Income not attributable to the taxable base

Regulation: Article 100.4, 100.5 and 100.9 LIS

The following income will not be imputed in the tax base:

1. The positive income provided for in letter i) of article 100.3 of the LIS when at least two thirds of the income derived from credit, financial, insurance or service provision activities carried out by the non-resident entity come from operations carried out with unrelated persons or entities within the meaning of article 18 of the LIS.

2. The income provided for in article 100.3 of the LIS when the sum of their amounts is less than 15 percent of the total income obtained by the non-resident entity or permanent establishment.

   However, in any case the income referred to in letter i) of article 100.3 of the LIS will be imputed without prejudice to the fact that they will also be taken into consideration for the purposes of determining the sum referred to in the previous paragraph.

3. The income referred to in article 100.3 of the LIS, when they correspond to non-tax deductible expenses of entities resident in Spanish territory .

4. The dividends or profit shares in the part that corresponds to the positive income that has been included in the tax base . For these purposes, the amount of dividends or profit shares will be reduced by 5 percent as management expenses related to said shares, unless the circumstances established in article 21.11 of the LIS occur. The same treatment will apply to interim dividends.