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Practical Manual for Companies 2023.

Amount of income to be attributed

Regulation: Article 100.8 and 11 LIS

  • In order to calculate the amount of positive income to be allocated to the tax base, the principles and criteria established in the LIS and in the other provisions relating to this Tax for determining the tax base will be applied.

    For these purposes, the exchange rate in force at the close of fiscal year of the entity not resident 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 the participation in the capital, equity or voting rights.

  • In the event that the entity transfers its participation, directly or indirectly, in order to calculate the amount of income derived from said transfer, the acquisition value will be increased by the amount of the corporate profits that, without effective distribution, correspond to income that would have been attributed to the partners as income from their shares or interests in the period of time between their acquisition and transfer. 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 patrimonial entity in the terms established in article 5.2 of the LIS, the transfer value to be computed will be at least the value of the net worth corresponding to the transferred values resulting from the last closed balance sheet, once the book value of the assets has been replaced by the value they would have for the purposes of the Wealth Tax or by the market value if this is lower.