8.7.3. Double taxation deduction

1. Due to international double taxation, due to income obtained and taxed abroad

   When the taxpayer's income includes income or capital gains obtained and taxed abroad, the lesser of the following amounts will be deducted:

   1. The effective amount paid abroad due to a tax of a nature identical or analogous to this tax or the Non-Resident Income Tax on said income or capital gains.

   2. The result of applying the average effective tax rate to the part of the taxable base taxed abroad.

   For these purposes, the average effective tax rate will be the result of multiplying by 100 the quotient obtained by dividing the total net amount by the taxable base. To this end, the tax rate corresponding to general income and savings must be differentiated, as appropriate. The tax rate will be expressed with two decimal places.

   When income is obtained abroad through a permanent establishment, this deduction will be made, and in no case will the double taxation elimination procedure provided for in article 22 of the consolidated text of the Corporate Tax Law be applicable.

2. Due to international double taxation in the cases of application of the international tax transparency regime.

   When the imputation of income is appropriate in the international tax transparency regime, the tax or levy actually paid abroad due to the distribution of dividends or participation in profits will be deductible for this concept.

   The deduction will be made even when the taxes correspond to tax periods other than the one in which the inclusion was made.

   The deduction may not exceed the full amount that in Spain would be payable for the positive income imputed to the tax base.

3. Due to double taxation in the cases of application of the regime of imputation of income derived from the transfer of image rights.

   The taxes that taxpayers who have included the income derived from said transfer can deduct for this concept are the following:

   1. The personal tax paid, in Spain or abroad, by the person or entity first transferee of the image rights in the part that corresponds to the part of the net income derived from the amount that has been included in the current financial year. .

   2. The tax or levy actually paid abroad by reason of the distribution of dividends or shares in profits distributed by the first transferee, whether in accordance with an agreement to avoid double taxation or in accordance with the internal legislation of the country or territory of which it is treat, in the part that corresponds to the amount included in its tax base by the declarant.

   3. The personal tax of a nature analogous to the income tax paid by the natural person who owns the image abroad or in Spain as a taxpayer of the Non-Resident Income Tax that corresponds to the consideration obtained as a consequence of the first transfer of the image rights to the assignee.

   These deductions will be made even when the taxes correspond to tax periods other than the one in which the inclusion was made.

1. 8.7.3.1 Completion