7.2.4. Income from movable capital to be included in the general tax base

Other income from movable capital (art. 25.4 Law)

Gross income

This section includes any other income from movable capital not included in the previous sections and, among others, the following income, whether monetary or in kind:

1. Those arising from intellectual property when the taxpayer is not the author and those arising from industrial property that is not affected by economic activities carried out by the taxpayer.

2. Those arising from the provision of technical assistance, unless said provision takes place within the scope of an economic activity.

3. Those arising from the leasing of movable property, businesses or mines, as well as those arising from subleasing received by the sub-lessor, which do not constitute economic activities.

4. Those arising from the transfer of the right to exploit the image or the consent or authorization for its use, unless said transfer takes place within the scope of an economic activity.

5. Income derived from loans granted by the taxpayer.

This section will also include all other capital gains that must be included in the general tax base. For example, the amount of income derived from the transfer to third parties of equity from entities related to the taxpayer that correspond to the excess of the amount of equity transferred to the entity over the result of multiplying the equity by 3 in the part that corresponds to the taxpayer's participation in the latter.

Withholdings

Likewise, this section will indicate the withholdings made or payments on account made on the accrued income, amounts that the program transfers to box 0597 on page 22 of the declaration.

Interest on financial assets entitled to a bonus (Transitional Provision 6 of the Corporate Income Tax Law) exclusively when they come from entities linked to the taxpayer. The withholdings actually made and the deductible withholding will be indicated in the corresponding sections.

The amount of the withholdings not actually made that are nevertheless considered deductible from the quota will be transferred by the program to box 0591 on page 17 of the declaration.

Tax-deductible expenses (art. 26.1.b) Law)

Exclusively in the case of income derived from the provision of technical assistance, the leasing of movable property, businesses or mines or subleases, all expenses necessary for obtaining them and, where applicable, the amount of the deterioration suffered by the assets or rights from which the income comes will be deductible from the total income.

For these purposes, the same rules provided for deductible expenses from real estate capital gains will apply. The limit established for interest and other financing costs and repair and maintenance costs will not apply.

In the case of income derived from the transfer to third parties of equity from entities linked to the taxpayer, the administration and deposit expenses of negotiable securities may be deducted, where applicable.

Reductions (art. 26.2 Law)

As a general rule, net income will be computed in its entirety, except where a 30% reduction is applicable in the case of irregular income.

Note: Normally the reduction should be recorded without any sign. However, when the reduction affects a negative net return, it will be recorded preceded by a minus sign (-).