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Practical Manual for Companies 2023.

Income not subject to withholding

With effect from 25 April 2023 and indefinite validity, Royal Decree 249/2023, of 4 April, modifies letter y) of article 61 of the RIS, to exclude from the obligation to withhold the income from the reimbursement or transfer of shares or stocks in listed investment funds or companies to equivalent collective investment institutions in other States, regardless of the market in which they are listed.

In this way, it is established that there will be no obligation to withhold or pay into account the income derived from the reimbursement or transfer of shares or stocks issued by the following collective investment institutions:

  • Exchange-traded funds and listed variable capital investment companies regulated by article 79 of the Regulation implementing Law 35/2003, of November 4, on collective investment institutions, approved by Royal Decree 1082/2012, of July 13.

  • Collective investment institutions established abroad similar to those mentioned in the previous number and different from those provided for in article 54 of the Tax Law, whether listed on a regulated market or in a multilateral trading system, regardless of the composition of the index they reproduce, replicate or take as a reference, provided that, in addition, the reimbursement or transfer does not take place in a market located in a country or territory considered a non-cooperative jurisdiction.

Furthermore, with effect from 7 December 2023 and for indefinite validity, Royal Decree 1008/2023, of 5 December, modifies letter e) of article 61 of the RIS, to exclude from the obligation to withhold or pay into account the interest received by securities companies as a result of credits or loans granted in relation to securities purchase or sale transactions referred to in article 126.b) of Law 6/2023, of March 17, on the Securities Markets and Investment Services, as well as the interest received by investment services companies with respect to active loan or deposit operations mentioned in article 70.1 of Royal Decree 813/2023, of November 8, on the legal regime of investment services companies and other entities that provide investment services.

There will also be no obligation to practice withholding in relation to the interests received by the central counterparty entities, as well as by the entities that have the status of member of a central counterparty entity, as consideration for the guarantees constituted in application of the provisions of the article 97.2 of the Securities Markets and Investment Services Law of articles 41 and 42 of Regulation (EU) number 648/2012 of the European Parliament and of the Council, of July 4, 2012, relating to over-the-counter derivatives , the central counterparty entities and the transaction records, and in the Regulations of the central counterparty entity itself and in its development circulars.

Likewise, there will be no obligation to withhold interest received by the managing entities of the payment systems recognised in accordance with Law 41/1999, of 12 November, on payment and securities settlement systems, as well as by entities that have the status of participants in these systems, from guarantees constituted in application of the provisions of letter d) of article 2 of said law, or from accounts exclusively used for carrying out the operations specific to the corresponding payment system.