8.1.3.1.1. Imputation of income

Without prejudice to the provisions of international treaties and agreements that have become part of our internal regulations, taxpayers resident in Spain must allocate in their tax base the positive income obtained by a non-resident entity in Spanish territory in which they participate, when the following circumstances occur:

1. Control over the non-resident entity

   The taxpayer's participation in the entity on the closing date of the fiscal year, alone or jointly with relatives up to the second degree or with related entities, must be equal to or greater than 50 percent in the capital, own funds, results or voting rights.

   The determination of the degree of participation will be carried out in accordance with the provisions of article 91.1.a) of the Personal Income Tax Law.

2. Low taxation

   The level of taxation of the non-resident entity, in relation to any of the income to be imputed and calculated in accordance with the provisions of the aforementioned Law, must be less than 75 percent of what would correspond in accordance with the regulations of the Tax on Companies, which is presumed, unless proven otherwise, when the investee entity is a resident of countries or territories legally classified as tax havens.

3. Income to be attributed

   Only positive income belonging to any of the classes provided for in article 91.2 of the Personal Income Tax Law will be imputed.