4.2.19. Debts

This section must include charges and liens of a real nature, when they decrease the value of the respective assets and rights, as well as personal debts or obligations for which the taxpayer must respond, including those related to elements related to economic activities when the taxpayer does not keep accounting adjusted to the Commercial Code, and provided that said assets are not exempt from the Tax.

Charges, liens and debts related to taxable items that are exempt must be recorded in section "D. Exempt assets and rights related to economic activities".

Debts will be valued at their nominal value on the date of accrual of the Tax (December 31) and will only be deductible when duly justified, without the interest being deductible in any case.

The following will not be subject to deduction:

1. The amounts guaranteed, until the guarantor is obliged to pay the debt, because the right has been exercised against the principal debtor and the latter has become bankrupt. In the case of joint liability, the amounts guaranteed may not be deducted until the right against the guarantor is exercised.

2. The mortgage that guarantees the deferred price in the acquisition of an asset, without prejudice to whether the deferred price or guaranteed debt is.

3. The charges and liens that correspond to assets exempt from this Tax.

4. Debts incurred for the acquisition of exempt assets or rights. When the exemption is partial, the proportional part of the debts will be deductible, where applicable.

In cases of REAL OBLIGATION to contribute, only charges and liens that affect assets and rights located in Spanish territory or that can be exercised or must be fulfilled therein, as well as debts for capital invested in the indicated assets, will be deductible.

COMPLETION.

On page (I) a data capture window will open where you will indicate the amount of the debts corresponding to each asset or right in accordance with the rules indicated above.