c) Income derived from certain securities loans

Regulations: Additional Provision Eighteen of Law 62/2003, of December 30, on fiscal, administrative and social order measures ( BOE of 31)

Securities lending is an operation that meets the remaining requirements established in the Eighteenth Additional Provision of Law 62/2003 and, by which one party (the lender), in exchange for monetary compensation, temporarily transfers securities to another party (the borrower). The borrower receives the monetary amounts corresponding to the economic rights that, for any other reason, derive from the securities lent during the term of the loan, with the obligation to return, upon maturity, the same number of securities that are homogeneous to those lent. Dividends and profit shares from borrowed securities constitute for him returns obtained from participation in equity of any entity , as explained in the previous section.

As regards the lender the remuneration of the loan, as well as the amount of compensation for the economic rights derived from the securities lent during the term of the loan, will be considered for the lender as returns obtained from the transfer of own capital to third parties .

Note: Please note that the Eighteenth Additional Provision of Law 62/2003 has been repealed with regard to Corporate Tax, with effect from 1 January 2015, by Law 27/2014, of 27 November (BOE of the 28th), but remains in force for IRPF .

However, the amounts of compensation for the distribution of the issue premium, for capital reductions with return of contributions or for preferential subscription rights or free allocation rights generated during the duration of the loan, will have for the lender the treatment applicable to them as discussed in Chapter 11 .