I

Since the fourth quarter of 2013 the Spanish economy has recovered a path of economic growth that, according to various economic forecasts, among them the main organizations and institutions International, will continue, with a slight slowdown, in the coming years.

In order to consolidate this achievement it is essential to continue adopting economic policy measures that will help to correct certain imbalances that still have a negative impact on the Spanish economy.

In this context, the reduction of the public deficit is a priority goal, not only in order to meet the objectives set by the European Union, which is more relevant after the adoption of a legal instrument. It is necessary to comply with the Council Decision (EU) 2016/1222 of 12 July, establishing that Spain has not taken effective measures to follow the Council's recommendation of 21 June 2013, but, also, to mitigate the negative consequences that a high public deficit has on the economy

In this regard, the Royal Decree-Law 2/2016 of 30 September, introducing tax measures aimed at reducing the public deficit, amended the legal regime for payments in the tax on Companies, incorporating to the public coffers the desirable volume of income, in order to favor the fulfillment of the objectives marked at the level of the European Union.

Now, with this real decree-law, various measures are adopted aimed at consolidating public finances that come to complete those contained in the law and which will guide the Spanish economy along a path of growth and job creation, compatible with the fulfilment of our fiscal consolidation commitments achieved at the level of the European Union.

The reforms incorporating the present law, from the point of view of compliance with the fiscal consolidation path, are closely linked to the formulation of the non-financial spending limit for the budget. State generals for 2017, which the Council of Ministers approves.

According to the latest available data, the liquidation of the Budget for 2016 could close at a lower amount by five billion euros to the initial budget. This saving has been achieved as a result of the positive development of the financial expenditures of the State Debt, and the effectiveness of the mechanisms approved for the management of the budget, such as the agreements of non-availability or the advance of the order of the close of the Budget itself.

In this regard, the planned execution for the 2016 Budget has been taken as a starting point for the calculation of the non-financial spending limit of the State Budget for 2017. The necessary scenario for income, which guarantees a level of spending similar to that described, requires tax reforms that increase the collection, even taking into account the positive effect of the economic cycle. That is why, in this sense, the actual decree-law contributes to a tax reform, which drives recovery, and which allows to finance a level of prudent spending, similar to that executed in 2016.

II

The tax reforms of the actual decree-law are framed in the good practices of taxation in the countries of our environment, and in the recommendations of international bodies, including the European Union. The normative text includes a moderate increase in indirect taxation of certain products to approximate the collection, in terms of GDP, to the countries of our environment. Also included are reforms in the field of Corporate Tax, which will raise the collection with new limits to the deductibility of certain figures in the tax bases, approximating effective taxation to the nominal rates of the Tax. The nominal rates are not altered in relation to the corporate tax. A reform of certain tax figures is addressed, in this sense, which is not intended to substantially damage the growth pattern and job creation of the Spanish economy. As a result, an increase in the structure of the tax collection is expected, which will keep the tax pressure stable, and will allow the income forecast to be placed for the determination of the spending ceiling of the State Budget for 2017 at a similar level. the collection forecast that existed when the Budget was formulated for 2016.

In particular, in the area of Corporate Tax, three measures of relevance are taken, assuming the first two a widening of the tax bases of the Spanish entities, while the third ensures the level of the appropriate collection of this tax figure.

The first relevant measure relates to the non-deductibility of losses made in the transfer of units in entities provided that the shares are eligible for the exemption in the positive income obtained, both in dividends and in capital gains generated in the transfer of shares. Furthermore, any type of loss generated by participation in entities located in tax havens or in territories that do not reach an adequate level of taxation is excluded from the tax base. In these cases, taking into account the comparative law and the evolution of the regulatory proposals made by the European Union, it is advisable to adapt to regulations similar to those envisaged in countries in our environment, ruling out the incorporation of any income, positive or negative, which may result in the holding of shares in other entities, through a genuine exemption scheme.

In addition to the objectives identified in relation to the non-deductibility of the negative income generated in the transfer of shares, it is worth recalling the existing tax treatment in relation to the deterioration of the participations. These impairments record in the accounting area the expected loss in the investor to the decrease in the recoverable amount of the stake held with respect to its acquisition value, without the loss being realized. The incorporation of income in the tax base of the Company Tax is currently constructed on the principle of realization, so that the deterioration of value of participations in entities is not fiscally deductible since the year 2013, although those deterioration that were previously recorded and have reduced the tax base, maintain a transitional reversal regime. All of this leads to the second measure of the widening of the tax base, which consists of a new mechanism for the reversal of those impairment of the value of units that were fiscally deductible in pre-tax periods. 2013. This reversal is made for a minimum annual amount, in a linear fashion over five years. In this royal decree, the automatic incorporation of the aforementioned deterioration is established, as a minimum amount, without prejudice to the need for higher reversions by the rules of general application, taking into account that these are losses estimated and unrealised that they did not take into account the tax base of the Spanish entities.

As a third measure the limit to the compensation of negative tax bases for large companies with net amount of the turnover of at least 20 million euros is regulated again, accompanied by a new limit in the application of deductions for international or domestic double taxation, generated or pending, in order to ensure that, in those tax periods in which there is a positive tax base generated, the application of tax credits, by reducing the tax base or the full quota, do not minore the amount to be paid in full.

In the Tax on Heritage it is necessary to extend during 2017 the requirement of its tax, in order to contribute to maintain the consolidation of the public finances, fundamentally, of the Autonomous Communities.

In the field of excise duties, in particular, in the Tax on Intermediate Products and in the Tax on Alcohol and Beverages Derived, the tax that taxes the consumption of the products is increased by 5 percent. intermediate products and alcohol and derived beverages both on the Peninsula and in the Canary Islands.

With the new modification of tax rates, although these remain among the lowest in the European Union, the difference in taxation with that of the other Member States is reduced.

In the Tobacco Labors Tax, the weight of the specific component is increased against the ad valorem component while the consequent adjustment is made to the minimum level of taxation, both for cigarettes as for lyar bite. This measure continues the process of reform of the tax structure of this work started with the Royal Decree-Law 12/2012 of 30 March, introducing various tax and administrative measures aimed at reducing the public deficit.

This adjustment is intended to progressively achieve a greater balance between the percentage element of the tax linked to the price in relation to the specific element determined per unit of product, all in consistent with the current taxation of other Member States.

Moreover, the possibility of postponing or splitting certain tax obligations should be eliminated. In this respect, the regulatory exception which opened the possibility of postponement or splitting of withholding and income to account is abolished. On the other hand, the possibility of deferment or fractionation of the tax obligations to be fulfilled by the obligated to make payments of the Corporation Tax is eliminated. Furthermore, the total or partially confirmed tax settlements under final resolution may not be deferred or fractionalized when they have previously been suspended during the processing of the corresponding appeal or complaint in administrative or judicial offices. In addition, the possibility of deferral or fractionation of the taxes passed is eliminated, since the effective payment of such taxes by the obligor to support them implies the entry of liquidity into the subject that has repercussions.

As in the case of the Royal Decree-Law 2/2016, the immediate adoption of new economic and tax measures, which contribute to the sustained compliance of the public deficit targets for the 2017 and subsequent periods, justifies the use of the normative figure of the royal decree-law, in concurring the circumstance of extraordinary and urgent necessity demanded by article 86 of the Spanish Constitution, indispensable requirement as it has reminded of the constitutional case law.

This real decree-law also includes the approval of the coefficients for updating the cadastral values for 2017, in compliance with the provisions of article 32.2 of the Law of the Real Estate Catastro, which provides for its updating by the General Budget Law of the State for each year. As a result of the delay in forming a new government, it is impossible to deal with the draft Budget Bill for 2017 before the end of the year. Given that the measure has an immediate impact on the Property Tax and that the tax is paid on 1 January of each calendar year, the use of the real decree-law mechanism is obliged to enter into force before of that date. The measure is necessary as it contributes to the strengthening of municipal financing, fiscal consolidation and budgetary stability of local authorities, and to this end it has been requested by 2,452 municipalities meeting the requirements of the Application of the Law, which could not in time pass new tax ordinances to adapt the tax rates in the IBI, so they would not be able to meet the budgetary forecasts that they would have realized with that update.

III

Also, an accuracy of the agreement to suspend the compensation for the suppression of the IGTE of the Canary Islands adopted in the Joint Commission of Transfers State Administration-Autonomous Community of the Canary Islands on November 16 Thus, it is clarified that such suspension should be understood in terms of accrual and thus provide greater legal certainty to the financial relations between the parties to the said Agreement.

On 16 November 2015 an Agreement was adopted within the Joint Commission of Transfers of the State-Autonomous Community of the Canary Islands concerning the suspension of the compensation of the Canary Islands to the State for the abolition of the IGTE which would have been implemented in the financial years starting from 1 January 2016. However, in order to clarify and provide both parties with the necessary legal certainty as to the impact of such an agreement in the 2016 and subsequent financial year, it is necessary to make it clear by law that the The suspension of the compensation is in terms of accrual and not only a suspension in terms of the cash flows derived from it. Given the relevance that such precision may raise on the closure of the 2016 budget year in which the Joint Commission's own agreement already has its effects, the incorporation of the provision into the legal system is urgent. before the end of this financial year 2016.

IV

the case of social measures, Articles 9 and 10, which relate respectively to the updating of the ceiling and the maximum rates of contributions in the system of social security, are included in the real decree-law. Social security and future increases in the maximum ceiling and the maximum contribution bases and the maximum pension ceiling of the Social Security system.

The lack of approval of a Budget Law for the year 2017 will determine the automatic extension of the budget of this year until the approval of the corresponding ones next year, in application of the forecast contained in article 134.4 of the Spanish Constitution.

In order to ensure the viability of the Social Security system in the face of its deficit situation and in application of the principle of solidarity in which this system is based, under Article 2.1 of the recast text of the General Law of Social Security, approved by the Royal Legislative Decree 8/2015, of October 30, it is necessary to update for the year 2017 the amounts of the maximum ceiling of the base of contribution to the Social Security, in the regimes that have been established, as well as the maximum contribution bases in each of them, by increasing them by 3% (a) in respect of those in force in the present financial year.

All of these circumstances warrant the extraordinary and urgent need for Article 86 of the Constitution to approve this measure by means of law.

Taking into account the proportionality of the contribution to the Social Security system, this measure is also justified on the basis of the evolution of the salaries present and expected.

On the other hand, the introduction of a legal forecast under which future increases in the maximum ceiling and the maximum rates of contribution in the social security system, as well as the limit, is considered appropriate. In any case, the maximum amount of pensions caused by the pension is to be adjusted in any case to the recommendations made in this regard by the Permanent Parliamentary Committee on Evaluation and Monitoring of the Agreements of the Toledo Pact and the Agreements. within the framework of the social dialogue.

On the other hand, the only additional provision entrusts the Government to fix, in accordance with the provisions of Article 27.1 of the recast text of the Law of the Workers ' Statute, approved by the Royal Legislative Decree 2/2015, of 23 October, the minimum inter-professional salary for 2017 with an increase of 8 percent from the one established by Royal Decree 1171/2015, of December 29, for which the minimum interprofessional salary is set for 2016.

The Government will also determine the effect of this increase on the references to the minimum interprofessional salary contained in the collective agreements in force at the date of entry into force of the royal decree approving the Minimum inter-professional salary for 2017, with the aim of preventing it from producing distortions in its economic content, as well as in non-state rules and in contracts and covenants of a private nature.

The government considers it appropriate to increase the minimum interprofessional wage, taking into account the improvement of the general conditions of the economy, while continuing to promote, in a balanced way, its competitiveness, thus the evolution of wages in the process of recovery of employment.

The extraordinary and urgent need that Article 86 of the Constitution requires to approve measures relating to the minimum inter-professional salary is justified in the short space of time remaining for the end of the year 2016, together with the certainty that the negotiators of collective agreements bring to their knowledge at least in advance, given that it is precisely in the last month of the year that more wage revision agreements are concluded.

In its virtue, making use of the authorization contained in article 86 of the Spanish Constitution, on the proposal of the Minister of Finance and Civil Service and the Minister of Employment and Social Security and prior deliberation of the Council of Ministers at its meeting on 2 December 2016,

DISPONGO:

CHAPTER I

Measures in the field of taxation

Article 1. Amendments to the Law 20/1990 of 19 December on the Tax Regime of Cooperatives.

With effect for the tax periods starting from January 1, 2016, the following amendments are made to the Law 20/1990 of 19 December on the Tax Regime of Cooperatives:

First. An additional eighth provision is added, which is worded as follows:

" Additional disposal octave. Limits applicable to the compensation of negative tax quotas.

In the case of cooperatives whose net turnover is at least EUR 20 million during the 12 months preceding the date on which the tax period is initiated, the limit laid down in paragraph 1 of the Article 24 of this Law shall be replaced by the following:

-50 percent, when in the 12 months the net amount of the turnover is at least 20 million euros but less than 60 million euros.

-25 percent, when in the 12 months the net amount of the business figure is at least 60 million euros.

The limitation to the compensation of negative contributions will not result from application in the amount of the income corresponding to the quitas and waits as a result of an agreement with the creditors not connected with the taxpayer. "

Second. Paragraph 2 of the eighth transitional provision is amended, which is worded as follows:

" 2. In the case of cooperatives to which the additional eighth provision of this Law does not apply, the limit referred to in Article 24 (1) of this Law shall be 60% for the tax periods beginning in the year 2016. "

Article 2. Amendment of Law 11/2009, of 26 October, on the regulation of Anonymous Listed Companies of Investment in the Real Estate Market.

For the purposes of the tax periods starting from 1 January 2017, Article 10 (2) (a) of Law 11/2009, of 26 October 2009, on which the companies are regulated is amended. Listed Investment in the Real Estate Market, which is worded as follows:

" (a) Where the transferor or recipient is a taxpayer of the Corporate Tax or the Income Tax of non-residents with permanent establishment, the exemption provided for in Article 21 shall not apply. of Law 27/2014 of 27 November 2014 on Corporate Tax in relation to the positive income obtained. '

Article 3. Amendments to Law 27/2014 of 27 November of the Company Tax.

First. With effect for the tax periods starting from 1 January 2016, the following amendments are introduced in Law 27/2014 of 27 November of the Corporate Tax:

One. An additional provision is added fifteenth, which is worded as follows:

" Additional Disposition 15th. Limits applicable to large companies in tax periods initiated as of 1 January 2016.

Taxpayers whose net amount of the business figure is at least EUR 20 million during the 12 months preceding the date on which the tax period is initiated, shall apply the following specialties:

1. The limits laid down in Article 11 (12), in the first subparagraph of Article 26 (1), in Article 62 (1) (e) and in Article 67 (d) and (e) of this Law shall be replaced by the following:

-50 percent, when in the 12 months the net amount of the turnover is at least 20 million euros but less than 60 million euros.

-25 percent, when in the 12 months the net amount of the business figure is at least 60 million euros.

2. The amount of the deductions to avoid the international double taxation provided for in Articles 31, 32 and 11 of Article 100, as well as that of those deductions to avoid double taxation as referred to in the transitional provision Third, of this Law, it may not exceed 50 percent of the taxpayer's full quota. "

Two. The transitional provision sixteenth, which is worded as follows:

" Transient disposition sixteenth. Transitional arrangements applicable to losses due to the deterioration of the securities representing the equity or the equity of institutions, and to the negative income obtained abroad through an establishment permanent, generated in tax periods initiated prior to 1 January 2013.

1. The reversal of losses due to impairment of the securities representative of the share in the capital or in the own funds of entities that have been fiscally deductible from the tax base of the Company Tax in accordance with Article 12 (3) of the recast text of the Law on Corporate Tax, approved by Royal Decree-Law 4/2004 of 5 March 2004, in tax periods initiated before 1 January 2013, with independence from his accounting imputation in the profit and loss account, shall be integrated into the base the taxable amount of the period in which the value of the own funds at the end of the financial year exceeds that of the start, in proportion to their participation, the contributions or returns of contributions made to it, with the limit of that excess. For these purposes, the positive difference between the value of the own funds at the close and at the beginning of the financial year, in the terms set out in this paragraph, shall be understood to correspond, first, to impairment losses that have resulted fiscally deductible.

Similarly, the reported impairment losses shall be subject to integration into the tax base by the amount of dividends or shares in the received profits of the participating entities, except that distribution does not have the status of accounting income.

The provisions of this paragraph shall not apply in respect of those losses due to impairment of the share that are determined by the distribution of dividends or shares in profits and which do not resulted in the application of the internal double taxation deduction or that the said losses have not been fiscally deductible in the area of the international double taxation deduction.

2. The reversal of losses due to impairment of the securities representative of the share in the capital or in the own funds of entities that are listed on a regulated market to which Article 12 (3) has not been applied of the recast of the Companies Tax Act, in tax periods initiated before 1 January 2013, will be integrated into the tax base of the Corporate Tax on the tax period in which the recovery takes place of its value in the accounting field.

3. In any event, the reversal of losses due to impairment of the securities representative of the equity or equity of entities that have been fiscally deductible in the tax base of the Company Tax in tax periods started before 1 January 2013, at least equal parts shall be integrated into the tax base corresponding to each of the first five tax periods starting from 1 January 2013. 2016.

In the case of a reversal of a higher amount due to the provisions of paragraphs 1 or 2 of this provision, the remaining balance shall be integrated equally between the remaining periods. tax.

However, in the event of the transmission of the securities representing the equity or the equity of institutions during the reporting periods, they shall be integrated into the tax base of the period the tax in which the amounts outstanding are to be reversed, with the limit of the positive income derived from that transmission.

4. In the event that a permanent establishment would have obtained net negative income which would have been integrated into the entity's tax base during tax periods initiated before 1 January 2013, the exemption provided for in the Article 22 of this Law or the deduction referred to in Article 31 of this Law shall apply only to positive income obtained after the time when they exceed the amount of such negative income.

5. In the case of the transfer of a permanent establishment in tax periods starting from 1 January 2016, the taxable amount of the transferring entity resident in Spanish territory shall be increased by the amount of excess of the net negative income generated by the permanent establishment in tax periods initiated prior to 1 January 2013 on net positive income generated by the permanent establishment in tax periods initiated from this date, with the limit of the positive income derived from the transmission of the same.

6. In the case of a temporary union of undertakings which, having received the exemption scheme provided for in Article 50 of the recast of the Companies Tax Act, is in force for tax periods initiated by the By 1 January 2015, it would have obtained net negative income abroad which would have been integrated into the tax base of the Member Entities in tax periods started before 1 January 2013, when in Successive exercises the temporary union obtains positive income, the member companies will integrate in their base taxable, on a positive basis, the negative income previously charged, with the limit of the amount of such positive income.

The same rule will apply in the case of entities participating in works, services or supplies abroad by means of collaboration formulas analogous to the temporary unions of companies that would have been (a) to the exemption scheme indicated.

7. In the case of restructuring operations under the special tax regime laid down in Chapter VII of Title VII of this Law:

(a) If the partner loses the quality of the resident on Spanish territory, the difference referred to in Article 80 (4) and Article 81 (3) of this Law shall be corrected, if any, in the amount of the losses for impairment of the value that have been fiscally deductible in tax periods initiated prior to 1 January 2013.

(b) For the purposes of Article 84 (2) of this Law, in no case shall the negative taxable bases corresponding to losses incurred by the transmitting entity which have motivated the depreciation of the holding of the acquiring institution in the capital of the transfer, or the depreciation of the holding of another entity in the transfer capital when all of them are part of a group of companies referred to in Article 42 of the Trade Code, irrespective of residence and the obligation to make annual accounts consolidated, where any of the reported depreciations have occurred during tax periods initiated prior to 1 January 2013.

8. The limit laid down in the first subparagraph of Article 26 (1) of this Law shall not apply to the amount of the income corresponding to the reversal of the impairment losses which are included in the taxable amount. application of the provisions of the preceding paragraphs of this transitional provision provided that the impairment losses deducted during the tax period in which the negative tax bases intended to be offset were generated at least 90% of the deductible costs of that period. In the event that the entity has negative taxable bases generated in several periods initiated prior to 1 January 2013, this requirement may be met by the aggregate calculation of the set of the deductible expenses of those periods. tax periods. "

Three. The transitional provision thirteenth, which is worded as follows:

" Transient disposition 30th. Limit on the compensation of negative taxable bases and deferred tax assets for the year 2016.

With effect for the tax periods to be initiated in 2016, for those taxpayers to whom the additional fifteenth provision of this Law does not apply, the limits laid down in paragraph 12 of the Article 11, in the first subparagraph of Article 26 (1), in Article 62 (1) (e) and in Article 67 (d) and (e) of this Law, shall be 60%, in the terms laid down, respectively, in the abovementioned precepts. "

Second. With effect for the tax periods starting from 1 January 2017, the following amendments are introduced in Law 27/2014 of 27 November of the Corporate Tax:

One. Article 11 (10), which is worded as follows, is amended and paragraph 11 is repealed:

" 10. Negative income derived from the transmission of securities representative of the share in the capital or in the own funds of institutions, where the acquirer is an entity of the same group of companies according to the criteria laid down in the Article 42 of the Code of Commerce, irrespective of the residence and the obligation to make consolidated annual accounts, shall be charged in the tax period in which the assets are transferred to third parties other than that referred to in Article 4 (1) of the Code of Commerce. group of companies, or where the transferring or acquiring entity ceases to form part of the same, which is included in the amount of the positive income obtained from such transfer to third parties, provided that, in respect of the values transmitted, the following circumstances apply:

(a) which, at no time during the year before the date of transmission, the requirement laid down in Article 21 (1) (a) of this Law is met, and

(b) which, in the event of participation in the capital or in the own funds of non-resident entities on Spanish territory, in the tax period in which the transmission occurs, the requirement laid down in point (b) of the paragraph 1 of that Article.

The provisions of this paragraph shall apply in the event of the transfer of shares in a temporary union of undertakings or in forms of collaboration analogous to those located abroad.

The provisions of this paragraph shall not apply to the alleged termination of the investee entity, unless the entity is the result of a restructuring operation or is continued in the exercise of the activity under any other legal form. "

Two. Article 13 (2), which is worded as follows, is amended as follows:

" 2. They will not be deductible:

(a) The impairment losses on tangible fixed assets, real estate investments and intangible fixed assets, including goodwill.

(b) The impairment losses of the securities representative of the equity or the equity of institutions in respect of which the following circumstances arise:

1. that, in the tax period in which the deterioration is recorded, the requirement set out in Article 21 (1) (a) of this Law is not met, and

2. In the event of participation in the capital or in the own funds of non-resident entities on Spanish territory, the requirement laid down in paragraph 1 (b) of that tax period shall be met in that tax period. Article.

(c) The impairment losses on the representative debt securities.

The impairment losses noted in this section will be deductible under the terms of Article 20 of this Law. In the case referred to in point (b) above, those shall be deductible as long as the circumstances identified are in the year preceding the day on which the transfer or the absence of participation occurs. '

Three. The following points (k) and (l) are added to Article 15, which are worded as follows:

" (k) The impairment losses of the securities representative of the share in the capital or in the own funds of institutions in respect of which one of the following circumstances arise:

1. º that, in the tax period in which the deterioration is recorded, the requirements set out in Article 21 of this Act are met, or

2. º that, in the event of participation in the capital or in the own funds of non-resident entities on Spanish territory, in that tax period the requirement laid down in Article 21 (1) (b) is not met. of this Law.

(l) Value decreases arising from the application of the fair value criterion corresponding to securities representative of the equity holdings or in the own funds of institutions referred to in the letter which are charged in the profit and loss account, unless, on the basis of prior notice, an increase in value corresponding to homogeneous values of the same amount has been integrated into the tax base, where appropriate. '

Four. Article 17 (1) is amended, which is worded as follows:

" 1. The assets shall be valued in accordance with the criteria laid down in the Trade Code, corrected by the application of the provisions laid down in this Law.

However, changes in value arising from the application of the fair value criterion shall not have tax effects as long as they are not to be charged to the profit and loss account, without prejudice to point (l) Article 15 of this Law. The amount of accounting revaluations shall not be included in the tax base, except where they are carried out under statutory or regulatory rules which require the inclusion of their amount in the profit and loss account. The amount of the non-integrated revaluation in the tax base shall not determine a higher value for tax purposes of the revalued items. '

Five. The title of Chapter IV of Title IV is amended, which is worded as follows:

" CHAPTER IV

Exemption from securities representative of the own funds of permanent institutions and entities "

Six. The title of Article 21 is amended, which is worded as follows:

" Article 21. Exemption on dividends and income from the transfer of securities representing the own funds of resident and non-resident entities on Spanish territory. '

Seven. Article 21 (1) (b) and Article 21 (4), (6), (7) and (8), which are amended as follows, are amended and 9, and the current 8 to be renumbered as 9:

" 1. (...)

(b) In the case of shares in the capital or in the own funds of non-resident entities in Spanish territory, in addition, the participating entity has been subject and not exempted by a foreign tax of the same or similar type of tax at a nominal rate of at least 10% in the year in which the profits to be distributed or in which the profits are received have been obtained, irrespective of the application of any kind of exemption, bonus, reduction or deduction on those.

For these purposes, account shall be taken of foreign taxes which have been used to impose the income obtained by the participating entity, regardless of whether the purpose of the tax is to be income, the income or any other item of income of that income.

This requirement shall be deemed to be met, where the participating entity is resident in a country with which Spain has an agreement to avoid international double taxation, which is applicable to it and contains information exchange clause.

In no case shall this requirement be understood when the participating entity is resident in a country or territory qualified as a tax haven, except that it resides in a Member State of the European Union and the taxpayer accredit that its constitution and operative are valid for economic reasons and that it carries out economic activities.

On the assumption that the non-resident participating entity obtains dividends, shares in profit or income arising from the transfer of securities representing the capital or the equity of institutions, the application of this exemption in respect of such income shall require that the requirement laid down in this subparagraph be met, at least, in the entity indirectly involved.

On the assumption that the participating entity, resident or non-resident in Spanish territory, obtains dividends, shares in profits or income derived from the transmission of securities representative of the capital or of the own funds of entities from two or more entities in respect of which only in some or some of them the requirements referred to in points (a) or (a) and (b) above are met, the application of the exemption shall cover that part of the dividends or shares in profits received by the taxpayer in respect of entities in the the above requirements are met.

The exemption provided for in this paragraph shall not apply, in respect of the amount of those dividends or benefit units whose distribution generates a tax deductible expense on the paying entity.

For the application of this Article, in the case of distribution of reserves, the designation contained in the social agreement shall be considered and, failing that, the last amounts paid to those reserves shall be considered to be applied. "

" 4. In the following cases, the application of the exemption provided for in the preceding paragraph shall have the following specialties:

(a) Where the participation in the entity has been assessed in accordance with the rules of the special regime of Chapter VII of Title VII of this Law and the application of those rules, it would have determined the non-integration of income in the tax base of this Tax, or the Non-Resident Income Tax, derived from:

1. The contribution of participation in an entity that does not meet the requirement of point (a) or, in whole or in part at least in any financial year, the requirement referred to in point (b) of paragraph 1 of this Article.

2. The non-cash contribution of other assets other than the equity or equity holdings of entities.

In this case, the exemption shall not apply to the deferred income in the transferring entity as a result of the contribution transaction, unless it is credited that the acquiring institution has integrated that income on its basis taxable.

(b) Where the participation in the entity has been valued in accordance with the rules of the special scheme of Chapter VII of Title VII of this Law and the application of those rules would have determined non-integration of income in the tax base of the Income Tax of the Physical Persons, derived from the contribution of units in entities.

In this case, where the said shares are transmitted in the two years after the date on which the contribution was made, the exemption shall not apply to the positive difference between the the tax value of the shares received by the acquiring institution and the market value at the time of its acquisition, unless it is established that the natural persons have transmitted their participation in the institution during the period concerned. '

" 6. Negative income derived from the transmission of the participation in an entity shall not be included in the taxable amount, in respect of which one of the following circumstances applies:

(a) that the requirements laid down in paragraph 3 of this Article are met. However, the requirement relating to the percentage of participation or acquisition value, as appropriate, shall be understood to be fulfilled when the acquisition has been reached at some point during the year preceding the day of the transmission.

(b) in the case of participation in the capital or in the own funds of non-resident entities in Spanish territory, that the requirement laid down in Article 21 (1) (b) of this Law is not met.

In the event that the above requirements are partially met, in accordance with the terms set out in paragraph 3 of this Article, the application of the provisions of this paragraph shall be performed in a partial manner. "

" 7. Negative income from the transfer of participation in institutions which are the subject of integration in the tax base in the absence of any of the circumstances provided for in the preceding paragraph shall have the specialities which are indicate below:

(a) In the event that the holding was previously transmitted by another entity which meets the circumstances referred to in Article 42 of the Trade Code to be part of the same group of companies with the In the case of a person who is a member of the European Union, the person who has been resident in the territory of the Member State in which he or she has been employed shall be subject to the conditions laid down in Article 1 (2) of the Directive. exemption or deduction scheme for the elimination of double taxation.

(b) The amount of negative income shall be reduced, where appropriate, to the amount of dividends or shares in profits received from the participating entity from the tax period that was initiated in 2009, provided that the related dividends or profit shares have not undermined the acquisition value and have been entitled to the application of the exemption provided for in paragraph 1 of this Article. '

" 8. The negative income generated in the event of extinction of the investee entity shall be fiscally deductible, unless it is the result of a restructuring operation.

In this case, the amount of negative income shall be reduced by the amount of the dividends or benefits received from the participating entity in the ten years preceding the date of the extinction, provided that the in respect of dividends or shares in profits, they have not undermined the acquisition value and have been entitled to the application of an exemption or deduction scheme for the elimination of double taxation, for the amount of the same. '

Eight. Article 22 (1), (2) and (6) are amended as follows, and paragraph 7 is repealed:

" 1. Positive income obtained abroad shall be exempt through a permanent establishment situated outside the Spanish territory where the latter has been subject and not exempt from a tax of a similar nature or similar to that tax. with a nominal rate of at least 10% in the terms of paragraph 1 of the previous Article.

The positive income derived from the transmission of a permanent establishment or cessation of its activity shall also be exempt when the stated tax requirement is met.

2. Negative income obtained abroad through a permanent establishment shall not be integrated into the tax base.

The negative income derived from the transmission of a permanent establishment shall not be subject to integration.

However, the negative income generated in case of cessation of the permanent establishment will be fiscally deductible. In this case, the amount of the negative income shall be reduced by the amount of the net positive income previously obtained and which have been entitled to the application of an exemption or deduction scheme for the elimination of double taxation. imposition, by the amount of the charge. "

" 6. The arrangements provided for in this Article shall not apply where the circumstances provided for in paragraph 9 of the preceding Article are given in respect of income obtained abroad. The option referred to in point (c) of that paragraph shall be exercised for each permanent establishment outside the Spanish territory, even if there are several in the territory of a single country. '

Nine. Article 31 (1) and (4), which are drawn up as follows, are amended and paragraph 5 is repealed:

" 1. Where positive earnings obtained and taxed abroad are included in the taxable amount of the taxpayer, the lower part of the fee shall be deducted from the following two quantities:

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

Non-paid taxes will not be deducted under exemption, bonus or any other tax benefit.

A convention being applied to avoid double taxation, the deduction may not exceed the tax that corresponds to that tax.

(b) The amount of the full quota that Spain would have to pay for the above income if it had been obtained in Spanish territory. "

" 4. The determination of the income obtained abroad through a permanent establishment shall be made in accordance with the provisions of Article 22 (5) of this Law. "

Ten. Article 32 (6) and (7) shall be repealed.

Once. Article 88 is amended, which is worded as follows:

" 1. For the purposes of avoiding double taxation which may arise by application of the valuation rules laid down in Articles 79, 80.2 and 87 of this Law, the profits distributed from income attributable to the assets provided shall be the right to the exemption on dividends, whatever the percentage of the partner's participation and its seniority.

The same criterion shall apply in respect of the income generated in the transmission of the holding or through any other corporate operation where, prior to that, they have been integrated into the entity's taxable base. acquiring the income attributable to the assets contributed.

2. Where it would not have been possible to avoid double taxation, the acquiring institution shall, at the time of its termination, make any adjustment to a sign contrary to that which it has made for the purposes of the valuation rules laid down in the Articles 79, 80.2 and 87 of this Law. The acquiring institution may practise such adjustments as a sign contrary to its extinction, provided that it proves that its participation has been transmitted by the partners and the amount of the amount which has been integrated into the base assessment of these on the occasion of such transmission. '

Article 4. A Heritage Tax in the financial year 2017.

With effect from January 1, 2017 and indefinite validity, the second paragraph of the single article of Royal Decree-Law 13/2011 of 16 September, for which the Tax on the Heritage is restored, is amended with a temporary, which is worded as follows:

" Second. With effect from 1 January 2018, the following amendments are introduced in Law 19/1991 of 6 June of the Heritage Tax:

One. Article 33 is amended, which is worded as follows:

Article 33. Overall allowance for the full quota.

On the full fee of the tax a 100 percent bonus will be applied to taxable persons for personal or real obligation to contribute.

Two. Articles 6, 36, 37 and 38 shall be repealed. '

Article 5. Amendment of Law 38/1992 of 28 December of Special Taxes.

The following amendments are introduced in Law 38/1992, of December 28, of Special Taxes:

One. Article 23 (5) and (6) are amended as follows:

" 5. The Tax on Intermediate Products will be payable in the Canary Islands at the following rates:

(a) Intermediate products with an actual alcoholic strength by volume not exceeding 15 per 100 vol.: EUR 30,14 per hectolitre.

(b) Other intermediate products: EUR 50,21 per hectolitre.

6. The Tax on Alcohol and Derived Beverages shall be required in the Canary Islands at the rate of EUR 750,36 per hectolitre of pure alcohol, without prejudice to Articles 40 and 41 of this Law. "

Two. Article 34 is amended, which is worded as follows:

" Article 34. Tax rate.

Without prejudice to Article 23, the tax shall be required for the following tax rates:

1. Intermediate products with an actual alcoholic strength by volume not exceeding 15 per 100 vol.: EUR 38.48 per hectolitre.

2. Other intermediate products: EUR 64.13 per hectolitre. '

Three. Article 39 is amended, which is worded as follows:

" Article 39. Tax rate.

The tax shall be required at the rate of EUR 958,94 per hectolitre of pure alcohol, without prejudice to Articles 23, 40 and 41. "

Four. The number 5 (a) and (b) of paragraph 2, as well as paragraph 4, both in Article 40, are amended as follows:

" Article 40. Artisanal distillation system.

[...]

(a) The first rate of the artisanal distillation scheme.

[...]

5. º Type of lien. The tax will be required at the rate of EUR 839.15 per hectolitre of pure alcohol. Where the tax is payable in the Canary Islands, the rate shall be EUR 653,34 per hectolitre of pure alcohol. The provisions of this number are without prejudice to the provisions of Article 41.

b) Second rate of the artisanal distillation scheme.

[...]

5. º Type of lien. The tax will be required at the rate of EUR 839.15 per hectolitre of pure alcohol. Where the tax is payable in the Canary Islands, the rate shall be EUR 653,34 per hectolitre of pure alcohol. The provisions of this number are without prejudice to the provisions of Article 41.

[...]

4. Introduction of derived beverages manufactured in other Member States by small distillers.

The rate applicable in respect of derived beverages manufactured by independent producers located in other Member States which obtain an annual production not exceeding 10 hectolitres of pure alcohol shall be 839,15. euro per hectolitre of pure alcohol. Where the tax is payable in the Canary Islands, the rate shall be EUR 653,34 per hectolitre of pure alcohol. '

Five. Article 41 is amended as follows:

" Article 41. Harvester regime.

When derived beverages obtained by hand-made distillation are used directly from the factory to the consumption of the harvesters, in the form and with the conditions to be established, the type Applicable tax shall be EUR 226,36 per hectolitre of pure alcohol. Where the tax is payable in the Canary Islands, the rate applicable shall be EUR 175,40 per hectolitre of pure alcohol. The application of these rates shall be limited to the quantity of drink equivalent to 16 litres of pure alcohol per harvester per year. '

Six. Article 60 (1), paragraphs 2 and 3, are amended as follows:

" Epiity-2. Cigarettes: except where the following subparagraph is applicable, cigarettes shall be subject to the following tax rates at the same time:

a) Proportional type: 51 per 100.

b) Specific type: € 24.7 per 1,000 cigarettes.

The tax amount cannot be lower than the single rate of EUR 131.5 per 1,000 cigarettes, and up to EUR 141 will be increased when cigarettes are determined to be sold to the public less than EUR 196 per 1,000 cigarettes.

Heading 3. Bite to liar: except in cases where the following paragraph is applicable, the liar bite shall be subject to the following tax rates at the same time:

a) Proportional type: 41.5 per 100.

b) Specific type: EUR 23.5 per kilogram.

The amount of tax cannot be less than the single rate of EUR 98.75 per kilogram, and will be increased to EUR 102.75 when a sale price to the public of less than EUR 165 is determined for the liar bite. per kilogram. "

Article 6. Amendment of Law 58/2003 of 17 December, General Tax.

The following amendments are introduced in Law 58/2003, of December 17, General Tax:

One. Article 60 (2) is amended, which is worded as follows:

" 2. Payment in kind of the tax liability on a voluntary or executive period may be permitted where a law expressly provides for it and in the terms and conditions which are provided for in regulation.

The payment in kind may not be allowed in those cases where, in accordance with Article 65.2 of this Law, the tax debts have the status of undeferred. Applications for payment in kind referred to in this paragraph shall be subject to admission. '

Two. Article 65 (2) is amended, which is worded as follows:

" 2. The following tax debts may not be deferred or split:

(a) Aquellas whose levy is carried out by means of timbrated effects.

(b) The corresponding tax obligations to be met by the retainer or the obligation to make income on account.

(c) In the case of a tax obligation, those which, according to the court of law, have the consideration of claims against the mass.

d) Those resulting from the execution of recovery decisions of State aid governed by Title VII of this Law.

e) Those resulting from the execution of final or partial final decisions rendered in an economic-administrative appeal or complaint or in an administrative-administrative appeal which has previously been the subject of suspension during processing of such resources or claims.

(f) Those arising from taxes which must be legally passed on, unless duly justified that the passed-on quotas have not been effectively paid.

g) The corresponding tax obligations to be fulfilled by the obligor to make fractional payments of the Company Tax.

Requests for deferment or fractionation referred to in the various paragraphs of this paragraph shall be subject to inadmissibility. "

Article 7. Coefficients of updating of the cadastral values of article 32.2 of the recast of the Law of the Real Estate.

1. The coefficients of updating of the cadastral values referred to in Article 32 (2) of the recast of the Law of the Land Registry, approved by the Royal Legislative Decree 1/2004, of 5 March, are fixed for 2017 with arrangement to the following table:

1984, 1985, 1986, 1987, 1988, 1989 and 1990

Year of Entry Into Force Pancy	Update Coefficient
1994
1996
1997, 1998, 1999, and 2000
	2001, 2002, and 2003
2005, 2006, 2007, 2008, and 2009	0.92
2010
2011	0.87

The coefficients provided for in the previous paragraph shall apply to the municipalities included in Order HAP/1553/2016 of 29 September 2016, in the following terms:

(a) In the case of immovable property valued in accordance with the data in the Real Estate Registry, it shall apply to the value assigned to such assets for 2016.

(b) In the case of cadastral values reported in the financial year 2016, obtained from the application of partial value ponies approved in that financial year, it shall apply to those securities.

(c) In the case of real estate which had undergone alterations of its characteristics in accordance with the data in the Real Estate Registry, without such variations having been effective, the coefficient shall be apply to the value assigned to such buildings, by virtue of the new circumstances, by the General Directorate of the Catastro, with the application of the modules which would have served as a basis for the fixing of the cadastral values of the rest of the real estate of the municipality.

Article 8. Compensation for the suppression of the IGTE of the Canary Islands.

The suspension of the compensation of the Autonomous Community of the Canary Islands to the State for the suppression of the IGTE referred to in the third paragraph of the Agreement of the Mixed Commission of Transfers Administration of the State-Autonomous Community of the Canary Islands of 16 November 2015 will produce effects, in terms of accrual, from 1 January 2016.

CHAPTER II

Social measures

Article 9. Update of the maximum ceiling and the maximum contribution bases in the Social Security system.

The amounts of the maximum ceiling of the social security contribution base in those schemes that have it established and of the maximum rates of contribution applicable in each of them will be increased, starting from 1 January 2017, by 3 percent compared to those in force in 2016.

Article 10. Future increases in the maximum ceiling and the maximum contribution bases and the maximum pension cap of the Social Security system.

The increases in the maximum ceiling for the contribution base and the maximum contribution bases in the Social Security system, as well as the ceiling for pensions caused by the system, which are to be carried out with After the establishment of this royal decree-law, they will be in accordance with the recommendations made in this regard by the Permanent Parliamentary Committee on Evaluation and Follow-up of the Agreements of the Toledo Pact and the agreements in the framework of the social dialogue.

Single additional disposition. Setting the minimum inter-professional salary for 2017.

The Government will fix, in accordance with the provisions of Article 27.1 of the recast of the Law of the Workers ' Statute, approved by the Royal Legislative Decree 2/2015 of 23 October, the minimum inter-professional salary for 2017 with an increase of 8 percent compared to the one set by Royal Decree 1171/2015, of 29 December, for which the minimum interprofessional salary is set for 2016. The Government will also determine the effect of this increase on the references to the minimum interprofessional salary contained in the collective agreements in force at the date of entry into force of the royal decree approving the minimum wage. interprofessional for 2017, as well as in non-state rules and in contracts and covenants of a private nature.

Single transient arrangement. Transitional arrangements for deferrals and fractionations.

Postponements or fractionations whose procedures have been initiated before 1 January 2017 shall be governed by the rules before that date until their conclusion.

Final disposition first. Competence title.

Chapter I of this royal decree-law is dictated by the provisions of Article 149.1.14. of the Constitution, which attributes to the State the competence in matters of general finance.

Chapter II is issued under the provisions of Article 149.1.17. of the Constitution, which confers exclusive competence on the State on the economic regime of Social Security.

The single additional provision is made under the provisions of Article 149.1.7. of the Constitution, which gives the State exclusive competence in matters of labour law, without prejudice to its enforcement by the Member States. bodies of the Autonomous Communities.

Final disposition second. Regulatory enablement.

The Government and the Ministers of Finance and Civil Service and Employment and Social Security are empowered to dictate the provisions and adopt the necessary measures for the development and implementation of the disposed in this royal decree-law.

Final disposition third. Entry into force.

This royal decree-law shall enter into force on the day of its publication in the "Official State Gazette", except for Article 6 which shall enter into force on 1 January 2017.

Given in Madrid, on December 2, 2016.

FELIPE R.

The President of the Government,

MARIANO RAJOY BREY