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Form 100. Personal Income Tax Return Declaration 2017

8.1.4.1.1. Imputation of income

This section must be completed by personal income tax payers who have transferred the right to exploit their image or have consented to or authorized its use by another person or entity (first transferee), resident or non-resident, provided that the following circumstances also apply:

  1. That the taxpayer provides services to a person or entity within the scope of an employment relationship (employer person or entity).

  2. That this person or employer entity, or any other entity linked to it in the terms of article 16 of the Corporate Income Tax Law, has obtained, through concerted acts with resident or non-resident persons or entities, the transfer of the right to exploitation or the consent or authorization for the use of the image of said natural person, all under the conditions established in article 92 of the Personal Income Tax Law.

For these purposes, it will be irrelevant whether the transfer, consent or authorization took place when the natural person was not a taxpayer under the Personal Income Tax.

When these circumstances occur, the taxpayer will impute to his tax base, in accordance with the terms established in article 92 of the Personal Income Tax Law, the value of the compensation paid by the employing person or entity for the transfer, consent or authorization for the use of image rights.

The imputation will not proceed when the work income obtained in the tax period by the natural person holding the image rights by virtue of the employment relationship is not less than 85% of the sum of the aforementioned income plus the total consideration paid by the employing person or entity for the right to exploit the image.