Determining the amount of positive income to be imputed and the moment in which the imputation should be made

Determining the amount of positive income to be imputed

Regulations: Art. 91.7, 10 and 12.c) Law IRPF

• Positive income amount

  The amount of positive income to be allocated to the tax base will be calculated in accordance with the principles and criteria established in the regulations governing Corporate Tax for determining the tax base, using the exchange rate in force at the close of the financial year of the entity not resident in Spanish territory.

  When the participating entity is resident in a country or territory classified as a non-cooperative jurisdiction, it will be presumed, unless proven otherwise, that the income obtained by the participating entity is 15% of the acquisition value of the participation.

• Imputation

  Once the amount of positive income has been determined, the imputation will be made in the general tax base in proportion to the participation of the resident natural person in the results of the non-resident entity and, failing that, in proportion to the participation in the capital, equity or voting rights of the entity.

  In the event that the taxpayer participates indirectly in the resident entity through another or other non-resident entities, the amount of positive income to be imputed will be that corresponding to the indirect participation.

• Limit

  In no case will an amount greater than the total income of the non-resident entity be imputed.

Tax period in which the imputation must be made

Regulations: Art. 91.6 Law Income Tax

The imputation will be made in the tax period that includes the day on which the non-resident entity has concluded its fiscal year, which, for these purposes, cannot be understood as lasting more than 12 months.