Other tax deductible items. Impairment losses on the value of the equity elements. Deductible amounts.

Tax deductible, with the limits and exclusions established in article 12 of the Corporation Tax Act, are losses due to impairment of the value of the following assets:

1. Impairment losses on loans derived from possible debtors'insolvencies will be deductible when at the time of accrual of the tax there are any of the following circumstances:

   1. That six months has passed since the obligation fell due.

   2. That the debtor is declared to be in bankruptcy proceedings.

   3. That the debtor is being tried for asset stripping.

   4. That the obligations have been claimed by the courts or are in litigation or arbitration proceedings, the solution of which depends on their collection.

   Losses with respect to the receivables listed below will not be deductible, unless they are the subject of an arbitration or judicial proceeding that appears on their existence or amount:

   1. Those due or guaranteed by public law bodies.

   2. Those guaranteed by credit institutions or reciprocal guarantee societies.

   3. Those guaranteed by in rem rights, agreement of reservation of ownership and right of retention, except in the cases of impairment or deterioration in the guarantee's value.

   4. Those guaranteed by a credit insurance contract or a performance bond.

   5. Those that have been expressly renewed or renewed.

   Losses for the coverage of risk arising from possible insolvency of persons or entities linked to the creditor, except in the event of legally declared insolvency, or losses based on global estimates of the risk of customers and debtors, will not be deductible.

2. The acquisition price originating from intangible fixed assets corresponding to goodwill will be deductible, with the maximum annual limit of the veintaeava part of its amount, provided that the following requirements are met:

   1. That it has been declared by virtue of a payment-based purchase.

   2. That the purchasing and transferring entities do not form part of a group of companies according to the criteria laid down in Article 42 of the Commercial Code, regardless of their residence and the obligation of formulating consolidated annual accounts. If both entities form part of a group, the deduction will be applied with regard to the purchase price of the goodwill paid by the transferring company when it acquired it from non-associated persons or entities.

   3. That a restricted reserve has been established for, at least, the tax deductible amount, in the terms set out in commercial legislation. If this reserve cannot be provided, the deduction is conditional on the fact that it is paid for the first profits of the following financial years.

   This deduction is not conditional on its annotation in the profit and loss account. The quantities deducted will reduce, for tax purposes, the value of the goodwill.

3. When the requirements set out in paragraphs (a) and (b) above are met, the maximum annual limit of one tenth of its amount shall be deductible for intangible fixed assets with an indefinite useful life.

   This deduction is not conditional on its annotation in the profit and loss account. The amounts deducted will reduce the value of the fixed assets for tax purposes.