News published in INFORMA 2018

New features introduced in the INFORMA programme during OCTOBER

Article 107 of the LIS regulates, among the requirements required to be able to apply the tax regime of the ETVE, the prohibition of these entities being considered patrimonial entities. Cash and passive financial investments that do not come from the transfer of assets, but rather from dividends received from a foreign company, will be considered as unaffected assets when determining whether or not the entity is considered a patrimonial entity.

In the tax period in which the delivery of the equity instruments has not yet taken place, the personnel expenses recorded by the entity for this concept will not be tax deductible, and a positive adjustment must be made to the accounting result to calculate the tax base. In the tax period in which the equity instruments of the parent company are delivered, the accounting expense referred to above, which had not previously been tax deductible, will be deductible.

Participation in the capital of other entities does not appear to constitute in any case the corporate purpose or the goal pursued by a non-profit entity, so the income derived from the donation received would be subject to, and not exempt from, Corporate Tax.

An entity that carries out the leasing activity of an industry on a continuous basis in compliance with its corporate purpose would determine the performance of an economic activity and, therefore, would not be required to withhold tax on the income from that leasing.