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:

The entry into force of the Bills of the Income Tax of the Physical Persons and of the Tax on the Heritage, after the date originally scheduled for January 1991, radically alters the Regulatory approach to the regulation of state tax revenues for that financial year, which included the aforementioned bills, the pre-existing regulations and the State General Budget Law for 1991.

Consequently, it is necessary to adopt the precise provisions to ensure the application in the next exercise of the current Taxes on the Income of the Physical Persons and Extraordinary on the Heritage of The Physical Persons, by extension of the First and Second Chapters and the Fourth Additional Provision of Law 20/1989, of 28 July, and the implementation of the annual amendments to adapt these taxes to the evolution of the macroeconomic variables, taking into account, in addition, the changes experienced by the Draft Law on the General Budget of the State in its parliamentary procedure.

Likewise, the important mercantile reform initiated under Law 19/1989 of 25 July, of partial reform and adaptation of the commercial legislation to the Directives of the European Economic Community in the field of by Royal Decrees 1564/1989 of 22 December 1989, approving the recast of the Law of Companies Anonymous, and 1597/1989 of 29 December 1989, for which the Regulation of the Commercial Registry is adopted, makes it necessary to advance those regulatory measures contained in the Fifth Additional Provision of the draft Law of the Tax on the Income of the Physical Persons, referred to the Corporate Tax, dislinings the respective areas of application of the tax and accounting provisions in determining the increases and decreases of the property Corporate income.

The adaptation of the Company Tax legislation is completed by the classification of the tax implications of the repurchase agreements by the credit institutions; of the Banco de España's Certificates, with the purpose of establishing with certainty its tax regime before the closure of the 1990 tax period.

The nature of all these measures affecting the budgetary implementation of the State and other public authorities in 1991, as well as the manifest impossibility of proceeding in a timely manner with the procedure

Committee of the European Communities, the Committee of the European Communities, has adopted the following conclusions:

Article first. Extension of Law 20/1989 of 28 July.

It is extended for the tax period from 1 January to 31 December 1991 the application of the First and Second Chapters and the Fourth Additional Provision of Law 20/1989 of 28 July 1991, with the amendments resulting from the provisions contained in this Law and in Law 5/1990 of 29 June, which are not repealed by the foregoing.

Article 2. Tax rates for non-resident natural persons.

One. With exclusive validity for 1991, natural persons not resident in Spanish territory who, without permanent establishment mediation, obtain returns or increases in assets subject to taxation by virtue of the tax on the Income of the Physical Persons, will be taxed according to the provisions of article 17 of Law 5/1983, of June 29.

The tax rates will be as follows:

(a) On a general basis, 25 per 100 of the total income accruing and of those charged under the transparency regime.

In the case of service provision, technical assistance, installation or assembly costs, derivatives of engineering contracts and, in general, of economic holdings, carried out in Spain without permanent establishment, the the taxable person shall apply the rate of 25 per 100 to the difference between the revenue and the expenditure of staff and supplies of materials incorporated in the works or works.

(b) 14 per 100 in the case of the overheads charged as referred to in point (n) of Article 13 of Law 61/1978 of 27 December in respect of their consideration as income obtained by the parent without mediation permanent establishment.

(c) 10 per 100 in the case of income derived from the lease or use in Spanish territory of films and film productions for commercial exploitation or use in advertising campaigns, as the leasing or disposal of containers in domestic traffic.

No income or property increases obtained in Spain shall be considered as income from the leasing or disposal of containers or bare-hulled vessels used in international maritime navigation.

d) 35 per 100 in the case of increases in equity, determined in accordance with the general rules of the tax.

e) Income corresponding to pensions and liabilities, which 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 pension perception, will be taxed at the rate of 8 per 100.

(f) The income of the work of non-resident natural persons on Spanish territory shall also be taxed at the rate of 8 per 100, provided that they are not taxable persons under a personal obligation to contribute to 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.

g) 4 per 100 in the case of returns derived from reinsurance operations.

For these purposes, income derived from reinsurance transactions shall be understood as the 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. With exclusive validity for 1991, natural persons not resident in Spanish territory who obtain income in the same way by permanent establishment, will be taxed at the rate of 35 per 100 for the Income Tax of Persons Physical.

Three. 1. 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 agents of the payments or mediate in the issue or transmission of the securities.

Without prejudice to the foregoing, where the holder of the securities is a resident or a permanent establishment in Spain, the income and equity increases referred to in the preceding paragraph shall be subject to the Spanish personal taxes and, where appropriate, the timely withholding of such taxes, which shall be carried out by the resident financial institution which, in accordance with the current rules of change control, acts as a depositary of the securities.

2. Interest and increases in wealth derived from 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.

3. Interest and increases in assets derived from movable property shall not be considered to be obtained or produced in Spain where they correspond to natural persons not subject to a personal obligation to contribute to their habitual residence in other Member States. Member States of the European Economic Community and do not operate through permanent establishment in Spain.

The provisions of the preceding paragraph shall not apply to increases in assets 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) When during the 12-month period preceding the transmission, the taxable person has participated, directly or indirectly, in at least 25 per 100 of the capital or assets of that company, legal person or entity.

4. In no case shall the provisions of the above two numbers apply to interests or increases in assets obtained through the countries or territories which are determined by their nature as tax havens.

Article 3. Monetary correction of property changes.

One. In the case of transfers made from 1 January to 31 December 1991 of assets or assets acquired more than one year in advance of the date of those transfers, any increases or decreases in the assets to which they are Article 20 of Law 44/1978 of 8 September, shall be calculated by applying to the value of the acquisition of the goods transmitted, determined in accordance with the rules of the Income Tax of the Physical Persons, the coefficients of The following are the following updates:

Time of acquisition of the asset or asset item

the 1983 exercise

In the 1989 exercise

In the 1990 exercise

Coefficient
1 January 1979	2,559
In the exercise 1979	2,247
In the 1980 exercise	1,981
In the 1981 exercise	1,762
In the 1982 exercise	1.572
1,429
In the exercise 1984	1,311
In the exercise 1985	1,232
In the exercise 1986	1,158
In the 1987 exercise	1,114
In the financial year 1988	1,090
1,050
1,000

Two. In the case of goods acquired prior to 1 January 1979, the market shall be taken as the market acquisition value at 31 December 1978, provided that the acquisition is higher than the acquisition value.

Three. In the disposal of securities which are not listed on the stock exchange, representative of holdings in the capital of companies, the increase or decrease in assets shall be calculated by the difference between the average purchase cost and the actual amount effectively received, deducted, where appropriate, the costs incurred by the transmission from the seller.

However, where the actual amount does not correspond to that which would have been agreed by independent parties under normal market conditions, the Administration will consider the higher of the two securities as the value of disposal. following:

a) The theoretical resulting from the last approved balance sheet.

(b) The average of the benefits of the three social exercises closed prior to the tax accrual date shall be the rate of 8 per 100. To this end, distributed dividends and allocations to reserves, excluding those for regularisation or updating of balance sheets, shall be counted as profits.

Article 4. Obligation to declare for the Income Tax of the Physical Persons.

With exclusive validity for the 1991 financial year, paragraph one of Article 34 of Law 44/1978, of 8 September, is worded as follows:

" They will be obliged to make a statement:

One. Taxable persons who obtain returns or increases in assets subject to the tax under the conditions which they regulate are established.

However, they shall not be required to declare taxable persons under a personal obligation to contribute or, where appropriate, family units which obtain returns of less than 945,000 gross annual gross pesetas exclusively from one of the following sources:

(a) Res of the dependent personal work and pensions referred to in Article 7 (4) of this Law.

(b) Capital flows and capital increases that do not exceed 225,000 gross annual pesetas together.

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

Article 5. Rate of Income Tax on Physical Persons.

The tax base of the Income Tax of the Physical Persons for the financial year 1991 will be taxed at the rates indicated on the following scale:

Taxable Base
to pesetas

Cuota integrates - Pesetas	Base Rest taxable up to pesetas	Type applicable - Percent (%)
681,300	-	454,200
	1.135,500	113.550	567.750	26.00
1.703.250	261.165	567.750	27.00
2.271,000	414,458	567.750	28.00
2.838.750	573,428	567.750
3.406,500	743,753	567,750	32.00
3.974.250	925.433	567,750	34.00
4.542,000	1.118,468	567.750	36.00
5.109.750	1.322.858	567.750	38.50
5.677,500	1.541,441	567.750	41.00
6.245.250	1.774.219	567.750	43.50
6,813,000	2.021.190	567.750	46.00
7.380.750	2.282.355	567.750	48.50
7.98,500	2.557,714	567.750	51.00
8.516.250	2.847.266	567.750	53.50
9.084,000	3.151.013	onwards	56.00

The full quota of the tax resulting from the application of the scale may not exceed, for the subjects by personal obligation, in conjunction with the quota corresponding to the Extraordinary Tax on the Patrimony, 70% percent of the base. For these purposes, the part of the tax on heritage which corresponds to property assets which, by their nature or destination, are not liable to produce the yields referred to in Articles 14 to 18 of the Law 44/1978 of 8 September. For the proper application of this limitation, the declaration and settlement of both Taxes will be simultaneously performed,

To increases in assets, derived from "inter living" transmissions, as referred to in Article 20 (3) of Law 44/1978, of 8 September, will be charged a 20 percent rate.

Where the increases in the assets result from "mortis causa" transmissions, the applicable rate shall be 8%, without prejudice to the second subparagraph of paragraph 3 above.

Article 6. Rules on quota deductions.

One. With exclusive validity for the 1991 financial year, Article 24 (4) of Law 44/1978 is worded as follows:

" Four. The deductions in the quota referred to in Article 29 (B) and (C), which are applicable, shall be reduced in proportion to the number of calendar days of the calendar year. "

Two. With exclusive validity for the 1991 financial year, Article 25 of Law 44/1978 is worded as follows:

" 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 29 (A), (B) and (C) shall be effected by the situation existing on the tax accrual date. "

Item seventh. Taxation of irregular income.

One. With exclusive validity for the 1991 financial year, the sixth paragraph of Article 27 (6) of Law 44/1978 of 8 September is worded as follows:

" 2. Exceptionally, if the resulting average rate of charge is zero, it shall apply to the magnitude determined in accordance with the previous number one type of 8 per 100. '

Two. The second subparagraph of paragraph 7 of the same Article shall be drawn up in the following terms, with exclusive validity for the 1991 financial year:

" If the result determines an increase in assets, the rate shall be taxed at the rate provided for in the last two paragraphs of Article 5 of the Royal Decree-Law 5/1990 of 20 December 1990. Otherwise it shall be compensated by increases of the same nature as shown in the following five years. '

Article 8. Deductions from the Tax on the Income of the Physical Persons.

With exclusive validity for the 1991 financial year, Article 29 of Law 44/1978, of 8 September, is worded as follows:

" From the fee resulting from the application of the tariff will be deducted:

A) Variable Deduction:

The variable deduction will be practiced in the terms of Article 1. ° of Royal Decree-Law 6/1988 of 29 December.

Where the amount of the variable deduction is less than 40 000 pesetas, the deduction in the following paragraph shall apply instead, where applicable.

B) When the variable deduction is not applicable, the taxable persons who are jointly taxed shall be entitled to a deduction of 40 000 pesetas, which shall be the sole by declaration.

C) Other family deductions:

One. For each child and for each other single descendant who coexists with the taxpayer: 20,000 pesetas.

This deduction will not be performed for children and other descendants;

(a) Over thirty years, except for the exception of the number four of this point (C).

(b) They are part of another family unit, unless the household income is less than 681,000 pesetas per year.

c) That they earn income in excess of 136,500 pesetas annually and are not part of any family unit.

In cases of individual taxation, when children or descendants coexist with multiple ancestors of the same degree, the deduction will be practiced equally in each other's declaration.

In the same cases, in the case of descendants who live with those who have a different degree of kinship, they will only be entitled to the deduction of the nearest degree, unless they do not obtain higher income than 681,000 pesetas, of course in which the deduction will pass to the higher-grade ascendants.

Two. For each of the ascendants living with the taxpayer who have no income exceeding 681,000 pesetas per year: 15,000 pesetas.

In cases of individual taxation, when the ascendants live 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.

Three. For each taxable person or, where applicable, for each member of the family unit of age 70 years or over: 15 000 pesetas.

In cases of individual tribulation, this deduction shall be made by the taxable person in which such a circumstance is present.

Four. For each taxable person or, where applicable, for each member of the family unit, and for each single child, irrespective of age, dependent on the taxable person, provided that the latter does not have an income exceeding 136,500 pesetas per year, are blind, maimed or invalid, physical or mental, congenital or over-come, in the regulated grade, in addition to deductions from the provisions of the preceding letters: 50 000 pesetas.

The application of this deduction shall also apply where the person concerned by the disability is linked to the taxable person or family unit, if any, for reasons of protection or non-remunerated accommodation, provided that belong to another family unit and the circumstances expressed in the preceding paragraph are given.

In cases of individual tribulation, when the children affected by the invalidity are dependent on both parents, the deduction will be practiced by half in each one's declaration.

(D) For sickness: 15 per 100 of the costs incurred by the taxable person during the period of taxation for reasons of sickness, accident or invalidity of his own or, where appropriate, of the persons who make up the the family unit or other unit giving full or partial right to deduction in the quota, as well as expenses satisfied by professional medical and medical fees, on the occasion of the birth of the children of the taxpayer and of the quotas satisfied to Mutual or Medical Insurance Companies.

This deduction will be conditional on its documentary justification, adjusted to the requirements of Royal Decree 2402/1985 of 18 December, which regulates the duty to issue and deliver invoices for the employers and professionals.

E) By investments:

One. a) 10 per 100 of the premiums paid on the basis of Life Insurance contracts. Death or Invalidity, jointly or separately, concluded with Entities legally authorized to operate in Spain, where the beneficiary is the taxable person or, where applicable, the contracting member of the family unit, his/her spouse, ascending or descendants, as well as the amounts paid to Montepios Laborales and Mutualidades, when they cover, among other risks, that of death or invalidity, which cannot be deducted for the purposes of determining the taxable amount.

Deferred and mixed capital insurance contracts whose duration is less than ten years are excepted.

(b) 15 per 100 of the amounts that have been contributed by the taxable persons to a Pension Flan adjusted to Law 8/1987 of 8 June of Regulation of the Pension Plans and Funds, as well as of the amounts which, being provided by the promoters of the Plan, they have been imputed to them, forming part of their tax base, without in any of the two cases being able to deduct from the latter.

The basis of this deduction may not exceed the difference between the maximum amounts authorised as a contribution to pension schemes and the amount of the amounts which have been deducted from the full income of the unit-holders in the pension schemes for the determination of their tax base.

Two. (a) 15 per 100 of the quantities 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 taxpayer. 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.

A home in which the taxpayer, the family unit or any of its members resides for a continuous period of three years shall be deemed to be habitual residence. However, it is understood that housing was such that, despite the absence of such a deadline, circumstances would necessarily require the change of housing.

The basis of the deduction shall be the amounts satisfied for the acquisition or rehabilitation of the dwelling, including the incurred expenses incurred by the acquirer, except the interest, if any, to be deductibles of the income, in the form set out in Article 16 of this Law. For these purposes, the amounts constituting untaxed increases in equity shall not be computed by reinvesting in the acquisition of new habitual dwelling.

They shall be deemed to have been intended for the acquisition or rehabilitation of the dwelling which constitutes or is to constitute the habitual residence, the amounts deposited in Banks, Savings Banks and other Credit Institutions, on accounts that meet the requirements of formalisation and provision that are regulated.

(b) The acquirers, prior to 1988, of houses with a right of deduction of 17 per 100 in the tax quota, shall maintain it in 1991, at 15 per 100, in the case of usual housing, and 10 per 100, in the other cases,

(c) 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 in 1991.

The basis for the deduction from the previous two paragraphs is the same as set out in point (a).

Three. (a) 15 per 100 of the investments made in the acquisition of goods which are registered 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 Heritage Historical Spanish, provided that the good remains in the holder's estate for a period of not less than three years and the communication of the transmission to the General Registry of Goods of Cultural Interest is formalized.

(b) 15 per 100 of the amount of the costs of conservation, repair, restoration, dissemination and exposure of the goods which meet the requirements laid down 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.

Four. The basis for all the deductions contained in the preceding numbers, as well as those set out in numbers 1 and 2 of this Article, shall be limited to 30 per 100 of the taxable amount of the taxable person or, where applicable, of the family unit.

Likewise, the application of the deductions referred to in numbers one, a), two and three, a) shall require that the proven amount of the taxpayer's assets at the end of the period of the tax exceeds the value of the the verification at the beginning of the same, at least, of the amount of the investments made. For these purposes, the capital gains or minorizations of value experienced during the period of the imposition by the goods that at the end of the charge continue to be part of the estate of the taxpayer shall not be computed.

Five. Taxable persons who carry out business, professional or artistic activities shall be subject to the incentives and incentives for business investment established or to be established by the Company Tax with equality of deduction types and limits.

Notwithstanding the provisions of the preceding paragraph, these incentives shall not apply to taxable persons who are subject to the system of objective assessment of the determination of taxable bases.

The corresponding deduction limits will be applied to the liquid quota resulting from minoring the full quota in the deductions noted in the preceding letters of this article, as well as in the above numbers letter.

Six. In the case of individual tax purposes, the investment deductions shall be applied for each taxable person in the proportion corresponding to their participation in the ownership of the goods or rights in which the investment is made.

For the purposes of the deduction for investment in the acquisition or rehabilitation of the taxable person's habitual dwelling shall be understood as such in that the taxpayer, his or her spouse not legally separated or minor children reside for a continuous period of three years.

The incentives and incentives for business investment will apply exclusively to the taxable persons to whom the returns of the business, professional or artistic activities correspond, according to the as provided for in point (c), first and second paragraphs of the first rule of Article 9. of Law 20/1989 of 28 July.

F) Other deductions:

One. 15 per 100 of the pure and simple donations of goods that are part of the Spanish Historical Heritage, which are registered in the General Register of Goods of Cultural Interest or included in the General Inventory referred to in Law 16/1985, of 25 June, of Spanish Historical Heritage, provided that they are carried out in favor of the State and other public Entes, as well as those that are carried out in favor of establishments, institutions, foundations or associations, even the ones in fact temporary nature to arbitrate funds classified or declared beneficial or of public utility by the Competent authorities of the State, whose positions of employers, legal representatives or fact managers are free of charge and are held accountable to the relevant protectorate.

Two. The 10 per 100 of the quantities, donated to the Entities mentioned in article 2 of Law 12/1988, of 25 May, to the "Olympic Organizing Committee Barcelona 1992" and to the "Barcelona Olympic Organizing Committee 1992, Company Anonymous", and other Entities legally assimilated to those prior to these effects.

Three. 10 per 100 of the amount of the dividends received by the taxable person under the conditions which are determined and provided that they have been taxed, in fact, without any bonus or any reduction in the tax on Companies.

Four. The 75 per 100 of the Municipal Tax quota on the Increase of the Value of the Urban Nature Terrain satisfied by the taxable persons in the exercise.

Five. Irrespective of the deduction in the quota referred to in point (A) of this Article, income from the dependent work shall be deducted from the amount of pesetas 25,200 for each recipient of this type of income up to a maximum of two.

Six. The amount of the withholding and payment to account provided for in Article 36 of the Law, without prejudice to the provisions of Law 14/1985 of 29 May on Tax Regime for Certain Financial Assets.

In general, the deductions referred to in this Article shall not apply to taxpayers by actual obligation, except when they obtain income through permanent establishment in Spain, in which case it shall be of the application of paragraphs 3 and 5 of point E) and one, two, three and six of the letter F) of this Article.

However, if, during the financial year, the taxable person had to pay for the actual duty, he would be entitled to the return of the excess of the withholding tax on the income from personal work, in respect of the percentage established on a single and final basis for this category of income, where they are obtained by non-resident natural persons. '

Article ninth. Liquidable Base of the Extraordinary Tax on the Heritage of Physical Persons.

With exclusive validity for 1991, new wording is given to paragraph one of article 12 of Law 20/1989, of July 28, in the following terms:

"In the case of a personal obligation, the tax base shall be reduced, as a minimum exempt, by 10,000,000 pesetas."

Article 10. The determining limit of the obligation to declare by the Extraordinary Tax on the Heritage of the Physical Persons.

With exclusive validity for 1991, new wording is given to paragraph one of article 14 of Law 20/1989, of July 28, in the following terms:

" taxable persons subject to personal duty tax shall be required to make a statement only, where their taxable amount, determined in accordance with the rules governing the tax, is higher than 10,000,000 pesetas. "

Item 11th. Corporation Tax.

As of the entry into force of this Law, the precepts of Law 61/1978, of December 27, of the Company Tax, which are then related, will be worded as follows:

One. Article 11, paragraph 5.

" Article 11. The tax base.

5. For the purposes of the above paragraph, capital injections made by the partners shall be considered as the share issue premiums. '

Two. Article 12, point (c)

" Article 12. Computer revenue.

c) The amount of acquisitions for a lucrative title. "

Three. Article 14, point (g).

A new letter is added h).

" Article 14. Non-deductible items.

(g) The amounts intended for the consolidation of assets, except in cases where an Act authorizes its implementation for tax purposes.

(h) The appropriations for the depreciation or depreciation of the goodwill, unless the latter is irreversible, effective and proven. "

Four. Article 15 (1), (2) and (6

.

" 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, by any other of its concepts or the capital injections made by the partners or unit-holders during the financial year, including share issuance premiums.

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.

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. "

Five. Article 16, paragraphs 1 and 2.

A new section is added with the number 9.

" Article 16. Revenue and expenditure assessment:

One. The revenue and expenditure shall be computed by its accounting values, provided that the accounts reflect at all times the true patrimonial situation of the Company, with the specialties and exceptions provided for in this Law and other rules of tax nature.

Two. 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.

Nine. 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. '

Article twelfth. Tax impact of the transfers with the Banco de España's repurchase agreement.

One. In the purchase and sale transactions with repurchase agreements made with certificates of the Banco de España since its creation by Order of 21 February 1990, it will only be integrated into the tax base of the Corporate Tax as income or expenditure. financial, the difference between the effective selling price and the repurchase price, in the part attributable to the financial year.

In no case shall such transactions result in tax purposes, increases and decreases in equity.

Two. In the other transmissions carried out with certificates from the Banco de España since its creation by Order of 21 February 1990, the transmitters shall compute an increase or a decrease in equity by difference between the transmission value and the acquisition value, which in the first transmission shall be the nominal value. The reduction of assets which, if any, could occur in the first transmission, will be charged for the purposes of determining the tax base of the Company Tax, in proportion to the time that it takes until the expiry of the transmitted certificate.

The acquirers shall integrate the positive difference between the nominal value and the acquisition value into the taxable base in proportion to the time measured up to the expiry of the certificate. The computed income shall be added to the acquisition value for purposes, where applicable, of the determination of the property increases or decreases resulting from subsequent transmissions.

Three. No depreciation of the certificates of the Banco de España since its creation by the Order of 21 February 1990 shall be computed for tax purposes.

ADDITIONAL PROVISIONS

First. Variable deduction table.

The Minister of Economy and Finance, through the corresponding Ministerial Order, will publish the table of the variable deduction that incorporates the effects of the modifications made to the tariff and the deduction for taxation of the Income Tax of the Physical Persons.

Second.

Article 100 of Law 39/1988, of 28 December, is amended, which is to be amended as follows:

" Article 100.

1. Those who apply to the Provincial Head of Traffic for the registration or certification of the ability to move a vehicle must first prove that the tax is paid.

2. The owners of the vehicles, when they communicate to the Provincial Traffic Headquarters the reform of the same, provided that they alter their classification for the purposes of this Tax, as well as in the cases of transfer, of change of domicile that It shall be recorded in the permit to move the vehicle, or the discharge of such vehicles, before the Provincial Head of Office, the payment of the last receipt submitted for the recovery of the tax, without prejudice to the fact that it is payable by way of management and inspection the payment of all debts, for that concept, accrued, settled, submitted to collection and not prescribed.

3. The Provincial Traffic Headquarters shall not process the files if the payment of the tax is not credited, in the terms set out in the preceding paragraphs.

FINAL DISPOSITION

Entry into effect

This Law shall enter into force on the day of its publication in the "Official State Gazette".

Therefore,

I command all Spaniards, individuals and authorities, to keep and keep this Law.

Madrid, 27 May 1991.

JOHN CARLOS R.

The President of the Government,

FELIPE GONZÁLEZ MARQUEZ