What income is not subject to Corporation Tax withholdings?

No withholding tax shall be levied on:

1. Income obtained by the entities referred to in article 9.1 LIS (exempt entities).

2. Dividends or shares in profits distributed by Spanish and European economic interest groups and by temporary joint ventures which correspond to shareholders who must bear the imputation of the taxable base and come from tax periods during which the entity has been taxed in accordance with the provisions of the special system of Chapter II of Heading VII of the LIS.

3. Dividends or shares in profits, interest and other income paid between companies forming part of a group taxed under the tax consolidation system.

4. Dividends or shares in profits referred to in section 1 of Article 21 of the LIS (exempt income).

5. Income obtained from the exchange of assets in which life insurance provisions are invested, in which the policyholder assumes the investment risk.

6. Lottery and betting prizes that, due to their amount, are exempt from the special tax referred to in the Thirty-Third Additional Provision of Law 35/2006, of November 28, on Personal Income Tax and partial modification of the laws on Corporate Tax, Non-Resident Income Tax and Wealth Tax.

When, by virtue of a judicial or administrative ruling, income subject to withholding or on-account payment of Corporation Tax must be paid, the payer must withhold the full amount payable and pay the amount to the Tax Agency.