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Form 100. 2019 Personal Income Tax return

7,2,3,8. Return on movable capital derived from subordinated debt securities or preference shares

For taxpayers who receive compensation in 2019 for agreements concluded with entities issuing subordinated debt or preferred shares, it is possible to calculate , voluntarily, in the financial year that the compensation is received a single yield in this section due to the difference between the compensation received and the investment done, without having to reflect the intermediate steps of repurchase and subscription or exchange of securities. As it is voluntary, the taxpayer can, in any case, decide not to apply the special rule and apply the general rules of Personal Income Tax, giving each of the transactions carried out the appropriate treatment.

If this special procedure is chosen, the difference between the compensation received and the investment initially made will be counted as return on movable capital. This compensation will be increased in the amounts that have been obtained previously by the transfer of the securities received. In the event that these securities have not been transferred or delivered as a result of the agreement with the issuers, the aforementioned compensation will be increased in the valuation taken into account for the quantification of the compensation.

The repurchase and subscription or exchange for other securities, or the transfer of the latter carried out before or on the occasion of the agreement, must be carried out, if applicable, by complementary self-assessment.

If you choose to apply this special quantification rule, immediately after the submission, if applicable, of these supplementary self-assessments, the taxpayer is obliged to report the self-assessment exercises affected by the new quantification, for which a specific form must be filled in that can be filed electronically, via the Internet (E-Office of the Tax Agency), or at the Tax Agency's registration offices.

Holders of subordinated debt or preference shares whose contracts have been declared null by court order, and who have recorded returns of them in your self-assessment for Personal Income Tax may request the rectification of these self-assessments and, if applicable, obtain the refund of undue income, even if you have prescribed the right to request the refund. When the right to request the refund has been prescribed, the self-assessment rectification will only affect the returns of the subordinated debt and of the participating preference shares, and any withholdings that may have been made for such returns.