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Form 100. Personal Income Tax Return Declaration 2017

8.1.3.1.4. Other issues

In addition, the following issues, among others, must be taken into account:

INTEGRATION INTO THE TAX BASE

Positive income from each of the aforementioned sources will be allocated to the general tax base, in accordance with the provisions of article 45 of the Tax Law.

DISTRIBUTION OF DIVIDENDS

Dividends or profit shares distributed by the non-resident entity will not be included in the tax base in the part that corresponds to the positive income that has been imputed. The same treatment will apply to interim dividends.

In the event of distribution of reserves, the designation contained in the corporate agreement will be observed, with the last amounts paid being understood to be applied to said reserves.

TRANSFER OF SHAREHOLDING

To calculate the income derived from the transfer of the participation, direct or indirect, the rules contained in paragraph a) of section 7 of the twenty-second DT of the consolidated text of the LIS will be used, in relation to the positive income imputed in the tax base. The social benefits referred to in the aforementioned provision will be those corresponding to the imputed positive income.

FORMAL OBLIGATIONS

Taxpayers to whom this imputation regime applies must submit the following data relating to the non-resident entity together with their personal income tax return:

  • Name or company name and location of registered office.

  • List of administrators.

  • Balance sheet and profit and loss account.

  • Amount of positive income that must be included in the tax base.

  • Justification of the taxes paid with respect to the positive income that must be included in the tax base.

INTERNATIONAL AGREEMENTS AND FORAL REGIMES

The international tax transparency regime shall be understood without prejudice to the provisions of the international treaties and agreements that have become part of the internal legal system and the regional tax regimes of Economic Agreement and Convention in force, respectively, in the Historical Territories of the Basque Country and in the Foral Community of Navarre.