After successive attempts during the second half of the last century to create a tax that would tax the income of business, the Law of twenty-seven of March of a thousand nine hundred established the Contribution on the Profits of the Mobiliaria Wealth, real germ of the modern taxation on income in our order.

Its theoretical principles and the technical mechanisms contained in it have been subsist to our day to a greater extent than it may seem at first sight; good proof of this is the reference to the valuations. the accounting system and the system of retention at the source of income from personal work and capital.

Nevertheless, it should be noted that the immediate precedent of the Law of a thousand nine hundred was the Industrial and Trade Contribution, established in a thousand eight hundred and forty-five that continued to subject to taxation to the for shares which were for the sole purpose of one or more branches of manufacture or industry falling within the third tariff of the annexed to the Regulation, to collective and commercial companies without shares and to civil societies.

Within the Contribution of Utilities, the charge of the , in which the taxation of the business profits was hosted and, by This is the case for companies and entities in the development of their activity, with the exceptions indicated.

This first appearance of the modern system of taxation on the income of the legal entities, due to the exceptional circumstances in which it emerged, in the midst of a tax reform that pursued the collection purposes There were still plenty of gaps and shortcomings.

Therefore, it should not be surprising that, despite the publication of the Regulation of seventeen of September of a thousand nine hundred six, immediately felt the need to carry out a deep and stopped review.

After minor modifications in a thousand nine hundred and seven thousand nine hundred ten and one thousand nine hundred eleven, a project of reform of the third rate of the Contribution of Utilities was presented in December of a thousand nine hundred which had to overcome up to six failed attempts before getting, through the Law of twenty-nine of April a thousand nine hundred and twenty, first, and the Law of twenty-six of July of a thousand nine hundred and twenty-two, then, the objective of incarnating in the legal order of the incipient Spanish tax system.

The transcendence of these regulatory laws from which already from this moment, constituted a real Tax on Societies, is derived from the temporary circumstance that the recast text approved by Royal Decree of twenty-two September of a thousand nine hundred and twenty-two, by virtue of the authorization contained in the last Law, was in force, with the consequent adaptations and corrections, until the establishment by the Law of twenty-six of December of thousand nine hundred Fifty-seven, of the Income Tax of the Societies and other Legal Entities, and also in the permanence of its inspiring principles, highlighted by the doctrine:

a) Personal obligation to contribute.

b) Determination of the tax base with support in the accounting data.

c) Adequation of the tax burden to the contributory capacity of the subjects; and

d) Articulation with real taxes (currently with withholding taxes).

On these principles, the use of the tax as an instrument of economic policy can only be added much more modern.

It must be added, at last, that many of the norms contained in the recast text of a thousand nine hundred and twenty-two were formally collected in the regulatory texts of the General Tax on the Income of Societies and other Entities Legal, incorporating even the recast text of this tax approved by the Decree three thousand three hundred and fifty-nine/thousand nine hundred and sixty-seven, of twenty-three of December.

The establishment of the Contribution of Utilities was accompanied by the publication of a provisional Regulation, approved by Royal Decree of thirty March of a thousand nine hundred. Almost no solution of continuity was published another provisional Regulation, of twenty-nine of April of a thousand nine hundred two, and a definitive one, of seventeen of September of a thousand nine hundred six, and in the successive decades no other.

It was necessary to wait until the publication of the Provisional Instruction for the levy of the General Tax on the Income of Societies and other Legal Entities, approved by Order of thirteen of May of a thousand nine hundred and fifty eight, to find a general rule of law relating to this tribute.

Precisely one of the most accused defects of the regulation of the Tax on Societies from a thousand nine hundred twenty has been, without doubt, the absence of a general regulation of the same, which in its day gave rise to a number of regulatory and interpretative provisions of different style and time, which made it difficult at all times to ensure that the tax is applied consistently.

This text is therefore the first regulation for seventy-six years.

To such an extent the lack of a regulation has been important that, indirectly, one of the main causes of the existence of a new Law of the Tax on Societies in the current reform process can be considered. Fiscal, initiated in a thousand nine hundred and seventy-eight.

Indeed, in the preparatory work of the reform, when dealing with the Corporate Tax, the desirability of drafting a new Law or of limiting itself to a reform of the recast text of a thousand nine hundred and sixty-three was discussed. seven, given that the basic principles of the tax, previously exposed to the glossing of the Laws of a thousand nine hundred and twenty-thousand nine hundred and twenty-two, remained unchanged.

One of the reasons why the first way was chosen was that in this way the change of attitude that inspired the reform could be better emphasized, which would not be so easily appreciated if the protein set of Complementary provisions of the recast text, the detailed review of which was difficult to achieve.

It seems, therefore, of course that, if there had been a Corporate Tax Regulation, such a review would have been more feasible and, therefore, the final decision may have been tilted towards the second way.

The finding of this fact further evidences, if any, the need not to incur the same defect by approving a Corporate Tax Regulation that provides for all aspects and general problems of application of the tax, as well as the most relevant particular cases in order to avoid, as far as possible, a new proliferation of adjacent and, as often, conflicting rules.

However, the imperative need for a Regulation should not lead to a hasty elaboration, so that having been provisionally resolved, especially through the Royal Decrees three hundred and fifty and seven/a thousand nine hundred and seventy-nine, twenty of February, and three thousand and sixty-one/thousand nine hundred and seventy-nine, of twenty-nine of December, the aspects of the Law that needed urgent regulation, such as the regime of retentions, that of depreciation and the application of tax incentives, was initiated by the Ministry of Doing a rigorous, patient and ordered analysis of the problems and design of the most convenient solutions of which this Regulation is not the only fruit, but also the modifications of the Law of the Tax contained in the project of the Law on the Tax Regime of Temporary Groups and Unions of Companies and of the Societies of Regional Development, which has subsequently reached the legal status as Law eighteen/thousand nine hundred and eighty-two, of twenty-six of May, amen of the numerous binding consultations, which constitute a sample of those contained in the The Order of seventeen of June of a thousand nine hundred and eighty two which, although repealed in order precisely to limit the number of provisions in force and to allow a greater application of the Regulation, contains, in a good part of the addressed, criteria fully consistent with it.

The above considerations, as well as the growth of the companies, the greater diversity and complexity of the management techniques employed and the greater degree of purging of the tax technique recorded throughout the present century, they require that the Regulation, to be an effective instrument of aid in the application of the Tax on Societies, is relatively extensive. For this reason, special care has been taken in the aspects of systematization, in order to facilitate the localization of the precepts applicable to each case. This care finds its reflection in the reduced number of referrals and in the nuanced scheme of grouping and subdivision of precepts, covering from the top category of title to the one of subsection, completed with the existence of a rubric in each article that is indicative of its content.

Within this line, the Regulation dedicates Title I to the development of the general regime applicable to most of the Companies and Entities, addressing, after regulating the basic aspects of the Tax, the treatment of the taxable persons subject to the tax on a personal obligation who are not exempt. Whereas Title II provides for alterations which, on the basis of the basic structure set up by the general scheme, represent the various special schemes to which the Companies Tax Act refers. Among these schemes, special attention is paid to non-resident entities in Spain subject to the Company Tax by real obligation, offering solutions that adequately conjugate equity and operability, thus covering a traditional deficiency of tax rules.

In the regulatory development of the Corporate Tax, it could not be dispensed with the obvious relationship between accounting and taxation, for whose treatment, if the possibility of an absolute separation is not possible. between tax and accounting rules, three alternatives are offered: (a) the unconditional acceptance of the accounting valuations for the purposes of determining the tax base of the corporate tax; (b) the submission of the accounts to the valuations accepted for tax purposes; and (c) the harmonization of accounting and tax criteria, without meaning that the accounting valuations are to be accepted indiscriminately for tax purposes. Of these alternatives, accepting the first would result in a practical de-legalization of the tax, on the amount of which the taxpayer could have almost unlimited form, while hosting the second could endanger the very existence of the accounting as a technique of information and representation of the true patrimonial situation and of the operations carried out, so that the third one is the most plausible, being, moreover, the position followed traditionally in our order. In addition, the Law on Corporate Tax, in particular through the provisions of Articles 16, 22 and 30, reinforces the idea that the greatest possible degree of approximation between accounting and tax rules should be sought, However, this does not mean, however, that it undermines the regulatory powers that the various organs of the State have. The final confirmation of this position is found in the fourth additional provision of Law eighteen/thousand nine hundred and eighty-two, of twenty-six of May, cited above, in which the existence of accounts is prevented, indirectly, different.

The Regulation has paid particular attention to the accounting aspects and implications of the tax, defining concepts and operations with a familiar terminology to most companies and assuming in their own good text part of the postulates contained in our General Plan of Accounting and the Fourth Guideline of the European Economic Community, thus seeking solutions to the problems of future adaptation to the latter. Logically, this position has not prevented special emphasis on those concepts or operations whose consideration and treatment for the purposes of the tax are particularly relevant. In this way, the subsequent evolution of the accounting technique will not introduce insecurities or unnecessary and dangerous alterations on the basic structure of the tax, without this of course preventing, through the procedure established for the drafting of general provisions, at the appropriate time, the necessary adjustments to the tax rules.

The above is not to be understood as an interference with tax rules in the accounting and management aspects of companies, but, on the contrary, in most cases involves the elimination of double taxation. In the past, the company has taken into account a good part of its actions. At the same time, in cases where the tax assessment differs from the accounting officer, the Regulation does not impose the correction of the accounting valuation, but establishes as sufficient the mere clarification of the social accounts as a means of (i) to deal satisfactorily with the discrepancy, while prohibiting the use of tax assessments to alter the representation of the accounting result. This shows the concern of the Regulation not to harm but. in any case, to favour a true accounting that is the result of a correct and orderly financial management, aimed at preserving and enhancing the financial and financial situation of Spanish companies as far as possible.

As proof of the above, the Regulation introduces flexibility criteria for the temporary allocation of revenue and expenditure and for operations with a multi-annual projection, as can be seen in the treatment of foreign exchange transactions, amortisation systems, deferred financial expenses and subscription rights, among other aspects. At the same time, it includes a generous recognition of provisions which undoubtedly constitute an essential factor in the strengthening of the financial structure of undertakings, provided that both in this case and in the case of depreciation, the necessary conditions of effectiveness and continuity, in the case of genuine allocations, with the appropriate reflection in the annual accounts and, in particular, in the balance sheet of the companies.

The liquidation process, in its two phases of determining the tax base and the calculation of the tax liability, appears rationally ordered following the articles of the Rules of Procedure. Companies. In this way, the determination of the tax base is part of the assessment of the applicable valuation rules, pointing out the points of agreement and divergence with those which can be used for the purposes of determining the net income as in the case of increases and decreases in property. It is also operated in the determination of the tax base by comparison of tax capital. These are as important as the loss compensation and the use of the indexable methods of indirect estimation of the tax base. Once the tax base has been quantified, the Regulation breaks down, the various deductions and bonuses in the same order in which they are applied, establishing the necessary rules for their correct use, trying to favor within the limits the effective enjoyment of the tax benefits for each taxable person while ensuring compliance with the aims pursued by the legislator in establishing such benefits.

In this way, the Corporate Tax Regulation which is now approved must be an effective working tool for those who need to know in the exercise of public functions or private activities. tax implications of the most frequent operations and situations and characteristics of the life of the enterprises.

In its virtue, on the proposal of the Minister of Finance, according to the Council of State and after deliberation of the Council of Ministers at its meeting of the 15th of October of a thousand nine hundred and eighty two, I have:

Single Article.-This Regulation on Corporate Tax is hereby approved.

Given in Madrid to fifteen of October of a thousand nine hundred and eighty-two.-JUAN CARLOS R.-The Minister of Finance, Jaime Garcia Anoveros.

CORPORATION TAX REGULATION

TITLE FIRST

General Regime

CHAPTER FIRST

Nature and scope of tax

Article 1. Nature.

The Company Tax is a direct and personal tribute that taxes the income of the Companies and other legal entities qualified as taxable persons by the Laws.

Art. 2. Spatial space.

1. Corporation Tax will be required throughout the Spanish territory.

2. The provisions of the preceding paragraph shall be without prejudice to special tax arrangements for the purposes of the territory and the international treaties and conventions.

3. Legally established foral schemes shall be considered to be included among the special schemes for the territory.

Art. 3. International treaties and conventions.

They shall be considered to be included among the Treaties or Conventions referred to in Article 2 (2).:

(a) The Treaties and Conventions in force between Spain and other States to avoid double taxation on income and other bilateral agreements which, while dealing with different matters, contain provisions affecting this tax.

b) The multilateral treaties and conventions in which Spain is a party and those signed with international organizations that affect the legal order of this tax.

CHAPTER II

Taxable

Art. 4. Taxable fact.

1. It is the taxable fact of the tax to obtain the income from the taxable person.

2. In the tax transparency regime, the income from the allocation of the yield to the taxable person shall be understood.

Art. 5. Concept of income.

1. They make up the income of the taxable person the totality of their net returns, plus the increases and less the property decreases.

2. Returns obtained by the taxable person are considered:

(a) Those from the economic holdings of any kind that are the holder.

(b) The derivatives of any assets that are not affected by economic exploitation.

(c) Those coming directly or indirectly from the activities which constitute their social object or their specific purpose.

3. Changes in the value of the assets of the taxable person shall be considered to be an increase or decrease in property, in accordance with the provisions of the Tax Law and this Regulation.

Art. 6. Presumption of the payment of services and capital.

1. The provision of services and goods in their various forms shall be presumed to be paid, unless otherwise proved.

2. Where appropriate, those benefits shall be estimated at their normal value on the market, on the understanding of the price which would have been agreed for the same between independent subjects.

Art. 7. Assumptions that do not constitute income.

1. For the purposes of determining the taxable amount, the capital injections made by the partners or unit-holders during the financial year and the amounts withdrawn during the financial year shall not be regarded as positive. period by the partners themselves or unit-holders in terms of capital reduction, distribution of profits or distribution of assets, and non-deductible items.

2. For the purposes of the preceding paragraph, equity contributions made by the partners shall be considered as capital injections of shares and the contributions made by them to replenish the capital in accordance with the provisions of the Articles 99 and 150.3 of the Law on Limited Companies and Analogous Assumptions.

Art. 8. Yields of economic holdings.

1. All those who, by way of the work and the capital jointly or by one of these factors, assume by the taxable person the own-account management of the means of payment shall be regarded as income from an economic exploitation. production and human resources, or of one of them for the purpose of intervening in the production or distribution of goods or services

2. In particular, they will include income from agricultural, livestock, forestry, fishing, industrial, construction, commercial, service, extractive, mining, professional and artistic activities.

Art. 9. Yields of heritage items.

All consideration shall be given to any consideration, whatever the name or nature, that comes directly or indirectly from the assets, property or rights of which the a taxable person who is not affected by an economic exploitation carried out by the same taxable person.

Art. 10. Yields not included in the above concepts.

It shall also be considered to be taxable income for those who, without economic holdings or the transfer of assets, are directly or indirectly derived from the activities which constitute the social object or the specific purpose of the taxable person.

Art. 11. Net yield.

Net yield shall mean the difference between the total amount obtained by the taxable person and the items the deduction of which is relevant in each case, in accordance with the provisions of the Tax Act and the present Regulation.

Net yields, positive or negative, will be computed with their respective sign for the determination of the taxable person's income

Art. 12. Affectation of property assets to holdings.

1. Economic exploitation shall be considered as property assets:

(a) The real estate in which the respective holding or activity is developed.

b) Goods destined for economic and sociocultural services of the personnel in the service of the exploitation or activity.

c) Any other assets that are necessary for obtaining the respective returns.

2. Goods whose use or enjoyment is normally provided shall also be understood as an element affecting an economic operation, provided that its management requires a business organisation of its own or through third parties.

3. In the case of property assets which are partially used for the purpose of economic exploitation, the effect shall be limited to that part which is actually used in the activity in question.

CHAPTER III

Passive Subject

SECTION FIRST. THE TAXABLE PERSON

Art. 13. The taxable person.

1. Taxable persons are all subject to rights and obligations with legal personality that are not subject to the Income Tax of the Physical Persons.

2. In addition, any other Entity to which the laws recognize this quality shall be considered as a taxable person.

3. The taxable persons of this Tax shall be designated abbreviated and indistinctly by the words or in the text of this Regulation.

Art. 14. Personal obligation to contribute.

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

Art. 15. Real obligation to contribute.

taxable persons shall be subject to a real obligation when, without being resident in Spanish territory, they obtain returns or increases in their assets in that territory or receive returns satisfied by a person or Public or private entity resident in the same, except where, in the latter case, the income is paid by permanent establishments located abroad, under the same and the works, services or other benefits for which they are the yields are directly linked to the activity of the establishment in abroad.

Art. 16. Entities resident in Spain.

1. Entities resident in Spain shall be considered to comply with any of the following requirements:

(a) That they were constituted according to the Spanish laws.

b) Having their registered office in Spanish territory.

c) That they have the headquarters of effective management in Spanish territory.

2. The place where the administrative management and the management of the business are actually centralised shall be the place where the place of business is actually located.

Art. 17. Income subject to personal obligation.

taxable persons under personal obligation will be taxed for all the returns and increases in assets they obtain, regardless of where they were produced and whatever the residence of the payer.

Art. 18. Income subject to actual obligation.

The taxable persons under real obligation will only be subject to the tax for the amount of income and property increases obtained in Spanish territory, as provided for in Articles 300 to 346 of this Regulation.

Art. 19. Income obtained in Spanish territory.

In any case, the following shall be considered as income and property increases obtained in Spain:

(a) The income of the economic holdings of any kind obtained by means of permanent establishment situated in Spanish territory.

A Company shall be understood to conduct operations in Spain by means of permanent establishment when, directly or through proxy, it has a headquarters, branch, offices, factories, workshops, offices, offices, offices, installation, storerooms or other establishments; construction, installation or assembly works, where their duration is longer than 12 months; agencies or representations authorized to hire in the name and on behalf of the taxable person; or owns mines, quarries, oil or gas wells, agricultural holdings, forestry, livestock or any other place of extraction of natural resources or carry out professional or artistic activities or have other places of work in which it carries out all or part of its activity.

(b) The consideration for any kind of services, technical assistance, loans or any other provision of work or capital carried out or used in Spanish territory.

c) The income of the real estate located in Spain or of the rights established therein.

(d) Yields of transferable securities issued by companies resident in Spain, or by foreign companies with permanent establishment in Spain, of money, property, rights or other assets invested or located in Spain.

e) The increases in assets derived from all types of assets located in Spain.

Art. 20. Payment mediation.

A person or Entity will not be considered to satisfy a performance when it is limited to a simple payment mediation.

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

SECTION II. TAX DOMICILE

Art. 21. Tax domicile.

The tax domicile of the taxable persons resident in Spain shall be that of their registered office, provided that in the latter effectively centralised their administrative management and the management of their business. In another case, it shall be taken to the place where such management and management are carried out.

Art. 22. Effective address.

It is understood as a place in which the administrative management and the management of the business is centralized in which the following circumstances are present:

(a) Where there is an office or dependency where the general contracting of the Entity is normally verified, without prejudice to the one which is characteristic of the branches and which may be developed elsewhere, given the nature of the activities carried out.

(b) The principal accounting, with the development, supporting and supporting accounts, shall be carried out on a permanent basis, or in offices empowered for the purpose in the territory of the same Delegation of Finance, precise background to be able to verify and assess in due form all social operations.

(c) That within the repeated territory, the appropriate number of directors or managers of the Entity are domiciled in order to ensure that the management of the social business is duly exercised.

Art. 23. Application of the effective management criterion.

1. Where the registered office does not give rise to all the circumstances referred to in the preceding article, the tax domicile shall be fixed, in the order indicated, by applying the following criteria:

(a) Where circumstances (a), (b), and (c) of the previous article match.

b) Where circumstances a) and b) of the previous item

c) Where circumstances a) or b) with the c) and the registered office.

d) Where circumstance a) or b) with the registered office.

2. Where, by application of the rules of the preceding paragraph, the place of the tax domicile cannot be determined, the place in which the higher value of its material fixed assets, calculated on the basis of its net book value, shall prevail.

Art. 24. Change of tax domicile by the taxable person.

1. The taxable persons are obliged to make known to the Delegation of Finance of their tax domicile, in the economic year in which they are produced, the variations that imply the change of the same, whether within the scope of the same Delegation, be it from a different one. In the latter case, the Finance Delegations shall be obliged to carry out the appropriate checks in accordance with the provisions of the following Article.

2. The change in the tax domicile, when it coincides with the notice for notifications, must also be communicated by the taxable person to all the tax authorities in which the decision of any person is pending. class of administrative file.

3. As long as the taxpayer is not made the procedure mentioned in the preceding paragraph, the notifications made to the previous tax domicile will take effect.

Art. 25. Change of tax domicile at the request of the Administration.

1. The Finance Delegations may promote the change in the tax domicile in accordance with the following rules:

First.-If the initiative was taken from the Finance Delegation where it is considered that the determining circumstances for the tax domicile other than the one recognized by it will be present, it will be brought to the attention of the the Delegation in which the Entity is domiciled so far, accompanying the background in which it is founded.

Once the reports deemed necessary have been issued, and after hearing the person concerned, the latter delegation shall give the relevant agreement within three months of receipt of the dossier. This agreement shall be notified to the taxable person and to the delegation which promoted the file.

Second.-In the event that it is the Finance Delegation of the respective tax domicile that promotes the change to the scope of another Delegation, it will request the appropriate report, which will issue it within the period not exceeding two years. months, in accordance with Article 86.2 of the Law of Administrative Procedure, and, after hearing the person concerned, shall give the appropriate agreement within one month of receipt of that report.

2. The differences in criteria between two Finance Delegations on the change of tax domicile of a taxable person will be resolved by the General Directorate of Taxation, giving an audience, if any. to the Entity concerned.

Art. 26. Complaints.

The agreements that the tax office changes will dictate to the Finance Delegations or, where appropriate, the Executive Center, will be reclaimable in the economic-administrative way.

Art. 27. Domicile of taxable persons resident abroad.

The taxable persons resident in the foreign currency shall have their registered office:

(a) When they operate in Spain through permanent establishment, in the place where the effective administrative management and the management of their business in Spain, apply them, as soon as they are relevant, the rules concerning the Entities resident in Spanish territory.

(b) In the remaining cases of the actual obligation, in the tax domicile of your representative.

Art. 28. Representatives of non-resident entities in Spain.

1. Taxable persons not resident in Spanish territory who operate in Spain without permanent establishment shall be obliged to designate a person, natural or legal, with a registered office in Spain to represent them before the Tax Administration in Spain. relationship to their obligations under this Tax.

The designation shall be communicated to the Delegation of Finance in which they have submitted the tax declaration, in accordance with the provisions of this Regulation, accompanying the indicated communication the express acceptance of the representative.

2. The persons required to retain may assume the status of representatives of Entities residing abroad for the purposes provided for in the previous paragraph.

SECTION III. EXEMPTIONS

Art. 29. Exempt entities.

1. They shall be exempt from corporation tax, except for yields subject to retention:

(a) The State and the Autonomous Communities.

(b) The autonomous administrative bodies.

(c) Autonomous bodies of a commercial, industrial, financial or similar nature.

(d) The Banco de España and the Deposit Insurance Funds.

e) Public entities entrusted with the management of Social Security.

This exemption will not reach the returns derived from private insurance made by those returns.

2. The Entities referred to in the preceding paragraph shall be governed by the provisions of Articles 347 and 348 of this Regulation.

Art. 30. Other exempted entities.

1. They are equally exempt from the Company Tax, except as provided in the following paragraph:

(a) Territorial Public Administrations other than the State and the Autonomous Communities.

b) The Catholic Church and non-Catholic confessional associations legally recognized with which the cooperation agreements referred to in Article 16 of the Spanish Constitution are established.

(c) Social Welfare and Mutual Social Welfare (s), provided that the nature and extent of their benefits are within the limits laid down by law.

We will also be understood to be covered by this exemption, the Employers ' Mutual Associations of Work Accidents, registered in the Register of Social Welfare Entities.

d) The Spanish Red Cross.

e) The Facilities, Institutions, Foundations or Associations, including those of a temporary nature to arbitrate funds, when such Entes have been qualified or declared beneficial or of public utility by the organs the competent State, provided that the charges of employers, legal representatives or managers are free of charge and are held accountable to the relevant protectorate.

f) Political parties, trade unions, professional associations, employers ' organizations, official chambers and non-profit associations, provided that in each case there is legal recognition expressed the legal personality of the Entity in question.

Non-profit entities shall not be considered to be any Associations that primarily pursue the collection of the income referred to in the following paragraph or in which the charges of employers, legal representatives or In fact managers are not free.

2. The exemption shall not apply to the income which these institutions may obtain for the financial year, the derivatives of their assets when they are transferred, the holdings subject to retention or the increases in their assets.

3. The Entities referred to in this Article shall be governed by the provisions of Articles 349 to 358 of this Regulation.

Art. 31. Foundations and charitable or public utility associations.

The requirements referred to in point (e) of the previous article must be completed in full exercise by the entities mentioned above, as a condition for the enjoyment of the exemption.

Art. 32. Exemption by transparency regime.

1. Entities subject to or receiving the tax transparency regime shall not be taxed by the Company Tax.

2. They shall not apply to the partners or members of the Entities referred to in this Article for the benefits not enjoyed by them as a result of the incompatibility of the transparency regime with other schemes.

Art. 33. Incompatibility between different regimes.

1. The following schemes shall be incompatible with each other for the same taxable person:

a) Fiscal transparency.

(b) Restearlier exemptions referred to in this Section.

c) Those recognized in the third transitional provision of Law 61/1978 of 27 December.

d) Taxation of consolidated groups.

e) The general, except for cases of express remission to its rules.

2. In the case of the concurrence of different tax regimes for this tax, the following order shall apply:

(a) Exemptions referred to in point (b) of the previous paragraph.

b) Compulsory tax transparency.

(c) Option, expressly stated, between the voluntary tax transparency and those referred to in points (c) and (d) of the previous paragraph

d) General regime.

Art. 34. Shipping and air navigation entities.

1. The Ministry of Finance may declare, on condition of reciprocity, the exemption of maritime or air navigation entities resident abroad, whose vessels or aircraft touch Spanish territory, even if they have in this consignors or agents.

2. Agreements established prior to the entry into force of Law 81/1978 of 27 December, which had not expired, shall be construed as existing.

CHAPTER IV

Tax Base

SECTION FIRST. GENERAL PRINCIPLES

Art. 35. Tax base.

1. The amount of the income in the period of the tax, which is, where applicable, the amount of the tax, is the taxable amount for the compensation of negative taxable bases for previous years.

2. The amounts of the various items, positive or negative, which make up the income are integrated and offset for the calculation of the tax base.

Art. 36. Procedure for determining the tax base.

1. In general, the taxable amount shall be determined by the algebraic sum of the net yields and the increases and decreases in the assets obtained or produced in the financial year, deducted from the accounts of the taxable person and the application of the rules contained in this Regulation.

2. The tax base shall be determined by the difference between the value of the tax capital at the beginning and end of the tax period, with support in the available accounting and non-accounting data, where the following circumstances are present:

(a) That the situation of the records and the accounting records does not permit the application of the general procedure referred to in the preceding paragraph.

b) That the available data allow the determination of the tax base by this procedure.

3. Where the determination of the tax base cannot be carried out by the procedures set out above, indirect methods shall apply, in accordance with the provisions of Law No 34/1980 of 21 June, and in the regulatory rules which are applicable.

SECTION II. VALUATION RULES

Subsection 1. General criteria

Art. 37. General principles of accounting.

1. Accounting shall be understood to reflect at all times the true state of the entity's assets if it is carried out in accordance with the provisions of the Trade Code and other applicable legal provisions.

2. As a general rule, and without prejudice to the particularities of this Regulation, the technical criteria and principles laid down in the General Accounting Plan approved by Decree 530/1973, of 22 February, or in the Plans, shall apply. Sector-specific.

3. The accounts shall be responsible for collecting all the transactions and facts of economic relevance for the institution which have occurred or are known in the tax period.

4. Any accounting record must be sufficiently documented and, in particular, where it involves changes in the assessment criteria adopted.

5. Any good or operation shall be recorded in such a way as to adequately reflect its significance and nature.

6. Exceptionally, where the rules of this tax or a legal precept of a fiscal nature expressly authorize it, it may be admitted that the principles of continuity, accrual and continuous management are not applied. In this case, this circumstance should be mentioned in the documentation presented together with the declaration for this tax.

Art. 38. Assessment of revenue and expenditure.

1. Revenue and expenditure shall be taken into account in respect of its accounting values, provided that the accounts reflect the true assets of the Company at all times.

The effects of this tax shall be construed as accounting values resulting from the application of the general accounting principles and the criteria and rules laid down in this Regulation.

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, where applicable, their regulated value.

3. The income that has been withheld by this tax shall be counted in its entirety, adding to the perceived liquid yield the effective amount of the withholding that would have been practiced.

Art. 39. Related transactions.

1. By way of derogation from the foregoing Article 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 companies.

2. The provisions of the above paragraph shall apply in any event:

(a) Companies linked directly or indirectly to other non-residents in Spain.

b) To transactions between a Company and its members, directors or persons forming part of their respective family units, as defined in accordance with Article 5 of the Income Tax Act Physical.

(c) To transactions between two companies in which the same members or persons belonging to their respective family units hold at least 25 per 100 of their capital or when such persons exercise in both companies functions involving the exercise of the power of decision.

3. For the purposes of the above two paragraphs, it shall be understood that there is a link between two companies when they participate directly or indirectly, at least, in the 25 per 100 in the social capital of another or when, without (a) a company exercises in other functions involving the exercise of the power of decision.

4. The operations carried out by the cooperatives with their partners, resulting from the fulfilment of their social ends, shall be computed by their market value.

5. By way of derogation from the preceding paragraph, in the case of consumer cooperatives, and in general for those whose purpose is to provide supplies or services to their partners, it shall be counted as the price of the (a) corresponding transactions in respect of which they were actually carried out.

Art. 40. Acquisition and disposal prices.

1. The goods, materials and materials, as long as they are not transmitted, will be valued for their purchase price or cost of production, except when expressly provided or authorized otherwise by the regulations of this Tax.

2. The purchase price shall be obtained by adding to the purchase price the ancillary costs up to the actual operation.

Transport, transport, transport, loading and unloading, installation and assembly, testing and testing shall be considered as ancillary costs, and the fees and charges for the operation or involving a higher value.

The compensation and penalties arising from the operation shall not be understood to be part of the price.

3. The cost of production shall be obtained by adding to the purchase price of the raw materials and other auxiliaries the costs directly attributable to the product concerned and the corresponding fraction of the indirect costs incurred in the period of manufacture or manufacture.

4. When the transfer of a good or a right is carried out, as well as the extinction of a right or debt, they shall be valued according to the price of disposal or realization, unless special rules are applicable.

It shall be understood as the price of disposal or realization by which the transmission or extinction of the goods, rights or debts is verified.

The sale price shall be deemed to be minorated, for the purposes of determining the net yield or the increase or decrease in assets, in the amount of the ancillary expenditure actually incurred, without prejudice to the rules (a) accounting for the applicable accounting.

Art. 41. Acquisition and disposal securities.

1. For the purposes of this Tax, they shall be construed as acquisition or disposal securities, as appropriate, resulting from the application of the rules for the determination of the property increases or decreases.

2. The acquisition value shall be understood as modified by the application of revaluations or devaluations authorized by the rules of this Tax or that have been computed in the taxable base of the same.

As a consequence of the operations referred to in the preceding paragraph, in no case may the goods be valued above their normal value for completion or market.

3. In cases where, by application of the rules of this Tax, the tax assessment differs from that reflected, the taxable person may choose, unless expressly stated otherwise, by:

a) Readjust the valuation to the tax value that has been set, by collecting the difference in a special reserve account.

b) To express this circumstance by means of a sufficiently illustrative seat or note annexed to the annual accounts, keeping the annotation as long as the circumstances that originated it.

4. The provisions of point (a) of the previous paragraph shall not apply to transactions involving a different valuation of expenditure or revenue.

Art. 42. Net book value

1. The net accounting value of an asset item shall be integrated, for the purposes of this Tax, by the algebraic sum of the following items:

(a) With a positive sign, the acquisition value, the improvements and extensions made and, where applicable, the accounting revaluations referred to in paragraph 2 of the previous Article.

b) With a negative sign, the accumulated depreciation, made in accordance with the rules of this Tax, the provisions specifically affected to the patrimonial element, fiscally authorized and the cost of the enajenations partial results.

2. The provisions of the above paragraph shall be without prejudice to the special rules contained in this Regulation and relating to the various groups of elements.

Art. 43. Concept of amortisation.

1. For the purposes of this Tax, the amounts intended to compensate for the depreciation of the assets of tangible or intangible fixed assets shall be considered to be amortisation, provided that such depreciation is effective and is accounted for.

2. The computation of a depreciation as an expense of an economic exploitation will be incompatible with its treatment as a wealth reduction.

Art. 44. Depreciable elements.

1. The elements integrated in the fixed assets which are necessarily depreciated by their physical use, by the action of technical progress or by the simple passage of time, will be subject to depreciation.

2. In the case of buildings, the computable depreciation shall only be the value of the construction, excluding the value of the land, to which the exceptional rule of the market shall be applied, where appropriate.

When the value attributable to the soil is not known, it shall be calculated on the basis of the proportion in which it is in relation to the total value, based on the cadastral values.

3. Items of intangible fixed assets which are depreciable and are recorded as such, as well as multi-annual projection costs, shall also be eligible for depreciation.

4. In no case shall the ongoing detention be depreciated.

Art. 45. Effective depreciation.

1. Depreciation allocations shall be deemed to meet the requirement of effectiveness:

(a) Where they do not exceed the result of applying to the acquisition accounting values the coefficients to be determined by the Ministry of Finance to this end, nor exceed the amortisation period set by the Ministry of Finance.

(b) When they are made in accordance with the rules laid down in this Regulation for the degressive depreciation system.

(c) When they conform to the plan formulated by the holder of the activity and accepted by the Tax Administration, with the requirements and conditions set out in this Regulation.

2. The effectiveness of the depreciation shall be tested by the taxable person if he exceeds the limits referred to in the preceding paragraph.

Art. 46. Principles of amortisation.

1. The depreciation shall be applied on the whole of the assets which are liable for depreciation on the balance sheet of the company and shall be applied for each item.

In the case of elements of a similar nature or subject to a similar degree of use, depreciation may be carried out on the whole of them, but at all times the part of the depreciation must be known. the cumulative value of each asset, depending on its depreciable value and the operating year.

2. The following rules shall be taken into account for the consideration as a deductible item of write-downs:

First. The elements of the tangible fixed assets shall begin to be amortised from the moment they are operational.

Second. The items of intangible fixed assets, where their amortisation is due, shall begin to be amortised from the time of their acquisition by the Company.

Third. Where an item becomes operational within the tax period, the amortisation shall relate to the proportional portion of the period during which it has been in operation. Similar criterion will be used in the calculation of the depreciation of intangible fixed assets.

3. In no case shall the sum of the write-downs effected exceed the value for which the asset is credited.

4. Depreciation shall not be regarded as a deductible item in respect of any other year, irrespective of the positive or negative result obtained in the year in which it was carried out.

5. The amortisation exceeding the tax admitted by the rules of the

this Regulation shall be considered as non-deductible asset consolidation for the purposes of determining the tax base.

6. Each element will have to be depreciated fiscally within the period of its useful life. Any amortisation made later will have the consideration of asset consolidation, not deductible for the determination of the tax base.

7. For the purposes of paragraph 1 above, the may constitute a single eligible item for depreciation.

8. those comprehensive functional structures of buildings, machinery, material, parts or elements which, while being separable by nature, are closely linked to their operation which are irreversible and subject to the same rate of depreciation. Spare parts or spare parts shall not be included without prejudice to Article 64 of this Regulation.

9. In the case of merger or absorption of undertakings, the depreciation scheme to which it was subject should be continued for each element incorporated, unless the existing firm prefers to apply to all its own system, for which it must formulate a a specific depreciation plan pursuant to Article 56 of this Regulation, or at the time of applying for the tax benefits provided for in Law 76/1980 of 26 December.

10. The same rules shall apply in the case of a division of undertakings.

Art. 47. Continuity of the write-downs.

1. As a general rule, different depreciation systems may not be applied simultaneously or in succession for the same asset depreciable asset. The taxable person shall be obliged to apply the system adopted or accepted for the item concerned from the time of its operation until its total depreciation, disposal or loss.

2. Where the taxable person seeks to justify the actual depreciation in practice, he shall indicate in the Annex to the first balance sheet, as from the entry into operation of the goods concerned, the value of the goods and the criteria in which it projects such effective depreciation.

Art. 48. Minimum depreciation.

1. Any depreciable element shall be considered to be depreciated annually at least in the percentage sufficient to cover its total asset value over the course of its useful life, in accordance with the adopted depreciation criterion.

2. In the case of paragraph 2 of the following Article, the linear quota necessary to cover the value of the item to be amortised in the maximum depreciation period fixed in the tables shall be considered as a minimum amortisation.

Art. 49. Concept of useful life.

1. For tax purposes, the useful life of a depreciable asset shall be the period in which, according to the depreciation criterion adopted, its value, excluding, where applicable, the residual value, should be fully covered.

2. Where an item is amortised on the basis of officially approved depreciation tables, the maximum depreciation period in which it is allocated shall be considered as useful life.

3. Exceptionally, useful life shall be deemed to be extended for the duration of the inactivity in cases of temporary cessation of activities which meet the following circumstances:

a) That affect a complete industrial plant or specialized complex installation.

b) That the stoppage is longer than one year or campaign.

(c) The Company decides not to pay amortisation during the period of cessation, thus stating by a sufficiently illustrative marginal note of the facilities concerned and the period of cessation.

Art. 50. Losses due to loss and deterioration.

Justified losses, whatever their cause, as well as the deactivation of assets or rights not computed as amortisation on the market for asset values and in general will be deductible or (a) a reduction in assets, as appropriate, as long as they have occurred in the tax period.

Art. 51. Foreign exchange operations.

1. Positive or negative differences in the accounts of foreign currency balances as a result of the change in their contributions shall be computed at the time of the payment or the respective payment.

To do this, these operations will be recorded contably at the time they are made, to the change that would be applicable at the time. Where the Company contracts a fixed rate of contribution, the difference between the exchange rate and the spot rate shall be reported linearly throughout the period to which the contract relates.

2. Exceptionally, in the case of financial transactions, fixed in foreign currency, with a duration of more than one year, the accounting value may be adjusted according to the type of contribution corresponding to the end of the financial year, by making the difference, positive or negative, with or due to results or, where appropriate, to the representative account of the item of fixed assets financed with the said operations, while the item does not become operational.

When the Company engages in the provisions of the preceding paragraph, it shall apply it without interruption until the final cancellation of the operations in foreign currency in the period exceeding the year and on the whole of the same.

3. Where the difference referred to in the preceding paragraph is greater than 5 per 100 of the preceding book value, that difference may be subject to a period of time which shall not exceed the maturity of the operation or linearly in a period not exceeding five years, at the choice of the taxable person, who shall record the option chosen by a marginal note.

4. In the case of transactions on which a change insurance has been established, with or without consideration, the provisions of this Article shall not apply except for the part of the difference of exchange not covered by the said insurance.

5. The provisions of this Article shall not apply to stocks of foreign currency held by banks or credit institutions, which shall be governed by Article 73 of this Regulation.

Subsection 2. Material assets

Art. 52. Fixed assets.

1. Tangible fixed assets shall be considered to be all tangible, movable, immovable or semi-movable assets which are effectively incorporated into the assets of the taxable person and which are used for the purpose of obtaining taxable income. this tax, except for items which have the consideration of stocks.

2. Tangible fixed assets shall be initially recorded for their purchase price or cost of production, except where their acquisition value is different, the provisions of Article 41.3 of this Regulation shall be used.

3. The annual depreciation allocations shall be applied to the value which shall be established in each case and shall be taken into account other than that in which the assets are reflected, the balance of the liabilities of the balance sheet or the asset being reported. compensator character.

Art. 53. Inclusion of interest.

1. In no case shall the interest accrued on the capital received under any form of loan be included in the acquisition value, even by means of a deferred payment or a financial lease and which correspond to the period of deferment in the payment, from the date of delivery of the assets in question.

2. In the case of fixed-asset investments made or constructed on the basis of a specific individual project, and the construction process of which lasts more than two years, the interests of the individual may be included in the acquisition value. (a) foreign capital directly employed in the financing of the investment during the construction period until its delivery and making available.

3. In other cases, it may be chosen for inclusion within the financial burden of the financial year or for its treatment as deferred financial expenditure or start-up expenditure.

The same treatment will receive the excess of the project's financial burden on the amount corresponding to the direct financing of the investment in progress referred to in the preceding paragraph. This is not the case, but it is also a question of the Commission's position.

Art. 54. Degressive depreciation.

1. Taxable persons in the company tax may apply the degressive depreciation system, according to one of the following methods:

a) Applying a constant percentage on the outstanding value of amortisation of depreciable items under this system.

b) Applying the method called .

2. The constant percentages referred to in point (a) of the preceding paragraph shall be determined by weighting the linear depreciation coefficient obtained from the depreciation period by the following coefficients:

a) If the asset item has a amortization period of less than five years: One and a half years.

b) If the asset item has a amortization period equal to or greater than five years and less than eight years: Two.

c) If the asset item has a amortization period equal to or greater than eight years: Two and a half years.

In no case will the constant percentage be less than 11 per 100.

When the outstanding balance before the end of the financial year is less than the amount of a linear fee, that balance may be amortised in the said financial year.

3. For the application of the digit sum method, it will proceed as follows:

a) The sum of digits shall be obtained by the addition of the numerical values assigned to the years in which the good is to be amortized.

For this purpose, a numerical value shall be assigned equal to the amortisation period, expressed in years, of the item concerned, to the operating year and, for the following financial years, numerical values successively decreases in a unit, until it reaches the last considered for amortization, which will have a numerical value equal to the unit.

(b) The depreciable value shall be divided between the sum of digits, obtained in accordance with the preceding letter, thus determining the digit.

(c) In each financial year, the product shall be allocated the product of the quota per digit for the total of digits which, in accordance with point (a) above, corresponds to the financial year.

When an exercise of the application of this method has duration less than the initially considered and in cases where the element causes low in the Company's asset, the envelope calculated according to the previous paragraph is pro rata pro rata to that duration or to the length of stay in the exercise of the item to determine the eligible allocation as a deductible item.

4. The amortisation period referred to in the preceding paragraphs may not exceed the maximum fixed in the officially approved depreciation tables, nor less than that which is deducted from the application of the maximum depreciation coefficient. indicated in the same for the element in question.

5. They will be necessary to be able to apply the degressive depreciation system:

(a) depreciable assets must have a life of up to or equal to three years.

b) They must be acquired new or built by the Company itself; that is, that they are usable and come into operation for the first time.

c) It should be elements of tangible fixed assets consisting of:

-Machinery and industrial and agricultural installations.

-Transport equipment, including ships and aircraft, but not including motor vehicles for the use of personnel.

-Computer and data processing equipment.

-Hotel facilities.

(d) The degressive depreciation system shall also apply to cinematographic and phonographic productions the ownership of which corresponds to the Entity. In such cases, where the useful life period is equal to or greater than five years, it may be amortised in the first period up to 50 per 100 of depreciable value, applying in the other financial years the general rules for the outstanding part of the to write down after the allocation for the first financial year mentioned.

6. In no case shall the degressive depreciation system be applicable to:

a) Intangible assets.

(b) Buildings, whatever their destination or affectation, unless they are part of complex specialised facilities.

c) Administrative facilities, as well as furniture and office equipment.

Art. 55. Repayment plans.

1. A company may adjust its amortisation to a plan drawn up by them, where, under circumstances of a permanent nature which are in the course of the development of its business, the elements of the fixed assets or intangible assets are subject to technical or economic depreciation other than that resulting from the application of the officially approved depreciation tables.

2. In any case, the repayment plans shall necessarily meet the following requirements:

(a) which relate exclusively to elements of the material immobilized new, that is to say, that they are usable and to be in operation for the first time, or to elements of the intangible immobilised coming from programmes of research and development.

(b) That these items are located or that the programs have been carried out on Spanish territory.

(c) The items of the depreciable fixed assets included in the plan are included in the main accounts and in the collateral with the separation of the remaining assets.

Art. 56. Request for repayment plans.

1. The request for the repayment plan shall be submitted to the Finance Delegation of the taxable person's tax domicile within the construction period or three months after the date of its implementation. accompanying. in triplicate, the following documents for each group of items:

A) Detailed exposure of the proposed amortization plan and its development over time, with the expression of:

(a) Items to be applied, described in sufficient detail to enable their identification.

b) Activity to which such items are attached.

c) Date of acquisition of the items by the Company, as well as its location.

When the request is made during the construction period, investment calendar to be made, and expected date of entry into operation.

(d) Repayment criteria proposed, with the express indication of the parameters to be used for the determination of the degree of depreciation in each financial year.

e) Acquisition settings for the included items.

B) The justification for the plan from the technical and economic points of view.

2. The Chief Inspector of the Delegation of Finance, in the light of the application submitted and collecting from the taxable person any additional information necessary, shall, within one month, submit to the Directorate-General for Taxation a report on the amortisation requested.

When the elements are installed in the demarcation of another Delegation, the Chief Inspector of the Office of the Office of the Office of the Prosecutor's Office shall transfer the file to that Office within 15 days for the issue of the referred to in the preceding paragraph.

3. The Director-General of Taxation in the light of the foregoing documents, shall, within three months of the date of the submission of the request or, where appropriate, the date of receipt by the Inspection of the Information, additional required.

4. After the previous period of time without the Administration interrupting it, the proposed plan shall be deemed to be accepted.

The provisions of the preceding paragraph shall not apply where the application has not been in accordance with paragraph 1, without prejudice to its possible acceptance at the time of the inspection as a criterion of effectiveness.

5. If the decision alters the plan sought by the taxpayer, the taxpayer may waive it within 15 days of the date of the notification of the relevant agreement.

6. The Director-General of Taxation may delegate, by resolution, the power recognized in paragraph 3, in the Deputy Directors-General of the Directorate or in the Finance Delegates.

Art. 57. Rectification of the repayment plans

1. The approved depreciation plans may be subject to modification at the request of the respective taxpayers, subject to the above rules. Such a request shall be submitted within the first quarter of the year in which the amendment is to be made.

2. In the event that such an application has not been made or has been refused in the form of the Tax Administration, the depreciation or depreciation allowance on the calculated per application of the plan initially approved, as well as those made once The period of validity of the plan shall be considered as an asset, not deductible for the determination of the tax base or, where applicable, the performance of the plan, except as provided for in Article 45 (2) of the plan. Regulation.

Art. 58. Depreciation according to tables.

1. Where the taxable person has not opted for the application of another system, the allocation to the write-downs shall be adjusted to the application of depreciation coefficients which may in no case exceed the ceilings fixed in the depreciation tables. officially approved, without prejudice to the minimum depreciation in Article 48 of this Regulation, as well as in paragraph 3 of this Article.

2. Where a depreciable item is not specifically fixed to its depreciation coefficient or its maximum useful life time and as long as the Ministry of Finance does not set it definitively, the taxable person may apply provisionally (a) which is deemed appropriate by assimilation to those previously approved.

3. When an item is used daily on more than one normal shift of work, the minimum depreciation coefficients may be increased in the result of multiplying the difference between the maximum and minimum coefficients obtained from the tables by the coefficient between the daily hours usually worked and eight hours. The result thus obtained shall be the maximum allowable depreciation coefficient in this case.

The provisions of the preceding paragraph shall not apply to those elements which are assigned in table coefficients drawn up taking into account a higher utilization than a normal working shift.

Art. 59. Freedom of amortisation.

1. Companies carrying out activities for the exploration, research, exploitation or benefit of mineral deposits and other geological resources classified in Section C), point one, of the third article of the Law of Mines, as well as those of By Royal Decree the Government may determine in general between those included in Sections A) and B) of the said article, will enjoy the regime of freedom to write down its investments in mining assets for a period of ten years, in the terms and conditions laid down in Article 26 of Law 6/1977, of 4 January, on Promotion of Mining. In particular, the following rules shall be taken into account.

A) The ten-year period during which the freedom of amortisation may be applied shall be computed:

(a) For the mining assets listed in the Company's inventory on 1 January 1977, starting on 9 January of that year.

(b) For new investments made as from 1 January 1977, from the beginning of the first economic year on the balance sheet of which the result of the holding is reflected.

B) The depreciation will only affect investments made in mining assets.

C) After the expiry of the ten-year period, the balances of the representative accounts of the mining assets which experienced partial write-downs shall be subject to the general depreciation arrangements provided for in this Regulation. Regulation, for the period which will be of useful life.

(D) Mining assets under the freedom of amortisation scheme shall be included in the main accounts and in the collateral with the separation of the remaining assets.

2. The taxable persons who, under the Law on Industries of Interest of 2 December 1963, and the Law on the Promotion of Forestry Production of 4 January 1977, had the right to apply the freedom of movement scheme depreciation at the time of entry into force of Law 61/1978 of 27 December, they will continue to enjoy their right within the time limit for which they would have been recognised. In no case shall it be extended from the expiry of the same period.

3. Companies which have as their object the investigation and exploitation of hydrocarbons will practice their redemptions in accordance with the provisions of Law 21/1974 of 27 June, and Royal Decree 2362/1976 of 30 July.

Ar. 60. Amortisation of the revertible assets.

1. The depreciation of the assets of the assets of the Entities that exploit concessions to be reversed by the State, Autonomous Communities or the Territorial Public Administrations shall be carried out in accordance with the following rules:

a) Amorations for reversal.

You will understand all elements of the immobilized that under the grant rule must revert to the Administration, and will be carried out according to the following rules:

First. It shall be calculated in a linear manner so as to allow the total recovery of the amount of investments in repayable assets in the period between its operation and the date set for the reversal.

Second. In the case of replacement of assets, the appropriations to the Reversal Fund shall be increased or decreased, as appropriate, in the part corresponding to the difference between the acquisition cost of the well-incorporated and the corresponding good. replaced, without taking into account the latter the technical amortisation of the techniques used.

Third. The appropriations to the Reversal Fund shall not be considered as deductible:

-Corresponding to the part of the concession period prior to the first financial year in which Law 61/1978 of 27 December of the Company Tax was applicable.

-Not practiced, in whole or in part, in the corresponding year.

b) Technical amortization of the revertible assets.

The general rules contained in this Regulation shall apply, even if the remaining period of the concession is less than the useful life of the item, being compatible with the reversal of the reversion to which the Previous point.

c) Depreciation of non-restructible fixed assets.

The general rules provided for in this Regulation shall apply.

2. The provisions of the preceding number shall apply without prejudice to any repayment plans which have been obtained or obtained in the future by the endorsement of the Administration.

However, such plans may not authorize cumulative amounts higher than those resulting from the application of officially approved amortization tables.

Art. 61. Depreciation of used items.

Dealing with items of asset that are used for the calculation of the depreciation shall be performed according to the following criteria:

(a) On acquisition securities, the maximum coefficients shall be applied up to the limit of twice the rates to be indicated in the tables and the maximum period shall be reduced by half. This reduction must be overdone, with the complete years.

(b) If the originating or regulated cost is known, it may be taken as the basis for the application of the maximum depreciation coefficients, which appear on the tables. In this case, the maximum period of time in which the amortisation is accepted shall be determined by the difference between the one indicating the tables to the element in question and the integer quotient, by default, resulting from the division of the the difference between the cost and the acquisition value, resulting from the application of the maximum depreciation coefficient to the original or regulated cost.

(c) If the originating or regulated cost is not known, the right of the taxable person to determine that price shall always remain safe. This cost shall be established as in the preceding point, taking into account that only the regulated cost may be taken into account when the taxable person has received, in the case of the tax laws issued for that purpose, the tax laws.

Art. 62. Depreciation of revalued assets.

1. In the case of assets regulated under special laws of a fiscal nature, the depreciation shall be based on the new net values which have resulted from the same and from the year following that in which the it has made such regularisation by taking effect provisionally until the Administration has approved the regularised balance sheet.

2. In the case of voluntary revaluations, the new book value, in addition to being regarded as an increase in equity in the amount corresponding to it, shall be amortised with the same criterion as it previously governed, without increase the coefficient or the maximum depreciation period.

Art. 63. Depreciation of assets acquired through leasing.

In the case of goods the acquisition of which is derived from leasing contracts, the residual value for which the purchase option is exercised shall be amortised only.

Art. 64. Parts for fixed assets.

Fixed assets may exceptionally be depreciated on an equal footing as the fixed assets item to which they are affected when each and every one of the following circumstances occurs:

(a) In the case of perfectly identifiable parts or components.

(b) That they apply exclusively to certain elements of fixed assets.

In this case, the incorporation of the replacement to the fixed assets item in replacement of another impaired, will determine the consideration as expense of the outstanding part of amortization of the incorporated replacement.

Subsection 3. Other immobilized

Art. 65. Intangible fixed assets.

1. This consideration shall be given to intangible assets, made up of goods and rights which are subject to economic valuation, acquired by consideration and which are accounted for as such in the assets of the balance sheet.

2. Intangible fixed assets shall be reflected in the assets of the balance sheet for their price or acquisition value.

When the Entity has assets or rights that are susceptible to economic valuation that do not have a fixed acquisition value, it may express this circumstance by means of order or marginal annotation to the balance sheet.

In cases of investment in research programmes or development of new industrial products or processes referred to in Article 233 et seq. of this Regulation, the valuation shall include expenditure incurred in such a way as to the purpose directly by the Company and those that come from the works and supplies carried out by other Entities.

3. Items of intangible fixed assets shall be amortised when they are continuously depreciated or have a limited temporary effect without the possibility of successive extensions, taking into account the corresponding write-downs in a separate account compensator character.

Items that are not depreciable shall apply to them, where appropriate, the provisions of Article 50 on loss for loss and impairment.

Art. 66. Elements of intangible fixed assets.

1. The following shall be considered, in any case, as items of intangible fixed assets:

(a) Administrative concessions where they have been granted for a limited period of time.

They shall be deemed to be granted for a limited period of time when their extension is subject to the payment of a new fee or consideration.

(b) The actual rights of use or enjoyment, whether exclusive or not, agreed by a limited period and by way of consideration.

(c) The elements of industrial property such as patent trademarks and trade names, models and drawings, obtained by way of consideration and whose exclusive use is legally recognised by a specified and unextendable period.

2. On the other hand, they shall not be considered to be depreciable, without prejudice to the treatment of losses caused by their dejilement and deterioration:

a) Trade Fund.

b) Transfer rights.

(c) The elements referred to in the preceding paragraph, where the circumstances in each case are not indicated.

3. The transmission of the goods or rights covered by the concession shall not be considered to be depreciable when the taxable person's activity is included in the taxable person's activity, without prejudice to the allocation of costs. which corresponds.

Subsection 4. Depreciable and multi-annual projection expenses

Art. 67. Depreciable expenses.

1. Such deferred or multi-annual charges shall be deemed to be depreciable, either because they have a future economic projection or to exceed their usefulness in the economic year in which they are contracted.

In particular, they shall be considered to be included within depreciable expenses:

(a) Expenditure on the formation and modification of Societies and the extension of capital, as well as the expenses of first establishment and start-up of facilities, as long as they are not cumulative to the value of the fixed assets.

(b) Financial expenses, anticipated or deferred, by reason of loans, loans and deferred payment transactions, unless they are fully computed as expenditure for the financial year in which they were incurred.

c) Research, studies and projects to be written off due to the lack of positive results.

d) Expenditure on the modification of the Company's structure and those arising from duly authorized crisis files.

2. The amortised expenses shall be according to the rules set out in the following Articles and shall be reduced directly from the representative account of the item to be amortised from the results of the financial year.

As long as they do not have a specific time limit, depreciable expenses must be fully amortized over a maximum period of five years.

Art. 68. Expenditure on the formation and modification of companies and capital increase.

1. It shall be considered as expenses for the formation and modification of Societies and for the extension of capital necessary for the performance of such social operations, being understood by such as the granting of writing, taxes and registration in the Commercial Register and those inherent in the issuance and registration of the securities representative of the capital and, where appropriate, the precise ones to obtain the stock exchange listing.

2. These expenses must be amortized within the maximum period laid down in the Companies Act, to be counted from the date of the operation or within the period specified in Special Laws.

Art. 69. Cost of first establishment and assimilated.

1. The costs necessary for the first establishment shall be understood as expenditure until the undertaking starts its activity, including fees, travel expenses and other expenses for prior studies of technical and economic nature. launch and recruitment, training and distribution of staff until the start of the activity.

2. These expenses must be amortized within the maximum period laid down in the Companies Act, to be counted from the beginning of the activity, or within the time limit that they indicate in special laws.

3. The provisions of this Article shall apply to expenditure relating to changes in structure resulting from duly authorized industrial conversion plans or significant technological changes in the production process.

Art. 70. Multiannual financial expenditure.

1. The following shall be understood as multi-annual or deferred financial expenses, those corresponding to the use of foreign financial means for a period of more than one year, and in particular:

(a) The necessary expenditure for the issue of the borrowing.

(b) The costs necessary for the granting and formalisation of the loan.

(c) The premiums for the issuance and redemption of bonds, Caja bonds and similar securities expressly set out in the issuance.

2. The depreciation of the costs of issuing bonds and bonds, of formalisation of loans and of deferred financial expenses may be carried out:

(a) On the basis of a amortisation table drawn up at the time of issue of the borrowing and which shall be attached as an annex to the balance sheet in the statement for this tax in the relevant financial year.

b) Depending on the living capital at any time or on the interest payable in the financial year for the difference between the actual and nominal financial burden of the transaction, pointing to the option chosen in the same way as the one mentioned in the letter previous.

c) Lineally over the duration of the operation.

3. In the case of transactions with deferred payment more than one year, the difference between the total to be satisfied by the transaction and the purchase price of the item may be counted as depreciable expense.

The amortisation of these expenses shall be carried out on the basis of the proportion in which the total is to be met and the purchase price, deducted, where appropriate, from both items of the non-deferred payments, in relation to the payments carried out during the financial year.

4. In no case shall the amortisation period exceed the period of validity of the operations contracted, except as referred to in Article 53.3 in respect of the non-activated part of the financial burden of ongoing fixed assets. period of manufacture or construction.

5. In cases of early cancellation of all or part of the transaction, they shall be considered as a deductible item in the financial year in which the amount outstanding is to be amortised from the costs incurred by the said undertaking. cancellation.

Subsection 5. Transferable securities

Art. 71. Transferable securities.

1. For the purposes of this tax, securities shall be treated as securities which grant to their holders the right to property or to the collection of dividends, shares in profits, interest, commissions or premiums, and which are (a) to be traded on securities markets.

In particular they include:

(a) Shares and shares in the capital of any kind of Company or Entities.

b) Preferred subscription rights.

(c) Obligations, bonds and similar securities.

d) The exchange letters issued by Banks.

e) certificates of deposit issued by financial institutions and freely transferable.

(f) The deposit or delivery of goods where they are negotiable, as long as these goods are not intended for the exploitation of the Company.

2. Where the value of the securities at the end of the financial year, on the basis of their contribution, the value of the refund or the book value of the participating company, is less than the net book value of the investment company, it may to adjust its valuation by providing the provisions referred to in the following Article.

Art. 72. Provision for depreciation of transferable securities.

1. To determine the depreciation provision of transferable securities, it shall be operated as follows:

(a) The value of the realisation shall be taken at the end of the financial year of the securities concerned, unless the purchase price is lower, in which case it shall be taken.

(b) This value shall be reduced by the lower of the purchase price or the value of the realisation at the beginning of the financial year in turn by the amount of the subscription rights in the financial year in accordance with the rules Article 75 of this Regulation.

The contributions or returns of contributions made in the financial year should also be taken into account.

(c) The difference obtained, in less or more according to the letter above, shall be increased or decreased from the balance of the provision account, with or without charge, respectively, to results.

2. The provisions shall be independent for each homogeneous group of securities, meaning that it consists of all the securities issued by the same Entity with the same rights and maturity, if any, and shall be considered separately, asset character, in the balance sheet.

3. The appropriations for the provision for the depreciation of transferable securities shall be regarded as asset consolidation in excess of the depreciation suffered in the financial year by the securities in question.

4. The balance of the provision account may not exceed the accounting value of the securities for which it has been provided, nor may it be liable for a debtor.

5. The provision for depreciation of transferable securities shall not be permitted for securities which have a certain amount of reimbursement, without prejudice to the value of such securities, unless the purchase price is higher than that of the the reimbursement, in which case it shall be admissible as long as it does not exceed the difference referred to.

In particular, the provisions of this paragraph shall apply to:

(a) Obligations, bonds and similar securities.

b) The letters of change.

c) The certificates of deposit.

6. In exceptional circumstances, companies may be able to make the amount of the securities depreciation provision corresponding to official stock exchange securities, in accordance with the following rules:

First.-The amount of depreciation experienced in the financial year in accordance with the rules of the preceding paragraphs must appear simultaneously in the account representative of the provision and in an account of depreciable expenses.

Second.-At least 5 per 100 of the minorated accounting result, if any, in the results applications that have the consideration of fiscally deductible expenditure, shall be charged at least 5 per 100. balance of the depreciable expenses.

Third.-The preceding rule must be applied on a continuous basis, exercise to exercise, until the balance of the amortized expense constituted is eliminated.

Art. 73. Values acquired with a run coupon.

1. Where yields are collected that correspond, in whole or in part, to periods prior to the acquisition of the securities, the share for that period may be reduced from the acquisition value, with the difference being calculated as income with regard to the total received.

2. The provisions of the preceding paragraph shall not affect the deduction of the withholding tax or of the double taxation applicable.

3. The provisions of this Article shall not apply to securities purchased for their discounted cash amount, such as exchange letters, certificates of deposit or similar securities with interest paid in advance.

Art. 74. Average cost of acquiring transferable securities.

1. As long as no securities or rights are produced, the average acquisition cost shall be determined by the ratio between the net book value of each group of homogeneous securities and the number of such securities.

Homogeneous securities shall be understood to have equal nominal value, rights and maturities, if any.

2. At the time of any disposal, its acquisition cost shall be determined:

(a) In the case of securities, by the product of the number of securities by the average acquisition cost at the time of disposal.

(b) In the case of subscription rights, as set out in Article 75 of this Regulation.

Art. 75. Subscription rights.

1. The amount obtained by the disposal of subscription rights shall not be considered as income, reducing the value of the shares from which they have been disposed of.

2. By way of derogation from the above paragraph, the companies may choose to reflect the actual value of their securities portfolios in accordance with the following rules:

(a) The share of the acquisition value corresponding to the rights in the securities will be determined, through the equalisation of unit costs per title, before and after the current extension, for which the provision corresponding to the values in question.

(b) That part of the acquisition value shall be reduced from the asset value of the securities from which the rights are derived.

(c) The difference between the net perceived and the reduction practiced, according to the preceding letters, shall be considered as an increase or decrease in assets in the exercise of the disposal of the rights.

3. Where the application of the procedure referred to in paragraph 1 may result in a negative assessment of the securities portfolio, the alternative procedure referred to in paragraph 2 shall be followed.

Subsection 6. Stocks

Art. 76. Stocks.

1. Stocks shall be considered as the movable and immovable property acquired by the Company for the purpose of incorporating them into the goods produced or for sale without processing.

2. Stocks shall be reflected in the assets of the balance sheet on the basis of their purchase price or production cost, without prejudice to the value adjustments resulting from the application of Article 80 of this Regulation.

3. In cases where the market value of certain stocks at the end of the financial year is lower, due to deterioration, to the market price, to the average cost or to the purchase price, a provision may be made for depreciation of stocks to be shown on the balance sheet on a compensatory basis.

Art. 77. Provision for depreciation of stocks.

1. The provision for depreciation of existentias will conform to the following rules:

(a) The market value, at the end of the financial year, of the stocks concerned shall be taken.

(b) The value of the stock shall be subtracted from the value of the stock at the average cost or purchase price, which is, in turn, at the level of the provision previously provided for the same stocks, in the non-applied part. in the exercise.

(c) The difference obtained, in more or less, according to the letter above, shall be increased or decreased from the balance of the provision account, with or without charge, respectively, to results.

2. The envelopes shall be independent for each homogeneous group of stocks, meaning that the group consists of those of the same nature, age and use or destination.

3. The appropriations for the provision for depreciation of stocks shall be regarded as asset consolidation in excess of the depreciation suffered, in the financial year, by the existing existences.

Art. 78. Editorial funds.

1. Shall be computed as provisions for depreciation of stocks:

(a) The reduction in the value of the editorial funds in the form of books and their supplements that appear in the assets of the companies performing such activity, to the extent that their depreciation on the market is estimated, once two years after the publication of the respective editions, unless legal provisions determine their obsolescence in which the depreciation is to be calculated by their accounting value within the financial year in which they are produces.

(b) The cost value of the items and supplementary items which have been rejected by the market, under the conditions and with the limits laid down in (a) above.

2. For the purposes of the preceding paragraph, the date of publication shall be the date of the establishment of the legal deposit of each edition.

3. The amount of the editorial funds considered to be depreciated shall be low in the asset, by way of debit to a special account of a suspensory character which shall be offset, by the amount of the depreciation, with another liability compensator. from the results account.

The said suspension account shall contain, either in its own context or in a legal auxiliary book, the data that allow to individualize and verify the movement of each of the works included in those funds.

4. In the case of the disposal of the editorial funds referred to in paragraph 1 of this Article, it shall be computed as income or expenditure of the activity in the year in which the disposal is carried out, the difference in more or less between the amount (a) the amount to be paid for the sale and the residual value in respect of which the publishing funds, the relevant items or the supplementary elements are in the accounts.

Art. 79. Determination of the average unit cost.

1. The average unit cost for each type of stock shall be determined by the ratio of the total value of the initial stocks plus that of the purchases or entries in the financial year, and the total units of measure of those stocks the initial units purchased or received in the financial year.

2. By way of derogation from the above paragraph, the application of the variable average cost system shall be eligible for the purposes of this tax, where such a system is effectively used in the accounting management of the company's stock.

Art. 80. Stock value adjustments

1. When the Company uses for stock management, the permanent inventory system or others, which are based on the replacement price or the criterion, first salid>, you must make the necessary adjustments, extra-accounting character, in the valuation of the stocks at the beginning and at the end of the financial year, in order to ensure that the valuation corresponds to the purchase price or average unit cost.

2. In any event, the initially recorded value of the stocks in an exercise shall be in line with the value of the previous year's close.

3. In cases where, by virtue of an administrative rule and in order to ensure the continuity of production of specific sectors, minimum levels are established, the Director-General of Taxation may authorise the application of systems based on on a moving average of the contributions of such materials or materials in the valuation of stocks, provided that it corresponds to the employee for accounting purposes and annual accounts.

Subsection 7. Appropriations and entitlements

Art. 81. Appropriations and entitlements.

1. Where the likely value of a credit is lower than the initial or previously entered into account, a provision may be made for insolvencies, which shall be shown separately in the balance sheet in accordance with the provisions of the next.

2. Compensation for balances of active and passive accounts, including between the same companies or persons, shall not be admissible.

Art. 82. Balances of doubtful collection.

1. For the purposes of paragraph 1 of the foregoing Article, the value of the realisation shall be understood to be lower than the initial or previously entered into account, where the balance may be considered, in whole or in part, as doubtful recovery, provided that this circumstance is sufficiently justified.

2. Such circumstances shall be sufficiently justified in the following cases:

(a) Where the debtor is declared bankrupt, suspension of payments, tender of creditors or similar situations.

(b) Claims which have been filed in court or on which the debtor has brought proceedings for the purposes of which the judgment is wholly or partly dependent.

(c) delinquent claims, such as those in which at least six months have elapsed since their maturity without the recovery being obtained.

3. In no case will they have the consideration of questionable balances:

a) Those owed by public Entes.

(b) Those corresponding to transactions endorsed by the Entes referred to in the preceding subparagraph.

(c) Guaranteed by mortgage, reserve of domain or equivalent collateral, in respect of the guaranteed part, except in the cases of loss or loss of the guarantee, as well as those that have been the subject of of renewal or extension.

(d) Those owed by persons or entities having the consideration of related, in accordance with the rules of Article 3 of this Regulation, except in the cases of the insolvency of the judicially declared insolvency and in the part to which it effectively affects insolvency.

4. The treatment of balances of doubtful collection shall be in accordance with the following rules:

First.-The balances of doubtful recovery shall be charged to a special account of a suspensory character, in which the outstanding balance of the corresponding transactions shall be collected, which shall be called by adding to the name of the account Source asset the expression .

Second.-At the same time, the corresponding insolvency provision will be provided with results, for the total or partial amount deemed to be uncollectible. Such a provision for insolvencies shall be offset by the suspension of the asset referred to in the preceding rule.

Third.-In the case of the delinquent claims referred to in paragraph 2 (c) of this Article, the envelopes may not exceed the following limits:

Elapsed time from expiration * Percentage over outstanding balance *

Over six months without exceeding twelve months * 25 *

Over twelve months without exceeding eighteen months * 50 *

Over eighteen months without exceeding twenty-four months * 75 *

Over twenty-four months * 100 *

Fourth.-When the total or partial recovery of the balance of doubtful recovery occurs, the amount recovered shall first be applied to the non-covered part with provisions and the excess if any, shall be considered as income in the corresponding financial year, unless the new allocations to the provision for insolvencies are to be undermined.

Fifth.-The consideration of a balance as of doubtful recovery will imply equal consideration and in the same measure with respect to the interests and other returns of the operation claimed to the debtor.

5. Consideration as to the doubtful recovery of a credit or right shall not interrupt the accrual of the contractually stipulated interest, without prejudice to the increase resulting from the provision for insolvencies.

Exceptionally, in cases where a loan or credit account has been closed with intervention by the public purse and a notarial requirement to the debtor to satisfy the outstanding balance, it shall not apply provided in the preceding paragraph as long as the account is closed. In the case of a re-opening, they must be reflected at the same time as income, while at the same time increasing the balance of the account of the representative of the credit or the right of the amounts corresponding to the time in that the account was closed.

6. Alternatively, the companies may make their allocations to the insolvency provision by an overall allocation of 0.50 per 100 on outstanding amounts at the end of the financial year or tax period of the representative accounts. of claims and entitlements, excluding the transactions referred to in paragraph 3 of this Article and the balances of deposits and bank accounts and cash. They shall not have the consideration of claims and rights in transferable securities. This system shall not apply to undertakings which carry out the following activities:

a) Production and distribution of electrical energy.

b) Telephone services.

c) Supply of water and gas and monopolized products.

7. By way of derogation from the above, the financial institutions entered in the relevant special registers may make allocations to the account with the scope and limitations to be established by the Ministry of Finance.

Subsection 8 to Passive Passive

Art. 83. Debts to third parties.

1. The liabilities arising from liabilities incurred by the undertaking, the amount of which is not determined at the end of the financial year, shall not be recorded as debts, without prejudice to the following Article.

2. Compensation for balances of active and passive accounts, including between the same companies or persons, shall not be admissible.

Art. 84. Provisions for liabilities.

1. In cases where the Entity has contracted or incurred liability, the subject of ongoing litigation or arising from duly justified payments or payments, but the amount of which is not definitively established, may be provided a provision for liability for the estimated amount of the liabilities.

2. Such a provision shall be liable to be payable and shall be shown separately on balance sheet, with a sufficiently illustrative name of the liability that originates it.

3. The provisions of this Article shall not apply to the social security institutions of staff, which shall be governed by the provisions of Article 107 of this Regulation.

Subsection 9. Other items

Art. 85. Forecasts.

Shall be considered to be for the purposes of the excess of endowments to accumulated redemptions and provisions on the limits authorised fiscally, to be noted, by means of a divisional account or marginal annotation, excess.

2. The Self-Insurance Funds will also be considered for forecasting, not being deductible, as a result, the allocations to them.

Art. 86. Own social actions and participations in special situations.

1. For the purposes of this tax, securities representing their share capital or assets acquired by the institution itself, as long as they are on their balance sheet, shall be construed as their own shares and shares in special situations.

2. Own shares in special situations shall be reflected in the balance sheet for their purchase price.

The actions referred to in this Article may not be subject to any adjustment of value as long as they remain in that situation.

Art. 87. Grants on behalf of capital.

1. The amounts recognised in favour of the Company shall be construed as grants on behalf of the capital, for purposes other than contributions to be made by shareholders or shareholders, at a loss and on a non-regular basis or on a regular basis for the Company (a) to facilitate the installation or commencement of the activities or the carrying out of investments in fixed assets or multi-annual expenditure.

In no case shall it be considered as capital account grants that are intended to ensure a minimum income or operating deficit coverage.

2. Grants shall be reflected in the balance sheet where they are effective and by the amount recognised, even if that effectiveness is subject to a decision arising out of the non-compliance with the requirements for the grant of the grant.

3. Capital account grants shall be amortised, with the result that they are entered as income to the same extent as the investments made under them are amortised.

If the investment is not a requirement, or if the investment is not eligible for repayment, or the amortisation involves a period of more than ten years, from the accrual of the respective grant, the grant shall be computed as income by (a) decision of the Council of the European

4. By way of derogation from the above paragraph, where the grant is granted before the investment entry into operation, it may be reported on the basis of that entry into operation, without any reference being made to the period of amortisation of the investment or the ten-year period from the grant of the grant.

In no case shall the percentage of imputation be lower than the minimum depreciation.

SECTION III. DETERMINATION OF NET YIELDS

Subsection 1. General rules

Art. 88. Temporary imputation of revenue and expenditure.

1. The revenue and expenditure of the tax base 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.

2. In the case of deferred-price transactions, both yields and increases or decreases in equity shall be understood as a proportion of the amount of the corresponding charges, unless the Company decides otherwise. impute them at the time of the right to be born.

3. The treatment of exchange differences in foreign currency transactions and capital account grants shall be in accordance with the provisions of Articles 51 and 87 of this Regulation.

4. 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 period, which may not be less than three years, the taxable person must necessarily comply with the criteria by the same person.

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

5. The temporary imputation shall be carried out by the party corresponding to each financial year in accordance with the following rules:

(a) When the amount to be reported has a single maturity on the basis of the total duration of the operation and the part of that duration within each financial year.

(b) Where the amount to be reported has staggered maturities, the taxable person may choose between the linear and degressive systems.

6. In no event shall the criterion of imputation adopted be capable of altering the reflection of the company's assets or of the economic facts which have taken place during the financial year.

7. The tax administration may reject those criteria for temporary imputation which do not satisfactorily satisfy the principles and rules set out in the preceding section, or which otherwise do not reflect the true state of the Company or intend to obtain a deferral in the payment of the tax. To that end, it shall carry out a provisional settlement as authorised in Article 293 of this Regulation, notifying the taxable person of the agreement, who may bring the proceedings.

8. The imputation of the results obtained by transparent companies shall be as set out in Articles 380 to 388 of this Regulation and may relate to the choice of the partner, either to the date of the end of the financial year or to the following day of such closure.

The choice shall be in the declaration and shall be maintained for at least three consecutive years.

9. If the taxable person uses temporary imputation criteria for accounting purposes other than those accepted fiscally, the differences shall be treated according to the following rules:

First.-Expenses shall not be deductible fiscally in the financial year preceding the year in which they are accounted for in the profit or loss account.

Second.-When the deductible expenses or items are accounted for in the financial year preceding the exercise of their calculation for tax purposes. this circumstance and the amounts of the differences shall be indicated by a marginal note, which shall be cancelled at the time of their integration into the calculation of the tax base, and which shall be carried out by an extra-accounting adjustment.

Third.-The timing of income tax purposes, where it is permissible, shall be subject to the addition of accounting purposes, by means of the corresponding adjustment accounts.

Fourth.-Income may not be computed fiscally in post-financial year in which it is accounted for, either through the profit or loss account or through an increase in own capital accounts.

Art. 89 Operations in instalments.

1. For the purposes of paragraph 4 of the foregoing Article, such sales and execution of works, the price of which is collected, in whole or in part, by successive payments shall be considered as a time-limit or a deferred payment, provided that the period between the delivery and the expiry of the last period is higher than the year.

The amounts received prior to the delivery of the goods or service shall be in advance until the payment is made.

2. The provisions of paragraph 4 of the foregoing Article shall also apply to cases of leasing, leasing and the placing of capital, where the corresponding revenue or expenditure is made in one or more instalments and the duration of the contract is higher than the year.

3. In the event of the endorsement, discount or early recovery of the deferred amounts, the yield to be charged shall be deemed to have been obtained at that time.

4. Except as provided for in the preceding paragraphs. In no case may the sales revenue be subject to a loss of earnings.

Art. 90. Budgeting for budgeted costs

1. Companies that perform work execution activities for sale to third parties. or on behalf of them, who have their accounts and the determination of their results for the financial year based on a budgeted cost system shall also be used for tax purposes with the following limitations:

(a) The imputation of losses budgeted in the years preceding the completion of the work shall not be admissible, except in cases where it is expressly authorized, under the conditions laid down by the Minister (')

(b) Losses obtained in an exercise may in no case be the subject of compensation with the positive results of previous financial years.

(c) The budget system adopted shall not alter the representation of the true economic and financial situation of the Company.

2. Companies that are responsible for carrying out public works granted in accordance with the law on State contracts or the construction of industrial facilities provided for in the National Energy Plan. approval of a temporary imputation plan.

To do this, the following requirements must be met, inexcusably:

A) The duration of the works must be more than three years uninterrupted.

B) The application must be submitted within six months of the date of signature of the contract, before the General Tax Directorate.

C) The request must accompany the following documents:

a) Proposed temporary imputation plan.

b) Copy of the contract.

c) Supporting memory from the economic-financial point of view.

d) Where appropriate, justification for being investments provided for in the National Energy Plan.

Subsection 2. Computable Revenue

Art. 91. Full income.

1. All derivatives of the activities of any kind developed by the taxable person, as well as those arising from the transfer to third parties of goods or rights, shall be taken into account as full income, except as provided for in paragraph 3 of this Article. Article.

In particular, they will be understood within income from:

a) Sales, work runs, and service delivery.

(b) Work carried out for the construction, manufacture or improvement of the Company's immobilized.

c) Bonifications and discounts obtained according to purchases and acquisitions made, even if they were in kind.

d) Entitlement of shares and equity holdings in all types of companies.

e) Loans and financial facilities granted by the taxable person.

(f) Transfer of goods and rights to third parties when the taxable person reserves, in whole or in part, the ownership of the goods. (g) recognised operating grants, as well as the part that is attributable to the capital account grants.

h) Export tax relief.

i) Imputation of returns obtained by transparent companies and Entes not subject to the tax, in which the taxable person participates.

j) Excess of the forecasts provided in relation to the possible losses or liabilities.

k) Compensation accrued on operating securities.

I) Positive differences in valuation.

2. Revenue shall be included in the profit or loss account with a name appropriate to its nature or origin and shall be recorded in full, including indirect taxes and expenses incurred on behalf of the customer, without prejudice to the non-accounting adjustments resulting from the application of tax rules.

3. They will not have the consideration of income for the purposes of this Tax

(a) The derivatives of contributions made by the partners for their participation in the capital of the Company.

(b) Those corresponding to increases in equity, without prejudice to their specific treatment and integration into the tax base.

Art. 92. Revenue from sales and services.

1. The sales revenue shall be reflected in the account of the income account for its full amount, including indirect taxes and expenses incurred on behalf of the buyer, unless they are expressly excluded from the calculation of the the tax base of the Business Traffic Tax.

2. The proceeds from the sale of assets or the sale of securities shall not be included in the sales revenue, unless the activity of the taxable person is the activity of the taxable person.

Art. 93. Bonuses and discounts on purchases.

I, When the purchases and discounts on purchases are recognized in kind, they will be valued according to the prices prevailing in the market.

2. Bonuses and discounts on purchases will not be counted as income:

a) When used to reduce the cost of acquiring these.

b) When they are due to the advance payment, in which case they will be treated as financial income.

Art. 94. Financial income.

1. The following shall be considered as financial income derived from the ownership of shares and holdings in capital, the granting of loans and financial facilities and the establishment of deposits and current accounts of all types by the subject liabilities, even if they are in the form of a refund premium.

2. The financial revenue shall be computed by the amount corresponding to the financial year, unless the taxable person decides to calculate them at the end of the time limits laid down for recovery.

3. They shall not be included in the financial income without prejudice to the tax treatment which may otherwise correspond to the following:

(a) The part corresponding to the surcharge for deferment of the payment in the price of the sales resulting from the performance of the usual activities of the Company, as soon as it has been reflected in the revenue by sales or services.

b) The amount received for the disposal of subscription rights.

(c) The share of financial charges included in the leasing contracts.

d) The amount released in capital increases.

Art. 95. Ancillary revenue to the holding.

They will have the consideration of ancillary income to the exploitation, among others, the participations in benefits that the taxable persons perceive in their quality of Administrators or of Vocals in the Boards of Administration or Boards they do their times of other companies, as well as those that constitute services or transfer of assets that do not have the consideration of habitual activity.

Art. 96. Current subsidies.

1. In the case of a company which is recognised by special law or a formal contract with the State, the right to compensation, in whole or in part, to losses or to a minimum income by means of a grant, shall be counted as revenue. in the same financial year in which the circumstances of origin are produced.

The allocation of capital grants shall be made in accordance with the provisions of Article 87 of this Regulation.

2. They shall not be regarded as subsidies for the purposes of determining the tax base for this tax, which shall be indicated by the general administration on the basis of the general administration of the prices of certain goods or services or for specific activities or operations, provided that the eligible expenditure is included in the net amount actually borne by the Company.

Art. 97. Provisions not applied for their purpose.

1. Provisions not applied for their purpose shall be considered:

(a) The part of the provision provided in the same or earlier financial years which is applied for purposes other than the provision for which it was provided.

(b) The part that is considered to be oversupplied, because the situation that originated the provision, due to decreased risk, recovery of the contributions or any other cause, has been altered in a favorable way.

(c) The positive difference produced, in relation to the net book value of the asset on which the provision was made, when the transaction is cancelled or its extension, or the transfer of the right or property concerned, with the limit of the balance of the tax admitted provision.

An accounting net value shall be considered as the result of deducting the previously provided provision of the asset value to which it applies.

2. Provisions not applied for their purpose shall be reflected in the account of the profit or loss account, in the year in which one of the circumstances listed in the preceding paragraph occurs or is known.

3. Provisions not applied for their purpose shall not be counted as revenue when they are used to reduce the amount of new allocations to be made for the same provision as they do.

Art. 98. Payments due on operations and operating securities.

1. Amounts collected for the purposes of:

shall be considered as accruals for operating and operating securities.

(a) Claims produced on items of stocks, credits and rights secured or indemnified by third parties.

(b) Execution of bonds, deposits, guarantees or guarantees established in favour of the taxable person and who have their origin in operations specific to the business or exploitation carried out by the Company.

(c) Penalties and penalties imposed as a result of non-compliance, total or partial. of obligations contracted with the taxable person by third parties, with origin in operations specific to the activity or exploitation carried out by the Company.

2. Such allowances shall be deemed to be payable where they are determined by application of the terms of the contract, recognition of the obligation to them, court judgment, expert opinion or any other cause being reflected in the account of the account of the results of the relevant financial year.

3. They shall not have the character of compensation payable on operations and operating securities which have their origin in assets of fixed assets or transferable securities without prejudice to the relevant treatment as a property alteration.

Art. 99. Positive differences in valuation.

1. They shall be included among the positive differences of assessment:

(a) The differences in the value of the value of foreign currency transactions or, where applicable, foreign currency balances at the end of the financial year, as laid down in Article 51 of this Regulation. Regulation.

(b) Those relating to the application of special rules of valuation in the cases of related transactions referred to in Article 39 of this Regulation, where they involve the consideration of higher or lower income expenditure.

c) Adjustments in the assessment of income or expenditure which, as a result of the rules of the tax, entail an increase in the tax base.

2, in cases where they are applicable to the assessment of revenue or expenditure. Tax criteria other than employees contachably, the positive differences in valuation shall be as an extra-accounting adjustment in the tax return, where they have not been collected in the profit or loss account.

Deductible Expense Subsection

Art. 100. Income-deductible items.

1. For the purposes of determining the net income, the total income earned by the taxable person shall be deducted from the costs necessary for obtaining the income and the amount of the deterioration suffered by the goods in respect of which the income proceed.

2. In particular, the following shall be considered as deductible expenses and in addition to the items referred to in Article

:

(a) The current acquisitions of goods made to third parties.

b) The expenses of the staff employed.

c) Financial expenses for the use of foreign capital.

d) Tax-deductible taxes.

e) External jobs, supplies and services.

f) The appropriations for the financial year for depreciation.

g) The allocations to the provisions.

h) The negative valuation differences.

i) Losses incurred in operating items and values.

j) The reduction in the value of the publishing funds included in the assets of the companies performing such activity, in so far as their depreciation on the market is estimated, after two years after the publication of the respective Article 78 of this Regulation.

k) Annual allocations to the reversion funds, as approved by the Administration, and up to the value of the asset to be reverted to the granting Public Administration, without prejudice to the depreciation of the items are depreciable in accordance with Article 60 of this Regulation.

(l) The management costs and the general management of the companies operating in Spain by means of permanent establishment, in that part that can be rationally fined to such establishment.

Art. 101. Current acquisitions of goods.

1. The consideration of deductible expenditure shall be the amount of current acquisitions of goods applied for sale or processing.

2. The following shall be understood as the acquisition of assets:

a) Destinations for sale in the same or similar conditions as they were acquired.

b) Applied, through any technical process, to the products obtained by the Company.

Raw materials and auxiliary materials, fuels, embeddable elements and assemblies, and packaging and packaging shall be considered to be included among them.

3. The amounts invested in items classified as fixed assets or fixed assets in this Regulation shall not be considered to be acquisitions of goods.

4. Goods forming part of the assets of the taxable person shall not be considered to be applied on the last day of the tax period.

Art. 102. Purchase accessories expenses.

1. Purchase accessories shall be considered to be specific to specific purchases of goods, such as transport, insurance, mediation in the procurement, lmposts on acquired goods borne by the acquirer, and the other which are applicable to those referred to in Article 40 (2) of this Regulation.

2. The buying-in costs shall be incorporated in the cost or purchase price of the goods to which they are charged. constituting deductible expense in the same exercises and proportion as such assets.

3. The financing shall not be included in the ancillary costs incurred by the seller, as soon as they result from the granting of payment facilities which exceed the usual market conditions, without prejudice to their consideration as financial expenditure. as well as the distribution.

Art. 103. Sales bonuses and discounts.

1 Sales allowances and discounts will have the consideration of expense deductible for the amount that has been recognized based on the purchases made by the customers in the financial year.

When recognized in kind, they will be valued according to the prices prevailing on the market.

2. Items of all types recognized by the Entity in favor of its customers will be included in the sales bonuses and discounts, except that they are due to the anticipation in the collection, in which case they will be treated as financial expense.

3. Sales bonuses and discounts will not be counted as expenses when they have been used to reduce the price of sales.

Art. 104. Staff costs.

1. Staff expenditure shall be considered as a deductible item for the amount due during the financial year.

2. Member States shall have to take into account the costs incurred by third parties in the direct or indirect consideration of personal services. provided that such third parties are assigned to the productive, commercial or service economic activities developed by the Company.

They will be integrated into staff expenses:

-The wages and salaries of all employees.

-Social loads of all types corresponding to such staff.

Art. 105. Wages and salaries.

1. For the purposes of this Tax, wages and salaries shall be deemed to be the amounts due under an employment relationship which constitute income from personal work in accordance with the rules of the Income Tax of the Physical Persons.

In particular, among others, salaries and wages are included:

a) The plusses and compensations of all kinds of brittle. as well as the so-called representation expenses.

(b) Extraordinary payments established under a statutory or labour agreement, the shares in profits, sales or income and the remuneration granted on the basis of commemorations or special events importance.

(c) The premiums or incentives granted on the basis of the quantity or quality of the work, whether in money or in kind.

(d) Remuneration in kind derived from the characteristics or responsibility of the job.

e) Assignments to staff for costumes or work tools.

f) Prims of collective life insurance for staff.

g) The remuneration paid for periods of statutory leave and sickness of workers.

2. Wages and salaries shall be deducted from the amount due in the financial year, even if they have not yet been satisfied.

Periodic remuneration of an extraordinary nature may be made subject to the time elapsed from the last accrual of remuneration until the end of the financial year.

3. Remuneration in kind, in general, will only be deductible for the amount paid to third parties, in the case of current benefits, or for the calculated depreciation fee, in the case of fixed assets owned by the Company.

Art. 106. Social charges.

It will be understood as social charges, for the purposes of this Tax, the items satisfied or supported by the Company for social and welfare purposes of its salaried staff. Among others, the following items are considered to be included:

a) Social Security in charge of the Company.

b) Dotations to staff forecasting institutions.

(c) Operating deficit or quotas for the membership of staff in business, economic, nursery and similar areas.

d) Expenditure on the collective transport of staff to the Work Centre, when they are run by the Company.

e) Expenditure on the support of sports and cultural groups, consisting exclusively of the staff of the Company or group of associated companies for these purposes.

f) Family allowances and allowances.

g) Pension and other pensions, in the part assumed by the Company in a compulsory and permanent manner.

Art. 107. Endowments to staff forecasting institutions.

1. The allocations to be made by the Company to Entities and Institutions of this character shall be considered as endowments to the staff. In particular they will have this consideration:

a) The Montepios and Social Welfare Mutuals. in the case of benefits of a social nature, but not in their action in the field of private insurance.

b) Other institutions for the provision of staff and pension funds regulated by special legislation.

2. The allocations to Montepios, Mutualities and Pension Funds created under its special legislation will have the character of deductible expenditure, integrating within the social burdens.

3. The appropriations referred to in this Article shall not be deducted from the appropriations referred to in this Article where it is proved that the administration and the provision are the responsibility of the undertaking itself.

It is understood that the administration and disposition does not correspond to the Company itself when it does not use for itself nor has the power of disposal on the funds allocated to the aforementioned institutions.

Art. 108. Other personnel costs.

1. The remaining items not included in the preceding items shall be included in other staff costs, which constitute indirect direct G-service of personal services provided by personnel assigned to the activities carried out by the Company.

In particular, including:

(a) Diets and representation expenses, as soon as they are not the usual form of remuneration.

(b) Indemnities satisfied by the suspension or termination of employment relationships.

(c) Expenditure on staff training, both on a regular and on a regular basis.

(d) Indemnities for the purpose of accident at work, as long as they do not entail liberality.

e) Expenditure on conventions and celebrations for staff.

(f) Amounts to be used by the Company for the accident insurance of staff on a voluntary basis.

g) The costs incurred in the implementation of safety and hygiene programmes at work.

2. The items referred to in paragraph 1 of this Article shall not be considered to be deductible when they constitute a lnversion, or where the Company has deducted them for another term.

Art. 109. Financial expenses.

1. Financial expenses shall be considered to be those arising from the use of foreign financial resources for the financing of the activities of the Company or its assets.

The following items will be included among the financial expenses:

(a) Expenditure on discount effects and financing of the Company's operating credits.

b) Recargos for payment deferment higher than usual on the market.

c) Expenses and commissions for the conduct of banking operations related to the Company's activity.

(d) Part corresponding to the financial year of the financial burden of loans and borrowings in excess of the year.

e) Discounts on sales for early payment.

f) Expenditure on formalisation of financial operations.

2. Items that are considered to be, in a forced or optional manner, as a higher cost of acquiring assets, shall not be considered as financial expenses. and those which could be derived from the use of own capital.

The part of the financial charges which have been the subject of a direct or indirect grant shall also not be deductible unless the subsidised part is counted as revenue.

3. In the execution of works for sale or for third-party orders, the financial burden corresponding to the work in progress must be accumulated in the valuation of the work, without being deductible as long as the income is not calculated as such corresponding to the work in question.

Art. 110. Income-deductible taxes

1. They will have the consideration of income-deductible taxes:

(a) Indirect state taxes on transactions whose amounts are considered as expenditure or income from this tax in the same financial year.

(b) Non-State taxes and surcharges, as well as parafiscal charges, fees, surcharges and state special contributions are not legally enforceable, whatever their name, provided they have an impact on the (a) the value of the goods or the goods which are the same and which are not sanctioning, where they correspond to the same financial year.

(c) The amounts from other financial years which would have been deductible according to the preceding letters, where they are not sanctioning and the Company would not have been able to determine the amounts the exact quota, for reasons not attributable to it.

2. They will not have the character of income-deductible taxes:

(a) The shares of the Company Tax and any other tax on capital or income, without prejudice to the provisions of paragraph 1 (b) of this Article.

(b) Retentions for the purposes of the taxes referred to in the preceding subparagraph.

(c) Fines and penalties of tax origin, established by a public Ente that are imposed on the taxable person, including the surcharges of extension and reward.

(d) The fees and charges paid at one time for obtaining administrative concessions without prejudice to the corresponding period of time when such concessions have been obtained by a limited period.

e) Special contributions and other taxes that show greater value-of the property assets on which they fall.

However, the rate of equivalence shall be reported in a linear period of five years from the same financial year in which the settlement notification is received.

(f) Taxes that fall on property or rights that are not the object of the Company's activity, nor are they transferred to third parties by way of consideration.

The provisions of the last two letters shall be without prejudice to the treatment which corresponds to the increases and decreases in assets.

Art. 111. Jobs, supplies. External services and miscellaneous expenditure.

1. Foreign supplies and services shall be regarded as foreign purchases of goods which do not have the strict consideration of stocks, even if they are inventoried and the services provided by third parties, for the purposes of the activity of the Company or to facilitate the management of its assets and which are not included in the previous articles.

In particular, the following items shall be included:

(a) Amounts accrued by third parties in consideration of services related to the Company's activity or assets, as long as they do not involve any improvement or extension of the goods, in accordance with Article 114 of the Regulation.

(b) Rent and royalties due to the transfer to the taxable person of assets.

(c) Quantities for the preservation and repair of the fixed assets used by the Company

(d) Primes for the purpose of insurance of the assets, rights and products incorporated in the Company's assets.

e) Amounts due for transport and freight related to the operations carried out by the Company.

f) Value of the water, gas and electricity supplies consumed by the Company in the financial year.

g) Amount of office material, communications, public relations, advertising and propaganda and management of legal and contentious matters, among others.

a. They will not have the deductible starting character of the income, as works. external supplies and services units in profits for any concept other than the consideration of personal services, as well as the release of any other person's name, except as provided for in point (c) of the Article 121 of this Regulation.

Those benefits in which there is consideration shall not be considered to be free, if applicable, as provided for in Article 39 of this Regulation.

Art 112. Professional services.

1. They shall be included among the amounts due for professional services referred to in point (a) of the previous Article:

(a) The remuneration of independent mediators not linked to the Company.

(b) Contra-benefits for carrying out studies, opinions and reports for use by the Society.

(c) Remuneration for the tasks of management of assets, management of projects and works and advice, where the service is not provided as a result of an employment contract.

d) Amounts in terms of allowances and travel expenses paid to Directors and Legal Administrators, due to their attendance at meetings for which they have been duly summoned.

2 No deductibles shall be deemed to be deductible amounts without consideration and other liberalities, as well as the part exceeding the applicable statutory, statutory or statutory limits.

The provisions of this article are without prejudice to the tax treatment that corresponds to the recipient of the income and the withholding tax.

Art 113. Rentals and canyons.

1, the leases, fees, technical assistance, rentals and, in general, any consideration payable by third parties, whatever their denomination, arising from the transfer to the A company of rights and other goods, where ownership of the goods is not transmitted.

In particular, the term fees used in this Article shall comprise the amounts of any kind paid for the use or the granting of use of a copyright on a literary, artistic, informative or scientific, including cinematographic films, of a model, plane, formula or secret procedure; and information relating to industrial, commercial or scientific experience.

2, the fees and other consideration that constitute investment or multi-annual projection expenditure shall not be construed as falling within this Article, without prejudice to the allocation of the part of the financial year as depreciation.

Art. 114. Conservation and repair costs.

1. Costs of preservation and repair of the material assets shall be considered as affecting the activity:

(a) Those made regularly for the purpose of maintaining the normal use of material goods.

(b) The replacement of items which are not liable to be amortisation and which are not used as a result of the normal operation or use of the goods in which they are integrated.

c) The adaptation and re-adaptation of material elements of the immobilized, when they do not assume an increase of their value or productive capacity.

2, No conservation or repair costs will be considered

(a) Those that involve the extension or improvement of the material asset and are therefore depreciable.

(b) Those which, as a result of an overall process of reconversion or restructuring of production facilities or centres, constitute expenditure of a multi-annual projection, without prejudice to the fact that they may be deducted in the financial year in which they are have become established.

(c) Those corresponding to repairs carried out for claims or other exceptional circumstances.

Art. 115. Appropriations for the financial year for depreciation.

1. The following shall be included as allocations for the financial year for amortisation in accordance with the provisions of the previous section of this Regulation in relation to:

(a) depreciable elements of the tangible fixed assets.

(b) depreciable items of intangible fixed assets.

(c) Deferred amortisation and multi-annual projection expenses.

2. The amounts corresponding to different financial years and those carried out after the useful life or the period of depreciation or imputation of the item or expenditure in question shall not be deductible in the form of expenditure. accounts.

Art. 113. Allocations from the financial year to provisions.

1. Provisions shall be included as envelopes for the financial year which are duly accounted for and applied to:

a) The

, in accordance with Article 77 of this Regulation.

(b) Provision for insolvencions.in accordance with Article 82 of this Regulation.

(c) The depreciation of the securities portfolio in accordance with Article 72 of this Regulation.

d) The .Extraordinary repair fund. >, according to the following article, for the companies to which the same refers.

e) The

f) The as referred to in Article 78 of the Regulation.

2 They shall not have the consideration of financial provisions to provisions, income deductibles:

(a) Those made for purposes other than those referred to in paragraph I of this Article.

(b) The amounts provided or which correspond to a different financial year.

Non-financial assets shall not be considered as having been allocated to the "Provision for insolvencies" made between the time of the minimum circumstances to be performed and the closing of the financial year in which the debtor is officially declared in a situation of provisional or final insolvency.

Art. 117. Special expenditure of the Maritime and Maritime Fisheries and Air Navigation Enterprises.

1. It is also possible to pay deductible the amounts that the companies engaged in the sea fishing and the sea and air navigation are destined to an extraordinary fund of repairs deriving from the general reviews to which they must be subject to the requirements of the obligations to be contracted in their day by the requirements laid down in this Regulation.

2. Where the repairs referred to in paragraph 1 above are carried out, the amount shall be compensated by the special fund referred to above and the excess shall be deducted as expenditure in respect of the year in which the repair took place.

3. If the amount of the repair expenditure effected is less than that of the extraordinary fund constituted, the excess shall be counted as revenue in the year in which the repair is carried out.

Art. 118. Compensation for operations and operating securities.

1. The following shall be construed as compensation for the use of the amounts due by third parties and the following:

(a) The execution of bonds, deposits, guarantees or guarantees established by the taxable person and who have their origin in operations that are their own activities or exploitation carried out by the Company.

(b) Penalties and penalties imposed as a result of non-compliance, in whole or in part, with obligations contracted with third parties by the taxable person, with origin in operations specific to the activity or exploitation developed by the Company.

c) Responsibilities not indicated in previous articles and in which the Company has incurred. the development of their activity, without prejudice to their status when they are of exceptional or exceptional nature.

2. Such allowances shall be deemed to be payable where they are firm by application of the terms of the contract. judgment, expert opinion, arbitration decision or other similar mode, and should be reflected in the results account.

3. When the Company chooses to create, at the time of the award of the compensation, a provision for liability under Article 84 of this Regulation, it shall provide the same with this concept.

When the amount of the compensation is established definitively, the provision account shall be cancelled, applying the difference, as appropriate, either to this concept, or to provisions not applied for its purpose indicates in Article 87 of this Regulation.

Art. 118. Losses incurred in operating securities.

2. The loss of value, not provided for in the previous Articles, which are experienced by elements of the Company's assets other than those of fixed assets and the portfolio of securities, shall be understood as losses incurred in operating securities. they are caused by claims or other circumstances not arising from their normal use in the development of the activity.

2. Losses incurred in operating securities shall be reflected in the holding account in the profit or loss account in the year in which they occur.

However, when the securities are insured and the cause of the loss contemplated in the insurance contract, the Company will only compute as a loss, if any, the difference between the loss suffered and the compensation. foreseeable to be perceived. The difference between the amount of the allowance and the net value of the goods shall be reflected as income or expenditure, as appropriate, at the time it is definitively quantified. The net value of the goods shall be determined by minorating the residual value of the goods, if any.

In the cases referred to in the preceding paragraph. the value of the goods shall be reduced from the representative account of the goods, transferred to another with the denomination of. Indemnities to be collected on holding values. which shall be included in the balance sheet asset.

3. The loss in operating securities shall not be counted as the loss due to the Company's free-of-business.

4. Where losses are of particular importance and are of an extraordinary nature, they may be treated as depreciable expenditure in five years.

Art. 120. Negative valuation differences

1. These shall be included in the negative valuation differences

(a) The corresponding negative differences in the value of the foreign currency transactions in pesetas or, where applicable, foreign currency balances at the end of the financial year.

(b) The differences in the criterion in the calculation or the valuation of income or expenditure which, as a result of the tax rules, entail a reduction in the tax base.

2. By way of derogation from the preceding paragraph, in cases where they are applied in the calculation and assessment of revenue or expenditure, tax criteria other than employees contachably, the negative differences in valuation shall be as an extra-accounting adjustment in the tax return, where they have not been collected in the profit or loss account

Subsection 4. Other deductible items

Art. 121. Other deductible items.

For the determination of the net income earned in the financial year, the following items shall also be deductible:

(a) Amounts that the General People's Savings Banks allocate to the financing of social-welfare works, in accordance with the legal rules governing them.

(b) Quantities that are effectively invested by the Cooperatives for the purposes of the purposes. the fund for education and social works, the implementation of which has been approved by the competent body.

c) Amounts donated to Entities of a benefit or public utility in accordance with Article 123.

(d) Participants of the Administrators in the benefits of the Entity as long as they are mandatory by statutory precept, or are agreed by the competent body, and do not exceed 10 per 100 of the same or of the limits they have been legally established.

e) Quantity donated to Industrial Promotion Entities in accordance with Article 124.

Art. 122. Assignments to social-welfare works.

1. The quantities referred to in point (a) of the preceding Article shall be treated in accordance with this Article.

2. The allocations made by way of or by application of results shall be reflected in a liability account which shall not have a capital tax of its own, with a name appropriate to its origin and purpose.

The investments made by application of these allocations will be included in the balance sheet asset with total separation of the remaining ones.

3. Where the maintenance costs are met, they shall not be regarded as expenditure for the financial year, the amount of which is payable to the representative account of the allocations, and details of such expenditure shall be provided with the declaration.

4. If, as a result of the commitments of support of these acquired institutions. the amount of its maintenance costs exceed the accumulated balance increased, where appropriate, in the allocation made in the financial year, the difference shall be reflected in an account of the balance sheet of own capital, under the name of losses caused by sustainment, followed by the expression that characterises the type of allocation. can be saved with the assignments to be performed in future exercises.

5. The amounts allocated to the benefit-social work shall be applied at least in its 10 per 100, in the same financial year to which the allocation corresponds, or in the immediate following to the carrying out of investments or to the expenditure of the holding of the institutions or establishments covered by it.

6. Any bankruptcy arising from the sale or carrying out of investments affecting the activities referred to in this Article shall be reduced from the balance of the liability account representative of the allocations, without having regard to deductible item.

The profits made in the aforementioned transactions shall not be included in the tax base where they are directly applied to increase the balance of the representative liability account of the allocations.

Art. 123. Donations to institutions of a beneficial nature or of public utility.

1. The amounts donated to the exempted entities referred to in Article 30 (1) (e) of this Regulation which meet the following requirements shall be made available:

A) Constancy of the donation made. by certificate issued by the

Donatary entity, in which it consists:

(a) The date and standard by which the benefit or public utility character is recognized.

b) Date and amount of donation, when this is a cash.

c) Mention of the irrevocable character of the donation.

d) Utility of the donated object, in the case of non-cash donations.

P) The amount of the donation may not exceed 10 per 100 of the tax base.

2. Donations may be made in works of art, goods of cultural interest, when the recipient carries out artistic or cultural activities.

To the only eleCtOS of the provisions in this paragraph, the valuation shall be performed by its net book value at the time of delivery.

3. Deliveries of material assets used by the donor in the development of his teaching activities shall be considered as falling within the above paragraph. artistic or cultural.

The assessment of the delivered item will be performed:

(a) In the case of new elements produced by the donor entity for its manufacturing cost.

(b) In the case of items acquired from third parties and new ones, for their purchase price.

(c) In the case of items used by the donor entity, for its net book value, which may not be higher than that derived from applying the corresponding minimum redemptions.

4. Where the inspection shows the lack of veracity or attitude of the certificate referred to in paragraph 1, the donation made shall be deemed to be the case.

Similarly, the excess donated over the limit referred to in point (B) of paragraph I of this Article, as well as the donations made to non-exempt entities, shall be considered liberality.

5. The provisions of the above paragraphs shall also apply to donations made to the following Public Law Entities:

a) Spanish State.

(b) Autonomous Communities.

(c) territorial public administrations other than those indicated in the preceding letters, for the fulfilment of their own purposes.

d) Autonomous bodies that develop artistic, educational or cultural activities.

6. The provisions of the preceding paragraph shall not apply where the delivery is made by virtue of a statutory rule, a judgment or an administrative agreement or a binding agreement.

Art. 124. Donations to Industrial Promotion Entities.

1. The amounts donated to the promotion companies of public or private enterprises with the requirements set out in the following paragraph shall be deductible.

2. They will be eligible for the eligibility of these donations:

a) To be performed by cash delivery

(b) To be justified in the manner referred to in paragraph 1 (A) of the previous Article of this Regulation, except as referred to under heading (d)

c) That the activity of the Company be the promotion of industrial companies or industrial technology research.

d) That the paid-up share capital of the Business Promotion Society be at least 500,000,000 pesetas.

3. By way of derogation from the foregoing paragraphs, donations made shall not be deductible, where the donor entity is bound by any of the Companies participating in the Business Promotion Society, directly or indirectly. indirectly, in the latter case, except where the participation is limited to that which may be derived from the status as a partner of the Company for the Promotion of Enterprises.

Subsections to Non-Deductible Partitions

Art. 125. Non-deductible items.

They will not have the consideration of deductible items for the determination of the lmable base:

(a) The amounts to be paid directly or indirectly to the capital itself, whatever its name.

(b) The shareholdings in profits by any concept other than the consideration of personal services, including those of unit-holders.

(c) The quantities distributed among the members of the Cooperatives to account for their profits and the excess value assigned to the supplies or supplies on their current value.

(d) The shares of the Company Tax and any other tax on capital or income, without prejudice to Article 110.1 (b) of this Regulation.

(e) fines and penalties established by a public body that do not have a contractual origin, which are imposed on the taxable person, including extension and award surcharges, except for the interests of fractionations and duly granted payment deferrals

f) Liberalities, whatever their denomination

(g) The amounts intended for the consolidation of the asset, unless it can be done by law.

SECTION IV. PROPERTY INCREASES AND DECREASES

Subsection 1 to Increments and Heritage Decreases

Art. 126. Property increases and decreases.

1. Changes in the value of the assets of the taxable person are increases or decreases in the value of the taxable person when they become apparent on the occasion of any alteration in the composition of the taxable person, without prejudice to the provisions of the Articles next.

2. Capital increases shall be made up of those which are shown by simple book entry, except those expressly authorised by legal provisions.

3. In no case shall it be calculated as equity decreases which are shown by simple accounting records, unless the reduction in the value of the assets in the assets is carried out in accordance with the provisions of the Laws of Limited Companies and Limited Liability, which for these purposes will be considered applicable to all taxable persons for this Tax.

Art. 127. Property changes.

1. For the purposes of 10 provided for in the previous article, changes in the composition of the taxable person's assets are:

(a) the onerous or lucrative transfer of any assets even as a result of the forced sale of the taxable person's assets, by virtue of judicial or administrative proceedings against the taxable person in which he or she it is agreed to the obstacle or to the alienation of the affected goods as well as that which is derived from expropriation or forced alienation

b) The incorporation into the assets of the taxable person of goods or rights.

c; The replacement of a right that forms part of the assets of the taxable person for other goods or rights that are incorporated in that estate as a result of the specification or the exercise of that property.

d) The cancellation of obligations with economic content.

e) The swap of assets or property rights

(f) Any losses that are justified by the taxable person not due to negative net returns.

g) Indemnities received that do not correspond to operating or operating values

h) The disposal or amortization of previously acquired own shares

i) Capital reductions with return of contributions to the partners by delivery of goods, even in cases of dissolution of the company

(j) The disposal of subscription rights when the system established in Article 75 (2) of this Regulation applies.

2. It shall also be estimated that there is a change in the assets of the taxable person, where the administration finds or otherwise determines the existence of assets which do not appear in the accounts of the taxable person or even when they are listed, they did not appear on the balance sheet presented with the declaration for this tax.

Art. 128. Acts that do not involve property increases or decreases.

It will be estimated that there is no estate increase or decrease in:

a) The assumptions of division of the common thing and, in general, dissolution of communities or separation of communes

In this case the goods or rights received by the taxable person will be incorporated into the estate for the same value as the participation.

(b) The capital injections made by the partners or unit-holders during the financial year, including share issuance premiums.

(c) The contributions that the partners make to replenish the capital in accordance with the provisions of Articles 99 and 150.3 of the Companies Act.

(d) The contributions that the partners or members make to replenish the capital for the purpose of losses, when they are made in proportion to the value of their participation.

e) Cases of financial consolidation of losses from the available capital or available reserves of the company.

f) obtaining results from income obtained by the company in the development of its activity subject to taxation in this tax.

Art. 129. Increases not subject to, levy.

L Not to be taxed for this concept:

(a) The property increases that have their origin in any of the concepts not subject to this Tax referred to in Article 7 of this Regulation.

b) The property increases that are subject to the Tax on Successions and Donations.

(c) The property increases that are evidenced by simple accounting, in the cases where the laws expressly exclude them from taxation.

2, Any other wealth increase will be computed by this concept.

Art. 130. Concepts that are not considered property decreases.

1. They shall not be counted as property decreases for the purposes of this Tax:

(a) Due to donations or liberalities, in the understanding of such non-compulsory transfers as the taxable person does without prejudice to the provisions of Articles 122, 123 and 124 of this Regulation.

b) Losses in the game

(c) The amounts withdrawn by the partners, associates or unit-holders in terms of reduction of capital, distribution of profits or distribution of social assets or as a result of the rescue of their shares by the company itself.

d) Non-tax deductible items.

2. Nor shall they be counted as non-justified property decreases, whatever their origin or cause.

Art. 131. Determination of the property increase or decrease.

1, In general, the increase or decrease in wealth will be determined by difference between the disposal value and the net book value of the respective assets deducted, if any. the ancillary costs and charges inherent in the transmission, as soon as they are satisfied by the enajenant

In the equity increases evidenced by simple book entry, the difference between the accounting values shall be computed.

2. It shall be taken as an acquisition value, an integral part of the net book value, or as a disposal value, as appropriate:

(a) In the case of a lucrative transfer, the value that has been determined or is determined for the purposes of the Succession and Donation Tax.

(b) In the case of related transactions, the case referred to in Articles 39 and 99.1 (b) of this Regulation.

c) When special rules are applied contained in this Subsection, the one that in them is pointed out.

(d) In the case of transfers for consideration, the actual amount by which that transmission has been carried out, unless some of the rules contained in the preceding letters apply.

3. The valuation rules contained in Section II of this Chapter, in general, and in Article 39, in particular, shall apply to the determination of increases or decreases in the assets.

4. In particular. the net book value of the depreciable elements shall not be higher than the value of the minimum depreciation referred to in Article 48 of this Regulation, which would have been applied for each financial year. Article 132. Reversal of effective assets to concessions.

1. In the Entities that exploit concessions that have to revert to the State. Autonomous Communities or Territorial Public Administrations shall be deemed to be an increase or decrease in assets, at the time of the reversal, by the amount of the accumulated unreversed, if any, accumulated write-downs. for the repairs required by the entity for the receipt of the goods.

2. In the case of depreciable items, the determination of their net book value shall be carried out in accordance with the provisions of paragraph 4 of the previous Article.

Art. 133. Disposal of transferable securities.

1. In the case of the disposal of transferable securities, the increase or decrease in assets shall be calculated by the difference between the disposal value and the net book value referred to in this Article.

2. The disposal value will be given:

(A) In the case of transferable securities which are listed on the Stock Exchange for their effective value, on the basis of the price at the date on which it occurs, or in the immediate preceding quarter within the preceding quarter, and the disposal costs supported by the relay.

B) For the amount actually paid, unless the rules applicable to related operations are applicable to Article 39 of this Regulation, in the following cases:

a) When securities are not listed on the Stock Exchange or have not been listed in the last quarter.

b) When the disposal has been made out of session at a price higher than the closing quotation.

(c) When the disposal is made in a situation of suspended listing of the securities.

3. The net book value shall be determined in accordance with Article 74 of this Regulation.

Art. 134. Shares and units in transparent companies.

1. Where shares or other securities representing the share capital of companies benefiting from the tax transparency regime are put in place, the net book value shall be determined by application of Article 384 of this Regulation.

2. The provisions of the preceding paragraph shall also apply to the partners in the cases of the dissolution of companies or the separation of partners, as well as in the cases of mergers and the absorption of companies which are subject to or covered by the tax transparency regime.

Art. 135. Non-cash contributions.

In non-cash contributions to companies or other Entities, the decrease or increase in assets shall be determined by the difference between the net book value of the assets or rights provided, in accordance with the provisions of the in Article 131 of this Regulation and the quantity greater than the following three.

a) The nominal value of the contribution.

(b) The stock exchange value of the securities received on the day on which the contribution or the immediate past is formalised.

c) The valuation of the good contributed according to the criteria established in the rules of the Net Heritage Tax.

Art. 136. Separation of partners and dissolution of companies.

1. In cases of separation of partners or dissolution of companies, the difference in more or less the difference between the real value of the goods received as a result of the separation or the quota of the company shall be calculated as an increase or a wealth reduction. social settlement and the net book value of the title or share of the capital corresponding to that share.

2. The net book value of the capital's title or share shall be determined in accordance with Articles 133 and 134 of this Regulation.

3. The value of the goods received when they are different from the money or liquid means shall be determined by applying the rules of Article 39 of this Regulation.

4. In this case, the partners will be subject to the provisions of Article 173 of this Regulation.

Art. 137. Merger or absorption of companies.

1. In cases of merger or absorption of companies. the reduction or increase in the assets of the taxable person shall be calculated by the difference between the net book value of the securities or rights representing the holding in the capital of the company which is extinguished and the value of the securities or rights received from the acquiring company or from the new company created as a result of the merger. The value of these securities or rights shall be that of the day of delivery, or, in another case, its va. r theoretical, according to the last balance approved by the issuing institution.

2, in the case of the creation of a company by merger of others, the theoretical value will be determined from the opening balance sheet, when it reflects the real estate situation of the company.

3. In the case of a total division of a company, the loss or increase in the assets of the taxable person shall be calculated by the difference between the acquisition value of the securities or the representative rights of the holding in the capital of the the company that is extinguished and the value of those received from the beneficiaries of the division. In the case of partial division of a company, the reduction or increase in assets shall be calculated in accordance with the rules of Article 135 of this Regulation.

4. The provisions of the foregoing paragraphs shall not apply to transactions under Law 76/1980 of 26 December 1980.

Art. 138. Exchange and conversion of transferable securities.

1. In exchange or conversion operations, an increase or a wealth reduction shall be computed by the difference between the following values:

a) The acquisition value of the titles that are received. according to its quotation on the date of the operation or the immediate previous one within the preceding quarter.

In default, it will be determined according to its nominal value, in the case of fixed-income securities, or according to its theoretical value obtained from the last approved balance sheet, in the case of shares or social interests.

(b) Net book value of the securities being delivered in accordance with Articles 133 and 134 of this Regulation

2, notwithstanding the above paragraph, it shall be taken as the acquisition value of the securities that are received for the exchange or conversion, where the conditions have been fixed:

a) In writing of the titles that are delivered and delivered.

b) Under the terms of the public offer of purchase through exchange.

c) In the write of the new titles that are received.

3. For the application of the provisions of the preceding paragraph, it shall be essential that the holder of the securities accounts for the securities received by the value of the refund or the contribution of the goods.

4. The provisions of this Article shall not apply where a Company is limited to modifying the nominal value of its shares without the amount of the shareholders ' equity being altered.

Art. 139. Property increases and decreases by exchange or conversion.

1. In the issuing company of securities which are amortised, the increase or decrease in assets shall be calculated by the difference between the redemption value of the amortised securities and the net book value of those that are delivered.

2. The redemption value of the amortised securities shall be that determined under the terms of issue.

3. The net book value of the securities, which shall be delivered in the case of shares or shares of new issue, shall be the sum of its nominal value and the required emission premium.

Art. 140. Depreciation of shares and social interests.

1, When shares and units in the company's capital are amortised, upon acquisition by the Company, there shall be an increase in assets when the ransom price is less than the nominal value of the action or participation.

2. The increase in assets will be understood as a result of the exercise in which the depreciation of the securities is definitively agreed, provided that they have been reflected in the meantime for their ransom price.

Art 141. Depreciation of transferable securities of fixed income.

When securities of fixed income are amortised, the equity increase or decrease shall be determined in accordance with the general scheme of securities securities, taking the nominal value of the securities amortised, with the difference between the amortisation value and the nominal value as the yield.

Art. 142. Compensation and capital insured for losses and claims.

1. The difference between the recognised indemnity or the insured capital and the part of the net book value corresponding to losses and losses suffered in assets which do not exist shall be computed as an increase or decrease in equity. constitute operating values.

2. To do this, proceed as follows:

(a) At the time of the loss or loss, the part of the net book value corresponding to the damage suffered shall be discharged, where the damage suffered, when it is directly evaluable, by a suspension account, of the group of claims and rights under the name of indemnities to be settled on assets, up to the limit of the maximum compensation to be paid.

The excess, if any, of the part of the net book value alluded to the amount of the maximum compensation to be collected, will be computed as a property decrease at the same time.

(b) Where the allowance is effective and definitively quantified, the balance of the suspension account referred to in the preceding point shall be discharged or paid for the results of the difference, as appropriate. This difference shall be considered as a decrease or increase in assets in the financial year in which it is definitively quantified.

(c) If the Company decides to benefit from the scheme developed in Articles 146 to 155 of this Regulation, the time limits for reinvestment shall be counted as the taxable person's option.

a ') From the time the loss or disaster occurs or knows.

b ') From the moment the compensation is effectively and definitively quantified.

3. The provisions of this Article shall in any case be applicable in relation to the following operations and groups of assets:

a) Immobilized material.

b) Intangible fixed assets.

c) depreciable expenses.

(d) Securities.

e) Deposits of all types in financial institutions

f) Responsibilities not arising from the development of the Company's activity.

Art. 143. Discovery of hidden items.

When the Administration knows by any means the existence of assets not reflected in accounting or in the declarations corresponding to this tax, it will consider the existence of an increase of assets, in amounts equal to the actual value of the goods or rights concealed at the time of the minorated discovery, where appropriate, in the part that the taxable person justifies has been financed by:

(a) Deures with third parties also hidden, due to their balance to the date mentioned.

(b) Capital contributions that do not appear in the accounts or statements.

(c) Non-distributed profits to be paid, formed in advance of taxable bases settled by this tax.

Art. 144. Swap for goods or rights.

In cases of swap of goods or rights, except those referred to in Article 138 of this Regulation, the reduction or increase in wealth shall be determined by the difference between the net book value of the good or the right to be cede and the market value of the good or right that B is received change.

Art. 145. Sublease or transfer.

In the case of sublease or transfer it will be computed as a property increase of the tenant or transferor the amount that corresponds to it in the sublease or transfer, after deduction of the amount of the lease fee in the case of sublease and, where appropriate, the owner's participation in the sublease or transfer.

Subsection 2.a Reinvestment of the property increases earned in their disposal of business fixed assets

Art. 146. Subjective scope of the exemption.

1. The capital increases which are shown in the transfer for consideration of material assets of fixed assets of the undertakings, which are necessary for the performance of their business activities, shall be exempt, provided that the the total amount of the disposal is reinvested with the requirements and conditions laid down in this Regulation.

2. For the purposes of the preceding paragraph, the amount of the said property increases shall not be included in the taxable amount.

3. The determination of the patrimonial increase shall be governed by the rules contained in the preceding subsection.

Art. 147. Objective scope of the exemption.

1. For these purposes, the following requirements shall be considered for fixed asset items:

A) That are included in any of the following categories:

(a) Land on which the Company's activity is fully or partially developed.

b) Buildings and other buildings.

c) Machinery, facilities and tools.

(d) Elements of internal and external transport of goods without considering such vehicles for the use of personnel.

e) Furniture and Enbeings.

f) Equipment for information processes.

g) Mining research.

B) That may be usable for a period longer than the tax period.

C) That they are affected and necessary for the exercise of the business activity developed by the Society.

D) That they are not transferred to third parties for use, with or without consideration.

2. In addition, the property increases shown in the transmission shall be exempt from any form, of land in the following cases:

(a) When the Company that obtains the property increase has as its sole object the acquisition or promotion of urban estates for its exploitation under the lease.

(b) Where the transferring company has a lease on the last day of the preceding year, a real estate area higher than that which it has had in that year and in the previous year.

(c) If the land is transmitted in conjunction with the Urbana estate built on it, when that land has been leased for more than two years in the three years preceding the sale.

For the purposes of this paragraph, it is understood by urban estate both the whole building and each of the floors or premises that integrate it according to its description or the horizontal property regime, provided that they do not have industrial character.

In any event, in order for the exemption to proceed, the following conditions must be met with any of the cases referred to:

a ') That the reinvestment of the patrimonial increase materializes in the promotion or acquisition of urban estates destined for their exploitation under the lease that are maintained in this regime, at least three years. If the reinvestment materializes in the acquisition of land for the promotion of urban estates with the said destination, the construction must be started in the same way that in the two exercises following its acquisition would have been carried out in them on 25 per 100, at least, of the works and that they are completed in the four subsequent exercises.

b ') That the leases referred to in this article are made without purchase option

c ') That tenants, the acquirers of the housing estate and the sellers of the dwellings in which the reinvestment materializes are not directly or indirectly linked or in the quantity

Art. 148. Requirements to enjoy the exemption

1. The enjoyment of the exemption from the increases in equity shall be subject to the inexcusable compliance with the following requirements:

(a) The total amount of the disposal of the relevant asset item shall be invested in the acquisition of any fixed assets, including in any of the categories referred to in the Article (a) the Commission's decision of the Council of the European Parliament and of the Council of the European Parliament and of the Council of the European Parliament and of the Council of the European Parliament

(b) Reinvestment of the amount may be carried out either in the year in which the disposal occurred, in one or the other, within two years after the transfer.

(c) For the purposes of the preceding paragraph, the investment made within the year preceding the date of transmission of the relevant asset item may also be considered as reinvestment. In this case, there is a need for a direct relationship between the disposal and the corresponding reinvestment.

d) The goods in which the investment materializes must remain in the inventories of the companies until their total amortization or loss

2. For the purposes of the preceding paragraph, both the date of the transfer and the date of reinvestment shall be the date of formalisation of the contracts in public document, or that of the private document since it meets some of the requirements. referred to in Article 1.227 of the Civil Code, whatever the time limits and arrangements for payment are laid down.

Art. 149. Reinvestment plans.

1. By way of derogation from the foregoing Article of this Regulation, taxable persons may apply for a period of up to four years for reinvestment.

2. For these purposes, an investment plan shall be submitted to the Finance Delegation of its tax office, which shall, inexcusably, contain the following:

(a) Description of the assets and the amount and conditions of the disposal, as well as the data of the tax identification of the acquirer of such assets.

b) Goods in which it projects to materialize reinvestment as well as its purchase amount and conditions, and the tax identification data of the seller of such assets.

(c) the investment to be carried out, with a commitment that the amount of the investment over the first two years shall not be less than 25 per 100 of the total amount of the equity increase obtained by investing the remainder to complete the total of the enajenaclon, in the two immediate years after.

3. The special reinvestment plan shall be submitted in conjunction with the Statement of the Corporate Tax on the financial year in which the increase in assets takes place.

4. The Plan shall be deemed to have been approved if the Tax Administration does not give an opinion on the Plan within three months from the date of the filing of the Company Tax declaration, provided that the other requirements set out in this Article and in the preceding paragraph.

Art. 150. Partial reinvestment.

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

Art. 151. Transfers to a lucrative title.

If the transfer is profitable, the taxable person may benefit from the exemption from the increase in the assets provided that he invests in the acquisition of tangible tangible assets under the conditions and time limits laid down in previous articles, an amount equal to the value indicated for the goods transmitted for the purposes of the Tax of Successions and Donations.

Art. 152. Temporary imputation

1. The exemption from the corporation tax due to the increase in the wealth obtained will be attributed to the exercise in which the disposal of the assets that originated it takes place.

2. However, where the recovery period is over four years, the taxable person may submit a reinvestment plan adjusted to the conditions for recovery.

Art. 153. Accounting.

1. The tangible assets of fixed assets in which the reinvestment materializes must be included in the respective balance sheets with the separation of the remaining assets which the Entity has and under a heading which expresses that circumstance in such a way as to permit its clear identification.

2. The taxable person shall also, on the basis of the relevant marginal order or note accounts, reflect on his balance sheet the reinvestment commitments acquired and the amount of the disposal made, broken down, on the one hand, by the net of the well-alienated, and of another, the increase of the wealth obtained.

3. The marginal order or annotation accounts referred to in the preceding number shall remain on the balance sheet as long as the tax obligations they represent remain.

Art. 154. Loss of exemption.

1. Failure to comply with the substantial requirements set out in the preceding articles of this subsection shall result in the corresponding increase in the assets.

2. As a consequence of the provisions of the preceding paragraph, the taxable person shall proceed as follows:

First. -It will bring the exercise corresponding to the exercise according to the general rules.

Second.-The resulting liquid will add the part of the full quota that would have been allocated, in the exercise of the disposal to the increase of the assets not reinvested in the conditions mentioned, as well as the interest of delay corresponding.

3. The previous corrections shall entail the right of the Administration to take the relevant delay interest, without prejudice to the provisions of the legislation in force in respect of the sanctioning regime.

Art. 155. Incompatibility with other regimes.

1. The enjoyment of the exemption referred to in this Subsection shall be incompatible for the same goods and amounts in which the reinvestment is made, with any other investment incentives established or which may be established, and with the deduction for investments covered by Article 213 et seq. of this Regulation.

2. Where the purchase price of the new item exceeds the product obtained in the disposal of the previous item, the excess may, where appropriate, benefit from the deduction for investments in new fixed assets, this circumstance being noted by marginal note.

3. The amount of the amount referred to in Articles 183 to 199 of this Regulation shall not apply to the financing of items constituting reinvestments covered by this Subsection.

SECTION V. LOSS COMPENSATION

Art. 156. Loss compensation.

1. If, by virtue of the rules applicable to the determination of the taxable amount, the amount is negative, the amount may be offset within the five immediate and successive financial years in respect of which the loss originated, distributing the amount in the proportion which the subject considers appropriate.

2. For these purposes, the tax base arising from the transactions carried out in the financial year shall be reduced by the amount that the Company decides to compensate for the negative taxable bases in the financial years which have been closed in the preceding five years.

Art. 157. Limit of the compensation.

In no case can it be deduced as a loss compensation, in an exercise, an amount higher than the positive tax base derived from the operations carried out in the exercise.

Art. 158. Time to practice compensation.

The compensation of the taxable bases shall be made by the taxable person himself at the time of formulating the Company Tax declaration, without prejudice to the powers of verification that correspond to the Administration tax.

Art. 159. Requirements for compensation.

Loss compensation will conform to the following requirements:

(a) In the case of negative taxable bases, either because they have been tested by the lnspection or because they have earned the prescription.

As long as they are not definitive, the compensation made by the taxable person will be considered provisional and may be the subject of subsequent rectification by the tax administration.

(b) That the compensation applied in the financial year does not exceed the limit laid down in Article 157 of this Regulation.

Art. 160. Compensation of negative tax bases from tax adjustments.

When the negative tax base comes exclusively from tax adjustments on the magnitude of the accounting result, the Company will be able to freely perform its compensation in the following five immediate years.

Art. 161. Compensation of negative tax bases of transparent companies.

1. For the purposes of determining the profit attributable to the partners by the transparent companies, the taxable amount for the transactions carried out in the financial year shall be reduced in accordance with the provisions of the preceding articles of this section, compensation of negative tax bases from financial years in which the company did not appear to be host to the tax transparency regime.

2. However, the partner may not claim this minorization when he has previously taken account of it in the valuation of his assets for tax purposes, or where he acquired his participation in subsequent financial year produced the losses.

Art. 162. Inspection inspection.

1. The Financial and Tax Inspectorate, when carrying out the verification of the declarations. make the resulting tax base on record of evidence of facts on the basis of the relevant legal and regulatory requirements.

2. The competent office shall, in the light of the actions and the arguments in its case, of the taxable person, agree to the figure to be compensated by the person concerned, warning of the remedies which may be brought against the agreement.

3. Until such time as there is no firm agreement on the figure to be compensated, the action of the Inspectorate on the verification of the tax for the financial years, the tax base of which is affected by that determination, shall be documented in minutes. prior.

4. Defined the amount to be compensated in accordance with the preceding paragraphs, the taxable person shall rectify the amount of the account which reflects the negative tax base by means of the appropriate corrective seats, in such a way as to appear duly reflected the amount of the compensatory amount during the five financial years following that in which the negative tax base occurred.

Art. 163. Consequences of non-compliance with compensation conditions and requirements

Failure to comply with the requirements, both material and formal, will result in the cancellation of the compensation practised and the application, where appropriate, of the penalties provided for in the legislation in force. The interest for late payment shall also be required, where appropriate.

SECTION VI. TAX CAPITAL

Art. 164. Concept of fiscal capital.

1. Tax capital shall be the amount at the end of the financial year of the entity's own capital.

For these purposes, equity capital will be made up of the algebraic sum of:

(a) With a positive sign, the registered share capital or, where applicable, the contributions to the equity, the share issue premium, the reserves constituted from the results, the update accounts from the day following that in which it takes effect, the capital gains accounted for by revaluations, the forecasts, the remaining financial years and the profits of the financial year, where appropriate, in the amount applied to representative concepts obligations for third parties.

b) With negative sign the losses of previous years, those of the exercise itself and the shares and social interests in the part outstanding.

2. The tax capital shall be determined:

(a) By the difference between the amount of the asset and the amount of the obligations to third parties, if any, by the debtor balance of the profit and loss account.

(b) Substitute for the algebraic sum referred to in paragraph 1 above.

3. The capital of the institutions resident abroad which conduct business in Spain by way of permanent establishment shall be determined in accordance with the above paragraph, but with exclusive reference to that establishment permanent.

4. They are not part of the tax capital:

(a) Depreciation and provisions admitted or required fiscally that are duly accounted for.

(b) The reversion fund provided in accordance with Article 60 of this Regulation.

c) The social works funds of the Savings and Education and Social Works of the Cooperative Entities.

Art. 165. Asset items.

l. The following shall not be considered as asset items for the purposes of determining tax capital:

a) Negative results.

(b) Shares subscribed by the outstanding portion of the disbursement.

2. Asset items shall be construed as being minted by:

(a) Cumulative redemptions.

(b) The corresponding provisions.

Art. 163. Items of liabilities.

For the determination of the tax capital, as referred to in Article 164 (2) (a), the liability shall be defined as the following groups or items:

a) Debts with third parties.

b) Provisions for responsibilities.

(c) Adjustments to the liabilities included in the liability of the balance sheet, including capital grants on the part of the outstanding part of the balance sheet.

d) Reversal fund.

e) Funds of social works and education and social works.

Art. 167. Determination of the tax base through the tax capital.

When the tax base is to be determined through the tax capital, it will proceed as follows:

First.-The corresponding tax capital figures will be determined:

(a) At the end of the financial year the taxable amount of which is determined.

(b) At the close of the immediate financial year preceding the one referred to in the preceding letter.

Second.-The difference between the tax capitals mentioned in points (a) and (b) of the first number will be obtained.

Third. -On that difference will be the increases that come from among the following:

(a) Capital minorations, reserves or results not due to loss compensation that were previously reported in accounting.

b) Sanitation of non-fiscally authorized heritage items.

(c) Payments generated in the financial year that do not constitute, for tax purposes. cost of acquisition or deductible expense.

(d) Increase in the balance of the adjustments for the purposes of the adjustment for the liabilities of the balance sheet, or decreases in the assets of the assets. which are not fiscally admissible.

e) Parties that assume application or distribution of results, as soon as they are not fiscally deductible.

Fourth. -Also, on the difference referred to in the second number, the decreases that come from those that are expressed shall be carried out:

(a) Contributions of members made in the financial year that do not constitute an increase or decrease in assets.

(b) Cobros generated in the financial year that do not have the consideration of income for the purposes of this tax.

(c) The fiscally authorised regularisations that have an impact on the financial year.

(d) Any other decrease that would be applicable in accordance with the rules of this tax.

Fifth. The algebraic result of carrying out the operations mentioned in the preceding rules will constitute the taxable base of the financial year. For these purposes, the increases referred to in the third number and the difference obtained from the second number shall be regarded as a positive sign, if it is also positive, on the contrary, that the decreases to which the refers to the fourth and the difference obtained from the second number when it is negative.

SECTION VII. DETERMINATION OF THE RATEABLE VALUE BY MEANS OF INDEXATION

Art. 168. Application of indexation methods.

l. In the case of cases and situations provided for in the rules of this tax and Law 34/1980 of 21 June, on the reform of the tax procedure and, in the case of the Commission, the Commission is required to apply the particular:

(a) In the assessment of the related transactions referred to in Article 39 of this Regulation.

(b) Where the presumption of payment is applicable, provided that the taxable person does not prove otherwise.

(c) In the determination of increases and decreases in equity, where such increases and decreases may or may be performed by applying the real or market value.

d) In the remuneration of all types satisfied in kind.

e) When accounting for substantial anomalies, so that it does not reflect the true patrimonial situation and transactions performed by the taxable person

(f) Where, between the books and the statutory or statutory records, discrepancies are found to reasonably doubt the veracity of the information contained therein, and where their conduct is patchy.

g) When the taxable persons offer resistance, excuse or refusal to the performance of the inspector or fail to comply with the obligation to present their statements, in such a way that it is impossible for the Administration to know the data necessary for the determination of the tax base by direct estimation.

2. In the case of application of indexable methods for the total or partial determination of the tax base, the actuary inspector shall attach to the written report reasoned report in relation to the following:

a) Cause of the application of the indexation methods.

(b) The accounting situation of the taxable person.

c) Justification of the adopted indexer method.

d) Detailed exposure of the calculations and modules used.

3. Without prejudice to the right of the taxable person to make claims and to file appeals and complaints in relation to the administrative act. the report referred to in the previous paragraph shall be joined to the minutes in which the results of the inspector's performance are documented.

Art. 169. Indexation methods.

1. In the cases referred to in points (a), (b) (c) and (d) of paragraph 1 of the preceding Article, they shall apply to the choice of administration or to any of the following methods:

(a) Quotations on regular official markets to the date to which the valuation is to be referred to.

b) Prices applied in similar operations at the same time or approximate. taking into account the commercial relationship between undertakings or unrelated persons.

c) Prices, rates or conditions authorized administratively, published in some "Official Gazette" or made known through a means of dissemination.

d) Value assigned for purposes of another tribute.

(e) Prices, rates or conditions expressed by the taxable person on files of an administrative nature or appearing in their catalogues and price lists.

(f) Values entered in the same contract or in other similar characteristics.

g) Common commercial margin in similar transactions.

2. In the other cases referred to in paragraph I of the preceding Article, in addition to the methods listed in the preceding paragraph, the following shall apply in particular:

a) Application of average types of performance, taking into account the sector and activity in which the Company is listed.

(b) Method of gross operating margin from which general expenses and structure charges are deducted.

c) Average or trend of results obtained in the last three years.

d) Application of capital investment recovery rates.

e) Comparison with other companies in similar economic and productive circumstances.

f) Results declared to the Administration or publicly expressed through means of dissemination.

g) Consumption or use of raw materials or other factors of production.

(h) Any other method based on founded assumptions, provided that between the demonstrated fact and the deduce there is an accurate and direct link according to the rules of the human criterion.

The methods set out in this paragraph shall, preferably, be used for the determination of net yields by separately calculating the taxable amount corresponding to increases and decreases in equity.

CHAPTER and E

Tax Debt

SECTION I. FULL QUOTA

Art. 170. Period of taxation and accrual of tax.

1. The tax period shall coincide with the financial year of the Entity. However, the tax period shall be deemed to be terminated:

a) When the result count is liqued.

b) In cases of merger or dissolution of Societies.

c) When a change of residence of the Entity of Spain is taking place abroad, or conversely.

d) When a permanent establishment of a non-resident Society in Spain ceases to be active.

(e) Where a non-Spanish-resident company applies for the corresponding authorisation to withdraw the taxable income referred to in Article 333.2 of this Regulation from the national territory.

The tax period shall not exceed twelve months.

2. The tax will become payable on the last day of the tax period.

Art. 171. Type of charge

1. The tax will, in general, be required by applying the rate of 33 per 100 to the tax base.

2. The Savings Banks, Rural Banks, General Insurance Mutuals and Cooperatives will be taxed at the rate of 18 per 100.

3. In the case of returns obtained by foreign companies which

operate in Spain, without permanent establishment, a definitive tax of 24 per 100 will be required on the amount of net returns, unless the taxable person is engaged in the general scheme.

4 The taxable income obtained by the Entities referred to in Articles 25 (1) (e) and 30 of this Regulation shall be taxed at the rate of 15 per 100.

Art. 172. Full quota.

1, the share of the total amount resulting from the application of the levy rate on the positive tax base.

2. The order of deductions to practice on the full quota will be as follows:

(a) The deduction corresponding to the double taxation of dividends.

b) The international double taxation deduction.

c) The bonuses that in each case may correspond.

d) The deduction for investments.

e) Retentions.

3. In no case may the differences obtained in the minoron of the quota be negative, in any case, several or all of the deductions contained in points (a) to (d) of the preceding paragraph.

SECTION II. DOUBLE TAXATION DEDUCTIONS

Art. 173. Deduction for double taxation of dividends.

1 Where income of the taxable person is calculated as dividends or shares in the profits of other companies resident in Spain, 50 per 100 of the proportional share corresponding to the tax base shall be deducted derived from such dividends or participationes.

2. With the requirements expressed, the deduction referred to in the preceding paragraph shall be raised to 100 per 100 in the following cases:

to the dividends received by the Mobilia Investment Funds.

(b) The dividends received by the Mobiliaria Investment Companies, which are covered by their special financial arrangements.

c) The dividends distributed by Companies of Companies.

(d) dividends from a company which is dominated, directly or indirectly, by a company which receives dividends by more than 25 per 100, provided that the dominance is maintained in an uninterrupted manner both in the period in which the dividends are distributed as in the previous year.

3. Taxable persons under a real obligation operating in Spain by means of permanent establishment may apply the deduction as set out in the preceding paragraphs.

4. This deduction shall not apply to the subjects referred to in Article 5 of Law 1/1278 of 27 December.

Art. 174. Basis for the application of the double taxation deductions.

1. For the purposes of this deduction, the consideration of dividends shall be the non-deductible items referred to in points (a), (b) and (c) of Article 125.1 of this Regulation.

In particular:

(a) The distributions of results or reserves made by the Companies to give back to their members or members.

(b) Premiums for the attendance of similar cash together and remuneration performed on the basis of the number of securities held, present or represented, as applicable.

(c) The share of the share of social settlement that corresponds to undistributed profits.

2. For the determination of the proportional share corresponding to the dividends or shares in the tax base, the full amount of the following items shall be deducted:

(A) On a general basis, the amount of specifically chargeable expenses, such as custody, collection, management and administration.

B) In addition to the specifically imputable expenses, the corresponding part of the overheads shall also be deducted when the recipients are:

(a) Mobilia Investment Companies, Mobilia Investment Funds, Portfolio Societies and Pension Funds

b) Banks, Savings Banks, Rural Banks, Credit Unions and other financial institutions.

c) Insurance, savings and capitalization companies

General expenses shall be divided in proportion to the total income, except for financial expenses, for which the average investment in the financial year shall be treated.

3. In any event, it will be an essential condition for the paying agencies to have effectively taxed in Spain for the Company Tax.

Art. 175. Deductions for international double taxation.

1 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 amounts shall be deducted:

(a) The effective amount of the foreign satisfaction on the basis of a charge of an identical or similar nature 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, calculated in accordance with the following number.

2. The quota referred to in point (b) of the preceding paragraph shall be that which results from the application of the rate of charge to net yields and increases in wealth from abroad.

Art. 176. Basis for the application of the international double taxation deduction.

1. The basis for the application of the international double taxation deduction shall be determined by increasing the net amount of the revenue computed in the amount of the charge effectively satisfied in the same or similar nature to that tax.

2. The basis for the application of the international double taxation deduction and the deduction shall be calculated on an individual basis for each transaction, without the overall and indiscriminate calculation being admissible.

For these purposes, returns arising from the same principal contract and the accessories established for the proper fulfilment of the principal shall be considered as integrated in a single operation provided that they come from the same foreign country.

3. In cases where the Entity operates abroad with one or more permanent establishments, the deduction shall be calculated for each of them separately, even if the establishment has been taxed in different countries or in the country in question. the entity has other income, with or without the mediation of another permanent establishment.

SECTION III. BONUSES

Subsection 1. Bonuses in the quota

Art. 177. Bonuses in the quota.

1. They shall enjoy a bonus in the Company Tax quota, in the amount and conditions laid down in the Laws and in this Regulation:

(a) Yields obtained by the Territorial Public Administrations derived from the exploitation of the services of their competition.

(b) The income and equity increases of shares held by foreign companies.

c) The returns on the export of books.

d) The returns of the fiscally protected cooperatives.

Yields and increases in assets obtained in Ceuta and Melilla.

(f) Loan and loan yields to finance real investments.

(g) The increases in assets evidenced in the operations authorized under the Law on Companies ' Mergers.

2. The allowances shall be calculated by applying the percentage in each case to the share of the quota corresponding to the net yields and increases in equity referred to in the preceding paragraph, where appropriate, by the deductions for double taxation.

Art. 178. Bonus in the share of territorial public administrations.

1. In the case of Spanish companies which are different from the State and the Autonomous Communities, the percentage referred to in Article 177 (2) shall be 99 per 100.

2. The bonus shall apply to the income from the holdings of municipal or provincial services in their jurisdiction. in accordance with the current Local Regime Law, even if they are either directly or in the form of a private enterprise, but not when they are operated by the joint enterprise system.

3. It shall be understood that there is a direct management system, where the corresponding administration carries out the operation of the services by its officials, without special administrative authority, or by the allocation of a wealth or asset mass of goods in a personified form, with a special administrative body and, both in one and in another case, with special service finance, separate accounts or independent accounts of the general administration and publication of its balance sheets and settlements.

Art. 179. Bonuses in the share of shares held by foreign companies.

1. In the case of the Land Administrations, with the authorization of the Ministry of Finance, and having as its sole object the holding of shares of foreign companies that do not carry out activities in Spanish territory, the percentage to referred to in Article 177 (2) shall be 99 per 100.

2. For these purposes, a foreign company shall carry out activities in Spanish territory where it has a permanent establishment or through the possession of shares it achieves a direct or indirect domain relationship of more than 25%. by 100 of the share capital of another Company operating in that territory.

Art. 180. Bonus in the quota for the export of books.

1. The percentage referred to in Article 177 (2) corresponding to the profits from the activity described in the following number shall be 99 per 100.

2. The bonus shall apply to profits from the export activity of books, fasciculties and elements whose content is normally homogeneous or edited jointly with those, as well as any other editorial teaching character, which is effectively invested in the concepts and categories of goods provided for in Articles 234 and 235 of this Regulation.

3. The benefits of the export activity referred to in the preceding paragraph shall be determined by means of a separate income account for the activities of the same kind.

4. Investments shall be made in the same financial year as the allowance and for the calculation of their amount, determination of the time in which they are taken, documentary justification, accounting and disposal of the goods the rules of this Regulation relating to the investment deduction scheme shall apply.

5. The scheme established in the present Article is incompatible with the method of deduction for investments by exporting companies in respect of the same goods in which the investment was made.

Art. 181. Bonus applicable to fiscally protected cooperatives.

1. The percentage referred to in Article 177 (2) applicable to the income of the cooperatives fiscally protected shall be 50 per 100.

2. The bonus shall be applicable to the income earned in the course of the activities which have been the subject of a protected qualification.

3. This allowance shall in no case be applicable to yields obtained from the transfer of assets or property increases.

Art. 182. Bonus in the quota for activities in Ceuta and Melilla.

1. The percentage referred to in Article 177 (2) applicable to the income or increase of assets obtained by the Entities that are effective and materially operating in Ceuta and Melilla or their dependencies shall be 50 per 100.

2. The Entities referred to in the preceding number shall be as follows:

(a) Spanish entities domiciled in such territories.

(b) Spanish entities domiciled in tax outside those territories and operating in them by establishment or branch.

(c) Foreign entities not resident in Spain and operating in those territories by permanent establishment.

3. An effective and materially realized transaction in Ceuta and Melilla or its dependencies shall mean those that close in these territories a business cycle that determines economic results.

It shall not be estimated that such circumstances shall be measured in the case of isolated operations for the extraction, manufacture, purchase, transport, entry and exit of genera or effects on them and, in general, where operations are not determine on their own income or bankruptcy.

4. The determination of the income which may be the subject of a bonus shall be made by means of separate accounting in such a way as to enable the amount to be established, fiscally.

5. Exceptionally, for the determination of the benefit attributable to Ceuta and Melilla obtained by fishing companies, the following percentages shall be allocated:

(a) 20 per 100 of the total profit to the territory in which the administrative management and management of the business is effectively centralised, as provided for in Article 23 of this Regulation.

(b) A 40 per 100 of that benefit shall be distributed in proportion to the volume of landings of catches in Ceuta and Melilla and in different territory.

Exports will be imputed to the territory in which it radiations the management and direction of the business.

(c) The remaining 40 per 100, in proportion to the book value of vessels as registered in Ceuta and Melilla and in different territories.

The percentage provided for in point (c) shall apply only where the management and management of its businesses in Ceuta and Melilla are centralised by the fishing company concerned. In another case, this percentage would be greater than that of point (b).

6. For maritime navigation entities, the benefit to Ceuta and Melilla shall be attributed on the basis of the same criteria and percentages applicable to fishing undertakings, replacing the reference to landings of the catch by that of passages, freight and leases there contracted.

7. For the purposes of paragraphs 5 and 8, no transfer of registration which may have been made or which may have been taken on or after 1 January 1979 shall be admissible.

8. The allowance provided for in this Article shall also apply to dividends received from the entities referred to in Article 173. In this case, the basis of deduction shall be that determined for the purposes of the double taxation deduction, in the part of the profit obtained in that territory.

Subsection 2. Loan and loan yields that finance real investments.

Art. 183. Allowance in the share for loan and borrowing yields.

1. The percentage referred to in Article 177 (2) applicable to the returns indicated. and under the conditions laid down in this Regulation, shall be up to 95 per 100.

2. The taxable persons and the yields referred to in the preceding paragraph are as follows:

(a) International bodies, foreign banks and foreign financial institutions, for the purpose of the yields of loans granted to Spanish companies by the State Autonomous Communities and Corporations Local as well as the entities holding private or mixed companies that. according to the Law, provide public services.

(b) Legal persons, whether Spanish or foreign, on the basis of the yields of the representative securities, of borrowings issued, both on the domestic and overseas markets, by Spanish companies which carry out business activities.

(c) Legal persons, whether Spanish or foreign, by reason of the yields of the securities representative of the borrowings issued exclusively abroad, by the State, Autonomous Communities and Local Corporations, as well as by the entities holding private or mixed companies which, according to the law, provide public services. when the issue is authorised when the issue is agreed.

3. The concept of loan or borrowing yields includes interest and commissions, but does not include the fees related to the issue or placement of the transaction, nor the amounts received by the previous study and management. the granting of the corresponding contracts, or the granting of such contracts and other ancillary or collateral operations.

4. The basis for the application of this bonus shall be determined by applying the costs referred to in Article 174 (2) of this Regulation, according to the nature of the recipient's entity, to the amount of the amount collected, except as indicated in the Article 335 of the same Regulation for non-resident entities on Spanish territory.

Art. 184. Requirements.

They shall be inexcusable in order to be able to enjoy the bonus referred to in the previous article, the following:

(a) That the funds obtained by the borrowing institutions are intended to finance real investments. For these purposes, real investments shall mean those contained in Article 214 of this Regulation which are therefore affected by the development of economic holdings.

b) That the funds obtained by the State, Autonomous Communities, Local Corporations and Entities holding private or mixed companies are intended to finance real investments, necessary for the exercise of services public of their competence.

(c) The actual investments are made in Spanish territory and within the period specified in the standard for which the allowance is granted.

d) In the case of international financial transactions, if the creditor, international bodies, banks or foreign financial institutions, have permanent establishment in Spain, such operations shall be training outside the Spanish territory and the payment of principal and interest will be carried out abroad without the permanent establishment having any intervention in the study preparation and control of the credits or the Borrowing.

This requirement shall not be understood to be in breach of the fact that the receipt of the loan funds or the transfer to the outside of interest and amortisation payments are made through the permanent establishment in Spain, provided that the latter has the status of a delegated entity of the Bank of Spain, therefore, to deal with such transfer.

Art. 185. Foreign financial institutions.

For the purposes of the foregoing Article, foreign financial institutions are understood to be those Entities, public or private, whose liabilities are primarily constituted by third-party currency deposits and Bonds or bonds issued both on the domestic and foreign markets, and their asset consists primarily of loans, portfolio of effects and portfolio of securities.

Art. 186. Credits between related companies.

When the transactions referred to in Article 183 of this Regulation are made between related companies, it shall be carried out in the normal market conditions on the date of the transactions, taking into account the time limit. depreciation and risk of the transaction.

Art. 187. Credit-bridge and pre-financing credits.

1. For the purposes of the allowance referred to in Article 183.1 of this Regulation, borrowings or loans the amount of which is intended to be used shall be taken to cancel pre-financing bank loans or bridge credits, some and other they are intended to finance the investments served with such credits, if the above allowance is applicable.

2. Pre-financing bank loans shall be used to finance the payments to be made by the borrower during the construction period and the duration of which does not exceed, in total. of the two-year period.

3. Bridge credit shall be defined as those granted to cover the period of implementation of the main operation for which the allowance is intended, provided that its period does not exceed a carry-over year, after communication to the Administration, for another annual period.

4. Without prejudice to paragraph 1, the income from pre-financing and credit-bridge credits shall not be covered by the allowance provided for in this Subsection.

Art. 188. Replacement and transfer of units.

1. In the case of replacement and transfer of shares in the credit operation, which do not exceed 5 per 100 of the outstanding balance of the transaction, provided that the degree of foreign participation in the financing is not altered or assumed variation in the direction of the transaction, the borrowing entity shall be limited to reporting annually to the Authority which granted the allowance for the alterations made.

2. Where the conditions set out in the previous paragraph are not met, the issuing Entity shall be obliged to request the validation of the allowances on its day granted.

3. The provisions of this Article shall not apply to borrowings, in respect of those issued abroad or when they have the status of securities with a qualifying listing on the Spanish Stock Exchange.

Art. 189. Refinancing operations.

1. They may be re-financed without thereby losing the allowances they have originally recognised, provided that they comply with the requirements laid down in this Regulation:

(a) The loans agreed on in the foreign market, as well as the borrowings issued therein.

b) borrowings issued in the internal market.

2. They shall be inexcusable in order to enable refinancing operations to benefit from the bonus, the following

(a) In no case shall the maximum period of the original financial transaction be exceeded.

(b) The amount of the refinancing operation does not exceed the amount of outstanding and unexpired debt at the date of such operation.

In the case of transactions carried out in foreign currency, involving the replacement of the currency used, the currency exchange rate shall be applied to the currency of the date on which the refinancing operation is carried out.

3. Exceptionally, in the case of transactions carried out on the international market, extension of the period referred to in paragraph 2 may be authorised where the refinancing operation is carried out under better conditions of interest. as guarantees.

4. In no case shall the bonus be applied to the refinancing operations of the interest.

5. The granting of the refunding of refinancing operations shall be requested by the Entity in accordance with the conditions laid down in this Regulation.

Art. 190. Tax-free returns.

1. In the case of financial transactions referred to in Article 183.2 of this Regulation, carried out abroad, it may be agreed that the debtor shall take the payment of the corresponding Corporate Tax.

2. In the case referred to in the preceding paragraph, the taxable amount of the amount which, deducted from the bonus tax rate, would result in the remuneration actually paid, shall be considered as a taxable amount.

3. The resulting tax rate shall be understood as the result of applying the reduced rate of charge on the basis of the rate of subsidy granted.

Art. 191. Holds.

The retention at the source provided for in Section V of this Chapter shall be applied according to the following criteria:

A) In the operations of Article 189.2 of this Regulation made with non-residents in Spain:

(a) When the Company Tax becomes due at each maturity, the allowance shall be applied to the full quota as determined in accordance with the general rules.

(b) In the case of transactions covered by the third transitional provision of Law 61/1978 of 27 December 1978, the allowance shall be applied to the rate established in the Capital Income Tax.

(c) Where the general tax regime of the Company Tax is applicable, the allowance shall be applied in the tax rate.

B) In the borrowings issued in the internal market, the allowance shall be applied in the tax rate and not in the withholding tax.

Art. 192. Double taxation conventions.

For the purposes of applying the Conventions to avoid double taxation, the allowance shall be made on the tax rate and not on the maximum rate which the Convention may contain.

Art. 193. Request.

1. The application for the bonus will be submitted by the borrower in the General Tax Directorate of the Ministry of Finance, accompanying the following documents:

(a) Memory of the investments to be made with the funds from the loans or borrowings, in which the detailed budget of the costs, their location and the approximate dates and deadlines shall be recorded in the which shall be carried out.

(b) The financing plan for such investments, in which the dates provided for in which, in one or several times, external, internal or external financial means will be used in order to obtain the financing required.

c) Copy of the contract or loan agreement. The borrowings shall be accompanied by the certification of the minutes of the General Board in which the issuance or agreement of the Board of Directors has been approved in which it is executed by delegation of the agreement taken, in its day. by the General Board.

When a contract proposal is submitted, a copy of the contract must be submitted once it has been established.

d) Loan or loan repayment table.

e) Prefinancing credits and bridge credits enjoyed, as well as their duration.

f) Degree of linkage, or absence thereof, between lender and borrower.

2 In the case of refinancing operations, the application shall be accompanied by the financial and financial statements supporting the operation.

Art. 194. Resolution.

1. If the resolution adopted by the Ministry of Finance and, by delegation, the Undersecretary of the Department, is favorable, it shall be determined:

a) Percentage of bonus granted.

b) Total amount of the operation that will be bonus.

c) Maximum time within which the investments contained in the Memory shall be carried out.

(d) The calendar and terms of the financial transactions provided for without any excess of the amount referred to in point (b) above.

e) Any other conditions that are deemed relevant.

2. The decision referred to in the preceding number shall be of a provisional nature, as long as the following formalities are not fulfilled:

(a) Administrative authorisation, in the form that it shall proceed, where it is required for the implementation of the financed operation.

(b) Check by the Financial and Tax Inspectorate, after the deadline for the implementation of the investments, that the Company has taken them into effect and fulfilled the conditions under which they would have been granted the bonuses. In any case, the Financial and Tax Inspectorate may carry out. at any time, the checks it deems necessary to establish the proper monitoring of the investments to which the benefits granted relate.

The authorisation granted on the basis of a contract proposal shall also be provisional as long as it is not ratified within 15 days of receipt of the final contract.

3. The time limit for the adoption of the provisional decision shall be one month from the day following the day on which the application is submitted, together with all relevant information and documents or, where appropriate, the failure to comply with the decision. Requirement of the Administration.

4. Where the time limit laid down in the resolution for the implementation of the investments is insufficient, the Company may request at least one month's notice, as regards the date on which the date of expiry, a single extension of the time limit, setting out the reasons for this request. The Administration shall notify the Company of the relevant resolution before the end of the ordinary period. If this is not done, it will be understood that the resolution has been favourable.

5. The provisions of paragraphs 3 and 4 above shall also apply to refinancing operations. For these purposes, the report of the Financial and Tax Inspectorate of the State, which must be evacuated within a period of 15 days, will be a prerequisite for the modifications which, under the conditions of the financing, are contained in the corresponding Memory and its adequacy as set out in Article 189 of this Regulation.

Art. 195. Incompatibility.

1. The allowance referred to in Article 183 of this Regulation is incompatible, for the same income, with the scheme laid down in the third transitional provision of Law 61/1978 of 27 December 1978 on the tax on Companies.

2. The allowance is compatible with the deduction scheme for investments in new fixed assets and for the subscription of transferable securities, regulated in Section IV of this Chapter.

Art. 198. Loss of bonus.

1. Failure to comply with the requirements set out in the previous Articles shall determine the loss of the bonus provisionally granted. In this case, the Company would be required to provide the total amount of the fees that would have been entered in case of failure to obtain the bonus, without prejudice to the penalties to be applied according to the corresponding rules. as the interest on late payment, depending on the time limit.

2. In no case shall the borrowing or issuing entity pass on to the creditors or obligationists the tax debts referred to in the preceding paragraph.

3. Where the non-compliance proceeds from having made only part of the investments envisaged, the loss of the allowance shall affect the proportion of the funding corresponding to the unrealised investments.

The same rule shall apply when part of the investments made is concerned with the fulfilment of the reinvestment requirements related to the application of the exemption provided for in Articles 146 to 155 of this Regulation.

Art. 187. Accounting.

1. The loans and borrowings provided for in the allowance referred to in Article 183 of this Regulation shall be subject to a differentiated accounting, with the effect of creating an account with the name of ' Obligations issued or Article 25 (e) of the Treaty on the European Economic and Social Fund (Act 31/1978), which is to reflect on the liabilities of the balance sheets of the respective companies the amount of the financial transactions in question.

2. Similarly, investments made with such loans or loans shall be taken into account, with due separation by way of concepts, in differentiated accounts with titles appropriate to their content, which shall be included in the assets of the balance sheets. under the heading .

Art. 198. Authorization to the Government.

For reasons of economic policy, the government, on a joint proposal from the Ministries of Economy and Trade and Finance, will be able to determine annually. unless they are set for a higher period:

(a) The economic sectors and the areas of industrial location to which the enterprises whose loans or loans may be eligible for their activity are or where they are active.

b) The percentage of the same applicable in each case.

Art. 199. Industrial banks.

1. The rules laid down in the preceding Articles shall also apply to transactions involving international bodies Banks and foreign financial institutions, industrial and business banks, which are intended to finance the investments made by the Spanish companies to which the banks grant loans from the funds thus obtained from abroad.

2. For the purposes of this Regulation, financial transactions which have been arranged abroad by the Institute of Official Credit and the National Institute of Industry shall also benefit from a bonus, under the same conditions as Industrial and business banks.

SECTION IV. DEDUCTION FOR INVESTMENTS

Subsection 1. General provisions

Art. 200. Modalities of the deduction for investments.

1. They constitute investment modalities that give the right to deduction, the following:

a) Investment in new fixed assets.

b) Job creation.

(c) Subscription of transferable securities with a qualified stock exchange listing.

(d) Research or development programmes for new industrial products or processes.

e) Investments of export companies.

f) Investments by publishing companies.

g) Specific investments by industrial banks.

h) Specific investments of Companies to Promote Companies.

2. The taxable persons liable for this tax may be eligible for the deduction for investments and the taxable persons who operate in Spain by way of permanent establishment.

The maximum limits of the deduction for investments, provided for in Article 202 of this Regulation, shall be calculated on the amount of the amount resulting from the subtracting of the full quota, the double taxation deductions and the bonuses.

Art. 201. Compatibility between deduction modes.

1. The deductions referred to in points (a), (b), (c), (d), (e) and (f) of paragraph 1 of the previous Article shall be compatible and may be applied jointly and shall be established as a limit in the tax period in which such deductions are applied. set for the deduction mode for investments made that is higher.

2. However, the provisions of the above paragraph, the application by the publishing companies and the exporting companies of the specific investment deduction scheme is incompatible for the same assets with the application of the general scheme

3. In no case shall the same fixed asset give rise to more than one deduction on its amount, even if it is different taxable persons.

Art. 202. Deduction limits.

The deduction for investments shall have the limits resulting from applying the percentages indicated to the quantity provided for in Article 200.2 of this Regulation:

(a) Investments in new fixed assets, in subscription of securities with a qualified stock exchange listing and the detailed rules referred to in points (d) to (f), both inclusive, of Article 200 (1), 20 per 100.

(b) Investments in new fixed assets, and in subscription of securities with qualified stock exchange, without reduction of employment, 25 per 100.

c) Investments in new fixed assets, with job creation, 30 per 100.

d) Job creation, without making investments in new fixed assets, 20 per 100.

Art. 203. Inapplied deductions for quota insufficiency.

1. Deductible amounts exceeding the limits laid down in the preceding Article in the tax period in which the deduction for investments is calculated may be deducted successively from the quotas for the two financial years. (a) the following immediate compliance with the same limits, unless new investments are made which increase the limits on the quota for the said tax periods.

2. The deductible quantities referred to in the preceding number shall be subject to the arrangements in force at the time of the investment.

Art. 204. Application of the deduction for investments.

1. Where the taxable person is entitled to the deduction for investments in respect of those carried out in previous years or for the purpose of job creation, the following order of priority shall be observed:

(a) First, the remaining remaining from the investment tax support, as long as the time limit for the deduction has not expired.

(b) Second, the deductions under the general scheme of Article 26 of the Tax Act, or exceptional schemes of deduction for investments from previous years.

When different regimes coexist, those deductions for which a payment deadline is set shall first apply.

On an equal footing, it will be applied in the first place for job creation, giving preference to exceptional schemes in general.

If the other circumstances are the same, they will apply to the most remote exercises.

(c) Third, the amount corresponding to the financial year to which the levy is payable and, within them, the exceptional arrangements for deduction of investments on the general scheme shall be preferred.

2. In no case shall the limits laid down in Article 202 be exceeded without the fiscal support for the investment being taken into account for these purposes.

Art. 205. Incompatibility with other investment support schemes.

1. The deduction for investments shall be incompatible for the same goods, with any other investment incentives established or which may be established, with the scheme governed by Articles 148 to 155 of this Regulation, with the provision for investments and. where appropriate, with the investment tax support.

2. Undertakings carrying out mining or research activities or the exploitation of mineral oils shall, by applying to the same investments, opt for the scheme of the deduction for investments under this Regulation, either by the regime of the exhaustion factor regulated in Law 3/1977, of 4 January, of the Promotion of Mining, and in Law 21/1974, of 27 June, on Research and Exploitation of Hydrocarbons.

3. It shall be incompatible for the same goods, the application of this general scheme and any other exceptional arrangements established or established without prejudice to the provisions of Article 155 (2) of this Regulation.

Art. 203. Absorption, merger and transformation of enterprises.

1. The completion of merger and transformation operations of individual companies and companies for the creation of new companies will not, by itself, give rise to the application of the deduction for investments in any of its modalities.

2. Where the pre-existing undertaking has entered into commitments to maintain or create employment or to maintain investment, the time limit shall continue in the created, transformed or absorbing company, making abstraction of the processing or integration produced.

In the cases of operations covered by Law 76/1980 of 28 December 1980, of Business Mergers, the computation of employment will be carried out in the light of the overall situation of the companies affected, before and after the operation, 3 When the Company created, transformed or absorbent intends to make new maintenance or job creation commitments, the average template will be determined considering the situation of the pre-existing individual Companies or Companies.

Art. 207. Provision of goods.

1. The goods which have given rise to the deduction for investments may be freely disposed of, from the immediate economic year to that in which they were acquired, without prejudice to the provisions of the General Budget Law. of the State.

2. In cases where the investment involves the maintenance or increase of the employment, the relevant assets may not be put in place before the periods necessary to enable the investment to be granted.

3. In cases where the taxable person has chosen to compute the deduction for the amounts satisfied in each financial year, in accordance with the requirements laid down in this Regulation, the goods which have given rise to such a deduction may not be They have been fully paid.

Art. 208. Documentation to be presented.

Liabilities to the various modalities of the deduction for investments will present in the Finance Delegation of their tax domicile and together with the Company Tax declaration, the documentation that indicates, as the case may be, in the following sections:

A) Investment mode in new fixed assets:

(a) Comprehensive statement of the following: name and address of the supplier or contractor, description of the goods in charge, date of the order date of receipt, overall amount of the goods and, in the case of purchase with deferred payment, determination of their dates and value where Article 218 (3) of this Regulation applies.

(b) In the case of fixed assets manufactured or constructed by the Company itself, criteria for imputation of the costs and details of the amount of the asset.

(c) In case of acquisition under lease, copy of the contract.

d) Express expression about whether a commitment to maintenance or job growth is acquired.

B) Subscription mode for transferable securities:

a) Identification of the issuing Entity.

b) Determination of the class of securities, nominal and amount subscribed.

c) Express expression about whether a commitment to maintain employment is acquired.

Art. 209. Accounting.

1. The assets to be deducted by investments shall be in the main accounts and in the auxiliary accounts, duly detailed.

2. The amount of the items to be used as the basis for the deduction referred to in the preceding number and the relevant for job creation shall be in the accounts of the Company in such a way as to enable it to be properly verified by the Tax administration.

3. The amounts invested in accordance with the rules of this Section, in investments of the publishing companies, investments in intangible assets of the exporting companies and in research programs or development of new products, shall be duly accounted for as intangible fixed assets in the Company's balance sheet and shall be amortisation in accordance with the plan that is present for the purpose.

4. The same criterion will be followed by investments and mining research, which will have to be included in the rubric of tangible fixed assets.

Art. 210. Loss of deduction.

Failure to comply with any of the requirements of this Regulation for the enjoyment of the deduction for investments will result in the loss of the right to the deduction and the automatic cancellation of the practice.

Art. 211. Correction by the taxable person.

When there is a failure to comply with any of the requirements for the application of the deduction for investments in a post-year period, the correction shall be made by the subject himself. a liability for the self-settlement of the financial year in which the non-compliance occurs, increased in the amount of interest on late payment for the period during which the deduction was unduly enjoyed.

Art. 212. Verification and sanctions.

1. The tax administration shall verify the proper compliance with the requirements laid down in this Section in order to benefit from the investment deduction.

2. In the case of fixed assets constructed or manufactured by the taxable person himself, the administration shall have the power to indicate the amount to be regarded as investment, reducing. where appropriate, the relevant figures in the light of what is justified.

3. The provisions of the preceding number shall also apply to other investments which, in accordance with the requirements laid down in this Regulation, are liable to be made directly by the taxable person.

4. If the taxable person voluntarily rectifies his or her self-validation within the time limits and conditions laid down in this Regulation, the Administration shall require only the corresponding interest for late payment.

5. Where the circumstances provided for in the preceding number are not provided, the tax administration shall apply the system of penalties provided for in the legislation governing non-compliance with tax obligations.

Subsection 2. Deduction for investments in new fixed assets.

Art. 213. Deduction modalities for investments in new fixed assets.

1. In general, 10 per 100 of the investments in new fixed assets applied to the development of the activity of the Company will be deducted.

2. Where the taxable person assumes the commitment to maintain employment for two consecutive annual financial years, the deduction percentage shall be raised to 15 per 100.

3. If, in addition, the taxable person commits to the creation of employment, the deduction for job creation and the deduction for investments under the previous paragraph may be applied. with the limit set out in Article 202 (c) of this Regulation.

Art. 214, Investments in new fixed assets.

1. They shall have the consideration of new fixed assets for the purposes of the deduction for investments that meet each of the following requirements:

A) In the case of any of the following categories, irrespective of whether they are Spanish or foreign-made:

a) Buildings and other buildings located in Spain.

b) Machinery, facilities and tools.

(c) Elements of internal and external transport, excluding vehicles which may be used by persons directly or indirectly linked to the Company.

d) Furniture and Enbeings.

e) Equipment for information processes.

f) Mining research.

B) That are depreciable.

C) To be used or to be operational for the first time.

D) That they are not transferred to third parties for use, with or without consideration.

2. In no case shall it be considered as a new fixed asset to land.

Art. 215. Mining research.

1. For the purposes of the foregoing Article, investments in mining research, whatever their origin and physical state, shall be understood as investments in the exploitation, research and development of deposits and other geological resources.

2. Investments in mining research will entitle the corresponding deduction, whether they are made directly by the taxable person or if they are contracted with third parties. In no case shall the acquisition of the assets integrated in those investments be entitled to such deduction when they were previously included in the seller's fixed assets.

3. Investments which are the application of the funds made up of the appropriations to the exhaustion factor shall not be eligible for the deduction covered by this Subsection.

Art. 216. New fixed assets in agricultural activities.

1. In case they are applied to the development of agricultural activities they shall be considered as new fixed assets:

a) The acquisition or self-production of first-age or first-play reproductive livestock.

(b) The costs of processing land to be placed under operating conditions.

c) The disbursements made on the occasion of new plantings.

d) The irrigation works.

2. It shall be a requirement for consideration as investment in new fixed assets:

a) That their use exceeds the period of a harvest, campaign, or player cycle.

b) That are depreciable.

Art. 217. Base deduction for investments in new fixed assets.

1. The amount of investments in new fixed assets on which the deduction applies shall be:

(a) In the case of items acquired from third parties, the purchase price as defined in Article 40 of this Regulation.

In the special case of optional computation set out in paragraphs 3 and 4 of the following Article of this Regulation, the investment deduction shall apply on the part of the purchase price satisfied in each financial year.

(b) In the case of elements manufactured, constructed or produced by the taxable person himself, the cost of manufacturing, construction or production thereof shall include the direct and indirect costs. imputable, which the taxable person must justify by means of his accounts.

The amount of work performed for the fixed asset during the financial year shall be appropriately reflected in the profit or loss account.

(c) In the case of real estate, the value of the land shall be excluded.

(d) In the case of mining investigations and consideration of their performance with third parties, the amount to be satisfied under that contract.

2. In no case shall the interest accrued on the capital received in respect of loans for the financing of these investments and for purchase transactions with deferred payment be included, except as provided for in Article 53 of this Regulation.

Art 218. Time of calculation of the deduction for investments in new fixed assets.

1. Investments in tangible fixed assets that entitle the deduction for investments shall be deemed to be made in the period of the Impositive period in which they become operational.

2. Investments in mining research shall be understood as:

(a) When they are made directly by the taxable person, in the financial year in which the respective cost materializes.

(b) When the performance of the contract is contracted with third parties, in the year in which the contract is signed.

3. By way of derogation from the preceding paragraphs, where the period between the firm order of the goods and the actual receipt by the Company is more than two years, the deduction may be taken into account in the tax periods in which the payments are made, by the relevant party.

This rule shall also apply where the time limit for the payment of the investment exceeds two years.

Entities that are subject to this criterion on the basis of a general or exceptional regime shall be kept in the same without interruption or change to another different regime.

4. In the same sense, by way of derogation from paragraph 2 (b) above, where the mining investments are made by third parties and the contract is longer than two years, it may be deducted from the tax periods of the duration of the contract, taking into account the amount satisfied in each period.

5. Where the deduction of the 15 per 100 referred to in Article 213 (2) and (3) of this Regulation applies, the deduction shall be made in the settlement of the financial year in which the investment is made, as provided for in paragraphs 2 and 3 of this Regulation. previous.

Art. 219. Maintenance of employment.

1. The commitment to maintain employment shall be deemed to be fulfilled where the average number of staff, calculated in accordance with Article 223, in the year in which the investment is made and in the following year, where both are annual, is not less than that recorded in the immediate financial year preceding the year in which the investment is made.

2. The right to the deduction for investment without reduction of employment is maintained when this requirement is breached by reason or circumstances beyond the own decision.

For these purposes, any action or omission of the taxable person shall be understood by his own decision, in accordance with the system of calculation of Article 224 of this Regulation. The inclusion of the Company in a sectoral restructuring plan after the investment is not to be taken into account and provided that its action complies with the rules laid down in that plan.

Art. 220 Investment in financial leasing arrangements.

1. Taxable persons may benefit from the deduction for investments when the

acquisition of fixed assets would have been carried out on a financial lease basis, provided that each of the following requirements are met:

(a) The taxable person is committed to exercising the option of purchase and the exercise effectively at the time.

b) That the tenant appropriately reflects in his accounting, by order accounts. the amount referred to in paragraph 3 of this Article.

(c) That the object of the contract complies with the requirements set out in Article 214 of this Regulation.

2. The lessor may not benefit from the deduction for investments corresponding to the purchase of new fixed assets for use as a financial lease.

3. The amount of the investments made under the lease for the purposes of the deduction shall be the purchase price for the leasing company.

In no case will the surcharges of any kind on that purchase price be deducted.

4. The deduction for investments made under the leasing scheme shall be made in the tax period in which that item is incorporated, without prejudice to the application of Article 218 (3) of this Regulation.

Subsection 3. Deduction for job creation

Art. 221. Deduction for job creation.

1. Taxable persons who undertake to create employment may deduct an amount equal to 10 per 100 of wages and social insurance, satisfied to the new staff in the financial year for which the commitment is made and in the immediate next.

2. Where the taxable person commits to job creation and simultaneously makes investments in new fixed assets, he or she may benefit from both deductions, applying the limit set out in Article 202 (c) of this Regulation.

Art. 222. Job creation.

1. A Company shall be deemed to have increased its workforce when the number of persons employed has increased and the increase is maintained in two successive tax periods.

The comparison shall be made with the number of persons/year employed in the immediate period before the first of the two periods indicated.

2. New workers who increase the workforce must be Spanish nationals and be employed in accordance with the requirements laid down by the legislation in force in the field of placement.

Art. 223. Determining the average template.

The average template will be determined by the number of persons/year employed during the tax period. Such number will be obtained by dividing the number of days that the entire staff of the Company has been in Template during the financial year. between the duration of the same.

Art. 224. Determination of job creation or maintenance.

1. The average template will be determined for each annual duration exercise as follows:

(a) For the base year, which shall be the previous year for which the commitment to maintain or create employment is adopted, taking into account the totality of the employees employed by the Company.

(b) For the following two immediate financial years, workers from the base year and those from new employment who meet the requirement referred to in Article 228 (2) of this Regulation.

2. The maintenance commitment shall be deemed to be fulfilled where, in any of the two annual financial years after the base year, the average template is lower than that of that base year.

3. The creation of employment produced shall be determined by the difference between the lower of the average number of staff of the subsequent years and the average corresponding to the base exercise measured in men/year.

Art. 225. Cases of lower exercises per year.

1. The time limit for the fulfilment of maintenance or job creation commitments shall be computed from the beginning of the first financial year in which the commitment is to be fulfilled.

2. In cases where the previous immediate financial year has been shorter than the year, the following shall apply:

a) When the Company had been in operation. at least one full year, directly or indirectly. the calculation shall relate to the immediate year preceding the date of opening referred to in the preceding paragraph.

b) When the operating period is lower, the computation shall be performed according to that operating period.

(c) Where the Company is newly created, the template shall be computed as null in the preceding financial year, except as provided for in Article 206 of this Regulation.

3. Where one of the exercises in which the commitment is to be maintained is shorter than the year, the fulfilment of the commitments shall not be understood until two years have elapsed since the start of the term.

Art. 226. Basis of the deduction for job creation.

1. For the purposes of determining the basis of the deduction for job creation, the increase in the number of staff obtained under Article 224 (s) shall be multiplied by the average cost per new employee determined in accordance with the rules laid down in paragraph 1. next, referred to each of the two years.

2. Determination of the calculation will be performed according to the following rules:

First. In each financial year for which the commitment to job creation is concerned, the new staff shall be paid for the year or duration of the financial year, if this is lower, for the new staff in relation to the last day of the base year, without Low template.

Second. The sum of the remuneration and social charges of the new staff, obtained under the previous rule, shall be divided between the total of new employees computed, obtaining the average cost in the year per employee entitled to the deduction by job creation.

Third. The average cost per new employee shall be obtained by adding the average costs for each financial year referred to in the previous rule.

3. In cases where, as a result of the provisions of Article 225.3 above, the end of the calculation of the maintenance of the commitment to create employment does not coincide with the closure of an exercise, the lifting of remuneration and social security contributions referred to in the first rule shall be carried out exclusively for the part of the period of the undertaking pending.

4. The concepts contained in Articles 105 and 106 of this Regulation shall be understood as remuneration and social charges.

Art. 227. Time of deduction for job creation.

1. The deduction for job creation shall be applied in the reverse of the tax corresponding to the second year of the two, during which the commitment to maintain the creation of employment remains.

2. Where the time limit for calculating the commitment to maintain or create a job does not end on the date of the end of the financial year, the deduction shall be made in the liquidation corresponding to the first financial year closed after the end of the financial year. period.

Subsection 4. Deduction for subscription of transferable securities

Art. 228. Deduction for subscription of transferable securities.

1. Taxable persons shall deduct 10 per 100 of the amount invested in the subscription of transferable securities. with the characteristics set out in the following Article.

2. Where the taxable person assumes the commitment to maintain employment for two consecutive annual financial years, the deduction percentage shall be raised to 15 per 100.

Art. 229. Eligible transferable securities.

1. Securities whose subscription is entitled to the deduction governed by this Regulation must be listed as a stock exchange.

2. New issue securities shall in principle be considered eligible for this type of deduction where the issuing companies are recognised as a stock exchange rate for the previous immediate issues and have been applied for. in respect of the new such consideration, the provisional deduction for the subsequent acquisition of the rating is confirmed.

Art. 230. Basis of the deduction for subscription of transferable securities.

1. The basis for the deduction by subscription of transferable securities shall be determined by the purchase price of the securities, including:

(a) The disbursement made, where appropriate, the required share issue premium.

b) The amount of the acquired subscription rights.

c) The supported accessorial expenses.

2. Where the total disbursement of the securities is not required at the time of issue, the amount actually paid in each financial year shall be calculated as the basis for the deduction.

Art. 231. Time of calculation of the deduction for subscription of transferable securities.

1. The subscription of transferable securities shall be understood, at the choice of the taxpayer, when any of the following conditions are met:

(a) On the date on which the Mediator Bank takes into account the corresponding amount.

b) On the date the subscription order is executed directly given by the taxable person to the mediator agent.

c) In default of the previous justifications, on the date of the corresponding subscription policy.

2. Notwithstanding the above. where the subscription period comprises part of two financial years, the taxable person may choose to apply the investment to any of the financial years.

Subsection 5. Deduction for investments in research or development programs, exporting companies and publishing companies.

Art. 232. Deduction for investments in research or development programs, exporting companies and publishing companies.

The taxable persons of this tax may deduct 10 per 100 from:

(a) The amounts invested in research programmes or development of new industrial products or processes.

b) The amount of the investments made by the exporting companies.

(c) The amounts invested in the intangible assets by the publishing companies.

Art. 233. Investments in research or development programmes.

1. The amounts invested in research programmes or the development of new industrial products or processes shall be entitled to the deduction for investments.

2. Investments in research or development programmes shall entitle the deduction, whether they are made directly by the taxable person or if they are contracted with third parties, provided that they are resident in Spain. In no case shall the deduction be granted for the acquisition of programmes which had previously been included in the seller's fixed assets.

3. They shall not give the right to deduct the amounts intended for the acquisition or creation of administrative or administrative procedures and systems, nor those made for the use of third parties.

Art. 234. Investments by exporting companies.

1. The following shall be considered as specific investments of the exporting companies for the purposes of the investment deduction, the amounts for the following purposes:

a) Creation of branches or permanent establishments abroad.

b) Acquisition of shares in foreign companies, in order to promote the penetration of their products in the foreign markets.

c) Constitution of subsidiaries abroad.

(d) Propaganda and publicity expenses for the multi-annual projection for the launch of products, opening and prospecting of markets and those of concurrency to trade fairs, exhibitions and other similar events.

2. In the case of investments referred to in paragraphs (b) and (c) of the preceding paragraph, the share of the taxable person in the capital of the participating company or the subsidiary shall be at least 25 per 100.

3. The investments referred to in paragraph 1 above shall be directly related to the exporting activity of the Company.

Art. 235. Investments by the publishing companies.

1. The following shall be considered to be specific investments of the publishing companies in the following non-material elements:

a) Creation, project, or book design.

b) Prototypes that are directly related to the book editing activity.

2. In particular, the amounts allocated to projects, rights and originals, translations, corrections, designs and models, illustrations, photographs, engravings, prototypes and, in general, all the projects, shall be included among the specific investments. concepts which comprise editorial creation, until they reach the support (photolith, mould or equivalent) that allows for the serial industrial reproduction, thus excluding the printing, paper, binding and, in general, all the materials and manipulations of such serial industrial reproduction.

3. The investments referred to in points (a) and (b) of paragraph 1 above shall entitle the corresponding deduction, both if they are made directly by the taxable person or if they are contracted with third parties. In no case shall the deduction be made for the acquisition of the intangible assets referred to above when they were previously listed in the seller's fixed assets.

Art. 236. Basis of the deduction for investments in research or development programs of exporting companies and publishing companies.

1. The amount of investments in research or development programmes. of the exporting companies and of the publishing companies on which the deduction for investments shall be applied shall be:

(a) Where the cost of the liabilities is directly incurred by the taxable person, including both direct and indirect costs which the taxable person must justify by accounting.

b) When it is contracted with third parties, the amount to be satisfied.

2. In no case shall the interest accrued by the capital received in the form of a loan for the financing of these investments and the deferred payment transactions be included.

3. In the case of investments by the exporting companies referred to in Article 234 (1) (b) and (c), the rules on subscription of transferable securities contained in this Regulation shall apply.

Art. 237. Moment of calculation of the deduction for investments in research or development programs, exporting companies and publishing companies.

1. Investments in research or development programmes of the exporting companies and publishing companies shall be understood as:

(a) When they are made directly by the taxable person, in the financial year in which the respective cost materializes.

(b) When the performance of the contract is contracted with third parties, in the year in which the respective contract is signed.

2. By way of derogation from the preceding subparagraph (b), where the contract is longer than two years, the deduction in the course of the course of the term of the contract may be applied.

3. The investments of the exporting undertakings referred to in Article 234 (b) and (c) shall be taken into account in accordance with the provisions laid down for the subscription of securities in this Regulation.

In the year in which the 25 per 100 of the participation is reached, 10 per 100 of the total investment made in the financial year and in the two preceding financial years shall be deducted.

Subsection 1. Deduction for investments from industrial banks

Art. 238. Deduction for specific investments by the Industrial Banks.

Banks which have the consideration of industrialists, in accordance with the legislation in force, may deduct from the liquid quantity referred to in Article 200.2 of this Regulation the amount resulting from the application of the rate of charge to the capital increases directly obtained by the disposal of the shares in their portfolios.

Art. 238. Equity increases eligible for deduction.

1. The increases in equity referred to in Article 238 shall be those resulting from the disposal of the shares acquired, with own funds or other funds, either at the time of the formation of companies or in subsequent enlargements of capital, even those corresponding to the old ones which they hold.

2. The purchase price of the shares may never be higher than the nominal price, except in the following cases:

(a) In the case of a subscription to the shares corresponding to the Banks for the reasons of the old ones they hold.

(b) Where there is prior and express authorisation to be granted by the Ministry of Economy and Trade.

Art. 240. Requirements of the deduction.

1. In order to benefit from this deduction, the following requirements will be required:

(a) Reinvestment of the amount of the equity increase obtained.

(b) Reinvestment to be carried out in the same financial year in which the said equity increase occurs.

(c) Reinvestment is made in the subscription of shares, at the time of the formation of companies or in that of subsequent capital increases, subject to the limitations of paragraph 2 of the preceding article.

d) That the effective acquirer of the securities in the securities is not directly or indirectly linked to the Industrial and Business Bank.

2. By way of derogation from the preceding number, where the disposal of transferable securities takes place during the fourth quarter of the financial year of the Company, the latter may make reinvestment within the first quarter of the financial year. next.

Art. 241. Basis of the deduction.

1. The basis of the deduction shall be obtained by multiplying the equity increase by the corresponding coefficient according to the year of disposal, counted from the moment of acquisition, taking into account the following scale:

a) Within the first eight years, the 0.95.

b) Within the ninth year, the 0.75.

c) Within the tenth year, 0.50.

d) Within the 11th year, the 0.25.

2. From the 12th year, the estate increase will be taxed in full for this Tax.

Art. 242. Disposal of the materialization of the investment.

1. The increases in equity that occur as a result of the disposal or transmission of the shares in which the reinvestment would have materialised will be taxed by the Company Tax. For these purposes, it shall be included in the tax base of the year in which the amount of the increase is made.

2. By way of derogation from the preceding paragraph, if the total amount of the disposal is reinvested within the same financial year and in compliance with the requirements laid down in Article 246 of this Regulation, the increases in property obtained at that time.

3. The provisions of the two preceding paragraphs shall apply in the successive periods or transfers of the shares in which the investments covered by this deduction have materialised.

4. For the purposes of this Article, it shall be understood that there is no transmission at the time of the dissolution of an Industrial Bank by virtue of merger or absorption by another Bank Entity, provided that the latter is the acquirer of the shares and maintain the shares in their assets.

5. In any event, the corresponding breakdown of reinvestment must be established in the accounting records for the implementation of the reinvestment profit, and the balance at the end of the financial year shall be reported on a marginal note to the balance sheet. the total of the debtor and creditor movements in the financial year.

Subsection 7. Deduction for investments by Companies Promotion of Enterprises

Art. 243. Deduction for investments by Companies in the Promotion of Enterprises.

Companies for the promotion of enterprises may deduct from the liquid quantity referred to in Article 200.2 the figure resulting from the application of the rate of charge to the increases in assets directly obtained by the company. the disposal of the securities referred to in Article 247 reduced by the application of the coefficients referred to in Article 241 of this Regulation.

Art. 244. Companies promoting companies.

For the purposes of the foregoing Article, they shall be considered as "Business Promotion Societies" that meet the following requirements:

A) That its exclusive social object consists in the promotion or promotion of undertakings by means of temporary participation in its capital and the carrying out of the operations referred to in point (B) below.

B) That perform exclusively the following operations:

(a) Subscription of shares or units of companies engaged in business activities whose securities are not listed on the stock exchange. In no case will they be able to participate in the Mobiliaria Investment Companies, the Mobiliary Investment Funds, the Cartera Societies or in the companies of mere possession of goods.

(b) Acquisition of the shares or shares referred to in the preceding letter, by purchase of the shares or shares.

(c) The subscription of fixed income securities issued by the companies in which they participate or the granting of credit to them for a period exceeding five years.

d) Provision, directly, to the companies in which they participate, of advisory services, technical assistance and other similar services that are related to the administration of participating companies, with their structure financial or with their production or marketing processes.

C) Which have their own capital disbursed of at least five hundred million pesetas.

Art. 245. Incompatibility with the transparency regime.

Companies for the Promotion of Companies that are engaged in the regime governed by this Regulation shall not qualify as Cartera Societies for the purposes of the provisions of Article 12 (2) of Law 44/1978, 8 September.

Art. 246. Requirements of the deduction.

1. In order to benefit from the deduction referred to in Article 243 of this Regulation, compliance with the following requirements shall be necessary in any event.

(a) The reinvestment of the full amount of the equity increase obtained.

(b) Reinvestment shall be carried out in the same financial year in which the equity increase occurs.

(c) Reinvestment is made in the subscription or acquisition of the securities with the characteristics referred to in Article 247.1 of this Regulation.

d) That the effective acquirer of the securities in the securities is not directly or indirectly linked to the Company for the Promotion of Enterprises.

2. By way of derogation from the preceding number, where the disposal of transferable securities takes place during the fourth quarter of the financial year of the Company, the latter may make reinvestment within the first quarter of the financial year. next and next.

Art. 247. Equity increases.

The equity increases referred to in Article 243 shall be those resulting from the disposal of shares or shares in corporate companies whose securities are not listed on the stock exchange, where such shares are:

(a) The acquired by the Companies of Promotion of Companies at the time of the constitution of those.

(b) Acquired in subsequent extensions of capital, either directly or by reason of the old ones that they hold.

c) The acquired by purchase.

2. The purchase price may never be higher than the nominal price, except in the following cases:

(a) In the case of a subscription with a premium for the issue of shares or units that correspond to the Promotion Societies for reasons of the old ones they owned.

(b) When there is prior and express administrative authorization.

Art. 248. Basis of the deduction.

The basis of the deduction shall be obtained by multiplying the patrimonial increase by the coefficient corresponding to the scale of coefficients set out in Article 241 of this Regulation.

Art 249. Disposal of the materialization of the investment.

In the case of the disposal of the securities in which the investment of the equity increases which is deducted has materialised, the provisions of Article 242 of this Regulation shall apply.

Art. 250. Application to avail of the deduction.

1. The Companies of Promotion of Companies that intend to benefit from the deduction for investments referred to in this Regulation, must request it to the General Tax Directorate of the Ministry of Finance, with three months of at least at the end of the financial year.

2. The application must accompany the following documents:

a) Copy of the write-up.

b) a copy of the Statutes and, where appropriate, a draft amendment thereto.

c) The justification for the activity they intend to carry out.

(d) Where appropriate, a commitment that within the time limit set for them, it shall comply with the requirements laid down in this Regulation.

3. They may also apply for this scheme of the deduction for investments by the companies in the constitution. In this case, the application may be submitted at any time prior to the constitution.

Art. 251. Resolution of the file.

1. The resolution, whether favorable or not, to be adopted by the Ministry of Finance, and by delegation, the Undersecretary of the Department, shall be notified to the applicants in order to be communicated.

2. The time limit for resolving shall be three months from the day following the day on which the application is accompanied by all relevant data and documents, or, where appropriate, from the failure of the omissions. at the request of the Administration.

3. The order communicated will determine:

(a) The financial year from which the Company for the Promotion of Enterprises is eligible for the deduction for investments, which shall be the next to the one in which the requirements laid down by this Regulation are met.

(b) The minimum period during which the Company is to operate uninterrupted in accordance with the provisions of this Regulation. In no case shall this period be less than five consecutive years.

(c) Any other conditions that are deemed relevant.

4. The favourable resolution of the file shall give rise to the exclusion of the tax transparency regime of the Company for the Promotion of Enterprises from the moment referred to in point (a) of the previous paragraph.

Art. 252. Loss of bonus.

1. Where a Company for the Promotion of Enterprises, which has recognised the right of deduction for investments covered by this Regulation, does not comply with the conditions required for this Regulation. be obliged to pay the fees corresponding to the unduly paid deductions, and if appropriate, it shall be declared as a Cartera Society or a holding of goods.

2. The correction referred to in the preceding paragraph shall be carried out in the year in which the non-compliance occurs.

3. The rules of Article 212 of this Regulation shall apply in this case.

SECTION V. RETENTIONS

Art. 253. Entities required to retain.

1. They shall be obliged to retain and enter into the Treasury, as a payment to account for the Company Tax, in respect of the returns on capital of furniture that satisfy other Entities which are in turn taxable persons of that tax:

(a) Legal persons and other entities, both public and private, resident in Spanish territory.

(b) Legal persons and other entities that do not reside in Spanish territory operate on it by permanent establishment.

2. They are also required to retain and enter the Treasury, legal persons resident in Spanish territory or non-resident but with permanent establishment in Spain, when they are foreign securities depositories owned by Entities residents in Spanish territory or who are in charge of the management of the recovery of the income of those securities.

Art. 254. Birth of the obligation to retain.

1. The obligation to retain shall be born at the time when the returns subject to retention are payable by the receiving entities.

2. Yields shall be deemed to be payable:

(a) On borrowings, on the due dates noted in the issuance writing.

b) In dividends. on the first day indicated for the distribution in the corresponding agreement.

(c) In loans and other operations, on the date indicated for the settlement or recovery, or in any other case in which it is recognised, even if the recipient does not claim recovery or the income is accumulated to the principal of the operation.

Art. 255. Income from services provided.

1. The performance of professional activities and the provision of services which constitute the usual object of the traffic of the Entities which are subject to the Company Tax do not represent the income of the work but economic exploitation and will therefore not be subject to retention.

2. This article will be understood as the consideration received by the money market companies that correspond to the operations specifically authorized to them by the Ministry of Economy and Trade. prejudice to the provisions of the second paragraph of Article 258.a) of this Regulation.

Art. 256. Capital returns.

1. The following shall be included among the capital returns:

a) The dividends. premiums for assistance to Juntas and participations in the profits of Societies and Associations, as well as any other perceived utility of a legal entity under the condition of a partner, shareholder or participant.

In any event, they shall be considered to be a dividend or a profit share, the quantities delivered to the partners from reserves, including those from authorised regularisations, which were not the subject of capitalization.

(b) Those of any kind of legal title that are legally entitled to participate in the profits, income, income or similar concepts of a legal entity, as well as the shares in the profits of the unit-holders non-managers in the participating accounts

(c) The whole of the consideration, whatever its denomination, perceived by the taxable person, that proceeds from capital placed in any kind of public or private credit, Spanish or foreign.

(d) The consideration obtained by the taxable person, whatever his name, as a result of the ownership of accounts in all financial institutions.

e) The consideration obtained, whatever the name, for the price deferral in the purchase or for any other form of capital imposition.

(f) The leasing of movable property, rights, business, mines, cinematographic films, the transfer of industrial or intellectual property and the provision of technical assistance.

g) Those from exchange letter negotiation as well as interest on certificates of deposits.

2. For the sole purpose of practicing the retention, the consideration of capital returns shall be the consideration of the consideration obtained by the Companies as a result of the attribution of charges of Administrator or Counselor in other Companies without the right to apply the deduction for double taxation.

3. They shall not have the consideration of capital returns:

(a) The attribution of income as referred to in Article 12 (1) of Law 44/1978 of 8 September.

(b) The imputation of taxable bases of companies in tax transparency as well as the dividends they distribute from results obtained during the scheme.

c) Those from the sale of subscription rights.

d) The undisbursed portion at the receipt of shares in whole or in part released.

Art. 257. Joint returns.

1. Where the same contract includes services or the transfer of immovable property, together with the transfer of goods and rights to the goods and services referred to in paragraph 1 (f) of the preceding Article, all the income shall be understood as come from the capital and shall be subject to retention.

2. Where the same contract includes the leasing or disposal of rural or urban estates, together with other movable property, it shall be understood that, as a whole, the returns come from the real estate capital and shall not be subject to retention, except in the case of the leasing or transfer of business or of mines, in which case the provisions of the preceding paragraph shall apply.

Art. 258. Exceptions to the obligation to retain.

There shall be no obligation to practise the withholding tax on Societies in respect of the following returns:

(a) The interest and commission of loans that constitute income of banks, savings banks, savings bank, rural boxes, credit unions and companies mediating in the money market, as well as the companies registered in the Special Records of Financing Entities, resident in Spanish territory and subject to the Company Tax.

Notwithstanding the interests of bonds, bonds or other securities issued by private or public entities, domestic or foreign, and which integrate the securities portfolio of those financial institutions shall be subject to retention.

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

(c) The interest of securities issued by the Treasury or the Banco de España which constitute a regular instrument of intervention in the money market.

(d) The interest and commissions of foreign currency deposits and foreign accounts in pesetas that the Bank of Spain, Banks, Savings Banks, Savings Bank, Rural Banks and Credit Unions with functions delegated, they satisfy non-resident entities in Spanish territory.

(e) Those covered by Article 256.1.f) when they constitute income from the usual activity of Entities subject to Corporate Tax on Personal Obligation.

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

g) Those from trading in exchange letters on the stock market and the anticipated interest of certificates of deposit.

h) Satisfied to non-resident entities and without permanent establishment in Spain, when the paying entity assumes the representation of the recipient to declare and reverse the corporation tax.

Art. 259. Calculation of the retention.

1. The amount of the withholding tax shall be the result of applying the percentage of the 15 per 100 on full performance.

2. For such purposes, the amounts actually paid by the Entities required to retain shall be, in any case, net of the amount of the withholding tax.

Art. 260. Entry of the retention.

1. The Entities with an obligation to retain will also assume the corresponding income in the Treasury, without being able to excuse them from the fact that they had not practiced the retention.

2. The income-bearing entities shall not be liable for the lack of income of the deductions made by the Entities obliged to do so, provided that they have received only the net amount indicated in the contract or otherwise accredit that the retention has been performed.

Art. 261. Tax obligations of the retaining entities.

1. The Entities required to retain account of the Company Tax will have to present in the first twenty-five calendar days of April, June, October and January, before the corresponding Delegation of Finance, declaration of the amounts withheld in the previous immediate calendar quarter and entered the amount in the Treasury in the form and under the conditions determined by the Ministry of Finance.

2. They shall also be required to submit in the last retentions declaration of each year annual summary thereof. In this summary, in addition to the identification data of the retainer, a nominative relationship of the perceptive Entities shall be recorded, indicating the amounts of integra and retentions to them imputable.

In the event that the relationship is present in support directly readable by computer or that, without such support, there would have been no retentions in the last quarter of the previous year, the presentation will be made within the deadline between 1 January and 10 February, both of the year following the year in which the deductions were made.

3. To the same obligations set out in the preceding numbers are the entities domiciled, resident or represented in Spain who pay for income from capital, or are depository or manage the capital recovery of the income from securities.

The Spanish or foreign entities with permanent establishment in Spain that are depositing them of foreign securities owned by Entities resident in Spanish territory, or who are in charge of the management of the collection of said securities values, they shall be obliged to present the relationship referred to in the Article 2.

4. The time limits referred to in the earlier numbers may be amended by the Ministry of Finance. where exceptional circumstances so advise.

Art. 262. Deduction of deductions.

1. The deductions referred to in this Section of this Regulation which have been applied to the taxable entities of the Company Tax shall be deducted from the liquid quota, determining the amount to be entered or, if applicable, return

2. To this end, the deductions made in the financial year shall be reflected in an account of claims and entitlements, without in any case having regard to the profit or loss account.

SECTION VI. RETURNS

Art. 263. Return of trade.

Where the amount of the deductions made in respect of the taxable person's income exceeds the amount of the quota referred to in Article 262 of this Regulation, the Administration shall return the trade surplus or to compensate for it.

Art. 264. Option for the clearing procedure.

1. The taxable person, at the time of the filing of the Company Tax declaration, must opt for the clearing procedure or the refund procedure.

2. The taxable person shall be understood to have opted for compensation in the following cases:

(a) Where the documents referred to in the following Article are not accompanied by the declaration.

(b) Where the declaration has not been filed within the prescribed period of time.

3. The compensation must necessarily be exercised in the subsequent declarations of this tax.

4. Where applicable, the taxable person shall be entitled to interest on late payment in the terms laid down in the laws.

Art. 265. Option for the return procedure.

1. If the taxable person opts for the refund, he shall present as documents annexed to the declaration:

(a) Certification of the retaining entities with respect to the quantities retained.

Certifications may be replaced by communications issued by Bank Entities that contain a specification of the redemptions for the purposes of returns arising from the placement of capital in such Entities or securities or securities held therein.

(b) Statement of the means chosen by which the return is to be made:

a ') Bank transfer.

b ') A cross from the Banco de España, against the current account of the Treasury in the Banco de España.

2. On the same date as the declaration of the declaration, it shall communicate in writing to the Finance Delegate the fact that it has opted for the refund, indicating the amount of the refund and the financial year to which it relates.

This document, together with the statement, must necessarily be presented in the Tax Office's Delegation or Administration of Finance.

Art. 286. Verification of the declaration.

1. Received the declaration and the document referred to in the preceding article the Administration may establish of some or all the requests for return submitted.

Such verification actions must be completed within the maximum period of six months, from the date of submission of the declaration and the written statement, except in cases where resistance, obstruction or refusal occurs. taxable person.

2. In the minutes which, on the basis of a prior or definitive nature, result from the action of verification, the result of the verification of the deductions shall be expressed in an express manner, as well as the amount of the refund to which the taxable person has right.

3. The verification of the required retentions may be carried out:

a) Through the Data Processing Center computer if the relationships presented by the retaining entities are already processed.

b) Directly, through the relationships of redemptions presented by the Entities.

c) By writing to the retaining entities, with due diligence to be completed by them, regarding the veracity of the accounting data contained in the certifications.

d) By personal actions in the offices of the Entities that issued the certifications.

Art. 267. Recognition of the right to return.

1. The Head of the Dependence on Relations with the Taxpayers or the Finance Manager, as appropriate, will propose to the Finance Delegate the recognition of the right to return, once the provisional liquidation has been carried out within six months. months following the filing date of the declaration.

Where the verification has been carried out, the proposal shall be made within 15 days of the date on which the settlement has become final.

2. The Intervention will proceed to the audit of the act of recognition of the right to the return, without having to certify of the realization of the income of the retentions in the Treasury, but passing the appropriate information to the delegations (a) the Finance Ministry in which the funds have been entered for the Interventions to carry out the appropriate accounting records.

3. The Finance Delegate shall authorise the payment order by return to the taxable person, which shall be justified in duplicate of the repayment agreement.

4. The payment order shall be issued for payment to the entity concerned in the form chosen.

Art. 268. Return at the request of the taxable person.

1. The taxable person may request from the Treasury Delegate the provisional refund of the quantity to be returned when, having opted for the procedure laid down in Article 265 of this Regulation and after the six-month period, the Since the declaration of the declaration has not been initiated, the verification measures referred to in Article 266 of this Regulation and the fact that the proceedings have not been completed have not yet been completed, provided that in this case all the inspectors have been made available to the Inspectorate background, evidence and supporting documents required.

2. Where the taxable person has been included in the preferred verification plan, as referred to in Article 266, the request shall be informed by the Financial and Tax Inspectorate, within a period of 15 days, from its receipt, which, where appropriate, shall justify the obstruction of the check caused by the taxable person to the acceptance by the taxable person of corrections in the tax base which, on a provisional basis, determine a variation in the quantity to be returned figure in the statement.

3. Within the maximum period of one month from the receipt of the request referred to in paragraph 1, the Head of the Dependence on Relations with the Taxpayers or the Finance Manager shall propose to the Finance Delegate the recognition of the right of to the refund, following the formalities indicated in the previous article.

4. The repayment, thus effected, shall be of a provisional nature and without prejudice to the subsequent verification of the declaration and the circumstances referred to in Articles 109 and 110 of the General Tax Law 230/1963 of 28 December.

5. If the imputation to the taxable person of the reasons determining the delay in the verification is shown, the request for interim repayment shall be deemed to be refused. and the return will take place, if necessary, after the inspection actions have been completed and in accordance with the corresponding act.

In this case, the refusal must be communicated to the taxable person by means of a reasoned agreement which will be used in an economic and administrative way.

8. After three months after the expiry of the period of one month referred to in paragraph 3 of this Article, the taxable person shall be entitled to the recognition of interest for late payment on the basis of the terms of reference established by the laws.

CHAPTER VI

Tax Management

SECTION FIRST. INDEX OF Entities

Art. 269. Entity Index.

1. An Entity Index shall be carried out at each Finance Delegation, in which they shall be registered as having their registered office within the territorial scope of that Index, except those referred to in Article 29 of this Regulation.

2. The Director General of Taxation is empowered to authorize the establishment of Indices of Entities in the Territorial Administrations of Finance, when the circumstances so advise.

Art. 270. Highs in the Index.

1. For inclusion in the Index, the Entities shall present a part of discharge, adjusted to an official model, to which they shall accompany copies of the articles of their constitution and of the social statutes, as well as certification of their registration, where appropriate, in any Public Register.

2. The part of the discharge will be presented in the Delegation of Finance of the tax domicile of the Entity, within one month, from the date of registration in the respective Registry or from which it acquires the condition of taxable person of the Tax on Societies, where such a condition is not determined by that registration.

3. They must also submit, within the same time limit, first copies of the scriptures which modify the previously existing ones.

4. The permanent establishments in Spain of non-resident entities shall comply with the procedure referred to in this article within one month, from their registration in a Public Registry, or from the beginning of the activity of such permanent establishment.

Art. 271. Handling of the ups.

Examined the part of the discharge, together with the documents provided, will be assigned to the Host Entity identification code, with provisional character, which will have validity until the Entity is provided identification, from which point the code and the registration shall be final.

Art. 272. Provisional registration.

If the high party is not accompanied, by reason sufficiently justified, the first copy of the public deed of constitution and the social statutes or the certification of the corresponding Register, it will be assigned however code The provisional entry in the Index shall be applied. However, the identification card will not be provided and, therefore, the registration will not be final, while the entity concerned has not provided the necessary documents.

Art. 273. Provisional low in the Index.

The Finance Delegations will, after hearing the interested parties, dictate a provisional low in the Entity Index, in the following cases:

(a) When the tax debts of the Company for the State Public Finance are declared failed, in accordance with the provisions of Article 169 of the General Tax Collection Regulation.

b) When they have not filed a declaration for three consecutive years, for this Tax, they are obliged to do so.

Art. 274. Provisional low file for failure.

1. Agreed upon the declaration of failure as provided for in Article 169 of the General Rules of Collection the Dependence of Relations with the Taxpayers of the Delegation of Finance will initiate the provisional low file in the index, announcing its opening in writing to the Entity concerned with the warning that if it does not satisfy its debts, they will be taxed within the 30-day time limit on that Index.

2. After two months from the date of notification of the communication referred to in the previous paragraph, the Dependence on Relations with the Taxpayers shall, if appropriate, declare on a provisional basis the decrease in the Entities.

Art. 275. Provisional low file for failure to submit declarations.

1. Where the circumstance referred to in point (b) of Article 273 of this Regulation occurs, the Head of the Dependence on Relations with the Taxpayers shall obtain from the taxable person the presentation of the declarations omitted within the period of a month, warning you that, if you do not do so, you will be discharged from the Entity Index.

2. After the period laid down without any of the claims being made, the rate of the index shall be applied on its own initiative, without prejudice to any checks and investigations deemed appropriate.

Art. 276. Notice to the Public Records of the provisional discharge.

Agreed the provisional discharge of an Entity for any of the causes expressed in Article 273 of this Regulation the Delegate of Finance shall notify the corresponding Public Registry by commandment, in which it is Literally insert the relapse resolution, its date, the name or social reason of the Entity and its tax domicile.

Art. 277. Marginal note.

The Registry, in the light of the command received, will proceed to extend an open sheet to the Entity a marginal note, in which it will be expressed that if during its validity a document is presented for its registration, it will not be able to be carried out until the circumstances referred to in the following Article are given.

Art. 278. Cancellation of the marginal note.

The cancellation of the marginal note entered in the corresponding Register shall require the prior agreement of the Finance Delegate who has disposed of his or her own practice or at the request of the Entity concerned, once it has been has been shown to be aware of the compliance with its tax obligations.

Art. 279. Guarantees of the Administration.

1. Those in charge of the Public Records shall send monthly to the Delegation of Finance of the respective province a relation of the Entities

whose constitution, establishment, modification or extinction have entered during the previous month.

2. The same service shall be obliged to lend the Notaries in respect of the scriptures and other documents that authorize the constitution, modification or extinction of commercial, civil or any other class.

SECTION II. ACCOUNTING AND REGISTRATION OBLIGATIONS

Art. 280. Accounting.

1. The taxable persons of the Company Tax shall be obliged to keep accounts in accordance with the provisions of the Trade Code and other rules applicable to them.

Such accounting shall permit the exact knowledge of the actual profits or losses produced during the financial year, as well as reflect at all times the true wealth situation of the Company.

2. For these purposes, the companies shall necessarily bear the accounting records required by the Commercial Code which shall have the main accounting character, as well as the largest registrant and auxiliaries referred to in the following Article, the summary of which shall be consistent with the entries made in the main accounts.

3. In any event, the accounts must allow the verification and verification of the requirements and amounts of the tax incentives and benefits.

Art. 281. Auxiliary records.

1. The auxiliary records referred to in the previous Article shall at least collect the following data:

(a) Purchases, by chronological order all the operations of supply of goods and other goods acquired by the Company to resell them, either without altering their form and substance, or prior to submission to industrial processes of adaptation, transformation or construction, as well as ancillary costs related to them

(b) Normal sales and yields, reflecting as they are carried out, the amounts of the disposal of goods and the provision of services which are the subject of the Company's traffic recording the invoices or similar documents issued with the expression of their number, nature and amount, as well as the overall number of transactions carried out each day.

c) Cobros and payments, by chronological order the Caja movements and bank current accounts of the Company, by all kinds of transactions When the company operates with several banks, it will be able to keep a record for each one of them.

d) Expenses, registering duly classified, as they are produced, all the normal expenses that the Company will cause the exploitation of its business.

2. Companies shall organise their books and accounting records, as well as documents and supporting documents in a consistent and coordinated manner, in accordance with the principles and rules set out in the preceding paragraphs and in Articles 37 and 283, in the form of more suited to your needs.

The various ancillary records must be separately kept for each year, and their initial and final balances must be matched to the corresponding annual accounts.

Art. 282. Simplified scheme.

1. The taxable persons of the Company Tax referred to in Article 30 of this Regulation may apply the simplified accounting system contained in this Article.

2. They will carry the following records:

(a) When they obtain exclusively retained income, a record of income and retentions.

(b) Where they derive exclusively income from the transfer of their assets, a record of income and other income from the corresponding expenditure.

(c) When they obtain returns from economic holdings, those indicated in the preceding articles adapted to the importance of the activities carried out.

3. In any case, they will carry a book of inventories of the goods affected to economic holdings and of all those susceptible to generate increases of patrimony.

4. All the Registers referred to in this article must be presented in the Delegation of Finance of their tax domicile, for their due diligence.

Art. 283. Book-keeping.

1. The accounting records or supports shall be carried out in accordance with the requirements of the Trade Code and accompanying provisions, in particular in accordance with the following rules:

(a) They must comply with the legalisation and formalisation requirements established or established.

(b) The entries in each record shall be made by order of dates or operations, without amendments, scrapes, alterations or blanks.

c) Errors and corrections must be reflected in the moment when they are discovered or known.

(d) The entries made in the various registers or supports must be consistent with each other, without it being permissible to alter the valuations and meaning of the operations.

e) Accounting may not show a delay of more than four months in both the registration of operations and the completion of formalities.

(f) A quarterly balance of checks and balances shall be made at least.

(g) The accounting data entered in the declarations shall be in exactly the same as those obtained from accounting records and supports.

2. Where accounting is carried out by means of computers or similar machines, the systems and programmes used must enable compliance with the principles and rules referred to in the preceding paragraph and Articles 37, 280 and 281 of this Regulation. Regulation.

3. The Minister of Finance is hereby authorised to lay down additional rules for the verification of the computer systems used by the companies in their accounting and tax management.

Art. 284. Incorrect accounting.

For the purposes of this Tax, accounting is understood to be incorrect:

a) When you do not faithfully collect the ownership of the activities, property and rights.

(b) Where accounting records and documents do not comply with the principles and rules contained in Articles 280 to 283 of this Regulation.

(c) Where the accounting principles and rules referred to in Article 37 of this Regulation have not been applied, or otherwise irregular accounting records are made.

(d) When carrying out various accounts relating to the same economic activity and exercise, in order to simulate before the Public Finance or to third persons different realities of the Society.

Art. 285. Incorrect ownership of the activities, property and rights.

It will be presumed that the accounting does not faithfully collect the ownership of the activities goods and rights when it prevents or hinders the knowledge by the Tax Administration of the exact relationship between those and their real headlines.

Art. 286. Incorrect records and accounting documents.

1. Accounting records and documents shall be presumed to be incorrect when they contain omissions, alterations or inaccuracies that conceal or hinder the exact verification of the operations carried out.

2. The omission of accounting records and records shall be presumed when they are not displayed at the request of the competent authority or official of the Tax Administration.

Art. 287. Miscellaneous accounts.

1. The existence of different accounts shall be presumed when it is submitted for any effect to the Administration or the Agency for Official Credit or in any way publicity or information to third parties to balance sheets other than those presented to tax effects.

2. There are no different contabilities to be considered:

when the Administration itself would have required the development of financial statements according to special criteria or principles, other than those referred to in Article 37 of this Regulation.

(b) Where such financial statements are listed as an annex to annual accounts for illustrative or comparative purposes.

(c) Where the observed differences derive exclusively from the valuation rules established fiscally, or from the grouping of items in a manner different from that laid down in the declaration, provided that this does not alter the representation of the real estate situation.

(d) When the differences observed come exclusively from adjustments introduced for the purposes of comparison, integration, consolidation or profitability studies, to be indicated in the financial statements thus elaborate and justify differences by means of reconciliation sheets or similar documents.

In no case shall the adoption of these criteria justify the presentation for tax purposes of annual accounts substantially different from those approved by the competent social body and contained in the official books established by commercial law.

SECTION III. DECLARATIONS

Art. 288. Tax return.

1. The taxable persons of the Company Tax shall be obliged to make correct declaration of the taxable fact its elements and its circumstances. This declaration shall be in accordance with the accounts of the taxable person and the rules This is a tax.

2. The declaration shall contain the following:

A) Identification data and tax domicile of the taxable person.

B) Accounting information referred to in Article 290 of this Regulation.

C) Certification of the Secretary of the Management Board or person fulfilling his duties in the Authority to replace the said Council with the following data:

(a) Name, last name and national identity document number of the person or persons signing the declaration.

b) Date of granting, as well as the number of the public document, if any, of powers to the undersigned persons, as well as express mention of their sufficiency and of not having been revoked to the date of the declaration.

c) The accounting system used by the Entity in the financial year. (d) Data relating to the legalisation of official books and the numbering of the employees and the number of entries made during the financial year.

e) Date of approval of the annual accounts by the competent authority.

D) The other data required in the model as soon as they affect the reporting entity and those other data to be taken into account when the settlement is performed.

3. The declaration referred to in paragraph 1 above shall be in accordance with the official model approved by the Ministry of Finance.

Art. 239. Deadline for declaration.

1. The presentation of the declaration and the relevant documents shall be made within the period of 25 calendar days following the date on which the final balance sheet of the financial year is legally approved.

2. The Ministry of Finance shall, on reasonable grounds, anticipate or extend for each financial year the period referred to in the preceding paragraph

3. After six months from the date on which the tax is due or from the end of the corresponding balance sheet, without the approval of the accounts, the time limit for the submission of the declaration shall be completed on the immediate working day. next.

Art. 290. Accounting information.

The accounting information provided with the declaration shall comply with the applicable laws and regulations that are applicable and shall contain at least the following data:

A) With a general character:

(a) Balance sheet at the end of the financial year and its Annex.

b) Account of the results obtained in the financial year.

c) Marginal and explanatory notes to annual accounts and additional information on tax benefits enjoyed or to be enjoyed in this Tax.

B) With special character for exempt Entities:

(a) Inventory of goods affected by economic holdings, transferred to third parties or used for purposes other than that of economic holdings.

(b) State of income by distinguishing between economic holdings, assets transferred or subject to retention.

c) Status of property increases and decreases.

Art. 291. Incorrect statements.

A declaration will be considered incorrect:

(a) When preventing the exact knowledge by the Tax Administration of the existence, identity and domicile of the taxable persons.

(b) When it does not cover the entire taxable amount or the exact value of the liquidable bases.

(c) When the certification referred to in Article 288 of this Regulation is omitted.

SECTION IV. LQUlDATIONS AND CHECK

Art. 292. Liquidations on account.

1. Taxable persons shall be obliged, at the time of filing their declaration, to carry out a settlement on account, in accordance with the provisions of this Regulation and additional rules, as well as to enter their amount in the Treasury in the same act. of his presentation.

The Ministry of Finance is authorized to establish the tax system.

2. The revenue referred to in the preceding number, completed after the end of the pre-Sentation period, shall give rise to the requirement of the extension surcharge in the terms laid down in the legislation in force.

Art. 293. provisional settlement

1. In general, the competent authorities of the Tax Administration shall verify the agreement between the declared quota and the entry and examine the documentation submitted for the purpose of detecting and requiring the failure of the anomalies. observed.

2. However, in the case of repayment referred to in Articles 263 and 268 of this Regulation, a provisional settlement shall be carried out in detail and in detail, and the clarifications which are deemed to be deemed to be appropriate before the act authorising the return is issued.

Art. 294. additional liquidations.

1. Supplementary liquidations made spontaneously by the taxable person shall be accepted by the tax authorities at any time when they are accompanied by a new declaration for the financial year to which they are issued. the settlement, which shall incorporate the changes introduced by the taxable person.

2. In general, such settlement shall have the following effects:

(a) Interruption of the limitation period.

b) Settlement of late interest on the difference entered.

3. Where the supplementary settlement is subsequently made to the notification of the initiation of verification or investigation, it shall be of a mere income on account of the amount of the final settlement, without preventing the application of the corresponding penalties on the difference between the final quota and the one entered before the notification referred to.

The provisions of the preceding paragraph shall also apply to cases where the clearance to account would not have been carried out.

Art. 295. Final liquidations.

They will have the consideration of definitive liquidations:

(a) Those practiced with such a nature by the Tax Administration after verification, have either mediated or failed to be settled or provisionally settled.

(b) Provisional liquidations and other supplementary payments made by the taxable person, where he has prescribed the right of the Administration to check them.

Art. 296. Verification and investigation.

1. The actions of verification and investigation in the field of this Tax will be carried out by the Financial and Tax Inspectorate, and will cover the totality of the taxable facts and periods not prescribed. It shall also include the verification of the withholding tax or the fact that the taxable person and vice versa have been practising third parties.

2. For the purpose of developing such actions, the Tax Administration may use the means it deems appropriate, including:

a) Statements of the taxable person by this or other Tax.

b) Accounting of the taxable person, extending both to the accounting records and supports and to the supporting documents and the previous or ancillary sheets of the notes and to the contracts and documents with a tax significance.

(c) Cross data obtained directly or indirectly from other contributors and affecting the taxable person.

(d) Data and reports obtained as a result of the duty of collaboration and the right of denunciation, without the need to report personal data or other data that allow the identification of the complainant.

e) Information obtained from other organs or administrative bodies.

f) How much data, reports and background can be legally sought by the Acting Inspector.

Art. 297. Powers of the Administration.

1. The Administration shall have the right to verify the accuracy of the statements of the taxable persons and to carry out the verification and investigation of all taxes by analysing the accounting criteria and examining their accounts, books, invoices, correspondence, documents and other supporting documents relating to your business, including accounting programmes and files on magnetic media in case the Company uses electronic data processing equipment.

2. Such documents and means, preserved as required by Article 45 of the Code of Commerce, shall be at the disposal of the Inspectorate within the working day of office approved by each undertaking, without prejudice to the fact that agreement may be reached in other hours and days.

3. The Inspection may directly analyse the documentation and other elements referred to in this Article. The Inspectorate may also take note through its agents of the accounting notes that are estimated to be accurate and obtain copies of any of the data or documents referred to in this Article, even on magnetic media.

4. The Inspectorate may also carry out such actions in order to obtain data which may affect the determination of taxable bases of taxable persons other than those directly affected by the investigation.

5. The inspection shall take place, if the subject is to be inspected, in the presence of his legal representative, or a person designated by him.

6. In any event, these actions shall be carried out without prejudice to the provisions of Articles 41 to 45 of Law 50/1977, of Urgent Measures of Fiscal Reform, and provisions that develop the above precepts.

CHAPTER VII

Competent jurisdiction

Art. 298. Competent jurisdiction.

The judicial-administrative jurisdiction, prior to the exhaustion of the administrative economic route, will be the only competent authority to solve all the disputes of fact and of law that arise between the administration and the taxable persons in respect of any of the matters referred to in the PreSerent Regulation.

Art. 239. Infringements and penalties

1. The regime of violations and penalties in this Tax shall be that established in the General Tax Law, except as provided in the following paragraph.

2. Where the lack of income of the quantities retained by the substitutes is known to the Administration, either on its own initiative or at the request of a person other than the substitute taxable person, the lack of revenue shall in any event be regarded as defrauding; and punishable by the maximum penalty applicable to this type of infringement, irrespective of the criminal liability which, where appropriate, applies.

TITLE II

Special Regimes

CHAPTER FIRST

Entities Subject To Real Obligation

SECTION FIRST. COMMON RULES

Art. 300. Forms of attachment by real obligation.

1. Entities not resident in Spanish territory shall be subject to this Tax:

(a) When they operate in Spain by permanent establishment, in accordance with Article 306 for all the income attributable to that permanent establishment.

(b) When they operate in Spain without permanent establishment, for each income statement deemed to be obtained in Spain, in accordance with Article 333 et seq.

2. For the purposes of the preceding number, the Spanish territory also includes those areas adjacent to the territorial waters over which Spain may exercise its rights, relating to the soil and the marine subsoil and its natural resources in accordance with Spanish law and international law.

Art. 301. Residence.

An Entity shall be deemed to have its residence abroad when it does not meet any of the requirements of Article 15.1 of this Regulation.

Art. 302. Liability for past tax obligations.

In any event, the debts and previous tax obligations that would not have been fulfilled by a non-resident entity in Spanish territory, when after the end of the deadlines, will be required. The tax authorities established for their compliance with the Tax Administration know the beginning or realization of other activities, as well as obtaining income, in Spanish territory.

Art. 303. Income separation.

The income obtained in Spain by non-resident entities in Spanish territory, unless they are attributable to a permanent establishment, will be taxed by this tax with total separation from each other.

Art. 304. Reexport of imported items.

In cases of reexport of goods previously imported by the same non-resident Entity will be considered:

(a) that no property alteration has occurred, without prejudice to the treatment applicable to the payments made for the period of use, in the case of temporarily imported fixed assets.

(b) There has been an alteration in assets, in the case of assets acquired for use, in the activities carried out by a permanent establishment.

(c) There has been a positive or negative return on economic exploitation, in the case of items that have the consideration of stocks.

Art. 305. Transfers of funds abroad.

1. No transfer abroad of income obtained by non-resident entities in Spanish territory may be carried out without having previously satisfied the corresponding Company Tax quota.

2. For this purpose, the transfer request must be accompanied by a letter of payment of the income of the tax.

3. Where the income is not considered to be obtained in Spanish territory, the statement shall be expressed in the sheet for the payment of the declaration. It shall also include the diligence of conformity extended by the Delegation of Finance of the address of the representative of the non-resident Entity, or of the managing office which may be constituted for that purpose.

4. Permanent establishments may transfer their income abroad by crediting the payment of the tax corresponding to the last financial year for which the time limit for the declaration has expired, except in the case of profits corresponding to the the period of taxation, in which provisional liquidation shall be carried out as if it were a payment of dividends, in accordance with Article 340 of this Regulation.

This settlement will be considered for payment on account of the one that corresponds to the end of the tax period.

SECTION II. INCOME OBTAINED IN SPAIN THROUGH PERMANENT ESTABLISHMENTS

Subsection 1. Permanent establishments

Art. 303. Classes of permanent establishments.

1. To be considered to operate in Spain through permanent establishment

(a) Non-resident entities in Spanish territory that develop in this, on a continuous basis, an economic exploitation that closes a full business cycle, in the form indicated in Articles 319 to 322 of this Regulation.

(b) Non-resident entities in Spanish territory that perform, occasionally, in the operations referred to in Article 323 of this Regulation.

(c) Non-resident entities in Spanish territory that have permanent facilities, even if the transactions in them do not close a full business cycle.

2. For the purposes of this Tax, the non-resident entities in Spanish territory that operate in the same by means of permanent establishment shall be designated abbreviated by the expression .

Art. 307. Implementation of double taxation conventions.

In general, the rules contained in this Section shall apply without prejudice to the provisions of the double taxation conventions in force.

Art. 308. Assuming the status of a representative

Permanent establishments may assume the status of representative of their Entity in respect of the income obtained by it in Spanish territory that are not attributable to that Establishment.

Art. 309. Representation of the permanent establishment.

1. For the purposes of this Tax, permanent representatives of the establishment shall be considered as representatives of the establishment.

2. Where the persons empowered to contract on behalf of the permanent establishment do not have their habitual residence on Spanish territory, the Entity shall be obliged to designate a natural or legal person with domicile and residence in Spain for to represent them before the Tax Administration in relation to their obligations under this Tax.

Art. 310. Incompatibility with the tax transparency regime.

Under no circumstances will permanent establishments be eligible for the tax transparency regime.

Art. 311. Diversity of permanent establishments.

1. The same non-resident entity in Spanish territory may have in the same entity of several permanent establishments when the following requirements are met

a) That they perform clearly differentiable activities.

b) That the management of the same is carried out separately.

2. In the cases provided for in the preceding paragraph, each permanent establishment shall be taxed independently, for which a differentiated denomination and a different tax identification number shall be applied for each.

Art. 312. Cessation of activities.

1. Where the cessation of activities occurs or otherwise results in the disaffection of the investment on its day in respect of the permanent establishment, the tax period shall be deemed to be terminated.

2. In any event, the authorisation of the transfer to the outside of the amount of the divestment or cancellation of the investment file shall be subject to the submission of the following vouchers:

(a) Letter of payment for this Tax, corresponding to the last tax period referred to in the previous paragraph.

b) Authorization of the decline in the Entity Index of the Finance Delegation at its tax office.

Art. 313. Holds.

1. Permanent establishments shall be subject to the general withholding tax system for the income they receive.

2. They shall also be obliged to hold a holding on the performance of personal or capital work which they satisfy, as well as the fulfilment of ancillary obligations in respect of the withholding tax.

3. The distributions of results made in favour of the parent house shall not be subject to retention except as provided for in Article 305 (4) of this Regulation.

Subsection 2. Permanent establishments with continuous activity

Art. 314. Permanent establishments with continuous activity.

Permanent establishments with continuous activity in Spanish territory shall be considered as non-resident entities in any of the following situations:

(a) That directly or by proxy holds in Spanish territory a head office, branch office, offices, factories, workshops, facilities, warehouses, shops or other establishments from which a holding is developed which closes a business cycle.

(b) They have in Spanish territory of agencies or representations authorized to contract in the name and on behalf of the taxable person.

(c) They hold in Spanish territory mines, oil or gas wells, or other workplaces in which they carry out all or part of their activity.

(d) possessing agricultural, forestry, livestock or any other natural resource extraction site on Spanish territory. provided that they actually carry out the relevant activities.

e) That they perform in a continuous or customary way in Spanish territory professional or artistic activities.

Art. 315. Imputable income.

They will be imputable to the permanent establishments with continued activity, the following income:

(a) The derivatives of the economic holdings developed by that permanent establishment.

b) Those obtained by the transfer of property assets to the same or whose management and recovery was entrusted to it.

c) The property increases and decreases that are considered to be derived from the property assets affected by the establishment.

Art. 315. Determination of the tax base.

The taxable base of permanent establishments with continuous activity shall be determined in accordance with the provisions of Chapter IV of Title 1 of this Regulation, except as provided for in the following Articles.

Art. 317. Management and general management costs.

1. The eligibility of management and general management costs shall be subject to compliance with the following requirements:

a) A separate reflection in the account of results and representative denomination of its nature.

b) Constancy, by means of marginal annotation or Memory presented with the declaration, of the amounts, criteria and distribution modules.

c) Rationality and continuity of the imputation criteria adopted.

2. The requirement of rationality of the imputation criteria shall be understood when they are based on the use of factors made by the permanent establishment and the total cost of such factors.

In those expenses where it is not possible to use the criterion set out in the preceding paragraph, the imputation may be carried out on the basis of the relationship in which one of the following measures is found:

a) Business figure.

b) Direct costs and expenses.

(c) Average investment in items of fixed assets affected economic holdings.

(d) Total average investment in items affected by economic holdings.

3. In no case shall amounts corresponding to the cost of the capital of the Entity directly or indirectly to the permanent establishment be imputable. Art. 318. Loss compensation.

1. Permanent establishments with continuous activity may compensate their negative taxable bases in the following five years, in accordance with the provisions of the General Regime, except as provided for in the following paragraph.

2. The negative tax bases may be compensated only with the positive ones of the same permanent establishment, obtained from the income attributable to it.

Art. 319. Tax period.

1. The tax period shall coincide with the economic year declared by the permanent establishment, without which it may exceed 12 months.

2. Where no other difference has been declared, the tax period shall be understood as referring to the calendar year.

3. The communication of the tax period shall be made at the time when the first declaration is to be filed for this Tax, and it shall be understood as long as it is not expressly amended.

Art. 320. Determination of the tax liability.

1. The determination of the tax liability shall be carried out in accordance with the provisions of the General Regime.

2. The various deductions and allowances shall be made in the light of the circumstances in the permanent establishment, without any transfer of any of the other deductions on national territory corresponding to the Entity.

3. It shall not be eligible for the deduction for investments made on items intended for other permanent establishments or which do not generate income attributable to it.

4. In no case shall it be considered for the purposes of maintenance or job creation, the recruitment of personnel from abroad.

5. Of the liquid quota referred to in Article 262.1 of this Regulation, permanent establishments may deduct:

(a) The amounts retained on the income to which they are imputable.

(b) Payments made on the occasion of transfers to the outside of the benefits of the same period, as referred to in Article 305.4 of this Regulation.

Where the liquid quota is less than the sum of the concepts referred to in points (a) and (b) of the preceding subparagraph, the excess shall be eligible for repayment, in accordance with Articles 263 et seq. of this Regulation.

Art. 321. Tax return.

1. Permanent establishments with continuous activity shall be obliged to make a declaration for this tax within the time limits and with the requirements laid down for taxable persons under personal obligation.

2. Where the cessation of the activity of a permanent establishment occurs, the filing period shall be twenty-five days from the date on which the Eesc is produced, without the possibility of its absence in the Indus of Entities as long as there is no such This declaration was submitted.

Art. 322. Accounting, recordable and formal obligations.

1. Permanent establishments with continuous activity in Spanish territory shall be obliged to keep separate accounts, relating to the operations they carry out and to the assets which they have affected. in accordance with the principles and rules of this Regulation and additional provisions.

2. They shall also be required to comply with the remaining accounting obligations of the registered or formal accounting system applicable to taxable persons under personal obligation.

Subsection 3. Permanent establishments with sporadic activity

Art. 323. Permanent establishments with sporadic activity.

For the purposes of this Tax, they shall be deemed to be operating in Spanish territory, through permanent establishment, with sporadic activity, non-resident Entities that perform in Spain any of the following activities:

a) Construction, installation, or assembly works longer than twelve months.

b) Services of any kind in favor of third parties for more than one hundred and eighty-three days in an annual period, as soon as they are not carried out by a branch in Spain.

(c) Economic holdings referred to in Article 314 of this Regulation. developed or developed for a period not exceeding three years.

Art. 324. Taxation systems.

1. Permanent establishments with sporadic activity in Spanish territory may opt for the application of one of the following systems:

(a) The regulation in Articles 314 and 322 of this Regulation.

(b) The income corresponding to the income obtained in Spanish territory without permanent establishment, with the particularities set out in the following Articles.

2. The option must be demonstrated at the time of applying for registration in the Entity Index.

3. The application of the system referred to in paragraph 1 (b) shall be compulsory where the permanent establishment does not have separate accounts for the income obtained in Spanish territory, or shall not require prior registration in the Mercantile Register.

Art. 325. Determination of the tax liability.

1. In the case of application of the system referred to in point (b) of paragraph 1 of the preceding Article, its full quota shall be determined by applying the rate of charge to the result of the reduction of the revenue in the coefficient of expenditure corresponds, once deducted, in his case the wages and salaries paid in Spain and duly declared for the purposes of the Income Tax of the Physical Persons.

2. The following deductions shall only apply to that quota:

(a) The allowance which may correspond to loan and borrowing yields, as referred to in Article 183 of this Regulation.

(b) Withholding tax on declared income.

3. In no case shall the rules of the double taxation conventions, established for the purposes of income obtained without permanent establishment mediation, be applied to permanent establishments with sporadic activity.

Art. 328. Declarations.

In the case provided for in Article 321 (1) (b), the rules governing the tax, accrual and declarations shall apply to non-resident entities in Spanish territory which they obtain income in the same without permanent establishment mediation.

Art. 327. Accounting, registration and formal obligations.

1. In the case of application of the scheme referred to in Article 324 (1) (b) of this Regulation, taxable persons shall be relieved of the fulfilment of the general accounting and registration obligations.

2. However, they shall keep at the disposal of the Tax Administration the supporting documents of the income obtained, money transfers abroad and payments made by this tax, as well as, where appropriate, the withholding tax and statements relating to them.

3. They will also be required to register for the Entity Index and to declare their tax domicile in Spain, as well as the changes that they may experience.

Subsection 4. Permanent establishments that do not close a business cycle

Art. 328. Permanent establishments that do not close a business cycle.

1. For the purposes of this Tax, they shall be deemed to operate in Spanish territory by means of a permanent establishment which does not close a full business cycle those non-resident entities which, having a facility or place of residence in Spain, (a) work, for the purposes of the products or services in which they are used, without any consideration being given, apart from the coverage of the costs incurred by such an installation or place of work.

2. Non-permanent establishments which do not close a full business cycle shall not be considered as permanent establishments which allocate all or part of the products or services to third parties other than the Entity itself, even if they are related entities.

In this case it will apply to the regime developed in the second subsection of this section.

Art. 329. Determination of the tax base.

1. The costs of the permanent establishment must be assessed in full, without any qualifying or compensation.

2. The tax base shall be determined by applying the percentage indicated by the Ministry of Finance on the expenditure of the permanent establishment.

3. However, the provisions of the preceding paragraph shall apply the general rules relating to increases and decreases in assets.

Art. 330. Determination of the tax liability.

1. The full quota shall be determined by applying the general charge rate on the basis of assessment.

2. They shall not apply to permanent establishments in Spanish territory which do not close a business cycle, deductions and allowances regulated under the general scheme.

Art. 331. Economic exercise.

The economic performance of the permanent establishments in Spain that does not close an economic cycle, will coincide with the one corresponding to the parent of the Entity.

Art. 332. Declarations.

Permanent establishments in Spain that do not close a business cycle will be obliged to submit a declaration for this tax in accordance with the general rules.

SECTION III. INCOME OBTAINED WITHOUT PERMANENT ESTABLISHMENT MEDIATION

Art. 333. Income subject to the tax.

1. The income tax shall be taxed by the Company Tax on the income attributed to non-resident entities in Spanish territory that are considered to be obtained in the same.

2. The income and increases and decreases in the assets referred to in points (b) to (e) of Article 19 of this Regulation are understood in Spain.

Art. 334. Income not obtained in Spain.

1. They will not have the consideration of income obtained in Spain:

(a) Yields payable to persons not resident in Spain by permanent establishments located abroad, under the responsibility of those persons, when the services or other services for which the services are paid yields are directly linked to the activity of the establishment abroad.

(b) Those referring to transactions in international commercial traffic of the paying resident entity, carried out abroad by non-resident entities in Spanish territory.

(c) Yields on deposits and transactions that fulfil similar functions in foreign currency and foreign accounts in pesetas that are satisfied to non-resident Entities in Spain, unless the payment is made to a foreign currency permanent establishment by the Bank of Spain and Banks, Savings Banks, Rural Banks and Credit Unions with delegated functions of the same.

2. It is understood to be included in the provisions of point (b) of the previous paragraph:

(a) Imports of goods, regardless of whether the intangible value incorporated exceeds the value declared for the purposes of their customs office.

(b) The fees paid to non-resident entities in Spanish territory for mediation activities carried out abroad and related to the preparation of international sales contracts as long as their the amount is authorised under the law on the control of changes and appears in the relevant licence or declaration.

c) The costs of installation and assembly of imported machinery and installations.

Art. 335. Representation and domicile.

1. Taxable persons not resident in Spanish territory who operate in Spain without permanent establishment shall be obliged to designate a natural or legal person with a registered office in Spain to represent them before the Tax Administration in Spain. relationship to their obligations under this tax.

2. Where the required entity has not expressly designated another entity, it shall, for the purposes of this tax, be deemed to be a representative of the paying resident entity.

3. The tax domicile shall be the address of the representative.

Art. 336. Determination of net yields

1. The net income shall be determined by applying the amount of the total income, if any, to the amount of the salaries and salaries satisfied in Spain, the coefficients indicated by the Ministry of Finance.

2. Activities which do not have a specific coefficient shall be assigned in a general manner to those which are necessary for their taxation to be limited to the application of the rate of retention.

3. They shall be essential requirements for the eligibility of the staff costs referred to in paragraph 1 of this Article:

(a) That correspond to the remuneration of the staff directly employed in Spanish territory.

(b) the services provided are directly related and are necessary for the purpose of obtaining the income.

c) That do not correspond to professional or administration and management services.

(d) That the statutory withholding tax has been applied and declared on account of the amount of the income of the physical persons.

Art. 337. Determination of the asset increases.

1. The determination of the capital increases shall be carried out in accordance with the rules laid down in the general scheme.

The acquisition value shall be calculated by conversion of the currency declared at its time at the exchange rate in force at the disposal date.

2. For the purposes of determining the acquisition value, the rules on provisions and updates shall not apply.

Art. 338. Loss compensation.

The rules on compensation for losses shall not apply to non-resident entities in Spanish territory that obtain income in the same without permanent establishment mediation.

Art. 339. Accrual of tax.

1. The accrual of the tax shall be deemed to be produced at the time the income is payable by the non-resident entity in Spanish territory.

Revenue shall be deemed to be due in accordance with Article 254.2 of this Regulation.

2. In cases where the recovery takes place within a number of periods and after the operations have been carried out, the expenditure shall be charged in the same proportion to the various maturities.

Art. 340. Determination of the tax liability.

1. The full quota shall be determined by applying the rate of charge of 24 per 100 on the amount of net income.

2. In the equity increases the full share will be obtained by applying the general charge rate on the net obtained in each transaction.

3. The amount of the full quota shall be deductible only by the amount of the deductions actually paid on the income to which the statement is concerned, and the amount corresponding to the allowances to which the taxable person is entitled.

Art. 341. Holds.

1. Non-resident entities in Spanish territory which obtain income in the same territory without permanent establishment mediation shall be obliged to carry out the withholding tax on the income of personal and capital work corresponding to the same terms as the other Entities subject to this tax.

2. In cases where the representative is a person other than the payer, he shall be obliged to carry out the withholding tax in accordance with the rules of the general scheme, whatever the covenants established between the parties, except that The final settlement from the settlement is established.

Art. 342. Double taxation conventions.

1. In cases where a duly ratified double taxation agreement is applicable, the non-resident entity in Spanish territory shall enter the lower of the following two quotas:

a) The one that results from the application of the rules of the convention.

b) Obtained from the application of the rules contained in this section.

2 The quota resulting from the application of double taxation agreements may not be deducted.

Art. 343. Declaration.

1. The non-resident entities in Spanish territory who obtain rent in the same without permanent establishment mediation shall be obliged to submit a declaration for this tax in the simplified model which the Ministry of Finance.

2. The time limit for the declaration shall be 25 days from the date of accrual or recovery.

3. The declaration shall be submitted separately for each income.

4. In cases where a number of declarations relating to the same operation are to be made, all of them shall be submitted to the Delegation or Administration of Finance where the first of them was presented, without prejudice to the centralization of files that may be issued.

Art. 344. Preferred Check

1. Prior to the transfer to the outside of the corresponding amounts, the Tax Administration shall proceed to the preferential verification of the following income:

a) Res on which deductions for personnel expenses would have been practiced.

b) Equity increases.

2. The preferential verification procedure shall be initiated with the presentation by the representative of the entity of the statement corresponding to the income to be checked against the Dependence on Relations with the Contributors of the Delegation of Hacienda de su domicile procuracias, no ingreso ingres

3. The statement to the Chief Inspector shall be transferred within three days of the declaration to the Chief Inspector, who shall take appropriate measures to initiate the verification.

4. Within one month of the fourth day of the presentation of the declaration, the Inspectorate shall issue a report on the accuracy of the declared income, extending, where appropriate, the corresponding minutes.

5. Where the action has not been terminated by reason of imputable to the representative or to the Entity, the Acting Inspector shall also report, stating that circumstance.

6. In the light of the report issued by the Inspectorate or after one month after the inspection has been issued, the Head of the Dependence on Relations with the Taxpayers shall, within 15 days, notify the representative of the agreed settlement, which shall be will be used in an economic and administrative way.

Where the circumstance referred to in paragraph 5 has occurred, the extension of the time limit for the performance of the proceedings may be agreed, which shall also be notified to the representative of the taxable person.

Art. 345. Accounting, registration and formal obligations.

1. Non-resident entities in Spanish territory which obtain income in the same way without permanent establishment mediation shall not be required to comply with the general accounting, registration or formal obligations established for this tax, except as provided in the following number.

2. When you have a hold of holds, you will be required to register with the Entity Index and keep records of income and expenses.

Art. 346. Extra rules.

Where expressly not regulated, the rules contained in Title I of this Regulation and those which develop partial aspects of the Company Tax shall apply.

CHAPTER II

Exempt Entities ' Regime

SECTION FIRST. EXEMPT INSTITUTIONS EXCEPT FOR YIELDS SUBJECT TO RETENTION

Art. 347. Retentions regime.

1. The Entities referred to in Article 29 of this Regulation shall be obliged to hold a holding in respect of the returns on capital furnished on an equal footing with other taxable persons in the Company Tax.

2. Similarly, the income from capital which they receive will also be subject to the general withholding tax.

3. The said Entities shall also be required to submit the regulatory declarations arising from the withholding tax.

Art 348. formal obligations.

1. The Entities referred to in Article 29 of this Regulation shall be relieved of the obligation to present their declaration for this Tax, as well as the fulfilment of the accounting and registration requirements in the same contents, without prejudice to the of the provisions of the following paragraph.

2. The public authorities responsible for the management of social security shall make a statement, in accordance with the provisions of the relevant provisions, relating exclusively to the income derived from private insurance which they carry out. which is noted in Section II of this Chapter.

3. In any event, the obligations arising from the duty to cooperate with the tax authorities shall remain.

SECTION II. EXEMPT ENTITIES EXCEPT FOR INCOME DERIVED FROM ECONOMIC OPERATIONS

Art. 349. Scope of the exemption.

1. The exemption of the Entities referred to in Article 30 of this Regulation shall cover the income obtained directly or indirectly by the exercise of the activities which constitute its social object or its specific purpose.

2. The non-distribution of the income obtained shall not, in itself, constitute sufficient evidence of the absence of a profit motive.

3. The exemption referred to in the preceding article shall not cover the following components of income:

a) Heritage increases.

b) Res of economic holdings.

(c) Rventures derived from their assets when their use is transferred.

4. The exemption will also not reach the returns under withholding for this Tax.

Art. 350. Determination of the tax base.

1. The taxable base subject to taxation under the general scheme shall be determined:

(a) For property increases and decreases, applying the rules laid down in this Regulation.

(b) For the yields expressed in points (b) and (c) of paragraph 3 of the preceding Article, as set out in the following paragraph.

2. In determining the net income under the general scheme, the following rules shall apply:

First.-An account will be formed of results relating to the aforementioned yields.

Second.-In that state, the entire income obtained, with a positive sign, will be reflected in the activities subject to taxation, including in separate state the imputations from the transparent companies in the those who participate.

Third.-With a negative sign, the specific expenses necessary for obtaining the income will be reflected, in accordance with the general rules.

Fourth.-They shall also be attributed, in proportion to the total income of the exempt activities and of the taxable persons, the share corresponding to the expenses necessary for obtaining the total resources of the Entity, the distribution criteria being expressed in the declaration.

Fifth.-In no case shall the expenses of the organization itself be deducted from the fulfillment of its purposes, nor, in general, the amounts that constitute the application of results.

Art. 351. Non-deductible items.

In addition to those referred to in Article 125 of this Regulation, in general, the following shall not be considered as deductible:

(a) The amounts intended for the depreciation of the assets not affected by the activities subject to taxation.

(b) Surplus from economic operations for the purpose of supporting exempt activities.

c) The excess value attributed to the personal work benefits received on the amount declared for the purposes of withholding tax on the Income Tax of the Physical Persons.

(d) Items which have the character of estimated expenditure, with the exception of annual allocations to fiscally authorised provisions and redemptions.

e) Expenses that are attributable to the exempt activities.

Art. 352. Loss compensation.

The exempted entities referred to in this Section may be subject to the provisions of Article 156 of this Regulation concerning loss compensation.

Art. 353. Determination of the full quota.

The full quota shall be determined by applying to the tax base referred to in Article 350, the levy rate of 15 per 100.

Art. 354. Determination of the tax liability.

1. The following deductions and allowances shall apply to the full quota obtained under the previous Article:

a) Deductions for international double taxation.

(b) Deduction for investments in respect of those carried out by the activities subject to taxation, including those relating to the subscription of transferable securities.

2. The application of such deductions and allowances shall be governed by the provisions of Title I of this Regulation.

3. In the event that the Entities referred to in this section participate in a transparent company, a separate liquidation shall be carried out on the income attributed to them, deducting the deductions that have been made, without origine, in no case, right to the return of the possible excesses.

Art. 355. Declarations.

1. The exempt entities referred to in this Section shall be required to present the declaration for non-exempt income obtained in the financial year, as well as for the deductions they have made.

2. The general rules on time and requirements of the declarations contained in this Regulation and additional provisions shall apply to that effect.

3. Foundations and charitable associations or public utility associations must prove that the requirements set out in Article 30.1 (e) are met for the enjoyment of the exemption, by submitting express certification of their compliance and copy certified from the accounts submitted to the protectorate body.

Art. 356. Accounting, formal and registration obligations.

1. Exempt companies shall bear the accounts laid down in the provisions governing them and, in any event, the simplified accounting system provided for in this Regulation.

2. The Financial and Tax Inspectorate shall be entitled to request any records, vouchers and supporting documents to be considered accurate for the verification and investigation of compliance with its tax obligations.

CHAPTER III

Attribution of returns and tax transparency regime

SECTION FIRST. YIELD ATTRIBUTION

Art. 357. Incompatibility with other special schemes.

The transitional provisions of Law 61/1978 of 27 December of the Company Tax shall not apply to the Entities governed by this Section, without prejudice to the provisions of Article 393 of this Law. Regulation.

Art. 358. Extra rules.

In the non-regulated specifically, the general rules regarding the Company Tax will apply.

Art. 359. Attribution of income in civil societies and entities without legal personality.

1. The net income determined in accordance with the rules contained in the Law and Regulation of the Income Tax of the Physical Persons, corresponding to the civil societies, the inheritances, communities of property and other entities Article 33 of the General Tax Law shall be attributed to the members, heirs, communes and unit-holders, respectively, according to the rules or covenants applicable in each case, and if they do not consist of the Administration in a reliable manner, shall be equal parts.

2. The determination of the net returns of the entities referred to in the preceding number shall be carried out jointly by direct estimation.

3 The income attributed shall be the nature derived from the activity or source from which it originates.

SECTION II. MANDATORY TAX TRANSPARENCY

Art. 360. Mandatory tax transparency regime.

1. In any case. the tax transparency regime shall apply to:

A) The investment companies of the company whose shares are not of a qualified price, the holding companies and the companies of mere holding of goods, when any of the following circumstances arise:

(a) That more than 50% of the share capital, for more than one hundred and eighty-three days of the social year, belongs directly or indirectly to a family group, in the sense that this group is constituted by persons linked by direct or collateral online parentage, consanguine or by affinity to the fourth grade, inclusive.

b) That more than 50 per 100 of the share capital, on any day of the social year, belongs to ten or fewer members, provided that none of them is a legal person governed by public law.

B) The legal entities incorporated for the exercise of a professional activity in which all its members, on any day of the tax period, are professionals of such activity.

2. For the purposes of calculating the degree of concentration of shares referred to in point (A) of the preceding paragraph, the shares in special situations shall not be taken into account.

Art. 361. Holding companies.

1. For the purposes of the foregoing Article, holding companies shall be those in which more than half of their actual assets, for more than six months of the social year, continued or alternate, are securities.

2. The value of the actual asset and the transferable securities shall be the value of the accounts. provided that this is a true and fair view of the true heritage status of the Company, in accordance with the provisions of this Regulation.

3. Where the circumstances of the preceding number are not specified, those values shall be determined in accordance with the following rules:

(a) transferable securities which are listed on the stock exchange shall be counted for their average contribution in the social year.

(b) Unlisted transferable securities shall be valued in accordance with the valuation rules established by the Extraordinary Heritage Tax.

(c) Other assets of the asset shall be estimated at their actual market value

Art. 362. Control portfolio

1. A holding company shall not be considered as holding companies directly participating in the capital of other companies in a higher grade than 25 per 100, provided that there is a relationship between the activity carried out by Some and others.

2. By way of derogation from the above paragraph, holding companies may be considered as those whose main purpose or object is control and participation in other companies, even if they provide advisory services and support to the Participating companies.

Art. 363. Companies of mere holding of goods

1. For the purposes of the tax transparency regime, it is a company of mere holding of goods in which more than half of its real assets, for more than six months of the social year, continued or alternate, does not affect activities business, professional or artistic.

2. Both the value of the actual asset and the value of the items not affected by business, professional or artistic activities, being the one to be deducted from the accounts, provided that this is a true image of the true patrimonial situation of the Company, in accordance with the provisions of this Regulation.

3. Where the circumstances of the preceding paragraph are not provided, those values shall be estimated in accordance with Article 361 (3) (c) of this Regulation.

4. For the determination of whether an asset is found or has not affected business, professional or artistic activities, the provisions of Article 12 of this Regulation shall apply.

In particular, items that are transferred by persons or entities directly or indirectly linked to the Company shall not be considered to be affected by business, professional or artistic activities.

Art. 364. Exclusion from the forced transparency regime.

1. In general, the companies subject to the transparency regime shall be excluded from the system from the immediate financial year following that in which they cease to meet the circumstances which led to their inclusion in the system.

2. Exceptionally, the exclusion shall occur in the same financial year, where due to one of the following circumstances:

a) Granting the condition of qualified quotation titles to the shares of the Company.

b) Taking part in the Company of a legal person governed by public law.

3. The exclusion referred to in paragraph 1 shall not take place where the circumstances of the forced submission to the transparency regime are once again in the exercise of the exercise in which the exclusion is due.

SECTION III. VOLUNTARY TRANSPARENCY

Art. 365. Voluntary scheme for tax transparency. They may opt for the Tax Transparency Regime:

A) Companies not covered by Article 360.1, whatever form and activity, where they meet the following two requirements:

(a) Not exceed 25 members or members on any day of the social year.

b) Have a tax capital of less than 100,000,000 pesetas throughout the social year.

(b) the associations, temporary groupings and the Temporary Unions of Companies and the Cooperatives when they are considered beneficial for the Spanish economy, with the formalities, requirements and conditions that the special legislation.

Art. 366. Exercise of the option.

1. The option for the tax transparency regime may only be exercised by Entities with a tax domicile in Spanish territory and provided that all its members are persons or entities subject, respectively, to the Income Tax of the Natural persons or the corporation tax, according to the general scheme.

2. On the other hand, the option of the tax transparency regime cannot be exercised when one of the partners is an exempt entity, as long as the exemption does not exist.

Art. 367. Procedure.

1. The option for the tax transparency regime should be adopted unanimously by the partners. The agreement must be communicated in writing to the Finance Delegation of the entity's tax domicile, within the immediate month before the beginning of the first tax period to which it affects.

2. The document referred to in paragraph 1 shall be accompanied by the following documents:

a) Certification of the adopted agreement.

b) A copy of the last balance approved by the Entity.

c) Relationship of the name of the partners, natural persons or social reasons in the case of legal entities, with their domicile or identification code, for tax purposes.

3. For the exercise of the option, account shall be taken of the assets and the number of partners existing at the date referred to in paragraph 1 of this Article.

4. Newly created companies may opt for the tax transparency regime if the relevant requirements are met at the time of the constitution. In order for the option to have an effect on the first financial year of the Company, the decision-making of the partners and the formulation of the corresponding letter must necessarily be made within 30 days of the granting of the corresponding public writing.

Art. 368. Extension of the option.

After the three annual financial years referred to in Article 370.1, the tax transparency regime shall be deemed to be extended for the following three annual financial years, and so on, if no partner relinquished the financial year. itself.

Art. 369. Waiver of the transparency regime.

1. After the three years in which the tax transparency regime has taken effect, the entity may waive its application for the following financial years.

2. The waiver shall be made in writing before the Office of the Treasury of the Company's registered office, during the immediate month preceding the beginning of the first tax period in which it is to take effect.

Art. 370. Effects of the option.

1. The exercise of the option under the transparency regime shall require all partners or members to participate for three annual periods in a row, unless one of the following conditions is met:

a) That the shares acquire the condition of qualified quotation titles.

b) That an Ente governed by public law or an exempt Entity acquires the status of a partner or a participant.

2. If a partner subject to the transparency regime transmits his or her social participation, the acquirer shall be subject to the same scheme until the end of the period referred to in the preceding paragraph.

3. By way of derogation from the previous paragraph, where there is an alteration in the composition of the shareholding affecting more than half of the share capital, the majority of the shareholders may waive the transparency regime.

4. For the purposes of this Article, it will be understood that the tax transparency regime continues when the maximum number of partners is exceeded as a result of an acquisition of mortis, provided that the acquisition remains pro-undivided.

5. The taking of a holding in a transparent company by persons or entities not resident in Spain shall not, by itself, lead to the exclusion of this from the transparency regime without prejudice to the exercise of the option recognised in paragraph 3. of this article.

SECTION IV, TRANSPARENT SOCIETIES

Art. 371. Tax transparency regime

1. Companies subject to the tax transparency regime will not be taxed on corporate tax.

2. In the absence of expressly regulated companies, tax transparency schemes shall be subject to the provisions of the general scheme.

Art. 372. Determination of the tax base.

1. The taxable amount shall be determined in accordance with the rules laid down for the institutions subject to the general scheme, except as provided in the following Article.

2. The deduction in the tax base corresponding to the exhaustion factor shall be applicable to transparent companies where they have been recognised as such.

Art. 373. Loss compensation.

1. Entities covered by the transparency regime may only compensate for the negative tax bases corresponding to the financial years in which they were not included in that scheme.

2. In such cases, the rules contained in the general scheme will apply.

Art. 374. Profit distribution.

1. Reserves shall be considered to be the distribution of reserves formed in exercises in which the Company is not subject to the transparency regime.

2. Such distributions will be subject to the general withholding system and will allow the deduction of intercorporate double taxation.

3. Where the reserves have been provided in the form of transparency, the distribution of the shares shall not be considered as a dividend.

4. For the purposes of this Article, the transparent company shall be obliged to distinguish in sufficient form the reserves corresponding to the exercise in which the Company is not host to the transparency regime.

Art. 375. Declaration of the imputations.

1. Transparent societies. at the time of filing for this tax, they shall be obliged to declare in relation to the imputations to be carried out to the partners indicated in Section IV of this Chapter, the following data:

(a) Identification, tax domicile and percentage of the partners ' participation.

(b) Total amount of the amounts to be charged, in accordance with the provisions of this Chapter, relating to the following concepts:

1) Accounting result.

2) Tax base.

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

4) Basis of the intercorporate double taxation deduction.

5) Basis of the international double taxation deduction.

6) Bonifications.

7) Deduction for investments.

8) Retentions that would have been practiced.

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

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

3. Investments or conditions of employment which give rise to the deductions referred to in Chapter V of Title I of this Regulation shall be understood or satisfied by the partners.

Art. 376. Accounting, registration and formal obligations.

1. Transparent companies shall be subject to the general rules on accounting, registration and formal obligations laid down in this Regulation.

2. The general rules for declarations to be made for this tax or for withholding tax shall also apply.

Art. 377. Incompatibility with the consolidated taxation regime.

The tax transparency regime will be incompatible with the consolidated tax regime established in Royal Decree-Law 15/1977 of 25 February.

Art. 378. Other incompatibilities.

1. The tax transparency regime is also incompatible with the transparent company, with that applicable to the exempt entities, both under the general provisions of Law 61/1978 of 27 December, and in application of its transitional arrangements.

2. The provisions of the above paragraph shall be without prejudice to the respect of the rights acquired by the partners, in accordance with Article 394 (1) of this Regulation.

3. Permanent establishments may not receive the treatment of a transparent company.

Art. 379. Extra rules.

In any case not expressly regulated in this chapter, the general provisions contained in this Regulation or in that of the Income Tax of the Physical Persons, as appropriate, shall apply.

SECTION V. REGIME OF TRANSPARENT COMPANY PARTNERS

Art. 380. Imputation of accounting results.

1. For the purposes of this tax, the accounting results obtained by the transparent companies shall be added to the net book value of the holding, with the option of the partner, either on the date of the end of the financial year, or on the date of the next to the closing

Chosen a criterion, this criterion must be maintained on a continuous basis, at least for three consecutive years, with this criterion being expressed in the declaration.

2. The distribution of results, whatever the date on which they were obtained, shall reduce the net book value.

3. By way of derogation from paragraph 1, the reduction in the net book value below the value of the holding according to the books of the transparent company or the purchase price shall not be permitted where the latter has been lower.

Art. 381. Imputation of taxable bases.

1. The taxable bases of transparent companies, determined in accordance with Article 372, shall be charged to their partners in accordance with the following rules:

First,-the taxable amount corresponding to the operations of the financial year and the compensation of negative tax bases for exercises in which the Company has not been accepted for the transparency regime should be distinguished.

Second.-The tax base corresponding to the operations of the financial year will be integrated in any case in the tax base of the members.

Third.-Compensation of negative taxable bases made in the financial year referred to in the first rule will only be integrated into the taxable base of the partners if the following two conditions are met:

(a) That do not correspond to exercises prior to that of the date of acquisition of the share in the Transparent Company.

(b) The shareholder has not adjusted the value of the shares after the year in which the losses occurred.

Fourth.-The negative taxable bases that correspond to the excess of the negative accounting result on the value of the participation will not be imputable.

Art. 382. Imputation of deductions and bonuses.

1. The application of the intercorporate double taxation deduction will be governed by the following rules

First.-The product will be obtained from the direct degree of participation of the transparent company in the entity from which the dividends or participations in profits are derived by the direct degree of participation of the partner in the Transparent society.

Second.-The result of such a product shall be understood, for the purposes of Article 173.2 of this Regulation, reflecting the degree of participation of the partner in the Company paying dividends or shares/units in profit.

Third.-The basis of the deduction will be formed by the result of deducting from the full dividends received by the Transparent Company the following amounts

(a) Part of the tax-deductible expenses of the Transparent Company, which, in proportion to the total of the ordinary results, corresponds to dividends and equity interests.

(b) A part of the partner's expense, where the member is liable for this tax, which is attributable to the tax as laid down in Article 174.2 of the Regulation.

Fourth.-The provisions of the first two rules will not be applicable when the partner to whom the dividends and the interest in profits are imputed is a company or fund of investment that would be eligible for its financial system. (i) special consideration, or where the paying company of the income is a company of undertakings, since in such cases the deduction shall be 100 per 100 of the share corresponding to the taxable amount of such income.

2. For the application of the deduction for double international Imposition the transparent company shall provide its partners with relation of net income obtained abroad and foreign taxes effectively satisfied in relation to (a) to ensure that the deduction is applied to the international double taxation as if the income was obtained directly by the member.

3. The transparent company shall also provide its partners with a ratio of the net income that they enjoy as a bonus, indicating:

a) Net return on the bonus.

b) A type of bonus and legal or regulatory requirement for which it is recognised.

(c) Where appropriate, indication that it is applicable only to taxable persons in the Company Tax.

4. The basis of the deduction for investments attributed to the partner shall be quantified in the product on the basis of the deduction for the transparent company by the percentage of imputation corresponding to the said partner according to its degree of participation.

If in the same year the partner also had the right to the application of the deduction for investments made directly, the limit of the corresponding quota will affect both deductions.

When jointly exceeding that limit, the deductions charged and then the direct deductions shall be applied in accordance with the order laid down in Article 204 of this Regulation.

5. The allocation of the deductions and bonuses which the transparent company would have made will be applied by the partner in the same financial year as the corresponding taxable amount.

Art. 383. Imputation of holds.

1. The withholding tax charged by transparent companies shall be integrated by the partners in the same declaration as it reflects the corresponding taxable amount charged, together with the withholding tax that would have been applied to the other companies. Income components.

2. Where the total amount of the deductions exceeds the liquid quota, the difference shall be returned.

Art. 384. Disposal of shares and units of transparent companies.

1. In the case of the disposal of shares and units of transparent companies, the comprehensive net book value of the acquisition and ownership cost shall be as determined in Article 380 of this Regulation.

2. The net book value shall also be reduced by the amount of dividends to account or items of similar meaning that have not been regularised to the date of disposal.

3. Where the date of disposal is not known, the amount of the charge for the last financial year closed by the transparent company shall be as follows:

1. The increase or decrease in assets shall be determined provisionally without considering the outstanding imputation.

2. Where the amount of the imputation is known, it shall be added to the increase or decrease in assets obtained in accordance with the preceding number.

3. At the same time, the amount of the imputation shall be calculated as performance from transparent companies.

Art. 385. Dividends received from transparent companies.

1. Dividends received from transparent companies resulting from the results obtained in the years in which the Company would have been receiving the transparency regime would not be entitled to apply the double taxation deduction. intersocietaria, even if it is distributed in practice in which the company does not appear in a transparency regime if they are subject to withholding tax.

2. On the contrary, dividends corresponding to the results of the Company's failure to receive the tax transparency regime will be considered for all purposes, including retention and deduction for double taxation. intersocietaria, as such.

Art. 386. Moment of imputation.

1. The imputation of the taxable bases, deductions, bonuses and retentions will be performed:

(a) When the partners are, in turn, transparent companies on the date of the close of the exercise of the participating Company.

(b) In the remaining cases the day following the end of the financial year of the participating Company, unless it is decided to charge them on an ongoing basis on the same closing date.

2. In any event, deductions, bonuses and deductions shall be charged in the same financial year as the taxable amount to which they correspond.

Art. 387. Verification of the statements of the partners.

1. No final settlement proposal may be made for the Company Tax or Income Tax of the Physical Persons corresponding to the partners of a transparent company until the verification of the same is completed. unless the right of verification or investigation by the tax authorities has been prescribed.

2. As long as the proceedings before the transparent society are not finalised, the minutes which are formalised in relation to the partners will be of a prior nature.

3. Once the proceedings have been completed, and without prejudice to the resources which the transparent company may bring, the tax authorities shall verify the statements of the partners in which the charges are to be included. established in the transparency regime.

4 When the partner is audited in the territorial scope of another Delegation or Administration of Finance, the Chief Inspector of the person who has carried out the verification of the transparent society will give knowledge to the from the office to which the tax domicile of the partner of the result of the proceedings corresponds within the period of 15 days, from the date of the minutes.

Art. 388. Incompatibilities.

1. The application of the tax transparency regime to a Company shall not prevent the recognition of acquired rights in its partners or members from the distribution of the results of such companies.

2. Tax benefits that would have been applicable to the Company if it had not been received by the tax transparency regime would not be transferred to the partners.

CHAPTER IV

Transient regimes and acquired rights

SECTION FIRST. GENERAL RULES

Art. 389. Transitional arrangements.

1. The Companies that at the time of the entry into force of the Law of Tax will enjoy any tax benefit recognized in the legislation of the General Tax on the Income of Societies and other Legal Entities will continue to enjoy it for a period of five years, from 1 January 1979, unless they have an expiry period which expired during that period, in which case the Company shall cease to enjoy it at that time.

The provisions of the foregoing paragraph shall be without prejudice to acquired rights.

2. Those who at the time of the entry into force of the Tax Law will enjoy any tax benefit recognized in the Capital Income Tax legislation, will continue to enjoy it for a period of five years starting from the 1 January 1979, unless there is an expiry period which expires during that term in which case the Company shall cease to enjoy it at that time, the provisions of the foregoing paragraph shall be without prejudice to the rights acquired.

3. It is maintained for ten years, counted from the entry into force of Law 61/1978, of December 27, the regime established for the Societies that are dedicated to the acquisition or construction of urban estates for their exploitation in the form of Article 38 of the Law of 16 December 1940, as amended by Royal Decree-Law 15/1977 of 25 February.

Art. 390. Implementation of the transitional arrangements.

1. The transitional arrangements shall apply to those taxable persons who have previously enjoyed any of the tax benefits referred to in the previous Article, but which did not keep them from the entry into force of Law 61/1978, of 27 December, on the Company Tax.

2. The tax benefits expressed in the same conditions or with amendments to the articles or to the final provision of the Tax Law shall be excluded from the transitional arrangements.

Art. 391. Acquired rights.

1. For the purposes of Article 389 (1) and (2), the following shall be considered as acquired

:

A) The exemptions and bonuses in the Company Tax. of a fixed duration, recognized by pact or solemn contract with the State.

B) The exemptions and bonuses granted in the Capital Income Tax, in which the following circumstances are met:

(a) The purpose of which is to provide capital returns for specific financial transactions.

(b) Which have been granted on a given basis and on an individual basis.

(c) which were granted prior to 1 January 1979, by virtue of general provisions legally established.

2. Acquired rights may not be extended at the end of the recognised period, without prejudice to their conversion into any of the benefits laid down in the general rules of the tax.

Art. 392. Profits from the General Tax on the Income of Companies and other Legal Entities.

1. The benefits referred to in Article 389 (1) shall apply according to the following rules:

1. They shall be governed by the rules laid down for the application of the benefit in force on 31 December 1978.

2. Where they account for the quota allowance, they shall apply to the quota provided for in Article 176 (2) of this Regulation.

3. Where they are deducted from the quota, they shall apply in respect of the quota provided for in Article 200 (2) of this Regulation.

4. Where deductions from the transitional regime quota are in line with the deduction for investments, the following limits shall be respected:

(a) The deduction for investments may not in any case exceed the limit values in Article 202 of this Regulation

(b) All deductions made in the period may not exceed the amount of the quota referred to in Article 200 (2) of this Regulation.

(c) The excess of deductions that could not be applied shall, where appropriate, be transferred to the successive financial years, in accordance with the rules applicable in each case to each type of deduction.

2. The tax benefits will not in any case reach the tax rate or double taxation deductions.

3. By way of derogation from paragraph 1 of this Article,

shall be governed:

(a) The Investment Forecast and the Export Investment Reserve, by the first and second transitional provisions of the Corporate Tax Law and the Ministerial Order of 14 February 1980.

(b) The Mobiliary Investment Companies, by the Ministerial Order of 31 July 1980.

(c) Real Estate Companies protected by the provisions of Article 395 et seq. of this Regulation.

Art. 393. Profits from the Capital Income Tax.

1. In accordance with the provisions of paragraph two of the third transitional provision of Law 61/1978 of 27 December 1978, who at the time of the entry into force of that Law were exempted from the Capital Income Tax:

a) They will continue to enjoy the same until the extinction of the period during which they would have been recognized.

The exemptions provided for in Article 7, numbers 1 to 5, inclusive of the recast of the Capital Income Tax shall be understood as including in this case.

(b) They will continue to enjoy the same for a period of five years, counted from the entry into force of Law 61/1978 of 27 December, when that exemption would not have been recognized by a defined deadline.

The exemptions contained in Article 6 shall be understood as including in this case; Article 7, numbers 6. 7, 8, 12, 13, 14, 18 and 19; Articles 9 and 10, number 2, of the recast of the Capital Income Tax.

2. The exemptions referred to in the preceding paragraph shall in no case be subject to the interest of impositions in the current account in the view or term of savings and, in general, of deposits constituting passive operations of banks. Savings, Rural Banks and Credit Cooperatives.

3. Similarly, in accordance with the provisions of paragraph two of the third transitional provision of Law 61/1978 of 27 December 1978, those who at the time of the entry into force of that Law were granted a bonus in the tax on the Capital:

a) They will continue to enjoy the same until the extinction of the period during which they would have been recognized. The allowances provided for in Articles 29, 30 and 31 of the recast of the Capital Tax Tax and those laid down in the special laws in force on 31 December of the year of 31 December 1994 shall be construed as 1978.

(b) They will continue to enjoy the same for a period of five years, counted from the entry into force of Law 61/1978 of 27 December, when that bonus would not have been recognized by a defined deadline.

Included in this paragraph are the bonuses regulated in Articles 27, 30, 32 of the recast of the Capital Income Tax.

Art. 394. Application of the profits from the capital tax.

1. The profits referred to in Article 389 (2) shall be applied in accordance with the rules of the Capital Income Tax and on the rate to be applied in accordance with that tax.

2. The recipient of the income, when he is subject to a personal obligation, may deduct from his quota the Capital Income Tax which would have been applied in the absence of the benefit.

3. By way of derogation from the preceding number, the Insurance, Savings and Credit Institutions of all classes shall deduct from their quota only the amount actually retained.

SECTION II. SCHEME OF PROTECTED REAL ESTATE COMPANIES

Art. 395. Protected Real Estate Companies.

1. For the purposes of this section, the companies that are recognized will have the consideration of Protected Real Estate Companies, prior to the entry into force of the Royal Decree-Law 15/1977 of 25 February. the tax regime established in Article 38 of the Law of 16 December 1940, as recognized in Article 10, G), of the repealed text of the General Tax on the Income of Societies and other Legal Entities.

2. Companies under the arrangements laid down in Articles 27 to 29 of Royal Decree-Law 15/1977 of 25 February 1977 shall be entitled to the application of the rules on transitional arrangements in respect of operations initiated before 1 January 1977. of January 1979.

Art. 398. Operations initiated before 28 February 1977.

1. Protected Real Estate Companies referred to in paragraph 1 of the previous Article may reduce their taxable base in the part corresponding to the following transactions:

(a) Leasing of urban estates built on solar purchased prior to 28 February 1977.

b) Leasing of urban estates built or acquired prior to 28 February 1977.

c) Disposal of social housing built or acquired before 28 February 1977.

2. Furthermore, the profits made in the disposal of urban estates acquired or built before 28 February 1977 may be used for the investment forecast, in which case they will reduce the tax base, according to the Article 16.1 of the repealed consolidated text of the Corporate Tax.

3. The benefits referred to in the two preceding paragraphs may be enjoyed for a period of 10 years from the date of the opening of the first financial year starting from the entry into force of Law 61/1978 of the Company Tax. As long as this period does not elapse, the Protected Real Estate Companies will not be able to make use of the provisions of the first transitional provision of the aforementioned legal standard.

4. For the period of 10 years from 1 January 1979, the share of the dividends distributed by the protected real estate companies which comes from the exempt income referred to in paragraph 1 shall not be subject to withholding tax. of this article.

However, the shareholders may deduct in their liquidation the withholding tax that would have been incurred on the full amount of the dividend.

Art. 397. Operations initiated after 28 February 1977.

1. The companies referred to in Article 395, 2, may reduce their tax base in the part corresponding to the income from:

(a) Leasing of dwellings, where the requirements laid down in Articles 1 and 2 of Royal Decree 1412/1977 of 2 June 1977 have been met.

(b) Leasing of the buildings referred to in Article 3 of the said Royal Decree.

c) Sale of , made in accordance with the article of the aforementioned Royal Decree.

2. In the cases referred to in the preceding paragraph, it shall be a common requirement that the buildings have been constructed between 28 February 1977 and 31 December 1978.

The date of the construction of the municipal works license shall be understood as the date of construction, provided that the municipal works license is not later than six months, to be counted from that date.

The benefits referred to in paragraph 1 may be enjoyed for a period of five years, from the date of the opening of the first financial year starting from the entry into force of Law 61/1978 of the Tax on Companies.

3. For the five-year period from 1 January 1979, the share of dividends distributed by the companies referred to in Article 395, 2, which comes from the exempt income referred to in Article 395, shall not be subject to withholding tax. paragraph 1 of this Article.

However, the shareholders may deduct in their liquidation the withholding tax that would have been incurred on the full amount of the dividend.

Art. 398. Minimum capital.

1. The protected real estate companies, as referred to in Article 395 (1), will have to count on 1 January 1982 with a paid share capital of at least 25 million pesetas.

2. In order to achieve this paid-up share capital figure, it may not be increased by the provision of solar or wholly or partially constructed farms. In addition, the capital increases made from reserves, in the part of revaluations of buildings, shall not be taken into account.

3. The share capital of the protected real estate companies may not be less than the figure of 25 million pesetas in the period from 1 January 1982 to the date of expiry of the scheme referred to in this Article. section.

4. Where, as a result of negative results, the share capital falls below that limit, the Company shall be obliged to restate it in the immediate financial year following the year in which the losses occurred.

Art. 399. Income separation.

1. For the correct taxation of income actually subject to taxation, the companies referred to in Article 395 shall establish an accounting system in such a way as to make it possible to distinguish:

(a) The income under the general scheme and those to which transitional arrangements apply.

(b) Expenses specifically attributable to each type of income of the items referred to in the preceding letter.

c) Common and general expenses.

2. Common and general expenses shall be charged to each type of income according to criteria based on the use of the factors to which the expenditure corresponds. Where the use of factors corresponding to each type of income cannot be estimated, the allocation shall be made on the basis of the revenue.

3. Profit shares shall be imputed in proportion to the net positive returns of each type of income, excluding such holdings.

Art. 400. Extra rules.

1. In the case of the non-regulated specifically, the general rules of this tax shall apply to the companies referred to in Article 395.

2. In particular, the rules contained in the preceding section will be applicable in an extra way.

ADDITIONAL PROVISIONS

First.-In addition to the authorizations contained in the articles of this Regulation, the Minister of Finance may:

a) Dictate development and application standards in relation to partial aspects of it.

b) Make partial adaptations of this Regulation to the specific problems of specific economic activities.

Second.-The rules of this Regulation will apply to the special regimes and modifications introduced in special laws or general budget of the State.

Third.-As expressly not regulated, the rules of this Regulation shall apply, in the alternative, to natural persons who develop economic holdings, as defined in Article 18, 1, of Law 44/1978 of 8 September of the Tax on the Income of Physical Persons.

Fourth,-The Minister of Finance may issue special rules applicable to the preferential verification procedure laid down in Article 344 of this Regulation.

TRANSIENT PROVISIONS

First.-As long as the fixing of new depreciation coefficients for the assets of fixed assets is not carried out, the tables approved by the Order of 23 February 1965 and the Order of 21 December 1965 shall apply. of 1968.

Second.-Companies which have made investments under the provisions of Decree-Law No 3/1974 of 28 June 1974 and the Order of 10 April 1975 may continue to benefit from the investment support scheme, provided that, for the same investments, the deduction scheme provided for in this Regulation has not been received.

Third.-Companies for the promotion of companies incorporated and operating prior to the date of entry into force of Law 61/1978 of 27 December, may apply for the system of deduction for regulated investments in this Regulation. For these purposes, they must be committed to the Administration to adapt their Statutes and their operation to the rules of this Regulation before 1 January 1987.

Fourth.-Regional Development Societies: Sociedad de Desarrollo Industrial de Galicia (SODIGA), Sociedad de Desarrollo Industrial de Andalucía (SODIAN), Sociedad de Desarrollo Industrial de Extremadura (SODIEX) and Sociedad de Desarrollo The Industrial Development of the Canary Islands (SODICAN) will be governed by its specific rules and not by those contained in this Regulation, in respect of Companies to promote Companies.

Fifth.-Entities that have been applying for tax purposes as stock valuation criteria the one of the last entry, first salid>, or others not authorized under this Regulation, will be able to report the an increase in valuation, for tax purposes during five equal parts exercises, unless the criterion has been established with a minor age, in which case the period of the period of the period of the period from the date of the implementation of this criterion.

Sixth.-By way of exception, a period of three months, counted from the entry into force of this Regulation, is established for the Entities referred to in Article 30 of the Regulation which have not presented any or all statements relating to the financial years started on or after 1 January 1978 make that presentation, without any penalty or surcharge.

Seventh.-The application of the transitional provision, third, 1, of Law 61/1978, to yields derived directly from the activity of teaching, is excepted from the provisions of Article 357 of this Regulation

to the provisions of Article 10, F), of the repealed text of the General Tax on the Income of Societies and other Legal Entities.

FINAL PROVISIONS

First. This Regulation shall have effect for the financial years beginning on 1 January 1983, the date on which all other administrative provisions of the Corporate Tax shall be repealed, except for indicated in the following provision.

Second.-Notwithstanding the above provision, the following provisions shall remain in force, in so far as they do not object to the provisions of this Regulation:

(a) Article 3. Royal Decree 880/1977 of 1 April 1977 on timescales for the construction of toll motorways.

(b) Royal Decree 2600/1979 of 19 October 1979 on the harmonisation of Article 26 of Law 61/1978 of 27 December 1978 on Corporate Tax on the deduction for investments and Article 21 of Law No 30/1972 of 22 December 1979 on the July, on the Economic and Fiscal Regime of the Canary Islands.

(c) Articles 101 to 108, both inclusive, of Royal Decree 3061/1979 of 29 December 1979 on the tax regime for business investment.

(d) Royal Decree 3150/1981, of 29 December on the modification of the withholding tax income of Physical Persons and Societies.

e) Royal Decree 2471/1981, of 5 February for the development of Article 100 of Royal Decree 3061/1979 of 29 December 1979 on the tax regime for business investment.

(f) Royal Decree 2226/1982 of 27 August on the development of the amendments to the Corporate Tax Act by the State General Budget Law for 1981 and 1982, with the exception of its provisions Second and third additional.

(g) Paragraph 11 of the Order of 26 February 1979 for the development of Section II of Royal Decree 357/1979 of 20 February 1979.

(h) Order of 14 February 1980 laying down rules for the application of the first transitional provision of Law 61/1978 of 27 December 1978 on the tax on companies in respect of the provision of investments and reserves for export investments.

This provision will also be applicable to the economic-tax system of the Canary Islands. with effect from the first financial year starting from 1 January 1983.

(i) Order of 14 February 1980 for the provision of rules for the application of the tax regime of Cooperatives to Law 61/1978 of 27 December of the Corporate Tax.

(j) Order of 31 July 1980 clarifying the tax arrangements for companies and funds for investment in investment.

(k) Order of 23 March 1982 and Resolution of 24 March 1982, approving the model of the company tax declaration and laying down instructions for completion, respectively.

(l) Order of 14 May 1982 laying down the quarterly return procedure for companies and investment funds

(m) Resolution of 28 February 1979 on the model of declaration and revenue relating to the corporate tax on non-residents.

n) Resolution of 20 April 1981 approving the physical and logical standards and designs to replace the inner sheets of models 190 and 191 with magnetic media directly readable by computer.

Third.-As not expressly repealed by Law 61/1978 of 27 December, or subsequent legal norms, they will continue to be governed by their specific rules:

(a) The exhaustion factor and the regime of amortisation regulated in Law 6/1977 of 4 January of the promotion of mining.

(b) Entities under Law 21/1974 of 27 June on the investigation and exploitation of hydrocarbons.

(c) The write-downs in the case of leasing, as referred to in Title II of Royal Decree-Law 15/1977 of 25 February.

(d) The consolidated tax system, as provided for in Articles 3 to 14, both inclusive, of Royal Decree-Law 15/1977 of 25 February, in the part not affected by the additional provision of Law 18/1982, of May 26, on the tax regime of temporary associations and unions of companies and regional industrial development companies.

e) Regularisation or fiscally authorized update operations.

(f) The questions relating to the application of the existing foral schemes, without prejudice to referrals and references resulting from them.

(g) Operations under Law 76/1980 of 26 December on the tax arrangements for mergers of undertakings.

(h) The particularities established in relation to the ecclesiastical entities in the Agreement of 10 October 1980 drawn up by the Spanish Technical Commission-Spain, without prejudice to the application of the rules general