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Form 100. Personal Income Tax Return Declaration 2017

8.1.3.1.4. Other issues

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

INTEGRATION INTO THE TAX BASE

The 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 shares in profits 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 case of distribution of reserves, the designation contained in the social agreement will be followed, with the latest amounts paid to said reserves being understood to be applied.

TRANSFER OF PARTICIPATION

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 positive imputed income.

FORMAL OBLIGATIONS

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

  • Name or company name and place 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 CONVENTIONS AND FORAL REGIMES

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