Deduction for international double taxation in cases of application of the international tax transparency regime

Regulations: Art. 91.10 Law Income Tax

In cases where the imputation of income is applicable under the international tax transparency regime , the tax or levy actually paid abroad due to the distribution of dividends or profit shares will be deductible under this concept, whether in accordance with an agreement to avoid double taxation or in accordance with the internal legislation of the country or territory in question, in the part that corresponds to the positive income included in the tax base.

This deduction will be applied even when the taxes correspond to tax periods other than the one in which the inclusion was made.

The deduction may not exceed the full amount that would be payable in Spain for the positive income imputed in the tax base.

Note: Under no circumstances may taxes paid in countries or territories that are regulated as tax havens be deducted.