirements are met by those who are listed as holders of business or professional activities.

Two. Where the appropriate employment contract and the affiliation to the corresponding social security scheme are duly accredited, the spouse or minor children of the taxable person who live with him are usually employed and continuity in the business or professional activities carried out by it, shall be deducted, for the purposes of determining the income, the remuneration stipulated with each of them, provided that they are not higher than those of the market corresponding to their professional qualifications and work. These amounts shall be considered as being obtained by the spouse or minor children, in terms of income from work, for all tax purposes.

Three. Where the spouse or minor children of the taxable person who live with him carry out transfers of goods or rights which serve the purpose of the business or professional activity concerned, it shall be deducted for the purposes of determining the income of the holder of the activity, the consideration stipulated, provided that it does not exceed the market value and, in the absence of the market value, the latter may be deducted. Consideration or market value shall be considered as income from the capital of the spouse or children under all tax purposes.

The provisions of this paragraph shall not apply in the case of goods and rights which are common to both spouses.

Four. The provisions of this Article shall be without prejudice, where appropriate, to the special rules for the determination of net performance in the objective estimation scheme.

Section 4. Inincreases and decreases in heritage

Article 44. Concept.

One. Changes in the value of the assets of the taxable person, which are shown on the occasion of any alteration in the composition of the person, are increases or decreases, except as provided in the following paragraphs.

Net equity increases shall not be subject to such increases as are apparent as a result of onerous transmissions when the overall amount of such transfers during the calendar year does not exceed 500,000 pesetas.

Two. Changes in the value of the assets of the taxable person arising from other concepts subject to this Tax shall not be taken into account for increases or decreases in equity.

Three. They shall not be considered to be of capital decreases, in addition to those which are not justified:

a) To consumption.

b) To donations or liberalities.

c) A loss in the game.

Four. It will be estimated that there is no increase or decrease in equity:

a) In the division assumptions of the common thing.

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

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

d) In the capital reduction assumptions. However, where the reduction of capital is intended to return contributions, the amount of the capital reduction shall be the value of the acquisition of the securities concerned until its cancellation. The excess that could be taxed as the return on capital.

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

Five. The tax shall not be subject to the increases and decreases in assets which are shown:

a) On the occasion of lucrative transmissions for the death of the taxable person.

(b) On the occasion of donations made to the entities referred to in Article 78 (6) (c) of this Law.

c) On the occasion of the transfer, by persons over sixty-five years, of their usual dwelling in exchange for a life income.

d) On the occasion of the payment provided for in Article 97 (3) of this Law.

Six. The provisions of this Article are without prejudice to the application, where appropriate, of the Additional Provision Fourth of Law 8/1989, of 13 April, of Public Fees and Prices.

Article 45. Amount of increases or decreases. General rule.

One. The amount of the asset increases or decreases shall be:

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

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

Two. Where the increases or decreases in equity come from the transfer of goods or rights acquired more than two years in advance of the date of that or of the subscription rights that come from securities acquired with the same In advance, its amount, for the purposes of taxation, shall be determined in accordance with the following rules and percentages:

(a) The number of years between the dates of acquisition and transmission, rounded up by excess, shall be taken as a period of permanence in the assets of the taxable person.

(b) In general, the increase or decrease in assets shall be reduced by 7,14 per 100 for each year of permanence exceeding two.

(c) Dealing with shares admitted to trading in any of the official secondary markets of securities provided for in Law 24/1988 of 28 July of the Securities Market, with the exception of shares representing the capital Mobiliaria Investment Company social, the increase or decrease in estate will be reduced by 11.11 per 100 for each year of stay that exceeds two.

d) Dealing with real estate, rights on the same or securities of the entities within the meaning of Article 108 of Law 24/1988 of 28 July of the Stock Market, the increase or decrease in assets will be reduced in a 5,26 per 100 for each year of permanence exceeding two.

(e) Non-taxable persons shall not be subject to the property increases or decreases referred to in this paragraph when the period of residence in the assets of the taxable person of the goods or rights referred to in the letters (b), (c) or (d) above 15, 10 or 20 years, respectively.

Three. If improvements have been made to the transferred assets, the part of the disposal value corresponding to each component of the transfer shall be distinguished for the purposes of the application of the provisions of the preceding paragraph.

Article 46. Acquisition and transmission values.

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

(a) The actual amount by which that acquisition was made or, where applicable, the value referred to in the following Article.

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

This value shall be reduced, where applicable, to the amount of the statutory write-downs, in any event the minimum depreciation.

Two. The transfer value shall be the actual amount by which the disposal was effected or, where appropriate, the value referred to in the following Article. This value shall be deducted from the expenditure and taxes referred to in point (b) of the preceding paragraph as soon as they are satisfied by the transfer, with the exception of the amount referred to in Article 78 (7) (b) of the Law.

Three. The actual amount of the disposal value shall be effectively satisfied, provided that it does not differ from the normal market value, in which case it shall prevail.

Article 47. Acquisition or transfer to a lucrative title.

When the acquisition or transmission has been a lucrative title, the respective values shall be those that correspond to the application of the rules of the Tax on Successions and Donations.

Article 48. Specific rules.

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

(a) From the transfer for consideration of securities admitted to trading in one of the official secondary markets of securities provided for in the Law 24/1988 of 28 July of the Stock Market and representative of the participation in own funds of companies or entities, the increase or decrease shall be computed by the difference between its acquisition value and the transmission value, determined by its listing on the official market on the date on which it is produces that or the price agreed upon when it is higher than the quote.

For determination of the acquisition value, the amount of the subscription rights will be deducted.

By way of derogation from the preceding paragraph, if the amount obtained in the transmission of the subscription rights is greater than the value of the acquisition of the securities from which such rights are derived, the difference shall have the consideration of an increase in equity for the transferor in the tax period in which the transfer occurs.

In the case of total or partially released shares, their acquisition value shall be the amount actually paid by the taxable person.

(b) of the transfer for consideration of securities not admitted to trading on the markets referred to in the preceding letter and representative of the participation in own funds of companies or entities, the increase or decrease shall be computed by the difference between the acquisition value and the transmission value.

It shall be considered as a transmission value, unless it proves that the actual satisfaction corresponds to that which would have been agreed by independent parties under normal market conditions, the greater of the following two:

-The theoretical resulting from the last approved balance sheet.

-The one that results from capitalizing on the 12.5 per 100 type the average of the benefits of the three social exercises closed prior to the tax accrual date. To this end, distributed dividends and allocations to reserves, excluding those for regularisation or updating of balance sheets, shall be counted as profits.

The amount obtained by the transfer of subscription rights from these securities shall be considered as an increase in the amount of equity for the transfer in the tax period in which the said securities are issued. transmission.

In the case of total or partially released shares, their acquisition value shall be the amount actually paid by the taxable person.

(c) For the transfer of shares and other shares in the capital of transparent companies, the increase or decrease shall be computed by the difference between the acquisition and ownership value and the transmission value of the those referred to in the previous Article, where applicable.

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

First. For the price or amount disbursed for its acquisition or the value indicated in the previous article where applicable.

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

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

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

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

First. The nominal value of the shares or shares/units received by the contribution or, where appropriate, the relevant part of the contribution. The amount of the emission premiums will be added to this value.

Second. The value resulting from the reports incorporated as annexes to the corresponding articles of incorporation or increase of social capital, for the purposes of their registration in the Commercial Register.

Third. The quotation value of the received titles, on the day when the contribution or the immediate past is formalized.

Fourth. The valuation of the good contributed, according to the criteria established in the rules of the Tax on Heritage.

e) From the separation of the partners or the dissolution of companies, the difference between the value of the share of the social settlement shall be considered as an increase or decrease in equity, without prejudice to those corresponding to the company or that of the goods received as a result of the separation and the acquisition value of the corresponding title or share of capital.

In cases of division, merger or absorption of companies, the increase or decrease in the assets of the taxable person shall be computed by the difference between the acquisition value of the securities, rights or securities representing the the partner's participation and the value of the titles, number or rights received.

(f) The transfer, amortisation, exchange or conversion of qualified values of explicit performance, representative of the transfer to third parties of own capital, shall be considered as an increase or decrease in equity the difference between the value of transmission, amortisation, exchange or conversion of the same and its acquisition value.

The exchange or conversion value will be taken for the values that are received.

g) Of a transfer, the equity increase will be computed to the transferor in the amount corresponding to the transfer.

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

(h) Of compensation or capital insured for loss or loss in property assets, the difference between the amount received and the proportional share of the value of the assets shall be calculated as an increase or decrease. acquisition that corresponds to the damage.

If the sinister element is the habitual dwelling of the taxable person, it shall be within the meaning of Article 50 of this Law.

i) Of life or invalidity insurance contracts, jointly or separately, with deferred capital, the increase or decrease in assets shall be determined by the difference between the amount collected and the amount of the premiums satisfied, without prejudice to the provisions of Articles 9 (1) (e) and 37 (3) (f) of this Law.

(j) For the swap of goods or rights, except for the collection in point (f) above, the property increase or decrease shall be determined by the difference between the acquisition value of the property or the right to be transferred and the value of market of the right or right that is received in return.

(k) From the extinction of temporary or temporary income, the increase or decrease in equity will be computed, for the obligation to pay those, by difference between the value of the acquisition of the capital received and the sum of the Effectively satisfied rents.

Two. For the purposes of points (a), (b) and (c) of the preceding paragraph, where homogeneous values are present, those transmitted by the taxable person are those which he acquired in the first place.

Three. The provisions of points (d) and (e) of paragraph one of this Article shall be without prejudice to the provisions of the special legislation on the Tax Regime of Business Mergers and Divisions.

Article 49. Unjustified increases.

They will have the consideration of non-justified increases in assets of the assets or rights whose holding, declaration or acquisition does not correspond to the income or equity declared by the taxable person.

Non-justified increases in equity shall be considered as income from the tax period for which they are discovered and shall be integrated into the regular liquidable basis.

By way of derogation from the preceding paragraph, where it is possible to prove that such goods or rights come from other returns of the taxable person or from the reinvestment of other assets of the taxable person, the regularisation of the tax situation corresponding to the nature of these taxable events, without prejudice to the prescription.

Article 50. Exemption by reinvestment.

The capital gains obtained by the transfer of the taxable person's habitual dwelling shall be excluded, provided that the total amount of the latter is reinvested in the acquisition of new habitual housing in the conditions to be determined.

When the reinvested amount is less than the total amount of the transmission, only the proportional share of the increase in the amount obtained corresponding to the reinvested amount shall be excluded from taxation.

Article 51. Individualization of property increases and decreases.

Equity increases and decreases shall be deemed to be obtained by taxable persons who, as provided for in Article 7 of the Law on the Tax on Heritage, are holders of the assets, rights and other the heritage of which it comes from. Non-justified increases in equity shall be charged on the basis of the ownership of the goods or rights in which they manifest.

acquisitions of goods and rights that do not result from prior transmission such as gambling profits and similar assumptions shall be deemed to be increases in the assets of the person to whom the right to his or her property corresponds. obtain or have earned them directly.

Section 5. Revenue Imputation

Article 52. Transparency regime.

One. In any case, the resident partners shall be charged and shall be integrated into their corresponding taxable base of the Income Tax of the Physical Persons or, where applicable, of the Company, the positive tax bases obtained by the companies that are indicated, even if the results have not been distributed:

(A) Companies in which more than half of their assets are constituted by securities and companies of mere holding of goods, where in them any of the following circumstances apply:

(a) That more than 50% of the share capital belongs to a family group, which is understood to be such effects, that the group is constituted by persons united by links of direct or collateral online, consanguine or by affinity up to fourth grade, inclusive.

b) That more than 50 per 100 of the share capital belongs to 10 or fewer partners.

For the purposes of this provision, it shall be a company of mere holding of assets where more than half of its assets are not affected by business or professional activities, as defined in Article 40 of the this Act.

To determine whether an asset item is or does not affect business or professional activities, the provisions of Article 6 of this Law will be provided.

In particular, no elements affecting business or professional activities shall be considered to be assigned to persons or entities directly or indirectly linked to the company.

Both the value of the actual asset and the value of the items not affected by business or professional activities, will be the one that is deducted from the accounting, provided that it accurately reflects the true patrimonial situation of the society.

They shall not be computed as securities, for the purposes of this letter in relation to the companies in which more than half of their assets are constituted by securities, the following:

-The representative of company capital rights, which establish with these a lasting linkage to complement or develop the business or professional activities of the society.

-The possessed to comply with statutory and regulatory obligations.

-Those incorporating credit rights born from contractual relationships established as a result of the development of business or professional activities.

-Those held by Companies or Securities Agencies as a result of the exercise of the constitutive activity of their object.

B) Companies that carry out a professional activity, in which all their partners are professionals, natural persons, who, directly or indirectly, are linked to the development of such activity.

There shall be no obstacle to the provision in the preceding paragraph of the existence of shares in the share capital that correspond to persons other than professionals when the total of the shares is less than 5 per 100 of that.

C) Companies in which more than 50 per 100 of their gross receipts come from artistic or sports performances of natural persons or from any other activity related to artists or sportspersons when between them and their Family members up to and including the fourth grade are entitled to participate in at least 25 per 100 of the benefits of those.

Two. The imputation shall apply where the circumstances referred to in the preceding paragraph are met for more than 30 days of the social year.

Three. The taxable amount attributable to the partners shall be that resulting from the rules of the Corporate Tax, irrespective of the nature of the income from which it derives.

Negative tax bases will not be imputed, with positive tax bases obtained by the company in the following five years.

Four. The companies referred to in this Article shall not be taxed by the Corporate Tax on the taxable amount attributable to the members, natural or legal persons, resident in Spanish territory.

The agreed equivalent dividends or distributions that correspond to non-resident partners will be taxed in such a way, in accordance with the general rules on non-resident taxation and the Double Conventions. Taxation subscribed by Spain.

Dividends and profit distributions that correspond to resident partners and come from tax periods during which the company is in a transparency regime, will not be taxed for this tax. The amount of these dividends or profits shall not be included in the acquisition value of the shares or shares of the members to whom they were charged. In the case of partners who acquire the securities after imputation, the purchase value of the securities shall be reduced by that amount.

Five. Companies in which the circumstances referred to in paragraph 1 of this Article are met and which are partners of another subject to the transparency regime shall be excluded from the transparency regime and shall be taxed in the case of a corporation tax. type equal to the maximum marginal rate of the Income Tax scale of the Physical Persons.

Six. In no case shall the tax transparency regime be applicable in the tax periods in which the representative securities for participation in the capital of the company are admitted to trading in one of the secondary markets. Securities officers provided for in Law 24/1988 of 28 July of the Securities Market. The tax transparency regime shall not apply where a legal person governed by public law is the holder of more than 50 per 100 of the capital of one of the companies referred to in point (A) of paragraph 1 of this Article.

Article 53. Imputation of other concepts.

The resident partners of the companies referred to in the previous Article shall be entitled to the imputation:

(a) of the deductions and allowances in the quota to which the company is entitled, in the same proportion as that corresponding to the positive tax bases charged. The bases of the deductions and bonuses will be integrated into the liquidation of the members, minoring, if necessary, the quota according to the specific rules of this Tax.

(b) From income to account referred to in Law 14/1985 of 29 May of Tax Regime of Certain Financial Assets, and of any withholding tax that has been applied to the company, in the same proportion as corresponds to their participation in the social capital.

Article 54. Identification of members.

Companies affected by the income tax transparency regime shall maintain or convert the representative securities of the holdings in their capital into nominatives.

The lack of compliance with this requirement will have the consideration of a simple tax violation, punishable by a fine of 500,000 to 5,000,000 pesetas, for each tax period in which the default has been given, of which the administrators of the company shall be jointly and severally liable, except for those who have expressly proposed the measures necessary to comply with the provisions of the preceding paragraph, without having been accepted by the others.

When, as a result of the breach of the obligation laid down in the first paragraph of this Article, it is not possible to know, in whole or in part, the members, the taxable amount which cannot be imputed shall be Corporation Tax, at a rate equal to the maximum marginal rate of the Income Tax scale of the Physical Persons.

Article 55. Individualisation of income.

One. The allocation of positive taxable bases in the companies referred to in points (A) and (c) of Article 52 (1) shall be made in accordance with the same rules laid down in this Law for the individualisation of the income of the capital.

Two. The allocation of positive taxable bases in the companies referred to in point (B) of Article 52 (1) shall be made to those who have the status of their partner, even if the ownership of the securities is common.

CHAPTER II

Temporary Revenue And Expense Imputation

Article 56. Temporary imputation.

One. The revenue and expenditure determining the basis of the tax shall be charged to the period in which each other has become due and the other, irrespective of the time when the corresponding charges and payments are made.

Two. However, taxable persons may use different imputation criteria, without any alteration in the tax classification of revenue or expenditure, provided that they meet the following requirements:

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

b) That you specify the deadline for your application. Within this time limit, the minimum duration of which shall be three years, the taxable person shall necessarily comply with the criteria by the same person.

Three. In no case will the change of criteria mean that any revenue or expenditure is left uncounted.

Four. In the case of transactions in instalments or with deferred price. the income shall be charged as a result of the corresponding charges, unless the taxable person decides to charge them at the time of the right of birth.

In no case will they have this treatment, for the transmission, the operations derived from temporary or temporary rema contracts.

Five. Positive or negative differences in the accounts of foreign exchange or foreign currency balances, as a result of the change in their contributions, shall be taken into account at the time of recovery or payment. respective.

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

CHAPTER III

Income classes

Article 57. Income classes.

For the purposes of this Act the income of each taxable person shall be divided, if applicable, into two parts:

a) Regular income.

b) Irregular income.

Article 58. Regular income.

It shall be a regular income which, according to the provisions of the following Article and Article 64 of this Law, does not merit the consideration or treatment of irregular income.

Article 59. Irregular income.

One. They will be irregular income:

(a) increases and decreases in assets that are evidenced by the transfer of assets acquired more than one year in advance of the date on which the increase is obtained or decrease or subscription rights that come from acquired securities, as well as in advance.

(b) Yields that are obtained by the taxable person in a manner that is notoriously irregular over time or that, being regular, their production cycle is more than one year.

Two. In no case will they have the irregular income treatment:

(a) The increases and decreases in assets derived from property assets affected by business or professional activities, which shall be governed by the provisions of Article 41 (2) of this Law.

b) Negative irregular returns from business or professional activities.

CHAPTER IV

Integration and compensation

Section 1. General

Article 60. Integration and compensation.

For the calculation of the tax base, the positive or negative amounts of the income referred to in the previous Chapter shall be integrated and compensated according to the rules of the following items that are applicable.

The tax base derived from the integration and compensation of the income will, in turn, have two parts:

a) The corresponding to the resulting regular income.

b) The corresponding to the positive irregular income.

Section 2. Integration and compensation of regular rents

Article 61. Regular yields.

Regular yields and positive tax bases referred to in Article 52 shall be integrated and compensated without limitation.

Article 62. Regular equity increases and decreases.

One. Regular equity increases and decreases shall be integrated and offset exclusively from each other in each tax period.

Two. If the result is negative, the amount shall be offset against the amount of irregular equity increases that are shown in the tax period itself or in the following five years.

Article 63. Regular income.

The result of the operations provided for in Article 61, plus the positive balance which, where appropriate, yields the balance referred to in paragraph 1 of the preceding Article and the ratio referred to in the second paragraph of the following Article and minorised in the amount of the negative irregular yields referred to in Article 59 (2) (b) shall constitute the amount of the regular income of the taxable person.

The amount of the regular income set out in the preceding paragraph shall constitute the regular portion of the tax base.

Section 3. Integration v compensation for irregular rents

Article 64. Irregular yields. General rule.

Irregular income from personal or capital work as well as positive irregular returns from business or professional activities shall be divided by the number of years in the period in which that have been generated, counted from date to date. In cases where that period cannot be determined, the five-year period shall be taken.

The quotient thus found will be integrated with the regular returns of the taxable person to determine their regular income.

Article 65. Irregular yields. Integration and compensation.

One. Irregular yields, with the exception of the provisions of the second paragraph of the previous Article, shall be exclusively integrated and compensated for each other,

Two. If the result is negative, the amount shall be offset against the amount of irregular yields occurring during the following five years.

Compensation shall be made up to the maximum amount allowed for irregular yields, without being able to be performed outside the time limit referred to in the preceding paragraph, by means of cumulation with irregular yields. negative of subsequent exercises.

Article 66. Increases and decreases in irregular assets.

One. Increases and decreases in irregular assets shall be fully integrated and compensated for each other.

Two. If the result is negative, the amount shall be offset against the amount of irregular equity increases which are shown during the following five years.

Three. If the result is positive, it shall be reduced, where appropriate, by the limit of its amount, in the amount of the regular stock reductions referred to in Article 62 (2

.

Four. In no event shall the compensation referred to in the previous two paragraphs be made outside the five-year period, by means of the accumulation of irregular property decreases in subsequent years.

Article 67. Irregular income.

The positive result of the operations referred to in Article 65 (1), plus the positive balance which, if appropriate, results after the application of the provisions of paragraph 3 of the preceding Article shall constitute the amount of the irregular income.

The amount of irregular income set out in the preceding paragraph shall constitute the irregular portion of the tax base.

title VI

Determining the taxable base

Article 68. Schemes for the determination of the tax base.

The amount of the various components of the tax base will be determined by one of the following methods:

a) Direct estimate, which will be applied as a general scheme.

b) An objective estimate for certain business and professional returns, in the terms provided for in this Law and the rules that develop it.

Any taxable person who fulfils the circumstances provided for in the regulatory rules of this scheme shall determine his or her returns under that scheme, unless they give up their application, on the terms which he/she regulates. establish, prior to the start of the tax period.

c) Indirect estimate, in accordance with the provisions of the General Tax Law.

In the indirect estimation of the Income Tax of the Physical Persons, the signs, indexes, modules or coefficients established for the objective estimate, in the case of subjects, shall be taken into account. liabilities that have waived the latter regime for the determination of the tax base.

Article 69. Objective estimation.

One. The procedures for the objective estimation of the returns of small and medium-sized enterprises and professionals shall be regulated in accordance with the following criteria:

(a) The systems of objective estimation may be applied in conjunction with the special schemes established in the Value Added Tax, where this is determined by regulation.

(b) The scope of the objective estimation schemes shall be determined either by the nature of the activities and crops or by objective modules such as the volume of operations, the number of employees, the amount of the purchases, the area of holdings or fixed assets used.

(c) In no case shall the yields calculated by this system include the results of the property changes resulting from real estate or vessels affected by the business or professional activities, which are determine and integrate with the performance of the activity in accordance with the rules of Article 41 (2) of this Law.

(d) The calculation of the net performance of business or professional activities in objective estimation shall be carried out by the use of signs, indices, modules or general coefficients or referring to certain sectors They will be set up by the Minister for Economic Affairs and Finance.

(e) The formal obligations of taxable persons under objective estimation shall be in accordance with the characteristics of the taxable person.

Two. The application may be regulated, for specific activities or sectors, of objective estimation systems by virtue of which, upon acceptance by taxable persons, individualised figures of net income for various tax periods.

Three. The objective estimation schemes for yields may be applied in demarcated territorial areas.

Four. In the case of the objective estimation schemes which are regulated, they shall not be counted, for the purposes of determining the net performance of the activity, the remuneration stipulated between members of the household.

Five. The application of the objective estimation schemes may never give rise to the taxation of the increases in assets which, where appropriate, could be caused by the differences between the actual yields of the activity and those derived from the correct application of these schemes, without prejudice to the provisions of paragraph 1 (c) of this Article.

Six. The objective estimation schemes shall be applicable to entities on the basis of income allocation with the adjustments to be laid down.

TITLE VII

Tax Debt

CHAPTER FIRST

Liquidable Base

Article 70. Regular liquidable base.

The regular liquidable basis will be the result of practicing on the regular basis of the tax base the reductions provided for in the following article.

Article 71. Reductions in the regular tax base.

The regular portion of the tax base shall be reduced, exclusively, in the amount of the following items:

1. The amounts paid on a compulsory basis to Employment and Mutual Affairs, where they cover, inter alia, the risk of death and the contributions made by members of the Pension Plans, including the contributions of the promoter which would have been imputed to them in terms of performance of the dependent work.

The maximum limit for this reduction will be the smallest of the following amounts:

a) 15 per 100 of the sum of the net income of the work, business and professionals perceived individually in the exercise.

b) Setecientas fifty thousand pesetas annually.

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

Article 72. Irregular liquidable base.

The irregular liquidable base will be constituted by the irregular portion of the tax base.

CHAPTER II

Compensation of negative regular liquidable bases

Article 73. Compensation.

One. If, by virtue of the rules applicable to the calculation of the liquidable basis defined in Article 70, the latter is negative, the amount of the said amount may be offset against that of the positive regular liquidable bases to be obtained within five years. next.

Two. The compensation may be effected in the amount which the taxable person considers appropriate, without being able to be practised outside the period referred to in the preceding paragraph by means of the accumulation of negative regular settlement bases for years later,

CHAPTER III

Full quota

Section 1. Gravamen of the regular liquidable base

Article 74. Scale of Tax.

One. The regular liquidable basis will be taxed at the rates indicated on the following scale:

Settable Base
up to pesetas

34.00

7.270,000

Full - Pesetas	Resto base liquidable up to pesetas	Applicable Type - (percent)
400,000	0	600,000	1,000,000
	120,000	570,000	Centro_table_body"> 22.00
1,570,000	245,400	570,000	24.00
	2.140,000	382,200	570,000	26.00
	2,710,000	530,400	570,000	28.00
3.280,000	690,000	570,000	30.00
3,850,000	861,000	570,000	32.00
	4,420,000	570,000		34.00
4,990,000	1.237.200	570,000	36.00
	5.560,000	1.442,400	570,000	38.00
6.130,000	1,659,000	570,000
6.700,000	1.887,000	570,000	42.00
2.126.400	570,000	44 00
7.840,000	2.377,200	570,000	46.00
8,410,000	2.639.400	570,000	48.00
8.980,000	2,913,000	570,000	50.50
9,550,000	3.200.850	onwards	53.00

Two. The average rate of charge shall be the result of multiplying by 100 the ratio obtained from dividing the quota resulting from the application of the scale by the regular liquidable base. The average rate of charge shall be expressed in two decimal places.

Section 2. No. Gravamen of the irregular liquidable base

Article 75. Type of lien.

The irregular liquidable base will be taxed with the largest type of the following:

a) The average rate resulting from applying the levy scale to 50 per 100 of the irregular liquidable base.

(b) The average rate of taxation as defined in paragraph 2 of the previous Article.

Section 3

Article 76. Full quota.

The full fee of the Income Tax of the Physical Persons shall be obtained by the sum of the quotas resulting from the application of the provisions of Articles 74 and 75 of this Law.

Where the average rate of taxation of the taxable person, as referred to in Article 74 (2), is higher than the general rate of corporation tax, the full share shall be reduced by the amount resulting from the application of the the difference between the above average rate and the general rate of corporate tax on the amount of equity increases that are part of the net positive return on business or professional activities.

For the purposes of applying the provisions of the preceding paragraph, the amount of capital increases shall be deducted, where appropriate, from the reduction in assets which would have been taken into account for the determination of the net performance of the activity.

CHAPTER IV

Liquid quota

Article 77. Liquid quota.

The liquid income tax quota of the Physical Persons will be obtained by practicing in full the deductions that come from those provided in the following article.

Article 78. Deductions.

One. Family deductions.

a) For each single descendant living with the taxable person: 20,000 pesetas.

This deduction will not be performed by descendants:

-That they have served thirty years before the tax accrual except the exception referred to in point (d) of this paragraph one.

-To earn annual income in excess of the minimum interprofessional minimum wage guaranteed for over eighteen years in the tax period in question.

When descendants coexist with multiple ancestors of the same grade, the deduction will be practiced by equal parts in each other's declaration.

In the case of descendants who live with those who have a different degree of kinship, only the next level of the ascendants shall be entitled to the deduction, unless they do not obtain annual income higher than that of the guaranteed minimum inter-professional salary for over 18 years in the tax period in question, in which case the deduction will go to the most distant. For the purposes of this letter, the descendants shall be treated as persons linked to the taxable person on the grounds of unpaid accommodation.

(b) For each ascending person living with the taxable person, who does not have annual income in excess of the minimum inter-professional salary guaranteed for over 18 years in the tax period concerned: 15 000 pesetas. This deduction shall be 30 000 pesetas if the age of the ascending person is equal to or greater than seventy-five years.

When the ascendants coexist with both spouses, the deduction will be made in half. Children may not be able to apply this deduction when their parents are entitled to it.

c) For each taxable person of age equal to or greater than sixty-five years: 15,000 pesetas.

d) For each taxable person and, where applicable, for each single descendant or ascending person, regardless of age, dependent on it, provided that the latter do not have annual incomes exceeding the minimum wage (a) a guaranteed interprofessional for over 18 years in the tax period in question, who are blind, maimed or invalid, physical or mental, congenital or over-come, in the regulated grade, in addition to the deductions to be made in accordance with the provisions of the preceding numbers: 50,000 pesetas.

Furthermore, the application of this deduction shall be made where the person affected by the disability is linked to the taxable person for reasons of guardianship or unpaid accommodation and the circumstances of the level of income and grade are given. of invalidity expressed in the preceding paragraph.

When people who are entitled to this deduction are dependent on multiple taxable persons, the deduction will be prorated equally in each other's declaration.

Two. Deduction for sickness expenses.

15 per 100 of the expenses incurred by the taxable person during the period of the imposition for reasons of sickness, accidents or invalidity of his own or of the persons for whom he is entitled to deduct in the quota, as well as of the expenses satisfied by professional medical and clinical 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.

Three. a) Deduction for rent.

The 15 per 100, with a maximum of 75,000 pesetas per year, of the amounts paid in the tax period for rent of the taxable person's usual dwelling, provided that the following requirements are met:

-That the taxable person has no net income exceeding two million pesetas annually.

-That the amounts paid in terms of rent exceed 10 per 100 of the taxable income of the taxable person.

b) Deduction for child custody expenses.

15 per 100, with a maximum of 25,000 pesetas per year, of the amounts paid in the custody tax period for children under the age of three, when parents work outside the family home and provided that the taxable person has no net income exceeding two million pesetas per year.

Four. Deduction for investments.

10 per 100 of the premiums paid on the basis of life insurance, death or invalidity contracts, jointly or separately, concluded with entities legally authorized to operate in Spain, when the beneficiary is the a taxable person or, as the case may be, his or her spouse, ascending or descendants, and of the amounts paid to the Employment and Mutual Fund, where they cover, among other risks, that of death or invalidity, which cannot be deducted for the purposes of the determination of the taxable or liquidable basis. Deferred or mixed capital insurance contracts are excepted.

(b) 15 per 100 of the amounts satisfied in the financial year concerned by the acquisition or rehabilitation of the dwelling which constitutes or is to constitute the habitual residence of the taxable person.

For these purposes, the rehabilitation will have to fulfil the conditions referred to in Royal Decree 2329/1983. of 28 July on the protection of the rehabilitation of residential and urban heritage.

The home in which the taxable person resides for a continuous period of three years shall be deemed to be a habitual residence. However, it is understood that housing was such when, in spite of the absence of such a period, circumstances would necessarily require the change of housing.

They shall be deemed to have been assigned to the acquisition or rehabilitation of the dwelling which constitutes or is to constitute the habitual residence of the amounts that are deposited in Credit Entities, in accounts that satisfy the formalisation and provision requirements to be laid down in regulation.

The basis for this deduction shall be the amounts satisfied for the purchase or rehabilitation of the dwelling, including the incurred expenses incurred by the acquirer, except interest. For these purposes, the amounts constituting untaxed increases in equity shall not be computed by reinvesting in the purchase of new habitual dwelling.

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

(d) 15 per 100 of the amount of conservation, repair, restoration, dissemination and exposure of goods which meet the requirements set out in the preceding subparagraph, as long as they cannot be deducted as expenditure fiscally admissible, for the purposes of determining the net yield which, where applicable, shall be carried out.

Five. Deductions in business or professional activities.

The taxable persons for this tax that carry out business or professional activities will apply the incentives and incentives to the business investment established or established in the regulations of the Corporation tax, with equal procentages and deduction limits.

However, these incentives will only apply to taxable persons on the basis of objective estimation of taxable bases where this is established in a regulated manner, taking into account the characteristics and obligations of the taxable persons. formal scheme of the scheme.

Six. Deductions for donations.

(a) 15 per 100 of the pure and simple donations in goods that are part of the Spanish Historical Heritage, which are entered in the General Register of Goods of Cultural Interest or included in the General Inventory refers to Law 16/1985, of 25 June, of Spanish Historical Heritage, provided that they are carried out in favor of the entities mentioned in the following point (c).

(b) 10 per 100 of the amounts donated to the Entities referred to in Article 2 of Law 12/1988, of 25 May, to the "Barcelona Olympic Organizing Committee 1992", to the "Barcelona Olympic Organizing Committee 1992, Sociedad Anonima", "Consortium for the European Capital of Culture 1992" and other entities legally assimilated to the former.

c) 10 per 100 of the amounts donated to the following Entities:

-State, Autonomous Communities, Local Corporations and Public Universities.

-The Spanish Red Cross.

-The Catholic Church and the legally recognized non-Catholic confessional associations that have signed with the Spanish State the agreements referred to in Article 16 of the Spanish Constitution.

-The legally recognized Foundations held accountable to the corresponding protectorate organ.

-Public Utility Associations.

Seven. Other deductions.

(a) 10 per 100 of the amount of the dividends of companies received by the taxable person, under the conditions which are regulated and provided that they have been effectively taxed, without any bonus or reduction some, for the Corporate Tax.

b) 75 per 100 of the share of the Municipal Tax on Increase in the value of the Urban Nature Land satisfied by the taxable persons in the financial year, when it corresponds to the property changes that they have derived capital increases effectively subject to the Income Tax of the Physical Persons.

c) By the perception of income from the dependent work, 25,200 pesetas will be deducted.

The amount of the net income deduction from the dependent work applicable in the cases listed below will be as follows:

-Liabilities with net work yields equal to or less than 1,000,000 pesetas: 68,000.

-Liabilities to net income of the work comprised between 1,000,001 and 1,800,000 pesetas: 68,000 less the result of multiplying by 0.05 the difference between net work performance and 1,000,000.

The provisions of the preceding paragraph shall not apply to taxable persons whose net income other than the dependent work is equal to or greater than 2,000,000 pesetas.

(d) If between the yields or increases computed for the determination of the positive liquidable bases is obtained in Ceuta Melilla and its dependencies, 50 per 100 of the part of the full quota shall be deducted proportionally corresponds to the income obtained in those territories.

The previous deduction shall not apply to non-residents in those places, except as regards income from securities representing the share capital of legal entities domiciled and with a social object. exclusive of the same and the yields of permanent establishments located therein.

Article 79. Documentary justification.

One. The deduction referred to in paragraph 2 of the foregoing Article shall be conditional on documentary justification, adjusted to the requirements laid down by the rules of duty to issue and deliver invoices for employers and professionals.

Two. In addition, the practice of deductions referred to in paragraphs 3, 4, 5, 6 and 7 (a), (b) and (d) of the previous Article shall require adequate documentary justification.

Article 80. Limits of certain deductions.

One. The basis for all the deductions set out in Article 78 (4) and (6) shall not exceed 30 per 100 of the taxable amount of the taxable person.

Two. The limits of the deduction referred to in the first subparagraph of Article 78 (5) shall apply to the quota resulting from a reduction in the amount of the deductions referred to in paragraphs 1 to 4, inclusive of that mentioned. Article.

Article 81. Verification of the patrimonial situation.

The application of the exemption provided for in Article 37 (2) and the deductions referred to in Article 78 (4), with the exception of that provided for in point (d), shall require that the the assets of the taxable person at the end of the period of the tax exceeds the value of his or her verification at the beginning of the tax at least in the amount of the investments made. For these purposes, the increases or decreases in value experienced during the tax period shall not be computed for the goods that are still part of the taxpayer's assets at the end of the tax period.

CHAPTER V

Differential fee

Article 82. International double taxation deduction.

One. In the case of a personal obligation to contribute, where income from the taxable person is income or increases in assets obtained and taxed abroad, the minimum of the following amounts shall be deducted from the liquid quota:

(a) The effective amount of the foreign satisfaction on the basis of a personal tax on such income or increases in equity.

b) The result of applying the effective average rate of lien to the settled base portion taxed abroad.

Two. For these purposes, the effective average rate of charge shall be the result of multiplying by 100 the ratio obtained from dividing the liquid quota by the liquidable basis. The effective average rate of charge shall be expressed in two decimal places.

Article 83. Differential fee.

The differential fee will be the result of minoring the liquid quota in the amounts of the deduction provided for in the previous article and the deductions and other payments to account provided for in this Law, without prejudice to the Law 14/1985 of 29 May on Tax Regime of Certain Financial Assets.

CHAPTER VI

Tax Debt

Article 84. Tax liability.

One. The tax liability shall be constituted by the tax rate and, where appropriate, by the other concepts included in Article 58 of the General Tax Law.

Two. Taxable persons shall be obliged to pay the tax liability.

Article 85. Liability of the taxable person.

The tax debts for the Income Tax of the Physical Persons will have the same consideration of those other as those referred to in Article 1,365 of the Civil Code and, consequently, the property they shall be directly liable to the Public Finance for these debts, as opposed to one of the spouses, without prejudice to the provisions of Article 89 (4) of this Law for the joint taxation case.

TITLE VIII

Joint Taxation

Article 86. Option for joint taxation.

Natural persons integrated into a family unit may, in any tax period, choose to jointly tax the Income Tax of the Physical Persons, in accordance with the general rules of the Tax and the provisions of this Title.

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

Article 87. Family unit.

The following are familiar modes of unit:

1. The integrated by the spouses not legally separated and, if any, the minor children, with the exception of those who, with the consent of the parents, live independent of these.

2. The one formed by the parent or parent and children who meet the requirements referred to in the previous rule.

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

Article 88. Exercise of the option.

The option for joint taxation should cover all members of the family unit. If one of them has an individual declaration, the others must use the same scheme.

The option initially exercised for a tax period may not be modified later than the same.

In the event of a failure to declare, the taxable persons shall be taxed individually, unless expressly stated otherwise within ten days of the request of the Administration.

Article 89. Elements of joint taxation.

One. The general rules of the tax on the determination of the income of the taxable persons, determination of the taxable and liquidable bases and the determination of the tax liability, with the specialties that I know, will be applicable in the joint taxation. set out in the following items.

Two. Without prejudice to Article 92, the amounts and quantitative limits laid down for the purposes of individual taxation shall be applied in the same amount in the case of joint taxation, without any increase or increase in function of the number of members of the family unit.

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

Four. Such persons shall be jointly and severally liable to the tax as taxable persons, without prejudice to the right to extend the tax liability to each other, according to the part of the income subject to each of them.

Article 90. Compensation of negative items.

One. In the case of joint taxation, it shall be compensable under the general rules of the tax on negative irregular yields, property decreases and negative liquidable bases, carried out and not compensated by taxable persons. components of the family unit in previous tax periods in which they have been individually taxed.

Two. The same concepts determined in joint taxation shall be compensable exclusively, in the case of subsequent individual taxation, by those taxable persons to whom they correspond in accordance with the rules on the individualisation of income contained in this Act.

Article 91. Scale of Tax.

In joint taxation the scale of applicable tax rates will be as follows:

Settable Base
up to pesetas

Full - Pesetas	Rest liquidable base up to pesetas	Applicable Type - %
800,000	0	1,200,000	20.00
2,000,000	240,000	625,000	24.00
2,625,000	390,000	625,000	26.00
3,250,000	552,500	625,000	28.00
3.875,000	727,500	625,000
915,000		625,000	32.00	32.00
1.115,000	625,000		34.00
1.327,500	1.327,500		625,000	36.00
	6.375,000	1,552,500	625,000	38.00
	7,000,000	1,790,000	625,000
625,000	42.00	625,000	42.00
2.302,500		625,000	44.00
8.875,000	2.577,500	625,000	46.00
	9.500,000	2.865,000	625,000	48.00
	10.125,000	3.165,000	875,000	50.50
11,000,000	3.606.875	onwards	53.00

Article 92. Special rules in case of joint taxation.

One. The ceiling laid down in Article 35 (B), in respect of the deductibility of the interests of the foreign capital invested in the acquisition or improvement of the usual dwelling, shall be one million pesetas per year.

Two. The net income limit referred to in Article 78 (3) (a) shall be three million pesetas per year.

Three. The net income limit referred to in Article 78 (3) (b) shall be three million pesetas per year.

Four. The deduction for the collection of dependent income shall be 25,200 pesetas for each recipient of this type of income integrated into the family unit.

TITLE IX

Tax accrual and tax period

Article 93. Period of taxation and accrual of the tax.

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

Article 94. Lower tax period per calendar year.

One. The tax period shall be lower than the calendar year in the following cases:

(a) Dealing with a taxable person who is taxed individually on his death on a day other than 31 December.

(b) In the case of taxable persons who are jointly taxed, by dissolution or invalidity of the marriage, by marriage separation by virtue of a court judgment or by the death of the separated or unmarried father or mother.

(c) Where the taxable person is married in accordance with the provisions of the Civil Code. In this case, it will be a budget for the interruption of the tax period for the joint taxation of marriage after its conclusion.

Two. In the cases provided for in the preceding paragraph, the tax period shall end, in respect of the tax, in the event of the circumstances indicated therein. At that time a new tax period will be initiated, depending on the new conditions under which the taxable persons will be located, which will end on 31 December, if no circumstances of the above are produced before that date. cited.

Three. The deductions from the quota referred to in paragraphs 1 and 7 (c) of Article 78 which are applicable shall be reduced in proportion to the number of calendar days of the calendar year.

Four. In the case of joint taxation, the heirs and legal persons shall be jointly and severally liable to the Hacienda with the surviving taxable persons of the family unit and shall deal with them in respect of the deceased's place for the purposes of the pro rata regulated in Article 89 of this Law.

Article 95. Determination of the family situation.

The determination of the members of the family unit and of the personal and family circumstances to be taken into account for the purposes of Article 78 shall be carried out in the light of the situation in the the date of the tax accrual.

TITLE X

Tax Management

Article 96. Obligation to declare.

One. They shall be obliged to submit and sign a declaration for this Tax with the limits and conditions which they shall regulate:

(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 two hundred and fifty thousand gross annual pesetas.

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.

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

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 them, in accordance with Article 44 of the General Tax Law.

Article 97. Self-validation.

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

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.

Article 98. Holds and other payments on account.

One. Legal persons and entities, including communities of property and owners, who satisfy or pay income under this tax, shall be obliged to retain, as a payment on account, the amount to be determined (a) to be regulated and to enter the amount in the Treasury in the cases and form to be established. They shall also be required to retain and enter individual employers and professionals in respect of income which they satisfy or pay in the course of their business and professional activities, as well as natural, legal and other non-resident entities on Spanish territory, which operate in the Spanish territory by way of permanent establishment.

Two. The amounts actually paid by the subjects 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.

Three. The payment of the tax may be reported and fractionable, if applicable, the taxable persons or persons or entities referred to in paragraph one of this article to self-abolish and to enter their amount in the form that Regulation is determined.

Article 99. 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.

Article 100. Return of trade.

One. Where the sum of the quantities retained at the source and the entered into account exceeds the amount of the quota resulting from the reverse charge, the Administration shall be obliged to carry out provisional liquidation within the following six months. at the end of the deadline for the submission of the declaration.

Two. Where the quota resulting from the provisional liquidation is less than the sum of the quantities actually withheld and the payments to be made, the administration shall, within one month, return the excess to the the quoted quota.

Three. If the provisional liquidation has not been carried out within the six-month period laid down in the preceding paragraph, the administration shall, on its own initiative, return the excess entered on the autoliquid quota in the following month, without prejudice to the practice of subsequent provisional liquidations which may result.

Four. After the time limit for the return without taking place, the taxable person may request in writing that interest for late payment be paid in the manner laid down in Article 45 of the recast of the General Law Budget, approved by Royal Legislative Decree 1091/1988 of 23 September.

Five. The procedure and the form of payment for the performance of the return of trade referred to in this Article shall be determined.

Article 101. Formal obligations of taxable persons.

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

Two. For the purposes of this Act, taxable persons who carry out business activities, the performance of which is determined by direct estimation, shall be obliged to keep accounts in accordance with the provisions of the Trade Code.

Three. Likewise, taxable persons shall be obliged to carry the books or records which they regulate are established, in the form determined by the Minister of Economy and Finance.

Article 102. Formal obligations of the retainer.

The subject obliged to retain must submit within the time limits, form and places to be established in regulation, declaration of the quantities withheld or negative declaration when the practice of the same was not carried out. It shall also present an annual summary of retentions with the content to be determined regulatively.

The subject obliged to retain shall be obliged to issue, under the conditions which are regulated by law, certification of the withholding tax or other payments made to the account.

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

Article 103. Obligations of Transparent Societies.

The Companies referred to in Section 5 of Chapter 1 of Title V of this Law shall, in conjunction with their Company Tax Declaration, submit a list of their partners, with the data that is determine regulentarily.

The relationship will be presented according to the model approved by the Minister of Economy and Finance.

Article 104. Infringements and penalties.

Without prejudice to the special rules contained in this Law, the tax violations in this Tax will be qualified and sanctioned in accordance with the provisions of the General Tax Law.

TITLE XI

Jurisdictional Order

Article 105. Court order.

The judicial-administrative jurisdiction, prior to exhaustion of the economic-administrative path, will be the only competent authority to settle disputes in fact and law that arise between the administration and the individuals. liabilities in relation to any of the matters referred to in this Law.

ADDITIONAL PROVISIONS

First. Permanent Resource of the Official Chambers of Commerce, Industry and Navigation.

The permanent appeal of the Official Chambers of Commerce, Industra and Navigation, as far as the natural persons will be concerned, will consist of the four per thousand of the yields that result from the application of the rules contained in Section 3 of Chapter 1 of Title V of this Law.

The resource will be required by the above Chambers.

Second. Transmission of subscription rights at entry to the Exchange.

The third subparagraph of Article 48 (1) (b) of this Law shall not apply where the circumstances provided for in the second subparagraph of Article 1 (2) of the Royal Decree-Law are to be applied. 1/1989, of 22 March, on tax treatment of the transfer of preferential subscription rights to securities representative of corporate capital and returns from Treasury Letters obtained by non-residents.

Third. Staff of the Institute of European-Latin American Relations (IRELA).

Notwithstanding the provisions of the Final Disposition 2. The provisions of Article 2 (2) of Law 22/1986 of 23 December on this Tax shall continue to apply in their own terms.

Fourth. Amendment of the Tax General Law.

Article 47 of the General Tax Law of December 28, 1963, will be worded as follows:

" Article 47.

1. The Law of each tribute shall establish the means and methods for determining the tax base within the following schemes:

a) Direct estimate.

b) Objective estimation.

c) Indirect estimate.

2. The bases determined by the schemes referred to in points (a) and (c) of the previous paragraph may be used by the taxable person by means of the evidence concerned. '

Fifth. Amendment of Law 61/1978 of 27 December of the Corporate Tax.

The articles of Law 61/1978, of December 27, of the Company Tax, which are then related, will be amended as follows:

One. Article 4.

Article 4 (1) is amended as follows:

" One. Taxable persons are taxable persons all subject to rights and obligations, with legal personality, who are not subject to the Income Tax of the Physical Persons:

(a) taxable persons who are resident in Spain shall be subject to personal obligation.

(b) taxable persons other than those referred to in the preceding letter who obtain income or increases in equity produced in Spanish territory shall be subject to actual obligation.

For the purposes of the preceding paragraph, the following shall be understood to be obtained or produced in Spanish territory, among others, the yields satisfied by:

Individual or professional entrepreneurs residing in Spanish territory.

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

Permanent establishments located in the same. "

Two. Article 10.

Article 10 is worded as follows:

" Article 10. Representatives of non-residents in Spain.

One. Non-resident taxable persons in Spanish territory shall be required to appoint a natural or legal person with a registered office in Spain, to represent them before the Tax Administration in relation to their obligations under this Tax.

The taxable person or his/her representative shall be required to inform the Administration of the appointment, duly accredited, within two months of the date of the appointment.

Two. For the purposes of this Tax, representatives of permanent establishments who appear as such in the Trade Register or, failing that, who are entitled to contract on behalf of them shall be considered.

Where these persons are not domiciled in Spanish territory, the provisions of the preceding paragraph shall apply.

Three. Failure to comply with the obligations referred to in the previous paragraph shall constitute a simple tax breach punishable by a fine of 25 000 to 2,000,000 pesetas. '

Three. Article 11 (5) is amended as

:

" 5. For the purposes of the preceding paragraph, capital injections made by the partners, the share-issue premiums and the contributions made by the partners to replenish the equity in accordance with the above shall be considered as capital injections. Articles 163.1 and 260.4 of the Recast Text of the Law on Anonymous Societies. "

Four. Article 15.

Article 15 shall be worded as follows:

" Article 15. Equity increases and losses.

One. Changes in the value of the assets of the taxable person, which are shown on the occasion of any alteration in the composition of the person, are increases or decreases, except as provided in the following paragraph.

It shall be computed as equity increases that are evidenced by simple accounting entry, unless a law expressly states them as exempt from taxation.

In no case shall they be computed as equity decreases which are evidenced by a simple book entry, other than those corresponding to decreases in value as a result of depreciation losses that are not computed as amortization, produced during the tax period.

Two. These are not increases in the assets referred to in the preceding paragraph, the increases in the value of the assets which come from income subject to taxation in this Tax, and any other of its concepts, the capital injections made by the members or members during the financial year, including the premiums for the issuance of shares, or the contributions made by them to replenish the assets in accordance with Articles 163.1 and 260.4 of the recast of the Law of Public Limited Companies.

It is not a loss of assets due to the liability of the taxable person, the losses arising from the exercise of the activities, the losses incurred by the game and those not justified, as well as the amounts withdrawn by the partners or unit-holders in terms of reduction of capital, distribution of profits or distribution of assets, or tax items not deductible.

It will be estimated that there are no increases or decreases in assets in the cases of division of the common thing and, in general, dissolution of communities or separation of communeros, except as a consequence of the same produces an alteration of the values of the goods and rights previously accounted for. It will also be estimated that there are no property increases and decreases in the social capital reduction scenarios. However, where the reduction of capital is intended to return contributions, the amount of the capital reduction shall bear the net book value of the securities concerned until its cancellation. The excess that could be taxed as the return on capital.

The tax shall not be subject to the increases and decreases in assets that are evidenced by donations that have the consideration of a deductible item.

Three. They are increases or decreases in equity and as such will be computed in the income of the Entity transmitting the differences of value that are revealed for any lucrative transmission.

Four. The amount of the asset increases or decreases shall be:

First. In the case of onerous or lucrative transmission, the difference between the acquisition and disposal values of the assets.

Second. In the cases referred to in the second subparagraph of paragraph 1 of this Article, the difference between the accounting values.

Third. In other cases, the value of the acquisition of the assets or the proportional parts, if any.

Five. Where the change in the value of the equity proceeds from a transmission for consideration, the acquisition value shall be composed of the sum of:

(a) The actual amount by which that acquisition was made.

(b) The amount of revaluations to be performed.

(c) The cost of the investments and improvements made in the assets acquired and the costs and taxes inherent in the transmission which have been satisfied by the acquirer.

This value shall be reduced, where applicable, in the amount of depreciation for depreciation experienced by the said goods, in any event the minimum depreciation, and in the case of provisions and decreases of tax deductible value, without prejudice to the application of the rules of Article 16 of this Law.

The value of the disposal shall be estimated at the actual amount for which the disposal was made. The costs and charges referred to in point (c) of this paragraph shall, where appropriate, be deducted from this value as soon as they are satisfied by the transmission.

Six. Where the acquisition or transfer has been awarded in a lucrative manner, the respective values shall be those which correspond to or are determined by application of the rules of the Tax on Successions and Donations.

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

(a) From the transfer for consideration of securities admitted to trading in one of the official secondary markets of securities provided for in the Law 24/1988 of 28 July of the Stock Market and representative of the participation in own funds of companies or entities, the increase or decrease shall be calculated by the difference between the average acquisition cost and the disposal value, determined by its listing on the official market on the date on which it is produces that or the price agreed upon when it is higher than the quote.

For the determination of the acquisition value the amount of the subscription rights shall be deducted, unless the companies choose to reflect the real value of their securities portfolios in accordance with the rules that are establish regulations.

In the case of total or partially released shares, their acquisition value shall be the amount actually paid by the taxable person.

(b) For the transfer of shares and other shares in the capital of transparent companies, the increase or decrease shall be computed by the difference between the acquisition and ownership value and the transmission value of the those referred to in the previous paragraph, where applicable.

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

First. For the price or amount disbursed for its acquisition, taking into account possible mini-sentences for the treatment of related operations, or for the value referred to in the previous paragraph, where applicable.

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

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

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

First. The nominal value of the shares or shares/units received by the contribution or, where appropriate, the relevant part of the contribution. The amount of the emission premiums will be added to this value.

Second. The value resulting from the reports incorporated as annexes to the corresponding articles of incorporation or increase of social capital, for the purposes of registration in the Commercial Register.

Third. The quotation value of the received titles, on the day when the contribution or the immediate past is formalized.

Fourth. The valuation of the good contributed, according to the criteria established in the rules of the Tax on Heritage.

(d) The separation of the partners or the dissolution of companies shall be deemed to be an increase or decrease in the assets of the partner, without prejudice to the company's corresponding share, the difference between the value of the the social settlement or the assets received as a result of the separation and the acquisition value of the corresponding title or equity interest.

In cases of division, merger or absorption of companies, the equity increase or decrease shall be computed by the difference between the acquisition value of the securities, rights or securities representative of the holding of the partner and the value of the titles, number or rights received.

e) For the transmission, amortisation, exchange or conversion of qualified values of explicit performance, representative of the transfer to third parties of own capital, the difference shall be considered as increase or decrease between the value of transmission, amortisation, exchange or conversion of the same and its acquisition value.

The exchange or conversion value will be taken for the values that are received.

f) Of a transfer, the equity increase shall be computed to the transferor for the amount corresponding to the transfer.

When the right of transfer has been acquired by price, its net book value shall be considered as a purchase value.

(g) Of compensation or capital insured for loss or loss in property assets, the difference between the amount received and the proportional share of the value of the assets shall be calculated as an increase or decrease. acquisition that corresponds to the damage.

(h) For the purposes of the swap of goods or rights, except as referred to in point (e) above, the property increase or decrease shall be determined by the difference between the acquisition value of the property or the right to be transferred and the value of market of the right or right that is received in return.

2. The provisions of point (a) of No 1 shall apply, where appropriate, to cases of the onerous transmission of other classes of transferable securities.

However, the amount obtained by the transfer of subscription rights from securities not admitted to trading shall be considered as an increase in equity for the transfer in the tax period in which the the transmission is produced.

3. The provisions of points (c) and (d) of number 1 shall be without prejudice to the provisions of the special legislation on the tax arrangements for mergers and divisions of undertakings.

Eight. By way of derogation from this Article, the increases in assets which are shown in the transfer of tangible elements of the fixed assets of the undertakings necessary for the performance of their business activities shall not be be taxed as long as the total amount of the disposal is reinvested in goods of the same nature and destination in a period not exceeding two years or not more than four years if during the first period the Company presents an investment plan to the Administration and invests during the first two at least 25 per 100 of the total increase.

The enjoyment of the reinvestment exemption shall be incompatible with the deduction of the expenses arising from the acquisition or subsequent use of the items in question, whichever financial year they become. The taxable person may choose between the enjoyment of the reinvestment exemption and the deduction of the above expenses.

The elements in which the reinvestment materializes must remain in the assets of the taxable person, except for justified loss, for a period of two years in the case of a movable property or a property of ten, except that the amount obtained by its transmission or the net book value, if any less, applies to the purchase of new items to be maintained during the period remaining to complete the two-and ten-year time-limits, according to the nature of the element in the fairing. '

Five. Article 16.

Article 16 shall be worded as follows:

" Article 16. Assessment of revenue and expenditure.

1. Revenue and expenditure shall be taken into account in respect of their accounting values, provided that the accounts reflect at all times the true heritage of the company, with the specialities and exceptions provided for in this Law and other rules of tax nature.

2. In no case shall the valuations of the deductible items be considered for tax purposes for an amount higher than the actual purchase price or the cost of production in the terms defined in regulation or, where appropriate, their value regularised in accordance with the provisions of the Law of a Tax Nature.

3. Notwithstanding the foregoing, in the case of transactions between related companies, their valuation for the purposes of this tax shall be in accordance with the prices which would be agreed under normal market conditions. between independent parties.

When the Administration is required to adjust the valuation of transactions between related companies outside the voluntary reporting period, the adjustment may not result in a loss of revenue or an increase in expenditure or costs for either party.

4. The provisions of the preceding number shall apply in any case:

(a) to companies directly or indirectly linked to other non-residents in Spain and to the operations carried out by a non-resident company with its permanent establishments in Spain or by a resident company with their permanent establishments abroad

(b) To transactions between a company and its members or advisers or members or advisers of another company of the same group, as well as the spouses, ascendants or descendants of any of them.

(c) To transactions between two companies in which the same partners, their spouses, descendants, ascendants or brothers have at least 25 per 100 of their capital, or where such persons are employed in both companies functions involving the exercise of the decision-making power.

5. For the purposes of the above two paragraphs, it shall be understood that there is a link between two companies when they are directly or indirectly involved, at least 25%, in the social capital of another or when, without circumstances, a company is engaged in other functions involving the exercise of the power of decision.

It is also understood that there is a link between those companies belonging to the same Group of Companies in the terms defined in the commercial law.

6. The valuation of the operations carried out by the cooperatives with their partners shall be governed by the provisions of their specific legislation and, failing that, shall be carried out by their market value.

7. The income that would have been withheld by this tax shall be computed in full, adding to the perceived liquid yield the effective amount of the withholding that would have been practiced.

8. Stocks of raw materials and consumables, of products in the course of manufacture and of finished products, shall be individually valued for their purchase price or cost of production. For homogeneous groups of stocks, the weighted average price or cost method may be adopted.

9. Where the direct or indirect indebtedness of a company with another person or entity not resident and related to it within the meaning of paragraphs 4 and 5 of this Article exceeds the result of applying the coefficient to be determined In the case of the tax capital, the satisfied interest that corresponds to the excess will have the tax consideration of dividends. "

Six. Article 19.

Article 19 shall be worded as follows:

" Article 19. Tax transparency regime.

1. In any case, the resident partners shall be charged and shall be integrated into their corresponding taxable base of the Income Tax of the Physical Persons or, where applicable, of the Company, the positive tax bases obtained by the companies to Article 52 (1) of the Law on the Income Tax of Physical Persons, even if the results have not been the subject of distribution.

2. The taxable amount attributable to the partners shall be that resulting from the rules of the Company Tax irrespective of the nature of the income deriving.

Negative tax bases will not be imputed, with positive tax bases obtained by the company in the following five years.

3. Companies in a transparency regime shall not be taxed by the Corporate Tax on the taxable amount attributable to the members, natural or legal persons resident on Spanish territory.

The agreed equivalent dividends or distributions that correspond to non-resident partners will be taxed in such a way, in accordance with the general rules on non-resident taxation and the Double Conventions. Taxation subscribed by Spain.

Dividends or distributions of profits that correspond to resident partners and come from tax periods during which the company is in a transparency regime, will not be taxed for this tax. The amount of these dividends or profits shall not be included in the acquisition value of the shares or shares of the members to whom they were charged. In the case of companies acquiring the securities after imputation, the purchase value of the securities shall be reduced by that amount.

4. The entities referred to in this Article shall access tax benefits that may be recognised by other companies.

Members, natural or legal persons resident, of the companies referred to in this Article shall be entitled to imputation:

(a) of the deductions and allowances in the quota to which the company is entitled, in the same proportion as that corresponding to the positive tax bases charged. The bases of the deductions and bonuses will be integrated into the liquidation of the members, minorating, where appropriate, the quota according to the specific rules of the tax that serious the income of those, natural person or legal person.

(b) From income to account referred to in Law 14/1985 of 29 May, of Tax Regime of Certain Financial Assets and of the withholding tax that has been practiced on the company, in the same proportion as corresponds to their participation in the social capital.

5. The companies in which the circumstances determining the application of the transparency regime are met and which are partners of another subject to that scheme shall be excluded from the scheme and shall be taxed in the same way as companies. the maximum marginal rate of the Income Tax of the Physical Persons.

6. Companies affected by the tax transparency regime shall maintain or convert the representative securities of the units in their capital into nominatives.

The lack of compliance with this requirement will have the consideration of a simple tax violation, punishable by a fine of five hundred thousand to five million pesetas, for each tax period in which the non-compliance, of which the administrators of the company will be jointly responsible.

However, where, as a result of the failure to comply with the obligation laid down in the first paragraph of this Article, the partners, the taxable amount which cannot be charged, cannot be known in whole or in part shall be taxed, in the Corporate Tax, at a rate equal to the maximum marginal rate of the Income Tax scale of the Physical Persons. "

Seven. Article 23.

A new paragraph is added, the four, with the following content:

" Four. In the case of income or increases in assets obtained by non-residents through a permanent establishment, where the income obtained is transferred abroad, the rate of 25 per 100 shall be applied to the amount transferred. "

A new paragraph is added, the five, with the following content:

" Five. In the case of transfers of immovable property located in Spain by non-resident taxable persons acting without permanent establishment, the acquirer shall be obliged to retain and enter the 10 per 100 of the price agreed for payment to Tax account for those.

The above paragraph shall not apply where the owner of the property transmitted was a natural person and that property had been acquired more than twenty years before the date of transmission. without having been the object of improvements during that time. "

A new paragraph is added, the six, with the following content:

" Six. In any event, the depositary or manager of the goods or rights of non-residents without permanent establishment or the paying agent shall be jointly liable for the income of the tax debts corresponding to the income of the property or rights the deposit or management of which has been entrusted or to the income which it has satisfied.

If the retention referred to in paragraph five of this article has not been entered, the goods transmitted shall be affected by the payment of the tax. "

Eight. Article 24.

Article 24 shall be worded as follows:

" Article 24. Deductions from the quota.

From the resulting quota by application of the previous article, the following amounts will be deducted:

1. Where dividends or shares in the profits of other companies resident in Spain are included in the income of the taxable person, 50 per 100 of the proportional share corresponding to the taxable amount derived from such shares shall be deducted. dividends or shareholdings.

This deduction shall not apply where the company paying the dividend is exempt from the Company Tax, nor shall it be applicable to the subjects referred to in Article 5. of this Law.

2. With the requirements expressed, the deduction referred to in the preceding number shall be one hundred per cent in the following cases:

(a) The dividends distributed by corporate companies.

(b) dividends from a company which is dominated, directly or indirectly, by more than 25 per 100, by the company which receives dividends, provided that the dominance is maintained uninterruptedly both in the period the tax on which the blunt benefits are distributed in the immediate period before.

3. Companies which are shareholders or members of a company under tax transparency shall apply the provisions of the two numbers prior to the part of the taxable amount charged to the dividends received by the company.

4. In the case of a personal obligation, where income from the taxable person is income obtained and taxed abroad, the lower of the following two quantities shall be deducted:

(a) The effective amount of the foreign satisfaction by reason of a charge of a nature identical or analogous to this Tax.

(b) The amount of the quota that Spain would have to pay for these yields if they had been obtained on Spanish territory.

5. Where, between the income of a taxable person resident in Spain, dividends or shares in the profits paid by a non-resident company are calculated, the tax actually paid by the latter in respect of the profits shall be deducted for which dividends are paid, in the amount corresponding to such dividends, provided that the amount is included, for these purposes, in the taxable amount of the taxable person.

For the purposes of this deduction, it will be necessary for the direct participation in the capital of the non-resident company to be at least 25 per 100 and to maintain it uninterrupted in the period tax on which profits are distributed as in the immediate period before.

This deduction, together with the applicable one, if any, in respect of these dividends in accordance with the previous paragraph, may not exceed the quota which in Spain would be payable for these yields if they had been obtained in Spanish territory.

6. The amount of deductions, payments and income to account that would have been practiced on the taxable person's income.

When such remendons, payments and income on account exceed the amount resulting from practicing in the Tax quota the deductions referred to in the preceding numbers and Articles 25 and 26 of this Law in the order The administration shall, as set out in paragraph 8 of this Article, return the excess of its own motion.

7. The provisions of this Article shall apply to non-resident companies in Spain, in accordance with the following rules:

(a) Those companies operating in Spain through permanent establishment may apply the deductions referred to in numbers 1, 2 and 6.

(b) Other non-resident companies may only apply the one contained in the number 6.

8. The order of deductions to be applied to the full quota, resulting from the application of the levy rate to the tax base, shall be as follows:

First. The deduction corresponding to the double taxation of dividends.

Second. The international double taxation deduction.

Third. The double taxation deduction of dividends distributed by non-resident companies.

Fourth. The bonuses that in each case may correspond.

Fifth. The deduction for investments.

Sixth. The withholding tax on the taxable person's income and the payments and revenue to be made available. '

Nine. Article 25

The third paragraph of Article 25 shall be worded as follows:

" Third. The profits from the export activity of Spanish cinematographic or audiovisual productions, of books, fasciculties and elements whose content is normally homogeneous or edited together with those, as well as any other an editorial demonstration of a didactic nature, provided that they are effectively invested in the concepts referred to in Article 26 and are not attributable to the granting of subsidies in Spain. "

Ten. Article 32.

Article 32 will be worded as follows:

" Article 32. Holds and other payments on account.

One. Legal persons and entities, including communities of property and owners, who satisfy or pay income under this tax, shall be obliged to retain, as a payment on account, the amount to be determined (a) to be regulated and to enter the amount in the Treasury in the cases and form to be established. They shall also be required to retain and enter individual employers and professionals in respect of income which they satisfy or pay in the course of their business and professional activities, as well as natural, legal and other non-resident entities on Spanish territory, which operate in the Spanish territory by way of permanent establishment.

Two. The payment of the tax may be reported and fractionable, where the taxable persons or persons or entities referred to in the preceding paragraph shall, where appropriate, be obliged to make payments on account that are determined in accordance with the rules. "

Sixth. 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.

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 Additional Disposition, will give rise to its enforceability by the award procedure on the real estate, being Sufficient evidence for the 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 tax.

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) institutions that provide sufficient evidence to the tax authorities for the procedure to be established, the origin of the resources invested in Spain and the personality of the direct holders; or indirect capital, assuming the commitment to notify any alteration or modification and the causes of it to the competent authorities.

Five. The share of the Special Tax on immovable property of non-resident entities shall be considered as deductible expenditure for the purposes of determining the tax base of the Company Tax.

Seventh. Amendment to Article 1 of Law I4/1985 of 29 May of Tax Regime of Certain Financial Assets.

Article 1 (1) of Law 14/1985 of 29 May of Tax Regime of Certain Financial Assets shall be worded as follows:

" Article 1. ° Capital flows in consideration of the acquisition or use of foreign capital.

1. For the purposes of the Income Tax of the Physical Persons and the Tax on Societies, the consideration of capital returns shall be given to the consideration of all kinds, money or in kind, which are satisfied by the collection. or the use of foreign capital, including allowances and amortisation premiums and the consideration of participative claims. '

Eighth. Tax scales for the 1993 tax period.

One. The scales of the Income Tax of the Physical Persons set out in Articles 74 and 91 of this Law shall converge for the 1993 tax period, at scales with rates applicable between 18 and 50 per 100. The implementation of the latter will be carried out on liquidable bases in excess of 12 million pesetas, on the scale corresponding to joint taxation and 10 million pesetas on the general scale.

Two. In addition, the percentage of expenditure referred to in Article 28 (2) of this Law shall be 6 per 100 in the 1993 tax period.

Three. To this end, the Government will include in the draft of the General Budget Law of the State the corresponding proposals, taking into account, in particular, the evolution of the levels of compliance in the tax of the different types of income subject.

Ninth. Application of Article 37. un.2.c) to the Company Tax.

The provisions of Article 37 (2) (c) of this Law shall apply, where appropriate, to qualify as a Company Tax income derived from securities representative of the transfer. to third parties of own capital.

10th. Scheme of the allowances provided for in the 18th Additional Provision of Law 4/1990 of 29 June.

The indemnities provided for in the 18th Additional Disposition of Law 4/1990, of June 29, General Budget of the State for 1990, shall not be subject to the Income Tax of the Physical Persons.

11th. Cese for technological or economic reasons.

One. Without prejudice to the provisions of Article 9 (1) (d) of this Law, the part of the indmenization perceived by the workers as a result of their cessation of technological or economic causes shall be exempt from taxation, which shall not be exceed the limits laid down in the Staff Regulations for the case of unfair dismissal, provided that the following conditions are met:

1. That the appropriate employment regulation file has been dealt with in accordance with the provisions of Article 51 of the Workers ' Statute.

2. The competent authority has authorized such a file prior to the date of entry into force of this Law.

Two. The provisions of the preceding paragraph shall apply to the non-prescribed tax periods, with the exception of administrative proceedings which have become final before the entry into force of this Law.

12th. Amendment of Article 108 of the Securities Market Act.

Article 108 of Law 24/1988 of 28 July of the Securities Market will be worded as follows:

" Article 108.

1. The transfer of securities, whether admitted or not to be traded on an official secondary market, shall be exempt from the Tax on Proprietary Transmissions and Documented Legal Acts and Value Added Tax.

2. They shall be exempt from the provisions of the preceding paragraph and shall be taxed for the concept of 'Onerous Inheritance' in the Tax on Proprietary Transmissions and Legal Acts Documented:

1. The transmissions made on the secondary market, as well as the acquisitions in the primary markets as a result of the exercise of the rights of preferential subscription and the conversion of obliquations into shares, securities representing shares in the share capital or assets of companies, funds, associations and other entities whose assets are at least 50 per 100 per immovable property situated on national territory, provided that, as result of such transfer or acquisition, the acquirer obtains the total ownership of this property or, at least, a position such as to enable it to exercise control over such entities.

Dealing with commercial companies shall be understood to have obtained such control when directly or indirectly a share in the share capital of more than 50 per 100 is reached.

For the purposes of the calculation of 50 per 100 of the asset made up of buildings, no account shall be taken of those, except land and solar, which are part of the working asset of the entities whose exclusive social object consists of the development of business activities of construction or real estate promotion.

2. The transmissions of shares or social units, received by the contributions of real estate made on the occasion of the formation of companies or the extension of its social capital, provided that between the date The contribution and the transmission would not have elapsed for one year.

In the previous cases, the type corresponding to the onerous transmissions of real estate, on the value of the goods calculated according to the rules contained in the current rules of the tax, will be applied On Heritage Transmissions and Documented Legal Acts. "

13th. Exchange of financial assets.

One. Holders of the Treasury or other assets of a similar nature issued by the Diputaciones Forales of the Basque Country or the Comunidad Foral de Navarra, which are in circulation at any time within the period between the This Additional Disposition will enter into force on 1 January 1992, with the sole exception of the Treasury Notes held by Credit Entities for the purpose of complying with the coefficient of compulsory investments, until 31 December 1992. December 1991, by some of the following alternatives:

1. th Exchange for the Special Public Debt assets referred to in paragraph 2 of this Additional Disposition.

This option may only be exercised by natural or legal persons who, in accordance with the provisions in force, have been tax residents in common territory during 1990.

2. Th ordinary amortization, in the terms and conditions set out in the issue itself. The lack of express expression in favour of the above alternative shall be understood as an option for the latter.

The provisions of this paragraph shall be without prejudice to the adaptation which may be made pursuant to the provisions of the Economic Agreement with the Autonomous Community of the Basque Country and the Economic Convention with the Community of Navarra.

Two. Financial characteristics of the Special Public Debt assets:

(a) The Special Public Debt shall be represented by means of an account, shall be of a nominative character and shall not be transmittable, except in the case of "mortis causa".

b) The Special Public Debt will be issued at the discount, with its effective subscription price being set so that the resulting yield is 2 per 100 per year.

(c) The maturity, ordinary of the assets of the Special Public Debt, which shall be six years after its issuance, shall take place in 1997, and may be effected on one or more dates of that financial year.

(d) The holders of the Special Public Debt assets may freely choose each year, on the date or dates to be determined, for their early repayment, by applying to them through the Management Entities of the Special Public Debt Market. Public Debt in Annotations. The redemption price of the Special Public Debt assets shall be that of subscription increased by interest from the date of subscription until the date of early repayment.

Three. Tax regime for the assets of the Special Public Debt:

a) Relationship of headlines.

The ratio of subscribers to the Special Public Debt assets, classified by emissions, will be made by the Management Entities of the Public Debt Market in Annotations, which will have to record in their records the the name and two surnames or social reasons of each subscriber, as well as their tax identification number and the number of assets subscribed. The Management Entities and other intermediaries involved in the subscription of the Special Public Debt assets shall not be required to inform the Tax Administration about the identity of the subscribers.

Without prejudice to the foregoing, the Management Entities of the Public Debt Market in Annotations shall deposit in the Banco de España, prior to 1 March 1992, the ratio of subscribers to the assets of the Debt Special Public, in the terms set out in the preceding paragraph. Once the relations have been deposited, the Banco de España will only admit additional communications in case of early repayment or "mortis causa" transmission, provided that, in the latter case, the cause of the succession and the identity of the successors in title. Such communications will be guarded at the Banco de España along with the original relationships.

Until the ordinary or anticipated write-down of the Special Public Debt assets, the data relating to the identity of its holders will be absolutely confidential. However, prior to the amortisation dates mentioned above, the Banco de España may, at the request of the holders of the assets of the Special Public Debt, certify that they are included in the relations of holders deposited in the Special Public Debt. Banco de España.

In 1997, in advance of the expiration of the Special Public Debt assets, the Banco de España will send the Ministry of Economy and Finance the full list of the holders of the aforementioned assets, for the purpose of the timely reimbursement. In the same way, prior to the pre-fixed dates, it shall be made in respect of the holders who have applied for early repayment.

b) Tax on the Heritage of Physical Persons.

Special Public Debt assets will not be subject to the Physical Persons ' Heritage Tax.

c) Tax on the Income of Physical Persons and Corporate Tax.

The income of the capital or, where appropriate, increases in equity from the amortization of the assets of the Special Public Debt shall not be subject to the Income Tax of the Physical Persons or the Corporation tax corresponding to the holders of those assets.

d) Tax on Successions and Donations.

The death of the holders of the assets of the Special Public Debt will result in the accrual of the Tax on Successions and Donations. However, the settlement of the part of the tax corresponding to those assets shall be deferred at the time of its ordinary or early repayment.

e) Effectiveness in the face of administrative actions carried out in the field of tax management or inspection.

The effective purchase price of Special Public Debt assets may be charged by subscribers to the reduction of undeclared net income or wealth, corresponding to prior tax periods. 1990, which could be evidenced by the tax administration when it took the form of a verification or investigation, provided that such income was not materialised in other goods or rights.

For the application of the provisions of the preceding paragraph, it is necessary to obtain the certificate of ownership referred to in the third subparagraph of point (a) of this paragraph. In such cases, the holder shall not benefit from the early repayment provided for

the following point.

f) Early amortization.

Early redemption of the Special Public Debt assets shall deprive the same of the tax regime established in this paragraph.

The Management Entities of the Public Debt Market in Annotations, which would have received from the holders of the Special Public Debt assets the request for early repayment of the said assets, shall report to the Bank of Spain applications received for the purposes set out in the fourth subparagraph of point (a) of this paragraph.

g) Change of tax residence.

In the event that after 1990 a subscriber of Special Public Debt assets issued by the Regional Diputations of the Basque Country or the Comunidad Foral de Navarra will change its fiscal residence of the Basque Country or Navarre common territory, the tax regime governed by this paragraph shall also apply to the assets referred to as the holder.

Such a scheme shall also apply where a resident tax resident in common territory acquires "mortis causa" assets from those referred to in the preceding paragraph.

Four. Procedure for underwriting the assets of the Special Public Debt:

(a) The holders of the financial assets referred to in paragraph one of this Additional Disposition, which opt for their exchange for Special Public Debt assets, shall report it to a Market Management Entity Public Debt in Annotations.

(b) In the case of the exchange of the financial assets referred to in paragraph one of this Additional Disposition prior to its ordinary amortisation, its exchange value shall be calculated in the same way as its price cash, taking into account the time period between the exchange date and the date of its ordinary depreciation. Where the effective value of the financial assets delivered in exchange is less than an entire number of Special Public Debt assets, the holder shall complete the difference in cash at the time of filing the exchange request.

Five. As of 1 January 1992, the new issues of the Treasury will be subject to the ordinary obligations of collaboration with the Public Finance. The emissions of Treasury bills in circulation as at 31 December 1991 will retain, until their full repayment, the special scheme set out in Additional Provision 1 of Law 14/1985 of 29 May on Tax Regime certain Financial Assets.

Six. Articles 4, 5, 5 and 6 of Law 14/1985 of 29 May on the tax arrangements for certain financial assets, as well as Articles 13, 14, 15, 16, 17, 18, 19 and 20 of the Regulation adopted by Royal Decree 2027/1985 of 23 December 1985, are hereby repealed. October.

The financial assets with withholding tax that are in circulation at the time of the entry into force of this Additional Disposition will retain their special tax regime until their full amortisation, without may be renewed or extended in whole or in part.

Seven. The limitation laid down in the first paragraph of Article 10 of Law 31/1990 of 27 December 1991 on the general budget of the State for 1991 shall not apply to the obligations to be recognised under the budget appropriations for 1991. Those referred to in Annex II, First, one (c) as soon as they derive from the exchange of financial assets referred to in paragraph 1 of this Additional Provision for Special Public Debt Assets.

Eight. The Minister for Economic Affairs and Finance will have a number of measures to ensure compliance with the provisions of this Additional Disposition, setting out the characteristics of the Special Public Debt assets as soon as they are not listed in this Regulation. standard and establishing appropriate procedures for their full effectiveness.

Fourteenth. Regularisation of tax situations.

One. Until 31 December 1991, they may be carried out, provided that they do not require administrative or judicial action in respect of the taxable persons ' tax debts, supplementary declarations and income from any concept tax due prior to 1 January 1990, excluding any penalties and interest for late payment which may be payable.

The filing of these statements shall not interrupt the limitation periods referred to in Article 64 (a), (b) and (c) of the General Tax Act.

Revenue made in accordance with the first subparagraph may be split without collateral into four equal annual payments, the first payment being entered at the time of the filing of the Supplementary and/or extemporaneous settlement-settlement and the remaining three before the day 20 December of each of the following three calendar years, without prior notification of the Administration.

The lack of payment of a term due to its maturity will determine its enforceability, taking into account the provisions of the General Rules of Collection regarding the procedure to be followed in the event of a failure to pay a time limit in the instalments granted on a voluntary basis.

Deferred fees shall bear interest on late payment which shall be self-abolished by the tax obligation upon entry in each of the instalments.

Non-justified increases in equity declared by the taxable person in these supplementary declarations may be attributed to the reduction of the unstated net income from prior tax periods, which may (a) to show the Administration on the occasion of a verification or investigation, provided that such income is not materialised in respect of certain goods or rights.

Two. As from 1 January 1992, Article 61 (2) of Law 230/1963 of 28 December 1992, General Tax, shall be worded as follows:

" The revenue for statements of settlement or self-settlement made out of time without prior notice shall be subject to a single surcharge of 50 per 100, excluding the interest for late payment and the penalties which may be required. However, the surcharge will be 10 per 100 if the income is made within three months of the voluntary filing deadline.

When the tax authorities do not make the income at the time of the filing of the declarations, liquidations or extemporaneous autoliquidations, without expressly requesting the deferral or fractionation of payment, will require a single surcharge of 100 per 100. "

15th. Transmission to non-residents of securities with a run coupon.

One. In the transmission of securities of the State Debt with explicit performance for which a special scheme for the return to non-residents of the retentions practised has been established, carried out within 30 days immediately prior to the maturity of their coupon, by natural persons or entities resident in favour of natural persons or non-resident entities without permanent establishment in Spain, shall have the consideration of capital performance for the transmit the part of the price that corresponds to the run coupon of the transmitted value. Such performance shall be the subject of withholding tax, which shall be performed by the Management Entity of the Public Debt Market in Annotations that intervenes in the transmission.

Other than the provisions of the preceding paragraph, the transmissions performed by the Public Debt Market Management Entities in Annotations that have officially recognized the status of market makers, when they are In the case of transactions for own account which, in accordance with the rules laid down by law, are determined, correspond, by their amount and nature, to the normal development of such functions.

Two. The Budget Law may reduce or extend the period and exceptions to the arrangements set out in the preceding paragraph, as well as declare it applicable, with the necessary adaptations, to securities other than the State Debt.

sixteenth. Staff in IT posts.

State Administration officials falling within the scope of Law 30/1984, of 2 August, may be integrated into the Higher Bodies of Information Systems and Technologies, Systems Management in Computer Science and Auxiliary technicians of Informatics, provided they belong to other Bodies or Scales of the same group, are in possession of the academic qualification required for the access to the first and credit they perform similar functions in their content professional and at their technical level, with the aforementioned Bodies.

The Minister for Public Administrations shall establish procedures for the integration of personnel who meet the above requirements, without, for this purpose, the need for the conduct of tests.

seventeenth. Amendment to Article 103 of Law 31/1990 of 27 December 1991 on the General Budget of the State for 1991.

The following provisions of Article 103 of Law 31/1990 of 27 December 1991 on the General Budget of the State for 1991 will be amended as follows:

One. Section One, number 2, will have the following wording:

" The State Tax Administration Agency is the responsible administrative organization, in the name and on behalf of the State, of the effective implementation of the state tax system and of the customs and resources of the other national authorities and public authorities or the European Communities whose management is entrusted to them by law or by convention. "

Two. Paragraph 1, number 3, is worded as follows:

" It is up to the State Tax Administration Agency to develop the necessary administrative actions so that the state tax system and the customs system are applied with generality and effectiveness to all the required tax, through the procedures of management, inspection and collection, both formal and material, that minimise the indirect costs arising from the formal requirements necessary for the fulfilment of the tax obligations.

The credits and collection derived from the taxes or resources of Public Law of the State or its Autonomous Bodies managed by the Agency are part of the Treasury, according to Title V of the Recast Text of the General Budget Law.

The Agency's bodies and the credit institutions acting in any way as collaborators in the collection will enter the funds obtained directly from the current account of the Public Treasury in the Banco de España.

The competent bodies of the Agency, as provided by the Minister for Economic Affairs and Finance, may recognise the obligation, in the form of the proposal for payment, of the revenue returns. (

) the amount of the revenue and the amount of the revenue to be paid by the Agency.

The Bank of Spain shall provide its financial services to the Agency in accordance with Article 118 of the recast text of the General Budget Law. "

Three. Paragraph 1, number 5, shall be worded as follows:

" It is up to the Agency, in the field of its powers, to develop the mechanisms for coordination and cooperation with the Community institutions, the tax administrations of the Member States of the Community. European Economic and other national or foreign tax administrations which are necessary for the effective management of the national and customs tax systems as a whole. "

Four. Paragraph 1 (1) of paragraph 2 shall be worded as follows:

" The acts dictated by the bodies of the Agency in relation to the matters on which the economic and administrative complaints may be dealt with shall be used in this way in accordance with their prior regulatory rules. (a) the right of appeal for the application of the replacement regulation in Articles 160 to 162 of the General Tax Act and Royal Decree 2244/1979 of 7 September 1979. '

Five. Paragraph 2, number 6, is worded as follows:

"It shall be applicable to the rights and obligations of the Agency for the provisions of the General Budget Law, which are contained in Articles 22 to 47 of the General Budget Law."

Six. New wording is given to numbers 2 and 3 and to paragraph 1, paragraph 1, number 4.

" 2. It is for the President to ensure that the objectives assigned to the Agency are met, to exercise the Agency's superior management and to represent legal representation in all types of acts and contracts. Also, the following faculties correspond to:

(a) Approve the employment relationship and the job offer of the Agency, as well as its modifications.

b) Approve the Agency's Action Plan and the preliminary draft budget for its elevation to the Minister of Economy and Finance.

(c) Approve the Agency's organic structure and the appointments and cessation of the management staff in the terms of the number 5 in paragraph Once.

d) To exercise in respect of the staff of the Agency and of the Specialties or Escalations attached to it the competences currently attributed by the rules to the Minister of the Department or to the Secretary of State of Finance.

All without prejudice to the delegation of powers which may be agreed in favour of the Director-General and of the other management staff of the Agency and of the proxies which may, where appropriate, grant. "

" 3. The Director-General shall direct the implementation of the Agency's Action Plan and the regular operation of the Agency's services and activities.

Also, they are:

The implementation of the agreements adopted by the President.

To perform the top management of the Agency's personnel, assuming in relation to the Specialties and Escalations attached to it and with respect to all the personnel assigned in its Central or Peripheral Services, the functions currently assigned to the Assistant Secretary of the Central Services staff.

The elaboration of the preliminary draft budget and the Action Plan.

Hiring staff under employment or private law within the limits of the employment relationship. approved. "

Number 4, paragraph 1. °:

" There will be a Board of Directors chaired by the President of the Agency and composed of the Director-General of the Agency, the Deputy Secretary for Economic Affairs and Finance, the Directors-General of Taxation, Coordination with the The Ministry of Finance and the Ministry of Finance and the other persons who, with the minimum rank of Director General, may appoint the Minister of State, may appoint the Minister of Finance. Economy and Finance on a proposal from the President of the Agency.

This Board of Directors acts as an advisory body to the President and develops functions of consultation, analysis of tax policies and coordination of tax actions. "

Seven. The wording of paragraph 2 (2) of the fourth paragraph is reworded, which shall be as follows:

" The official and labor personnel will be subject to Law 30/1984, of 2 August, of Reform of the Civil Service and in the case of the official staff to the other laws that regulate the statutory regime of the civil servants. public, except in the cases specifically provided for in this Law. "

Eight. Paragraph 1 (1) of paragraph 4 (2) shall be worded as follows:

" The Agency shall be assigned the Financial and Tax Inspection and Tax Management and Tax Policy, and Customs and Excise Inspection and Management, as referred to in points (a) and (b) of the single article, one, of the Royal Decree-Law 2/1989, of March 31, the Scale of Technicians of the Treasury to extinguish, the Body of Chemical Teachers of the Laboratories of Customs, the Technical Escalas, of the Naval Machinists, and of the Marine Officers of the Service Customs surveillance, Management and Settlement specialties, Customs and Subinspector Management The Ministry of Public Finance of the Public Finance Department, the Ministry of Public Finance of the General Administration of Public Finance, and the Ministry of Public Finance of the Ministry of Public Finance. State administration, the Administrative Department of Customs to extinguish, the Escalas of Inspectors, Naval Mechanics and Patrons of the Customs Surveillance Service, the Special Corps of Aid Auxiliary of the French Ports of the Canary Islands, the Scales of Research Agents and Sailors of the Customs Surveillance Service, the Scale of Radiotelephonist Operators of the Customs Surveillance Service to extinguish, and the Driver Scale of the Customs Surveillance Service. "

Nine. Paragraphs 3. 3 and 7. of paragraph 4. shall be worded as follows:

" The specialties of Tax Administration are created in the Higher Bodies of Systems and Information Technologies of the State Administration, Systems Management and Information Technology of the State Administration, General Administrative of the State Administration, General Auxiliary and Technical Auxiliary of Computer Science of the State Administration. The officials of the aforementioned bodies may be included in these Specialties. They will be able to perform a job of the General Secretariat of Finance of the Territorial Administration of Public Finance or its Autonomous Bodies. Officials may also be included in these Specialties which, belonging to other bodies or bodies of the same group of qualifications, are in possession of the academic qualification required for the access to the bodies to which they belong. Specialties and are performing at the date indicated on the Agency's posts which are assigned to them. The right of choice may be exercised within a period of one year from the actual establishment of the Agency. "

" The permanent labor personnel of the General Secretariat of Finance, of the Organ of the Territorial Administration of Public Finance or its Autonomous Bodies, may be integrated into that of the Previous specialities which correspond to the tasks he/she performs and with the titration group to which the position he occupies is attached. Such integration shall take place, provided that the necessary qualifications and other required requirements are held, through participation in the relevant selective tests, in which the effective services provided to the Commission are taken into account. State administration and the tests exceeded to access it. "

Ten. New wording (a) (4) of paragraph 4 of that Article is given:

" The Agency shall automatically draw up and approve its offer of public employment and the system of access to the Bodies, Escalations and Specialties attached to it, including the requirements and characteristics of the tests for access them in accordance with their operational needs, the vacancies existing in their employment relationship and their budgetary resources. "

" The Agency shall select the workforce, and that of the Escalas and Specialties Corps assigned by objective means based on the public call and on the principles of equality, merit and capacity, through systems of opposition, contest or free opposition. In the Specialties and Escalations corresponding to the groups A and B that are assigned, the selection will be carried out through the School of Public Finance. "

" The Agency elaborates, convenes, manages and resolves calls for the provision of jobs by adjusting their bases to the general criteria for the provision of jobs laid down in Law 30/1984. The coverage of such posts may be provided by officials belonging to Bodies or Escalas not attached to the Agency where the corresponding relations of employment are established. "

" Without prejudice to the foregoing paragraphs, the access regime, the Public Employment Offer and the provision procedures shall be in accordance with the criteria established by the Ministry for Administrations. Public, where they affect the specialities of tax administration referred to in the third subparagraph of paragraph 2 of this paragraph. '

Once. New wording in paragraph 1, paragraph 1, paragraph

:

" Officials who become part of the staff at the service of the Agency, for the purpose of providing them before in bodies which are integrated into the Agency and to fill jobs to which the tasks assigned to them are appropriate, or by moving to a post of the Agency after its creation, they shall remain in active service in their Body or Scale of origin while retaining the same situation, age and degree as they have, although their Bodies, Escalations or Specialties do not have been assigned to the Agency. '

Twelve. Paragraphs 1., 2. and 4. of paragraph 5 (b) are reworded as follows:

" (b) A percentage of the collection resulting from the acts of liquidation and management collected or from other administrative acts agreed or dictated by the Agency, in the field of the tax management that it has entrusted. "

" The basis for calculating this percentage shall be the gross collection of these tax revenues included in Chapters I and II of the State Revenue Budget, with the exception of those resulting from the (a) liquidations performed by the Customs Services which are not the result of an Inspection Act, and those included in Chapter III of which the Agency is managed by the Agency. '

" The higher revenue produced by this concept in respect of the initial forecasts will automatically increase the appropriations of the Agency's expenditure budget, in accordance with the procedure laid down in the seis.2 of this provision. "

Thirteen. The following new wording is hereby added to Article 6 (6) of the abovementioned Article:

" The Agency shall draw up annually a preliminary draft budget reflecting the costs necessary for the achievement of its objectives, with the structure set out by the Minister for Economic Affairs and Finance, and forward it to the Agency for its elevation to the Government's agreement, and subsequent referral to the State Courts and consolidating with those of the Central Public Administrations.

This budget shall be limited by its overall amount, and shall be estimated for the economic categories of the appropriations for the programmes of the budget. "

Fourteen. Paragraph Seven is worded as follows:

" 1. The Agency shall be subject exclusively to permanent financial control by the General Intervention of the State Administration.

Any acts of tax management of any nature or of which the rights of economic content are derived, dictated by the Agency's bodies, shall not be subject to prior scrutiny, without prejudice to the actions taken by the Agency. Subsequent vouchers which, in implementation of the permanent financial control, determine the General Intervention of the State Administration.

2. The accounts of the management which, in respect of the taxes and resources of public law, correspond to the Agency, shall be carried out by the Agency in accordance with the technical procedures which are most appropriate for the nature of the operations and the situations to be registered and in accordance with the instructions and principles set out by the General Intervention of the State Administration pursuant to the provisions of the following paragraph of this Article.

3. The Agency shall be subject to the public accounting system, subject to the provisions of Title VI of the recast text of the General Budget Law.

The accounting organisation shall be carried out with respect to the principle of separation of duties in respect of the bodies which carry out the acts of management which are liable to account and those who manage funds.

For the purposes set out in this paragraph, the Agency shall have its own accounting service. The relations of employment may be assigned exclusively to the craft of Intervention, Financial and Budgetary Control and Public Accounting, referred to in point (c) of the Royal Decree-Law 2/1989, and to the Public Finance Management Special Corps Accounting specialty.

The General Intervention of the State Administration shall exercise in relation to the Agency the powers conferred on it by Articles 125 and 126 of the Recast Text of the General Budget Law, corresponding to:

(a) The approval of the principles and rules to be submitted to the accounts of their internal management and that of the tax management and other resources referred to in the previous paragraph.

(b) The determination of the accounts and documentation to be submitted to the Court of Auditors. The accounts and documentation to be submitted in relation to the tax management and other public resources shall be formed and closed for monthly periods.

(c) The inspection and verification of the Agency's accounting to check the reliability of the accounting statements and compliance with the principles and rules established for their training.

(d) The determination of the information to be sent to the Agency by the Agency, as well as its periodicity and communication procedure, in order to enable the Agency to exercise its functions of centralisation and economic and financial information of the state public sector.

The President of the Agency shall be considered as a storyteller for those who surrender to the Court of Auditors. "

Fifteen. Paragraph 2. of paragraph Eight of the same Article is worded as follows:

" The representation and defense in judgment corresponds to the State Attorneys integrated in the legal service of the Agency and in the Legal Services of the State, without prejudice to the exceptional character, for cases determined and in accordance with what is regulated, may be entrusted to specially designated Collegiate Lawyers. "

Sixteen. A new third paragraph is inserted in section Eight, passing the current third one to be fourth:

" The State Bar may also be entrusted in the Legal Service of the Agency with the representation and defence of the State in the administrative and administrative proceedings brought against the decisions of the Economic and Administrative Courts concerning acts delivered by Agency bodies. "

seventeen. Paragraph Ten, under the heading 'Audit service', shall be worded as follows:

" 1. The Agency shall have an internal audit service of its own, acting under the supervision of the General Inspectorate of the Ministry of Economic Affairs and Finance, without prejudice to the functions of the General Inspection of the Ministry of Finance. Services of Public Administration,

This service will exercise, in addition to the functions previously developed by the Ministry's General Inspectorate, any other audit functions that correspond to the new criteria for organization and operation fixed to the Agency. In particular, it shall support the governing bodies of the Agency for the most appropriate compliance with. the objectives and programmes of action of the latter. The employment relations may be assigned exclusively to the Inspectors of the Services of the Ministry of Economic Affairs and Finance.

2. It shall apply to staff assigned to the General Inspectorate which is integrated into the service referred to in the preceding paragraph, as provided for in the third and seventh subparagraphs of paragraph 4 (2) of this Article. '

Eighteen. The preceding paragraph 10 shall become paragraph Eleven and the number 1 shall be worded as follows:

" The Agency shall succeed the General Secretariat of Finance, the Territorial Administration of the Public Finance and the Autonomous Bodies of the Agency, in the exercise of all the functions mentioned in the One that was performed by the Organs that occurred, being subrogated in the totality of the goods, rights and obligations of the State affected or constituted to the exercise of the mentioned functions. The public domain goods currently affected by the Services of the General Secretariat of Finance, the Territorial Administration of the Public Finance and the Autonomous Bodies of the Ministry of Finance, which will carry out these tasks are assigned to the Agency retaining its original legal qualification. The Directorate-General for Heritage may henceforth be assigned new assets to the Agency.

The State Agency for Tax Administration is understood to be subrogated in the tenancies of the buildings leased by the Ministry of Economy and Finance and which are occupied by dependencies or agencies. which are integrated into the Agency, without any alteration in contractual relations. "

nineteen. New wording is given to the number 5 in Eleven:

" The powers assigned to the Agency by the Agency are assigned to the General Secretariat of Finance, the Directorates-General for Tax Management, Financial and Tax Inspection, Collection, Customs and Special Taxes. Tax Computing, Territorial Bodies of the Tax Administration, Autonomous Bodies and any other referred to in this Article shall be construed as being attributed to the Agency from the time of its effective constitution.

The Minister of Economy and Finance may delegate to the Director General of the Agency and to the Directors of Department the powers of review of acts attributed to him by Article 154 of the General Tax Law, and any other other.

As long as the future organic structure of the Agency is not determined, the powers conferred on it by this Article and that at the time of the effective constitution of the Agency correspond to the General Secretariat and the Directorates General integrated in the General Secretariat of Finance shall be exercised, respectively, by the Director General of the Office and the Departments of Management, Inspection, Customs and Excise, Tax Collection and Informatics, and by the dependencies and lower organs integrated in the same, keeping all of them Current structure and competences. The bodies of the Peripheral Administration will continue with their current structure and competences in relation to the tasks assigned in this article to the Agency and depending directly on the Director General. The territorial bodies of the Agency to which the accounts are allocated shall assume the powers of the intervention in the field of collection.

The Autonomous Body of Customs Surveillance is integrated into the Agency, retaining all its current dependencies, structure and competencies.

The changes in the competences and denomination of Departments, as well as their creation, recasting or suppression, will be carried out by the joint Order of the Minister of Economy and Finance and the Minister for the Administrations. Public.

The Minister of Economy and Finance, by Order, will be able to organize the units lower than the Department, or to enable the President of the Agency to issue normative resolutions for which these units are structured and carried out the specific allocation of powers. Such decisions shall be published in the "Official State Gazette" as a prerequisite for their effectiveness. "

13th. Amendment to Article 113 (2) of Law 33/1987 of 23 December 1987 on the General Budget of the State for 1988.

The wording of Article 113 (2) of Law 33/1987, of 23 December, of the General Budget of the State for 1988, will be amended to be as follows:

" Two. In particular, those who surrender or entrust credit institutions, funds, assets or securities in the form of deposits or other similar institutions or the collection of credit or loans of any kind shall disclose their number of tax identification to each Entity or credit establishment with whom they operate.

It shall not be obice for the submission to the said obligation, that the active or passive operations carried out with the credit institutions or establishments are of a transitional nature.

The tax identification number shall be communicated within a period to be established in a regulated manner, from the deposit, the opening of the account or the performance of the operation.

Elapsed this time without having such a number of tax identification, the Entity or credit establishment shall, in the case of an active account, not carry out new charges; in the case of a passive account, to accept new fertilisers, or, in other cases, to cancel the operations or deposits affected by the omission of this duty of collaboration.

Failure to comply with any of these duties will be considered as a single transaction or other transaction, a simple tax violation. Where a credit institution or establishment fails to comply with the above paragraph, it shall be fined 5 per 100 of the amounts unduly paid or charged, with the cancellation of the operation or deposit, with a fine of one hundred Fifty thousand and one million pesetas.

Also, credit institutions or institutions shall communicate to the Tax Administration, in the form and time limits that are regulated, the accounts or other transactions, the holder of which, after the deadline This communication shall include the balances or amounts of those accounts or transactions.

Credit institutions or institutions shall not be able to make checks against the delivery of cash, goods, securities or other cheques without the communication of the fiscal identification number of the taker, with a record of the bookkeeping and the identification of the taker.

Similarly, credit institutions or institutions shall require the communication of the tax identification number to persons, entities or establishments that present to the collection cheques issued by an institution or credit establishment. They shall also require it in the case of checks carried out by persons other than those exceeding five hundred thousand pesetas. '

Nineteenth. Amendment of Law 39/1988 of 28 December, regulating local farms.

1. A second subparagraph is added to Article 92 (1) of Law 39/1988 of 28 December 1988 on the rules governing local farms, with the following wording:

" Without prejudice to this, the notification of these acts may be carried out by the Ayuntos or by the State Administration, together with the notification of the liquidations leading to the determination of the debts tax. "

2. Article 92 (3) of Law No 39/1988 of 28 December 1988 on the rules governing local farms is amended, which is drawn up in the following

:

" 3. The inspection of this tax will be carried out by the competent authorities of the State Tax Administration, without prejudice to the delegations that may be made in the Ayuntamas that request it, and the formulas of collaboration that can be established with these and, where appropriate, the Provincial Diputations, Cabildos or Insular Councils, in the terms that are available to the Minister for Economic Affairs and Finance. "

3. The second and third subparagraphs of paragraph 1 of the third paragraph of the third transitional provision of Law 39/1988 of 28 December 1988 on the rules of local law, as amended by Article 6 of Law No 6/1991 of 11 March 1991, are deleted. which are replaced by a new one with the following wording:

" With exclusive effects for the 1992 tax period and in order of the levy of the tax due on 1 January of that year, the tax systems for which, under the provisions of Articles 88, 89 and 124, the coefficient of increase, the scales of rates of situation and the provincial surcharge to be applied in the period referred to, shall be published, in the terms provided for in Article 17.4 of this Law, before 1 July of that year. With this same scope, the period laid down in the development of the Transitional Provision Eleventh of this Law for the communication to the State Administration of the corresponding coefficients of the Provincial increase and surcharges. Such an extension shall not, however, affect the time limit laid down for the communication to the State Administration of the discharge of the duties of tax management of the tax on economic activities. "

4. A paragraph 3 is added to the Third Transitional Provision of Law 39/1988 of 28 December, regulating local farms, with the following wording:

" 3. The notification of the acts of qualification of the activities and of the marking of the corresponding quotas, as referred to in Article 92.1 of this Law, derived from the declarations of discharge in the Tax on Economic Activities they must be carried out on the basis of the commencement of the application of the latter, shall be carried out by means of personation of the taxable person, or person authorised for that purpose, in the public offices which it is determined to regulate.

After the time limit for the withdrawal of such notifications, if the taxable person has not done so, all effects shall be understood as being reported. "

5. A paragraph 6 is added to the Fifth Additional Provision of Law 39/1988 of 28 December, regulating local farms, with the following wording:

" 6. Likewise, and in accordance with Article 6.3 (1), the Autonomous Communities may lay down and require a tax of their own on the taxable amount imposed by the Municipal Tax on Suntuary Expenses, in the form of use of hunting and fishing quotas.

The tax established by the Autonomous Communities under this power will be compatible with the Municipal Tax, although the latter's share will be deducted from that of the Municipal Tax. "

Twentieth.

The Government will present to the Courts a new draft of the Corporate Tax Law before the end of the 1992 financial year.

Twenty-first. Remuneration in kind.

They will not have the consideration of remuneration in kind for the interest rate loans lower than the legal tender of the money previously agreed to 1 January 1992 and whose principal would have been made available to the borrower also prior to that date.

Twenty-second. Tax regime of the Mobilia Investment Company.

As of 1 January 1992, Article 34 of Law 46/1984 of 26 December, regulating the Investment Institutions-Collective, will be worded as follows:

" Article 34. Mobiliaria de Inversión mobiliaria.

1. Mobiliaria de Inversión mobiliaria, whose capital is represented by securities not admitted to trading on the Stock Exchange, will be taxed by the Company Tax in the form provided for by the legislation in force.

2. Mobiliaria de Inversión mobiliaria de Inversión mobiliaria (Sociedades de Inversión mobiliaria) whose representative values of the share capital are admitted to trading on the stock exchange

a) The lien rate will be 1 per 100.

b) They will not be entitled to any deduction from the fee.

(c) Where the amount of the withholding tax on the taxable person exceeds the amount of the quota calculated by applying the rate referred to in point (a) above, the Administration shall return the excess.

(d) The dividends that they distribute shall be subject to retention, unless they are received by residents in Community countries other than Spain, but shall not entitle the recipient, be this natural or legal person, to practice deduction for double taxation.

3. The constitution, transformation into another type of Collective Investment Institutions, capital increase and the merger of fixed capital investment companies, whose capital is represented by securities admitted to trading on the stock exchange Securities shall be reduced by 95 per 100 in the tax base of the Tax on Proprietary Transmissions and Documented Legal Acts.

4. The exclusion from trading on stock exchange of securities representing the capital of the companies referred to in the preceding paragraph shall result in the loss of the special tax regime which shall be understood as referring to the date on which it is effectively produce such exclusion. "

Vigesimercera. Amendments to Article 103 of Law 31/1990 of 27 December 1991 on the General Budget of the State for 1991.

Paragraph four, 3, second paragraph.

This paragraph is replaced by the following:

" The relationship shall be drawn up and approved by the Agency in accordance with the principles of Article 15 of Law 30/1984 and in the framework of the criteria established by the Ministry for Public and Economic Administrations and Finance, as regards the content of the employment relationship, the performance of posts by official or labour staff, the form of provision, the mobility of civil servants among the various public administrations, the Titulation Group and Bodies or Scales and elaboration of professional profiles. The relationship shall determine the form of provision of the posts, in accordance with the criteria laid down in Article 20 of Law 30/1984. "

Paragraph six, 2.

The currently existing paragraph is replaced by the following:

" The changes in the overall amount of this budget will be authorized by the Minister of Economy and Finance when they do not exceed 5 percent of the initial budget and the government, if not. For the purposes of calculating this 5 per 100, the highest income referred to in the fourth subparagraph of paragraph 5 (b) of this provision shall not be taken into account. Internal variations which do not alter the overall amount of the Agency's budget shall be agreed by the President. "

Vigesimuarta. Tax regime of the Economic Interest Groups and the Temporary Business Unions.

The provisions of Article 19 of Law 61/1978. of 27 December, as amended by the Additional Disposition Fifth of this Law, shall be without prejudice to the specialties contained in Law 12/1991, of 29 April, in respect of the tax regime of the Interest Groups The Economic and Social Unions of Enterprises.

TRANSIENT PROVISIONS

First. Designation of representative by non-resident taxable persons.

Non-resident taxable persons on Spanish territory shall have until 31 December 1991 to designate the representative referred to in Articles 22 of this Law and 10 of the Companies Tax Act.

Second. Outstanding compensation for income.

One. Negative returns, net income decreases and negative shares of taxable persons or, where appropriate, family units, from the 1987 tax period, which are pending in respect of the date of The entry into force of this Law may be offset, both in individual and joint taxation, without the total amount offset being able to exceed, for the whole of the taxable persons integrated into the family unit, of which find pending compensation.

If there was no agreement among the members of the family unit on how to make the compensation, it would be up to the taxable person who would have generated the right.

Two. Negative returns, net income decreases and negative contributions which are pending for compensation from the tax periods for 1988, 1989, 1990 and 1991 may be offset only by the by the taxable person to whom they correspond, in accordance with the rules of individualization of the Tax.

This compensation may be made by the taxable person, both in joint taxation and in individual taxation.

Three. Negative returns may be offset against regular or irregular liquidable bases, at the option of the taxable person.

Four. Net income decreases shall be offset only by increases in irregular assets.

Five. The compensation may be made up to the maximum amount allowed, in accordance with the cases referred to in the preceding paragraphs, for the full quotas, the liquidable bases or the increases in irregular assets, without being able to be applied beyond the five years following the year in which they were generated, either directly or in the case of negative returns or net income decreases, by accumulation of negative or regular negative yields or of capital decreases irregular financial years started after 31 December 1991.

Third. Deductions in the share of dwellings acquired prior to 1990.

One. The acquirers prior to 1988 of housing with a right of deduction of 17 per 100 in the tax quota, shall keep it at 15 per 100, if they are usual dwellings, and 10 per 100, in the remaining cases.

Two. The acquirers prior to 1990 of dwellings other than the usual one with a right of deduction of 10 per 100 in the tax quota shall maintain it after the entry into force of this Law.

Three. The basis of the deduction provided for in the two preceding paragraphs shall be determined in the form set out in the fifth subparagraph of Article 78 (4) (b) of this Law.

Four. These deductions shall be in accordance with the limits and requirements set out in Article 80 (1) and Article 81 of this Law.

Fourth. Transitional regime for the allocation of losses in tax transparency.

The provisions of this Law shall be without prejudice to the application, where appropriate, of the Transitional Provision of Law 48/1985 of 27 December of the Partial Reform of the Income Tax Physical.

Fifth. Transitional arrangements for certain increases or decreases in assets.

For the purposes of the provisions of Article 45 (2) of this Law, in the increases and decreases in assets that are brought, in the event of transfers of assets previously acquired On 1 January 1979 or of subscription rights arising from securities acquired, the taxable person may also, before that date, choose to consider the market acquisition value at 31 December 1978, provided that he himself is higher than the acquisition. In that case, it shall be taken as the date of acquisition on 1 January 1979.

Sixth. Full income of certain real estate.

Once the revision or modification of the cadastral values takes place in the terms provided for in Articles 70.6 and 71, respectively, of Law 39/1988, of 28 December, regulating the Local Government, the Law of The General Budget of the State shall, for the purposes of Article 34 (b) of this Law, fix a new and lower rate which takes account of the scope of the revision or amendment. This rate shall apply from the first tax period in which the latter enters into force,

The Budget Law shall also provide for the amount in which the value of the urban real estate to which the rate of return referred to in the paragraph may be reduced, as a minimum exempt, may be reduced. previous.

Seventh. Transitional arrangements for increases in assets whose price has been deferred.

The increases in assets shown before 1 January 1992 as a result of transfers for consideration, the price of which has been deferred, in whole or in part, shall be subject to the following If the taxable person has decided to charge them at the time of the birth of the right, the following rules shall be applied:

1. The increase in equity that would have occurred in accordance with Section 4. of Chapter 1 of Title V of this Law shall be determined.

2. The resulting increase shall be reduced by the amount of the subject matter prior to the entry into force of this Law.

3. The positive result of the operation provided for in the previous rule shall be attributed to the financial years in which the charges are incurred, in proportion to the amount of the charges.

4. The amount of the increase charged to each financial year shall be integrated into the regular or irregular tax base, as appropriate, in accordance with Chapters 3. and 4. of Title V of this Law.

For these purposes, only those in which the ratio resulting from the split of their generation period by the number of years in which the payment is split shall be considered as irregular increases.

5. When the result of the operation provided for in the second rule is void or negative, no charge shall be made for the part of the increase that would be payable under this Law.

FINAL PROVISIONS

First. Enabling the State General Budget Law.

One. The General Budget Law of the State may amend, in accordance with the provisions of Article 134 (7) of the Spanish Constitution:

a) The scale and rates of the Tax and the deductions in the quota.

(b) The other quantitative limits and fixed percentages laid down in the Act.

c) Tax exemptions.

d) The determining circumstances of the actual obligation to contribute.

e) The tax regime of companies under transparency.

(f) The taxation of income determined by requirements for harmonization with the European Economic

,

g) The mental and management aspects of the tribute.

Two. In the case of changes in the scale and deductions provided for in point (a) of the previous paragraph, account shall be taken, without prejudice to other concurrent fiscal policy factors, of the inflation rate envisaged by the government for the financial year in question. which must have an effect.

Second. Entry into force and repeal effectiveness.

One. This Law shall enter into force on 1 January 1992 and shall apply to yields, imputations and increases and decreases in the assets obtained from that date and to those accrued after that date on the basis of the criteria laid down in the temporary imputation of Law 44/1978 of 8 September and its implementing rules.

Two. From that date, Law 44/1978 of 8 September of the Income Tax of the Physical Persons is repealed, and any legal provisions are incompatible with the provisions of this Law, without prejudice to the enforceability of the administration of tax debts due during its lifetime.

The statutory rules of the Income Tax of the Physical Persons created by Law 44/1978 of 8 September shall remain in force as soon as they are not contrary to the provisions of this Law or to the rules that develop it.

Three. The Additional Provisions 13, paragraph 1, 14, 15, 16, 16, 17, 18, 18, 19, 19, 23, and Transition 1 shall enter into force on the day following that of the complete publication of this Law in the "Official Gazette of the State".

Four. The amendments established by this rule in Law 61/1978 of 27 December of the Tax on Societies shall apply to the tax periods which are to be initiated after 31 December 1991. However, Article 15 (8) shall apply, in any event, to an increase in the assets produced from the day following that of the full publication of this Law in the Official Gazette of the State, whichever is the same. tax to which they correspond.

Third. Regulatory enablement.

The Government and the Minister of Economy and Finance will dictate how many provisions are necessary for the development and implementation of this Law.

Therefore,

I command all Spaniards, individuals and authorities, to keep and keep this Law.

Madrid, June 6, 1991.

JOHN CARLOS R.

The President of the Government,

FELIPE GONZÁLEZ MARQUEZ