Determination of full performance

It is necessary to distinguish:

a. In the case of interest and other agreed or estimated remuneration for the transfer of own capital to third parties

If the remuneration is monetary, the integration into the tax base of these income will be made for the full amount, without discounting the withholding applied to said income.

If the remuneration is in kind , the valuation of the performance (market value of the good, right or service received) plus the payment on account will be included in the tax base, unless this had been passed on to the holder of the performance (Art. 43.2 Law Personal Income Tax ).

The provision of goods or rights capable of generating income from movable capital will be presumed to be remunerated, unless proven otherwise. In the absence of proof to the contrary, the valuation of the estimated income in the case of loans and operations to raise or use foreign capital in general, will be carried out by applying the legal interest of the money that is in force on the last day of the tax period, 3 percent for fiscal year 2022.

b. In the case of operations on financial assets

The integration into the tax base of income derived from the transmission, reimbursement, amortization, exchange or conversion of any type of financial assets (implicit income) will be carried out in accordance with the following rules:

1. The calculation of each return must be carried out, individually, for each title or asset, by difference between the values of disposal, amortization or reimbursement and acquisition or subscription.

2. Ancillary acquisition and disposal expenses, provided they are paid by the acquirer (acquisition value) or transferor (disposal or reimbursement value) and are adequately justified, must be computed for the quantification of the performance obtained.

3. The negative returns will be integrated with the positive returns, except in the event that the taxpayer had acquired homogeneous financial assets within the two months before or after said transfers, in which case, said negative returns will be integrated as the assets are transmitted. financial assets that remain in the taxpayer's assets [Art. 25.2 b) Law Personal Income Tax ].

   See also, in relation to this last rule, article 8 of Regulation Personal Income Tax "Concept of homogeneous securities or shares".

Consequently, the amount of the return on movable capital will be determined by carrying out the following operation:

Regarding retention:

As a general rule, capital gains derived from financial assets are subject to withholding or deposit on account .

Notwithstanding the above, there is no obligation to withhold or deposit on account the following income (Art. 75.3 Regulation Personal Income Tax ):

• Yields of securities issued by the Bank of Spain that constitute a regulatory instrument of intervention in the money market and the yields of Treasury Bills. However, income derived from account contracts based on operations on Treasury Bills that are formalized with credit institutions and other financial institutions are subject to withholding or deposit on account.

• Returns on foreign accounts paid or paid by permanent establishments abroad of credit institutions and financial establishments resident in Spain.

• Premiums for converting obligations into shares.

• Income derived from the transmission or redemption of financial assets with explicit performance, provided that they meet the following requirements:

  1. That are represented by book entries.
  2. That they are traded on an official Spanish secondary securities market.

However, returns derived from account contracts based on operations on the above values that are formalized with credit institutions and other financial institutions are subject to withholding or deposit on account.

Outline of the Fiscal Regime of the State Public Debt