Income not subject to imputation

Regulations: Art. 91.3.i), 4, 5 and 9 Law Personal Income Tax

Without prejudice to what was mentioned above, the following income is not susceptible to imputation:

• Positive income corresponding to income derived from credit, financial, insurance or service provision activities, when at least two thirds of the income corresponding to them have been made with persons or entities not related to the terms of article 18 of the LIS .

• The positive income referred to in the previous section " Income susceptible to imputation " when the sum of their amounts is less than 15 percent of the total income obtained by the non-resident entity.

  However, in all cases the income referred to in letter i) of the previous section will be imputed without prejudice to the fact that they are also taken into consideration for the purposes of determining that the sum of their amounts is less than 15 percent of the total income obtained by the non-resident entity.

• The amount of the tax or taxes of an identical or similar nature to the Corporate Tax actually paid by the non-resident company for the part of income to be included.

• Dividends or participation in profits, including interim dividends, in the part that corresponds to the positive income that has been imputed.

  In the case of distribution of reserves, the designation contained in the social agreement will be followed, with the latest amounts paid to said reserves being understood to be applied.

Note: The same positive income may only be subject to imputation once, regardless of the form and entity in which it manifests itself.