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

Other income from movable capital

1. 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. Returns obtained from the transfer to third parties of equity capital from related entities.

      When the returns obtained from the transfer of own capital to third parties come from entities related to the taxpayer, whose valuation must be carried out at market value, the general tax base will include the excess of the amount of own capital transferred to a related entity over the result of multiplying the equity by three, in the part that corresponds to the taxpayer's participation in the latter. The difference between the market value of these returns and the amount of the part of the return to be included in the general tax base as indicated above will be included in the taxable savings base.

2. 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 of the declaration.

3. Tax deductible expenses

   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 related to the taxpayer, the administration and deposit costs of negotiable securities may be deducted, where applicable.

4. Reductions

   As a general rule, net returns will be computed in full. However, net income with a generation period of more than two years or which is classified by regulation as having been obtained in a notoriously irregular manner over time will be reduced by 30% when, in both cases, it is imputed in a single tax period.

   The amount of net income referred to in this section to which the aforementioned reduction will be applied may not exceed 300,000 euros per year.

   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 (-).