Example: Income obtained from participation in the own funds of any entity
Mr. LHL has received the following income in the financial year 2022 as a shareholder in certain listed companies.
1. From the company “Alfa, SA ", he has received the following amounts:
2. On February 10, 2022, a temporary usufruct of 10 years was established in favor of the entity "Beta, SA " on a package of shares in the company "Gamma, SA " for a total amount of 21,000 euros, which will be received in installments at a rate of 2,100 euros on February 13 of each of the respective years of the duration of the usufruct.
The credit institution has charged you 31 euros for the service of administration and deposit of the shares. Determine the amount of computable net income and withholding taxes.
Solution:
Company "Alpha SA ":
Constitution of usufruct:
Total gross income (1,020 + 300 + 2,100) = 3,420
Deductible expenses = 31
Net income to be integrated into the taxable savings base (3,420 - 31) = 3,389
Notes to the example:
(1) The receipt of fully paid-up shares does not constitute income from movable capital. The tax treatment applicable to the receipt of fully paid-up shares (of securities admitted to trading) is discussed in Chapter 11 of this manual.(Back)
(2) The withholding rate applicable to income derived from participation in the equity of entities for the year 2022 is 19%.
Consequently, the withholdings incurred were as follows: