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Practical Income Manual 2021.

Deductible withholdings corresponding to subsidized income

Regulations: Sixth transitional provision of Law 27/2014, of November 27, on Corporate Tax ( BOE of 28)

The benefits from the Capital Income Tax recognized to the toll highway concession companies and the other entities referred to in the sixth transitional provision of the LIS continue to apply today. in accordance with the Capital Income Tax regulations.

Given that the tax rate applicable to interest in the Capital Income Tax was 24 percent and that the bonus granted amounted to 95 percent, the taxpayer receiving this type of income only bears an effective withholding of 1. 2 per 100 (24 x 5%). However, the total amount of the bonus, which amounts to 22.8 percent (24 x 95%), is also deductible through application of the tax benefit that temporarily remains applicable. Now, this last amount operates as a deduction from the quota without generating the right to refund, since this right derives from the amounts actually withheld.

Consequently, in the declaration box [0591] , the amount of withholdings not actually made will be recorded, which, however, has the consideration of tax deductibility of the quota, recording the withholdings actually borne in the box corresponding to them.