Allocation of income from Spanish and European economic interest groups and temporary business unions
Regulations: Articles 43 to 47 LIS
The special income imputation regime is applicable to the following entities:
Spanish Economic Interest Groups regulated by Law 12/1991, of April 29, on Economic Interest Groups.
European Economic Interest Groups regulated by Regulation CEE/2137/1985, of July 25, of the Council.
Temporary Unions of Companies regulated in Law 18/1982, of May 26, on the Fiscal Regime of Groups and Temporary Unions of Companies and Regional Industrial Development Societies, which are registered in the Special Registry of the Ministry of Finance and Public Function.
Content of the special regime
The specialties of this special tax imputation regime are the following:
a. The entities to which this regime is applicable are subject to Corporate Tax, with the exception of the payment of the tax debt for the part of the tax base attributable to partners residing in Spanish territory.
b. The attribution to partners residing in Spanish territory or non-residents with permanent establishments therein includes the following concepts:
The net financial expenses that, in accordance with article 16 of the LIS , have not been subject to deduction in these entities in the tax period. The net financial expenses charged to the partners will not be deductible by the entity.
The capitalization reserve that, in accordance with the provisions of article 25 of the LIS , has not been applied by the entity in the tax period. The capitalization reserve attributed to its partners cannot be applied by the entity, unless the partner is a taxpayer of Personal Income Tax .
The tax bases, positive (decreased or increased, where appropriate, in the equalization reserve referred to in article 105 of the LIS ) or negative, obtained by these entities. The negative tax bases attributed to its partners will not be offset by the entity that obtained them.
The bases of the deductions and bonuses in the quota to which the entity is entitled. The bases of the deductions and bonuses will be integrated into the partners' settlement, reducing the fee as appropriate by application of the Personal Income Tax or Corporate Tax rules, depending on whether the partner is a taxpayer. , respectively, of the aforementioned taxes.
The withholdings and payments on account corresponding to the entity.
The tax base equalization reserve referred to in article 105 of the LIS will be added, where appropriate, to the tax base of the economic interest group.
c. The imputations of the previously mentioned concepts will be made in accordance with the following criteria:
When the partners or member companies are entities subject to this regime, on the end date of the tax period of the entity subject to this regime.
In other cases, in the following tax period, unless it is decided to do so continuously on the same end date of the tax period of the entity subject to this regime. The option will be expressed in the first Personal Income Tax declaration in which it is to take effect and will be maintained for three years.
d. Dividends and shares in profits that correspond to partners who must bear the imputation and come from tax periods during which the entity was in this regime, will not be taxed by the Personal Income Tax or by the Corporate tax. Its amount will not be included in the acquisition value of the shares of the partners to whom they were attributed. In the case of partners who acquire the shares after the imputation, their acquisition value will be reduced by said amount.
e. In the transfer of shares in the capital, own funds or results of these entities, the acquisition value will increase by the amount of the corporate profits that, without effective distribution, would have been attributed to the partners as income from their shares in the period. of time between its acquisition and transmission.
Furthermore, in the case of participations in Temporary Joint Ventures of Companies, the acquisition value will be reduced by the amount of the social losses that have been attributed to the partners.
For its part, in the case of Economic Interest Groups when the accounting criteria so establish, the acquisition value will be reduced by the amount of the financial expenses, the negative tax bases, the capitalization reserve, and the deductions and bonuses. that have been imputed to the partners in the period of time between their acquisition and transfer, until the aforementioned value is cancelled, and the corresponding financial income is also integrated into the tax base.