4.2.42 Code 00371 SICAV: Capital reductions and distribution of the issue premium (Article 17.6 LIS)

Article 17.6 of the LIS establishes that in the reduction of capital with return of contributions, the excess of the market value of the elements received over the tax value of the participation will be integrated into the taxable base of the partners.

The same rule will apply in the case of distribution of the premium on the issue of shares or interests.

However, in the case of operations carried out by variable capital investment companies (SICAV) regulated by Law 35/2003, of November 4, on Collective Investment Institutions, not subject to the general tax rate, the total amount received in the capital reduction with the limit of the increase in the net asset value of the shares from their acquisition or subscription until the time of the reduction of share capital, will be integrated into the tax base of the partner without the right to any deduction in the total quota.

Whatever amount is received as distribution of the issue premium made by said variable capital investment companies, it will be included in the partner's tax base without any right to deduction from the total share.

The above shall apply to collective investment schemes equivalent to variable capital investment companies that are registered in another State, regardless of any limitations they may have regarding restricted groups of investors, in the acquisition, transfer or redemption of their shares; In any case, it will apply to companies covered by Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 coordinating the laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities.

In application of the provisions of this article, the taxpayer must include in the code [00371] « SICAV : Capital reductions and distribution of the issue premium (art. 17.6 LIS)» on page 12 of form 200, filling in, where applicable, the corresponding breakdown boxes, the amounts that the partners (corporate tax payers) must include in their tax base on the occasion of capital reductions with return of contributions and the distribution of the issue premium made by variable capital investment companies regulated in the Law on Collective Investment Institutions not subject to the general tax rate and by collective investment undertakings equivalent to said companies that are registered in another State.