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Practical manual for Income Tax 2023.

9. Loss of exemption from certain remuneration in kind

Regulations: Art. 43.2.3 Regulation Personal Income Tax

A supplementary self-assessment must be submitted when, after the application of the exemption, active employees of companies have lost the right to not consider as remuneration in kind the receipt of shares or interests in the company for which they work, or in another company in the group, under the terms and conditions established in article 43 of the Personal Income Tax Regulations .

The loss of the exemption provided for in article 42.3.f) of the Income Tax Law may occur as a result of failure to comply with the period for holding said shares or participations or other of the requirements provided for in the aforementioned article.

For these purposes, please note that the conditions and requirements that must be met so that the delivery of shares or interests to active workers is not considered remuneration in kind are discussed in Chapter 3, within the section relating to " Exempt employment benefits in kind ".

The supplementary self-assessment must be submitted within the period between the date on which the requirement is not met and the end of the regulatory declaration period corresponding to the tax period in which said non-compliance occurs.

This self-assessment will generate late payment interest which, where applicable, will be settled by the Administration.

Note: If the supplementary declaration responds to this circumstance, the taxpayer must mark with an "X" the box [119] of the "Supplementary declaration" section of the declaration.