Scope

Regulation: Article 100.1 LIS

The international tax transparency regime will apply to Corporate Tax taxpayers provided that the following circumstances are met:

1. That have a participation equal to or greater than 50 percent of the capital, own funds, results or voting rights on the date of the closing of the fiscal year of an entity not resident in the territory Spanish. Participation will be computed alone or jointly with related persons or entities within the meaning of article 18 of the LIS.

   The amount of positive income to be imputed will be determined in proportion to the participation in the results, and, failing that, in proportion to the participation in the capital, own funds or rights of vote.

2. That the amount paid by the non-resident entity in Spanish territory, for the income that must be attributed to the tax base, for a tax of an identical or analogous nature to the Corporate Tax, is less than 75 percent of that which would have corresponded in said Spanish territory.

According to the provisions of article 100.16 of the LIS, this special regime will not apply when the entity not resident in Spanish territory is resident in another Member State of the European Union, provided that the taxpayer proves that its constitution and operations respond to valid economic reasons and that it carries out economic activities, or that it is a collective investment institution regulated in Directive 2009/65/EC of the European Parliament and of the Council, of July 13, 2009, by which coordinates the legal, regulatory and administrative provisions on certain collective investment organizations in transferable securities, other than those provided for in article 54 of the LIS, incorporated and domiciled in a Member State of the European Union.