8.1.3.1.1. Imputation of income

Without prejudice to the provisions of international treaties and agreements that have become part of our internal legislation, taxpayers resident in Spain must allocate to their general tax base, regardless of the imputed income, the positive income obtained by a non-resident entity in Spanish territory in which they participate, when the following circumstances occur:

1. Control over the non-resident entity

   The taxpayer's participation in the entity on the closing date of the fiscal year, alone or jointly with relatives up to the second degree or with related entities, must be equal to or greater than 50 percent in the capital, own funds, results or voting rights.

   The determination of the degree of participation will be carried out in accordance with the provisions of article 91.1.a) of the Personal Income Tax Law.

2. Low taxation

   The tax of a nature identical or analogous to the Corporate Tax paid by the non-resident entity involved due to the income that must be included, must be less than 75 percent of what would correspond to those same income in accordance with the Corporate Tax rules. .

3. Income to be attributed

   Only positive income belonging to any of the classes provided for in article 91 of the Personal Income Tax Law will be imputed.

The imputation of income in this regime does not apply when the entity not resident in Spanish territory is resident in another member state of the European Union, provided that the taxpayer proves that its constitution and operation responds to valid economic reasons and that it carries out economic activities.

Nor will it apply in the case of a collective investment institution regulated by Directive 2009/65/EC.