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

The judgment of the Constitutional Court, 45/1989, of 20 February, has declared the unconstitutionality and nullity of certain precepts of Law 44/1978 of 8 September of the Income Tax of the Physical Persons, with the effects indicated in the Eleventh Basis of the Judgment itself.

Basically, the statement of unconstitutionality cited is based on the incompatibility of the compulsory joint taxation of the spouses in the Income Tax of the Physical Persons, with the principle of equality Constitutionally protected and with the right to personal and family privacy, since it is not foreseen for the members of the family unit, neither directly nor for remission, possibility of option for individual taxation.

Therefore, although the Constitutional Court has not raised the same issue of unconstitutionality with respect to the Extraordinary Tax on the Heritage of Physical Persons, the same applies to the basis of their judgment in the mandatory joint taxation system which also uses this latter tribute.

Therefore, the legislator, as the Constitutional Court points out, must carry out the necessary modifications or adaptations in the legal system of both taxes in order to bring it into line with the Constitution, in order to enable the statement of the taxable events for 1988, which has had to be deferred, with the corresponding budgetary costs.

Similarly, it is necessary to regulate the criteria applicable to the development and resolution of procedures related to previous non-prescribed tax periods, in order to avoid, inter alia, the interruption of the actions by the Tax Administration to correct fraud and tax evasion, which would only be in the interests of those who have failed to fulfil their tax obligations.

Likewise, the need to provide certainty to the taxpayers in the performance of the tax obligations corresponding to the 1989 tax period, in accordance with the requirements of the principle of legal certainty, it is appropriate to extend to it the criteria and principles laid down in this Law in respect of the 1988 declarations.

CHAPTER FIRST

Tax on the Income of the Physical Persons of the Tax Periods 1988 and 1989

Section 1. General Regime

Article 1. Applicable rules.

For the determination of the tax obligations for the Income Tax of the Physical Persons, corresponding to the tax periods between 1 January 1988 and 31 December 1989, they shall be applicable the legal provisions initially in force for such tax periods with the adaptations contained in this Law.

The Income Tax Regulation of the Physical Persons and the other statutory rules of this tax shall also apply as soon as the provisions referred to in the preceding paragraph are not opposed.

Article 2. System of taxation of components of a family unit.

Article 4 (2) of Law 44/1978 of 8 September shall be worded as follows:

" 2. Where the persons referred to in the two headings of the previous paragraph are integrated into a family unit, all the components of the family unit shall be jointly and severally liable to the tax as taxable persons, in accordance with the a scheme which, for that purpose, lays down Articles 5, 7 (1), 30 and one and thirty-four of this Law.

By way of derogation from the foregoing paragraph, the components of the family unit may, by means of the separate filing of the corresponding declaration, be eligible to be individually taxed in accordance with the provisions of Law 20/1989 of 28 July.

When a member of the family unit submits an individual declaration, the same regime shall apply to the remaining taxable persons of the same.

The exercise of the option for individual taxation for a given tax period shall not prevent members of the family unit from being taxed jointly in subsequent years. "

Article 3. Taxed income.

A second paragraph is added to Article 7 (1) of Law 44/1978 of 8 September, with the following wording:

"When passive subjects form part of a household unit, yields and increases in equity earned by all of them will be taxed cumulatively."

Article 4. Limits on the joint taxation regime.

The limit of deductions for the interest of foreign capital as referred to in Article 16 (2) (C) and Article 17 (3) (b), both of which are to be applied in accordance with the provisions of Law 44/1978 of 8 September by two for spouses under joint taxation.

The limits of 500,000 and 750,000 pesetas, applicable, respectively, to the deductions on the basis of contributions to Pension Plans, will be computed by each spouse integrated into a family unit for the purposes of Tax on the Income Tax of the Physical Persons, provided that you obtain sufficient income to make such contributions.

Also, the limits established for the payments provided for in the Additional Provision No. 2 of Law 8/1987 of 8 June of Regulation of the Pension Plans and Funds shall be computed by each integrated spouse. in a family unit for the purposes of its taxation on the Income Tax of the Physical Persons, provided that it obtains sufficient income to make such payments.

Article 5. Deductions 1988.

Paragraphs (A), (B) and (3) of Article 29 of Law 44/1978 of 8 September 1978, as drawn up by Article 91 of Law No 33/1987 of 23 December 1988 on the general budget of the State for 1988, are amended as follows: the following terms:

" 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 35,000 pesetas, the deduction in the following paragraph shall be applied 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 35,000 pesetas, which shall be the only one per declaration.

F) .3. Irrespective of the deduction in the quota referred to in point (A) of this Article, by income from the dependent work, the amount of pesetas 22,000 shall be deducted for each recipient of this type of income, up to a maximum of two. "

Article 6. Deductions 1989.

Paragraphs (A), (B) and (F) (4) of Article 29 of Law 44/1978 of 8 September 1978, as drawn up by Article 85 of Law No 37/1988 of 28 December 1989 on the General Budget of the State for 1989, are amended in the following terms:

" 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 36,000 pesetas, the deduction in the following paragraph shall be applied, where applicable, where applicable.

B) When the variable deduction is not applicable, the taxable persons who are jointly taxed shall be entitled to a deduction of 36,000 pesetas, which shall be the only one per declaration.

F) .4. Irrespective of the deduction in the quota referred to in point (A) of this Article, by income from the dependent work, the fixed amount of 22,700 pesetas per recipient of this type of income shall be deducted up to a maximum of two. "

Article 7. Solidarity obligation.

1. A new paragraph 2 is included in Article 31 of Law 44/1978 of 8 September, with the following wording:

" 2. The taxable persons who are members of a family unit who have not opted for the individual tax on the tax will be jointly and severally obliged to the public treasury for the payment of the corresponding tax liability, without prejudice to the the right to prorate it with each other, depending on the part of the income corresponding to each of them. For the purposes of this pro-rata, the amount of the debt, in addition to the tax rate, is included in the concepts referred to in Article 58 (2) (a), (b), (c) and (d) of the General Tax Law. "

2. Article 31 (4) of Law 44/1978, of 8 September, shall be worded as follows:

" 4. Pecuniary penalties shall be taken into account by the member or members of the family unit who are responsible for the facts which generate them, without prejudice to the solidarity obligation of all against the Treasury. "

Article 8. Signature of the single declaration.

1. A new paragraph 3 is included in Article 34 of Law 44/1978 of 8 September, with the following wording:

" 3. When they are part of the family unit both spouses, the two shall be obliged to subscribe to the single declaration, unless they are unable to do so, without prejudice to the application of Articles 43 and 44 of the General Tax Act. '

2. Article 34 (7) of Law 44/1978, of 8 September, becomes paragraph 6 of the same Article.

Section 2. Individual Tribute

Article 9. Taxation rules

Where, pursuant to Article 4 (2) of Law 44/1978 of 8 September 1978, members of the family unit are individually taxed, the following rules shall apply in

:

1.) Determination of the income of taxable persons.

Whatever the economic regime of the marriage applicable to the spouses, the determination of the income of the taxable persons shall take into account the origin or source of the same. In particular, the following criteria shall apply:

(a) 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.

(b) Capital returns shall be deemed to be obtained by the taxable persons holding the assets, property or rights of which they come, in accordance with the terms of Article 11 of this Law.

(c) Yields of business, professional and artistic activities shall be considered to be obtained by those who perform in a regular, personal and direct manner, the own-account management of the means of production and the 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, professional or artistic activities.

When duly accredited, the corresponding employment contract exists, that the spouse or minor children of the taxable person who live with him, work habitually and with continuity in the business activities, professional or artistic developed 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 the average annual cost per employee of the staff, if the the amount of the inter-professional minimum wage laid down for the exercise. Such amounts shall be considered to be obtained by the spouse or minor children, in terms of income from work for all tax purposes.

Where the spouse or minor children of the taxable person who coexists with him, make provision of goods or rights which serve the purpose of the economic exploitation or professional or artistic activity in question, it shall be deducted, for the purposes of determining the income of the holder, the contractual consideration provided that it does not exceed the market value and, in the absence of the market value, the latter. Consideration or market value shall be considered as capital returns of the spouse or minor children to all tax purposes.

The performance of business, professional or artistic activities may not be negative as a result of the application of the provisions of the previous two paragraphs.

The provisions of the foregoing paragraphs are without prejudice to the special rules for the determination of the net performance of activities liable to be taxed under the special objective estimation scheme. simplified.

(d) The deductible items of yields shall be subject to the same criteria as set out in the preceding letters for their determination.

(e) The property increases and decreases shall be deemed to have been obtained by the persons holding the goods, rights and other property of the property, as provided for in Article 11 of the Treaty. This Act.

Unjustified increases in equity shall be charged on the basis of the ownership of the goods or rights in which they manifest.

The acquisitions of goods and rights not included among the non-subjection assumptions and which are not derived from prior transmission, such as gambling profits and similar assumptions, will be considered as equity increases. the person to whom the right to obtain them corresponds or who has directly earned them.

(f) The provisions of the second subparagraph of Article 20 (3) of Law 44/1978 of 8 September 1978 shall also apply where individual taxation has been chosen.

2.) Determination of the tax base.

(a) The taxable amount shall be wholly inclusive of the income obtained by each taxable person and those earned or attributed to him by virtue of the provisions of Article 12 of Law 44/1978 of 8 September 1978, or other legal provisions.

(b) Negative returns, property decreases and negative taxable bases which may be credited shall be offset only by the taxable person to whom they correspond in accordance with the rules of the income previous.

The negative returns, the property decreases and the negative tax bases of the family unit, from previous tax periods, that are pending compensation to the date of entry into This Law may be compensated by any of the taxable persons who have opted for the individual tax, without the total amount offset being able to exceed, for all the taxable persons, the which was originally pending compensation.

(c) The quantitative limits laid down in the rules, with relevance for the calculation and determination of the tax base, shall be understood as computable for each taxable person.

3) Quota Deductions.

1. Taxable persons may deduct from the full quota of the 1988 and 1989 tax periods the deductions provided for in the rules applicable for each of those financial years, with the adjustments set out in the following paragraphs.

2. The variable deduction and the deduction for joint taxation may not be applied in either exercise.

3. The following adaptation rules shall also be taken into account in the 1988 financial year:

a) Family deductions.

(a) Deduction for children shall correspond to the parent or parent with whom they live. When the children coexist with both parents, the deduction will be practiced by half in each parent's statement.

This deduction shall not be made for the children or children referred to in Article 29 (C) (C) of Law 44/1978 of 8 September, as written by Law No 33/1987 of 23 December 1987 on Budgets. State generals for 1988.

(b) Deduction for ascendants shall be made by the taxpayer with whom they live and if they live with both spouses, it shall be made in half.

Children will not be able to practice this deduction when their parents are entitled to it.

(c) Deduction by age, equal to or greater than seventy years, shall be applied by the taxable person in which such a circumstance is present.

(d) The invalidity allowance may be applied only where the physical or mental limitation affects the taxable person or the unmarried children who are dependent on him, provided that the income of the latter does not exceed 120,000 pesetas year,

When the children affected by the invalidity are dependent on both parents, the deduction will be practiced by half in each parent's declaration.

B) Deductions for sickness expenses.

Only the expenses incurred by the taxable person for his or her own illness or for persons for which he has a full or partial right to deduction in the quota shall be entitled to this deduction.

C) Deductions for investments.

Deductions for this concept shall be applied for each taxable person in the proportion that corresponds to their share 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 that the taxpayer, his or her spouse or minor children are resident for a continuous period of time. 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 the first and second subparagraphs of point (c) of the first rule of this Article.

4. With regard to the 1989 financial year, the following rules for the adaptation of the rules applicable to quota deductions shall be taken into account:

(A) In general, the rules of adaptation of the preceding paragraph shall apply, with the exception of those provided for in paragraphs (a) and (d) of point (A)

B) The deduction for children and other descendants will be applied according to the following rules:

(a) Deduction for children and other single descendants shall correspond to the ascendant with which they live. When children or descendants coexist with multiple ancestors of the same grade, the amount of the deduction will be prorated equally.

In the case of descendants who live with those who have a different degree of kinship, they shall only be entitled to the deduction of the nearest degree, unless they do not obtain income exceeding 618,000 pesetas, in whose case the deduction will pass to the furthest-grade ascendants.

This deduction shall not be made for children and other descendants referred to in Article 29 (c) of Law 44/1978 of 8 September, as amended by Law No 37/1988 of 28 December 1988, General Budget of the State for 1989.

(b) The invalidity deduction shall be applied in accordance with the rules laid down for the 1988 financial year, with a quantitative limit of 123,600 pesetas in respect of the income of unmarried children.

This tax benefit will be extended to persons linked to the taxable person for reasons of non-remunerated guardianship or reception, on the same terms as applicable to the children of the same.

5. All limits affecting the deductions of the quota and that in the legislation in force in each financial year are referred to the family unit, shall be construed as applicable individually in respect of each taxable person.

6. The negative shares of the family unit to be offset from previous tax periods may be compensated by any of the taxable persons who have opted for the individual tax, without the amount of the the total offset may exceed, for all taxable persons, from which the amount of compensation is to be paid to the entry into force of this Law.

CHAPTER II

Extraordinary Tax on the Heritage of the Physical Persons of the Tax Periods 1988 and 1989

Article 10. Applicable rules.

For the determination of the tax obligations by the Extraordinary Tax on the Heritage of the Physical Persons, corresponding to the taxable events accrued at 31 December 1988 and 31 December 1989, the provisions of this Law and the rules of Law 50/1977 of 14 November 1978 and the Order of 14 January 1978 governing the said tax, with the exception of that provided for in Article 4 (2) of Law 50/1977, and in the Articles 8 (3), (4) and (5) and (18), (2) of the Order of 14 January 1978, which are hereby expressly repealed.

The remaining legal provisions and regulations of this tribute will also apply, as soon as they are not opposed to the previous ones.

Article 11. Ownership of the goods and rights.

Goods and rights shall be attributed to taxable persons in accordance with the rules on legal ownership applicable in each case and on the basis of the evidence provided by those or those discovered by the Administration.

Where appropriate, the rules on the legal ownership of the goods and rights contained in the regulatory provisions of the economic regime of the marriage, as well as the provisions of the civil legislation, shall apply. applicable in each case to the property relations between the members of the family unit.

The ownership of the goods and rights that, in accordance with the provisions or regulatory covenants of the corresponding matrimonial property regime, are common to both spouses, shall be attributed in half to each of them,

When the ownership of the goods or rights is not duly credited, the Tax Administration shall have the right to consider the holder to whom it appears as such in a tax or other public record.

Article 12. Liquidable Base.

1. In the case of a personal obligation, the tax base shall be reduced by a minimum of 9,000,000 pesetas.

2. For each child entitled to deduction of the fee in the Income Tax of the Physical Persons, the tax base will be reduced by 1,500,000 pesetas,

When children coexist with both parents, the reduction will be 750,000 pesetas for each.

3. In the case of blind, maimed or invalid children, physical or mental, congenital or over-come, with the right to a disability allowance in the Income Tax of the Physical Persons, the reductions in the previous paragraph shall be, respectively, of 3,000,000 and 1,500,000 pesetas.

4. The reductions in the two preceding paragraphs shall not apply in the case of children who are obliged to make a declaration for this tax.

5. In no case will it be applicable reduction by marriage in the Extraordinary Tax on the Heritage of the Physical Persons.

Article 13. Full quota limit.

When the components of a family unit have not opted for the individual taxation of the Income Tax of the Physical Persons, the limit of the joint full quota of the said Tax and the Extraordinary on the Equity, it will be calculated by accumulating the full contributions earned by those in this last tribute, If any, the reduction that proceeds to practice will be prorated among the taxable persons in proportion to their respective shares in the Tax Extraordinary on Heritage.

Article 14. The determining limit of the obligation to declare.

1. Taxable persons subject to personal duty tax shall be required to make a declaration only where their taxable amount, determined in accordance with the rules governing the tax, is higher than 9,000,000 pesetas.

2. The Minister for Economic Affairs and Finance may approve models for joint declaration of the Extraordinary Tax on Heritage, for use by the taxable persons components of a family unit that have not opted for taxation. individual in the Income Tax of the Physical Persons.

CHAPTER III

Transitional regime of the tax periods prior to 1988

Article 15. Self-liquidity and liquidations for the 1987 and earlier non-prescribed tax period.

1. In accordance with the judgment of the Constitutional Court of 20 February 1989, no refunds or refunds based on the cumulative taxation of the income or assets of the taxable persons of a household in respect of the (a) any self-settlement submitted prior to the date of its publication in the 'Official Gazette of the State' or in relation to the administrative settlements previously carried out on the same date as they have become firm.

Consequently, the recovery procedures relating to such autoliquidations and administrative settlements will continue until complete termination and the deferred tax debts will be fully demanded fractious.

2. The provisions of the first subparagraph shall not preclude the recognition by the Administration of the right to return of trade referred to in Article 159 of the Income Tax Regulation of the Physical Persons or to other returns which may correspond to taxable persons for reasons other than the accumulation of income or assets of members of the household.

3. Without prejudice to the provisions of the following paragraphs, where the tax authorities review firm or practice any kind of liquidation after 2 March 1989, in respect of self-settlement or settlement cited, the tax debts paid, determined or initially settled, shall be considered as a minimum for the purposes of the Income Tax of the Physical Persons or the Extraordinary Tax on the Heritage of the Physical Persons, only the complementary liquidations which may be carried out, including, where applicable, penalties or interest for late payment, in accordance with the rules and criteria of taxation set out in the previous chapters of this Law. For these purposes, the tax debts paid or payable jointly by the taxable persons components of a family unit shall be apportioned among them, according to the remas or assets corresponding to each.

4. In the case of proceedings for the verification or investigation of the same liquidations or self-actions as a result of the regularisation of the tax situation of taxable persons arising from the existence of income or Non-included or incorrectly declared assets shall be carried out in accordance with the following rules:

(a) Once the facts and tax bases that should have been declared in the regulatory deadlines have been established, the corresponding tax liability will be determined, according to the rules and criteria for the taxation of the chapters. prior to this Law.

(b) The following shall be determined, by application of the same rules and criteria, the tax liability that would have been incurred in respect of the facts and taxable bases declared in the regulatory deadlines.

c) The difference between the amount of the tax liability referred to in point (a) and that of the tax liability of point (b), plus any penalties or interest on late payment, shall constitute the amount of the tax liability to which to enter the taxable person by virtue of the regularization of his or her tax situation, regardless of the tax liability paid, determined or settled within the statutory deadlines for declaration and income.

5. In the case of autoliquidations or supplementary declarations made voluntarily by taxable persons in the same cases, the rules of the previous paragraph shall also apply, excluding the imposition of tax penalties. in accordance with the provisions of Article 61 (2) of the General Tax Law.

Article 16. Case-file in proceedings on 2 March 1989.

The provisional or final settlements to be performed by the Tax Administration in order to resolve the procedures related to the Income Tax of the Physical Persons or the Extraordinary Tax on the The assets of the physical persons, which are to be processed on 2 March 1989, shall be made, where appropriate, taking into account the taxation criteria laid down in the preceding chapters of this Law. In any event, the tax debts paid, determined or settled initially by virtue of prior authorization or settlement, shall be regarded as a minimum in respect of that part of the debts which does not constitute the object of the the procedure or the challenge to be dealt with.

The administrative bodies shall proceed in the same way when they issue other agreements or resolutions or when making proposals or reports of any nature, whether or not prior to the practice of a settlement.

Article 17. Actions relating to certain taxable persons for the 1987 and earlier non-prescribed tax period.

The actions initiated by the Inspectorate of the Tributes after March 2, 1989, in relation to the taxable persons who did not present a statement or self-imposed the Income Tax on Persons Natural persons or the Extraordinary Tax on the Heritage of the Physical Persons corresponding to the 1987 or previous non-prescribed tax period shall give rise to the regularisation of the tax situation of the same as applicable by application of the criteria referred to in the preceding Articles, with the imposition of penalties and the settlement of the relevant default interest.

Equal criteria shall be used by the taxable persons referred to in the preceding paragraph, when they intend to make their outstanding payments in accordance with the procedure laid down in Article 61 (2) of the General Tax Law

Article 18. Cases in Economic and Administrative Courts.

The Economic and Administrative Courts will refer to the Management Offices or to the Inspectorate-Chiefs of the Tax Inspectorate the pending cases of resolution affected by the judgment of the Constitutional Court of 20 of February 1989, to carry out new settlements in accordance with the criteria laid down in Articles 15 and 16 of this Law.

At the same time, they will declare the procedures to be complete, without prejudice to any complaints that may be filed against the new liquidations.

Article 19. Cancellation of collection procedures.

The administrative bodies and the Economic and Administrative Courts referred to in Articles 16 and 18 of this Law shall put in the knowledge of the Interventions and of the Organs Of Competent Collection the debts (a) the tax authorities concerned by the provisions of those provisions, for the purposes of the annulment of the ongoing collection procedures.

Likewise, they will return or release the guarantees of the amount of tax debts, constituted by the taxable persons.

The provisions of this Article are without prejudice to the settlement of surcharges or interest on late payment or the imposition of tax penalties resulting from the practice of new interim settlements or definitive.

Article 20. Forms of taxation in the transitional regime.

1. The liquidations of the Income Tax of the Physical Persons who, as provided for in this Chapter, must practice the Tax Administration shall be carried out by the procedure of individual taxation of the components of the unit family:

(a) Where pursuant to the second and second subparagraph of Article 4 (2) of Law 44/1978 of 8 September, as laid down in this Law, the taxable persons have opted for their Original or complementary statements by individually taxed.

(b) In other cases, where any of the components of the family unit so request in writing or express it expressly at the time of the appearance before the competent administrative body which shall lift the corresponding diligence.

In the other cases, the Administration shall carry out its liquidations in accordance with the provisions of Article 4 (2) and the second subparagraph of Article 7 (1) of Law 44/1978 of 8 September.

2. When the taxable persons of the Income Tax of the Physical Persons or of the Extraordinary Tax on the Heritage of the Physical Persons have formulated in accordance with the provisions of the Third Instruction of the Resolution of 28 of February 1989, of the General Secretariat of Finance, communications to the Tax Administration recognizing the existence of elements necessary to quantify their previously declared tax obligations, they will proceed to carry out two months from the date of entry into force of this Law, the autoliquidations and income from, as the case may be, the application of the rules referred to in Article 15 (5) or the criteria of the second paragraph of Article 17, in relation to the provisions of Chapters I and II of this Law.

After the period referred to in the preceding paragraph has not been completed and the tax liability has been entered into, the Administration shall carry out the appropriate actions for its charge, with tax the penalties and the liquidation of the interest for late payment which correspond to the provisions in force.

Article 21. Particular rules of adaptation in relation to individual taxation for the non-prescribed tax periods of the Income Tax of the Physical Persons.

1. Where the case referred to in the first subparagraph of paragraph 1 of the preceding Article is referred to, it shall be applicable, in general, to the non-prescribed tax periods referred to in this transitional system by the rules, criteria or the principles of individual imputation and taxation laid down in this Law in relation to the declarations of the 1988 and 1989 tax periods.

2. However, the following particular rules of adaptation shall be taken into account:

(a) The multiplier of the general deduction, variable deduction and deduction by marriage shall not apply.

(b) The deduction for being a pensioner shall be made by the taxable person in whom such a circumstance exists.

c) In the 1982, 1983 and 1984 tax periods, the deduction for dependent income shall be applied under the percentage formula on net income, subject to the limits laid down, where appropriate, by the legislation current for each period.

(d) The limits on the tax base of the Income Tax of the Physical Persons and on the joint integral part of the Taxes on the Income of the Physical Persons and the Extraordinary on the Heritage, will be the in each tax period.

Article 22. Particular rules of adaptation in relation to the non-prescribed tax periods of the Extraordinary Tax on the Heritage of Physical Persons.

1. In general, they shall apply to the non-prescribed tax periods referred to in this transitional system, the rules, criteria or principles of imputation and individual taxation laid down in this Law for the financial years 1988 and 1989.

2. The amounts of the child reductions applicable in each tax period shall be applied in accordance with the criteria set out in Article 12 (2) and (3) of this Law,

ADDITIONAL PROVISIONS

First. Time-limits for declaration and entry.

The presentation of the Income Tax returns for the Physical Persons for the 1988 tax period shall be made during the month of November 1989.

Returns with the right to return will be filed within the same period.

The declaration of the Extraordinary Tax on the Heritage of the Physical Persons corresponding to the 1988 tax period shall be submitted within the same period as the previous ones. When both taxes are to be declared, it shall be filed at the same time as the Income Tax of the Physical Persons.

The taxable persons shall be obliged at the time of filing their declaration, to carry out a settlement on account and to enter their total amount in the Treasury.

Second. Lower tax period per calendar year.

The provisions of Article 83 of Law No 37/1988 of 28 December 1988 on the General Budget of the State for 1989, in conjunction with Article 24 (1) of Law 44/1978 of 8 September 1978, shall apply from 1 January 1988. January 1988,

However, in the cases provided for in points (b) and (c) of that paragraph, it shall be a budget for the interruption of the tax period, the joint taxation of the family unit until the dissolution of the marriage or with after their celebration.

Third. Reinvestment of wealth increases.

As of the entry into force of this Law, Article 20 (14) of Law 44/1978, of 8 September, will be worded as follows:

" 14. By way of derogation from this Article, increases in assets which are shown in the transfer of tangible tangible assets to the business, professional or artistic activities necessary for the purposes of the they shall not be taxed provided that the total amount of the disposal is reinvested in goods of the same nature and destination in a period not exceeding two years.

Also, the capital increases obtained by the disposal of the taxpayer's habitual dwelling will be excluded from the tax, provided that the total amount of the tax is reinvested in the purchase of a new home. within a period not exceeding two years.

Where the reinvested amount is less than the total amount collected in the disposal, only the proportional share of the increase in equity obtained corresponding to the reinvested amount shall be excluded from taxation. "

Fourth. Expenses deducted.

Number 2 of the Additional Provision First of Law 8/1987 of 8 June, of Regulation of the Pension Plans and Funds, will be drawn up in the following manner with effect for the tax periods 1988 and 1989:

" 2. The amounts paid on a compulsory basis to the Employment and Mutual Communities, where they cover, inter alia, the risk of death and the contributions to the Colleges of orphans or similar institutions shall be deducted, where appropriate, from the income (

) the total amount of the total amount of the total amount of the financial year;

When contributions or contributions are made to pension plans and payments provided for in this issue, the limit of 500,000 pesetas will be unique for both concepts. "

FINAL DISPOSITION

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

2. The provisions of this Law are repealed as many as are incompatible with this Law.

Therefore,

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

Palma de Mallorca, 28 July 1989.

JOHN CARLOS R.

The President of the Government,

FELIPE GONZÁLEZ MARQUEZ