Estimated returns on capital assets and related-party transactions

Regulations: Articles 6.5, 40 and 41 Personal Income Tax Law

The provision of goods or rights likely to generate capital gains are presumed to be remunerated, unless proven otherwise . In the absence of proof to the contrary, the valuation of the estimated returns will be carried out at the normal market value, which is understood to be the consideration that would be agreed between independent subjects, unless there is proof to the contrary, of another lower value.

If it is a loan and capital raising operations in general , the normal market value will be understood as the legal interest rate of money force on the last day of the tax period, 3 percent for the 2019 fiscal year.

In the case of transactions between related persons or entities , the valuation will be carried out imperatively at the normal market value, in accordance with the terms set forth in article 18 of Law 27/2014, of November 27, on Corporate Tax ( BOE of the 28th). This same Chapter discusses the integration into the tax base of the income obtained from the transfer to third parties of equity from related entities.