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Practical Manual of Companies 2022.

Amount of income to be attributed

Regulation: Article 100.8 and 11 LIS

  • To calculate the amount of positive income to be attributed to the tax base, the principles and criteria established in the LIS and in the remaining provisions relating to this Tax will be applied to determine the base. taxable.

    For these purposes, the exchange rate in effect at the end of the fiscal year of the non-resident entity in Spanish territory will be used.

    In no case will be imputed an amount greater than the total income of the non-resident entity or that obtained through the permanent establishment.

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

  • In the event that the entity transfers its participation, directly or indirectly, to calculate the amount of income derived from said transfer, the acquisition value will increase by the amount of the social benefits that, without effective distribution, correspond to income that had been attributed to the partners as income from their shares or participations in the period of time between their acquisition and transmission. For these purposes, the amount of the social benefits referred to above, will be reduced by 5 percent as management expenses related to said participations.

    If it is a equity entity under the terms established in article 5.2 of the LIS, the transmission value to be computed will be at least the value of the net assets that corresponds to the values transmitted resulting from the last closed balance sheet, once the book value of the assets has been replaced by the value they would have for Wealth Tax purposes or by the market value if this is lower.