Scope

Regulation: Article 100.1 LIS

The international tax transparency regime will apply to corporate tax payers provided that the following circumstances are met:

1. That they have a participation equal to or greater than 50 percent of the capital, equity, results or voting rights on the date of the closing of the financial year of an entity not resident in Spanish territory. Participation will be counted alone or jointly with persons or entities linked 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, equity or voting rights.

2. That the amount paid by the entity not resident in Spanish territory, for the income that must be imputed in 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 operation respond to valid economic reasons and that it carries out economic activities, or 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 the legal, regulatory and administrative provisions relating to certain undertakings for collective investment in transferable securities are coordinated, other than those provided for in article 54 of the LIS, constituted and domiciled in a Member State of the European Union.