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Practical Manual of Companies 2022.

Income not attributable to the taxable base

Regulation: Article 100.4, 5 and 9 LIS

The following income will not be included 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 activities , insurance or provision of services 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 entity non-resident or permanent establishment.

    However, the income referred to in letter i) of article 100.3 of the LIS will be attributed in any case without prejudice to the fact that they are also 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 tax-non-deductible expenses of entities resident in Spanish territory .

  4. The dividends or shares in profits 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 shares in profits 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.