7,2,3,3. Dividends and other income derived from participation in the equity of entities

This section will include the returns obtained from participation in the equity of any type of entity.

The following returns, whether monetary or in kind, are included in this category:

1. Dividends, attendance bonuses at meetings and profit sharing from any type of entity.

2. Income from any type of assets, except the delivery of paid-up shares, which, by statute or by decision of the corporate bodies, entitle one to participate in the profits, sales, operations, income or similar concepts of an entity for reasons other than the remuneration of personal work.

3. The returns derived from the creation or transfer of rights or powers of use or enjoyment, whatever their name or nature, on the securities or shares that represent the participation in the entity's equity.

4. Any other profit, other than the above, arising from an entity due to the status of partner, shareholder, associate or participant.

5. The distribution of the premium on the issue of shares or interests and the reduction of capital for the purpose of repaying contributions:

   • securities admitted to trading on any of the securities markets of the European Union. The amount obtained will reduce, until it is cancelled, the acquisition value of the shares or interests affected and only the excess that may result will be taxed as income from movable capital.

     If the capital reduction comes from undistributed profits, all amounts received will be taxed as capital assets (dividends).

     For these purposes, capital reductions, whatever their purpose, shall be deemed to affect first and foremost the portion of share capital that does not come from undistributed profits, until they are cancelled.

   • securities not admitted to trading on any of the securities markets of the European Union. In the case of distribution of the issue premium and capital reduction that is intended to return contributions and does not come from undistributed profits, the positive or negative sign of the difference between the value of the equity of the shares or participations corresponding to the last financial year closed prior to the date of the distribution of the premium or the date of the capital reduction and its acquisition value must be taken into account.

     If the difference is positive, the amount obtained or the normal market value of the assets or rights received will be considered income from movable capital with the limit of the aforementioned positive difference.

     If the difference is negative or zero, the amount received will reduce the acquisition value of the shares or interests until it is nullified.

     The excess over this limit (the difference between the value of the equity and the acquisition value of the shares or participations) will reduce the acquisition value of the latter until it is nullified and the part of said excess that exceeds the acquisition value will be taxed as income from movable capital not subject to withholding or payment on account.

6. In the case of capital reduction of variable capital investment companies (SICAV) whose purpose is the return of contributions, the amount of this or the normal market value of the assets or rights received, which will be classified as income from movable capital with the limit of the highest of the following amounts:

   • The increase in the net asset value of the shares from their acquisition or subscription until the time of the reduction of share capital.

   • When the capital reduction proceeds from undistributed profits, the amount of such profits. For these purposes, capital reductions, whatever their purpose, shall be deemed to affect first and foremost the portion of share capital that comes from undistributed profits, until their cancellation.

   Any excess over this limit will reduce the acquisition value of the affected shares until they are cancelled. In turn, any excess that may result will be integrated as income from movable capital from participation in the equity of any type of entity, in the manner provided for the distribution of the issue premium.

7. The entire amount obtained from the distribution of the issue premium on shares in variable capital investment companies (SICAV) without applying a reduction in the acquisition value of the shares.

Completion

The following information will be entered through a data capture window, which will normally appear in the certificate of returns provided by the bank holding the securities:

1. Full perceived

   The full amount received in the form of dividends or participation in profits from any type of entity will be recorded.

   If the performance has been received in kind, the market value of the goods or services received must be computed as full income. The advance payment will be added to this value, unless its amount has been passed on to the recipient of the income.

2. Withholdings

   This section will include any withholdings made or payments on account made on dividends and other profit shares of entities. The program transfers these amounts to box 0597.

3. Administration and deposit expenses for negotiable securities

   In order to determine the net return on movable capital corresponding to this type of income, only the administration and deposit of shares or interests that represent participation in the equity of entities may be deducted, without any other expense concept being admissible as a deduction.

   For these purposes, administration and deposit expenses are considered to be those amounts charged by investment services companies, credit institutions or other financial institutions that, in accordance with Royal Legislative Decree 4/2015, of October 23, which approves the revised text of the Securities Market Law, have the purpose of remunerating the service derived from the performance on behalf of their holders of the service of deposit of securities represented in the form of certificates or the administration of securities represented in account entries.

   Amounts representing consideration for discretionary and individual management of investment portfolios, where there is a disposition of investments made on behalf of the owners in accordance with the mandates conferred by them, will not be deductible.