JOHN CARLOS I

KING OF SPAIN

To all who present it and understand it.

Sabed: That the General Courts have approved and I come to sanction the following Law.

EXPLANATORY STATEMENT

I

The importance achieved in recent years by the so-called "third sector", as well as the accumulated experience since the approval of Law 30/1994, of November 24, of Foundations and of Tax Incentives to Participation Private in Activities of General Interest, it makes necessary a new regulation of the tax incentives that were contained in Title II of the aforementioned legal norm.

When Law 30/1994 was enacted in 1994, the legislator was already aware of the dimensions achieved by the phenomenon of private participation in activities of general interest, in its various legal forms, although not It could then predict that this phenomenon, far from attenuating its growth, would have a great development in Spain in less than a decade.

The logical consequence of this development has been that the tax regulatory framework laid down in Title II of Law 30/1994 has become outdated, with a new tax regime being necessary for non-profit-making entities which, adapted to this reality, flexibilice the requirements to benefit from the incentives provided by this Law and provide sufficient legal certainty to such entities in the development of the activities they perform in compliance with the general interest they pursue.

The purpose of the Law is more ambitious than the mere regulation of a tax regime of the non-profit entities, since, as its own title indicates, this rule also establishes the set of incentives that are applicable to the patronage activity carried out by private individuals. Indeed, although Law 30/1994 already contained a number of provisions designed to stimulate the participation of the private sector in activities of general interest, the reality is that its effectiveness has been limited.

There is therefore a need for a law such as this, which will help to channel private efforts into activities of general interest in a more effective way, while maintaining and expanding some of the incentives provided for in the legislation. and establishing new ones, more in line with the new forms of participation of society in the protection, development and encouragement of the general interest.

Consequently, this Law, dictated by Article 149.1.14. of the Constitution and without prejudice to the foral tax regimes, has an eminently incentive purpose of the particular collaboration in the achievement of general interest, in the attention and recognition of the increasing presence of the private sector in the task of protecting and promoting performances characterized by the absence of profit, whose only purpose is of nature general and public.

II

The Law is structured in three Titles, twenty-seven articles and the corresponding additional, transitional, repeal and final provisions.

Title I defines the object of the Law and its scope, introducing, as a novelty, an express mention of the foral regimes in force in the Autonomous Community of the Basque Country and in the Autonomous Community of Navarre, as well as international conventions and treaties that have become part of the Spanish internal order.

In Title II, the special tax regime applicable to non-profit-making entities is regulated, which is based on three basic pillars: the concept of non-profit-making entities for the purposes of the Law, the taxation of such entities for the corporate tax and taxation in respect of local taxes.

Thus, general rules are established under which the concept of a non-profit entity is established for the purposes of this Law.

The special tax regime is voluntary, in such a way that the entities that, in compliance with certain requirements, opt for it and communicate the option to the Ministry of Finance, will be able to apply it.

The justification for these requirements is due to the intention to ensure that the special tax regime established for non-profit entities translates into the destination of the income they obtain for purposes and activities. of general interest.

In relation to these requirements, you should highlight the following:

The requirement, provided for in the previous legislation, is maintained for the purposes of general interest to be used at least 70 per 100 of the result of the economic holdings to be carried out and of the income which obtain from any other concept the costs incurred for obtaining them. The requirement that the remaining amount, which has not been applied for the purposes of general interest, is required to increase the endowment or reserves of the non-profit entities.

It is clarified that the costs incurred in obtaining such income may be integrated, where appropriate, by the proportional share of the expenditure for external services, the expenditure of staff, other management costs, the financial and tax expenses, in so far as they contribute to obtaining the revenue and excluding from this calculation the costs incurred for the fulfilment of the statutory purposes or the object of the non-profit-making entity.

For the purposes of the requirement referred to in the first subparagraph, the amount of income earned in the disposal of immovable property shall be excluded from the calculation of the income, together with the amount of the assets in which the institution develops its own business, provided that the total amount of the transfer is reinvested in real estate where such a circumstance is also present.

The general time limit for allocating the income obtained by the non-profit-making institution for the purposes of general interest shall be that of the beginning of the year in which the respective income and income have been obtained and the four years following the closure of that financial year.

Non-profit entities may freely acquire shares in commercial companies.

It is established as a new requirement that the net amount of the business figure for the financial year corresponding to all the non-exempt economic activities of the Company Tax does not exceed 40 per 100 of the income the total of the entity, and the development of these activities does not infringe the regulatory standards for the defence of competition.

To benefit from the special tax regime, the governing bodies must be free of charge, even if they can be paid for the performance of services other than the office's own.

This gratuitousness also extends to the administrators of commercial entities representing non-profit-making entities participating in their capital, establishing that, in such cases, the remuneration received by the The administrator shall be exempt from the Income Tax of the Physical Persons, and there shall be no obligation to practise withholding tax.

This law regulates in a much more thorough way the requirement regarding the fate of the assets of these entities in the event of dissolution, which will be, in any case, another entity that would benefit from the patronage of those defined in the Law, or a public entity, of a non-foundational nature, that also pursues the general interest. This regulation is complemented by the express provision of the loss of the special tax regime for entities whose legal regime allows the reversion of the entity's assets, except that, as is logical, the reversal is expected in favor of the of any entity benefiting from patronage.

Accountability, in the absence of specific legislation, within six months of the closure of its financial year, to the public body responsible for registration in which they are to be registered.

The elaboration of an annual economic memory that you specify, by categories and by projects, the revenue and expenditure of the financial year and that includes the percentage of participation that they maintain in commercial entities.

As is logical, the application of the special tax regime is conditional on compliance with the requirements and assumptions in fact relating to it, so that the non-compliance of any of them entails the loss of the special tax arrangements and the obligation to enter the fees for taxes due during the tax year in which the non-compliance occurs, together with any interest on late payment.

With regard to the taxation of non-profit entities for corporation tax, the Act introduces significant new developments.

Thus, the exemption of the following income is declared: the income derived from the income obtained without consideration; the income from the entity's movable and real estate, such as dividends, interest, royalties, and (a) rentals; those arising from acquisitions or transfers, by any title, of goods or rights; those obtained in the exercise of exempt economic holdings; and, finally, those which are required to comply with the tax rules attributed or imputed to non-profit-making entities.

In relation to the income derived from the exercise of economic holdings, the Law replaces the former system of exemption rogated by a closed list of economic holdings, in such a way that the income derived from the Economic holdings included in the list shall be exempt 'ex lege'. The exemption extends to the income obtained from the complementary and ancillary holdings of those which are intended to fulfil the aims pursued by these entities, provided that they respect the limits laid down in the standard itself, as well as to the derived from economic holdings considered to be of little relevance.

As for the tax base of the Company Tax on these entities, it is established that in their determination only the revenue and the expenses corresponding to the non-exempt economic holdings will be computable. In addition, the effects of the transfer of the assets resulting from the dissolution of non-profit entities to other entities are regulated, with the preservation of the values and age that they had in the transmitting entity. the goods and rights transmitted.

The corporate tax base will be taxed at a single rate of 10 per 100. The determination of the exempt income that is subject to withholding and revenue is referred to further regulatory development.

With regard to the taxation of non-profit entities in the field of local taxes, the legislator has decided to maintain the exemptions provided for in Law 30/1994, extending its scope. In this way, all goods subject to this tax from which the non-profit-making entities are subject, with the exception of those affected to non-exempt economic holdings, will be exempt from the Real Estate Tax. Corporation Tax.

Also, the economic activities that these entities develop when they have been qualified as exempt by the Law will be exempt from the Economic Activities Tax.

As a novelty, and in line with the objective of favoring the activity that these entities develop in the interest of the general interest, the exemption is introduced in the Tax on the Increase of Value of the Land of Urban nature when the legal obligation to satisfy the tax is placed on a non-profit entity, as well as on the donations made to the beneficiaries of the patronage.

Regarding the application of the special tax regime, the substitution of the system of administrative discretion for the option of the system by the entity itself and communication to the tax administration should be highlighted. affecting this option also to the Tax on Proprietary Transmissions and Legal Acts.

III

Title III, dedicated to regulating tax incentives for patronage, begins by establishing, by means of a closed enumeration, the entities that may be beneficiaries of this collaboration.

The tax incentives applicable to donations, donations and contributions made in favour of the beneficiary entities are set out below. In this respect, it is important to highlight the novelty of the granting of tax incentives to the donation of rights and the constitution, without consideration, of real rights of usufruct on goods, rights and values. In any event, and as is logical taking into account the purpose of these incentives, the property gains and positive income that will be revealed on the occasion of these donations or contributions will be exempt in the personal tax of the donor.

In this way, donations, donations or contributions made in favor of the entities benefiting from the activity of patronage will give the right to practice a deduction in the share of the personal tax on the income of the donor or contributing. This deduction will be 25 per 100 of the amount of donations, donations and contributions made in the Income Tax of the Physical Persons and in the Income Tax of non-residents for the non-establishment taxpayers. in Spain, and 35 per 100 in the Corporate Tax and in the Income Tax of non-residents for the taxpayers with permanent establishment in Spain. In order to ensure the application of this tax incentive by legal persons and non-resident entities operating in Spain through permanent establishment, the non-performing deductions are allowed to be applied in the periods Taxes to be completed in the immediate and successive 10 years. The percentages of deduction and the limits can be increased by a maximum of five percentage points if the patronage activity developed by the beneficiary entities is included in the ratio of priority activities of patronage to establish the State General Budget Law.

Title III, finally, regulates the tax benefits applicable to other sponsorship actions other than making donations, donations and contributions. In this regard, it is important to highlight the following developments:

The expenses arising from business collaboration agreements in activities of general interest concluded with the entities qualified as beneficiaries of the patronage by this Law will have the consideration of expense deductible to effects of the determination of the tax base of the Taxes on Companies and on the Income of Non-Residents, and of the net performance of the economic activities under the direct estimation of the Income Tax of the Persons Physical, removing the limits of this subject from Law 30/1994.

The removal of the limits for the deductibility of expenses in activities of general interest incurred by the companies.

The creation of the legal framework to which the programmes of support for events of exceptional public interest that can be established by Law, setting their maximum content, duration and basic rules, should be adjusted.

IV

The additional provisions complement the Law by collecting various forecasts, including, first, a new special rule for the allocation of income in the Income Tax of the Physical Persons. applicable to public aid for the conservation and rehabilitation of goods of cultural interest; a novel regulation of deductions for expenditure and investments in Spanish Historical Heritage assets contained in the Tax Law on the Income of the Physical Persons and on the Law of the Tax on Societies, extending the the right to deduct the amounts invested in protected environments in Spanish cities or in sets declared World Heritage by Unesco, which are listed in an annex to the Act itself.

The changes that are introduced in the regime of the partially exempt entities of the Corporation Tax are collected, in order to establish the necessary coherence between the forecasts in the In addition to the provisions of this Law, and in the system of exemptions provided for in the recast of the Tax on Proprietary Transmissions and Documented Legal Acts, the purpose of this tax is to introduce automatism into this tax. the application of exemptions which may correspond to non-profit-making entities by the exercise of the option by the special tax regime and its communication to the tax administration. Likewise, the tax regime of the property belonging to the Historical Heritage of the Autonomous Communities, as well as the one applicable to the Spanish Red Cross, to the National Organization of the Spanish Blind, to the Work of the Saints, is regulated. Places, to the Consortium of the House of America, to the foundations of religious entities, to the Catholic Church and to other churches, confessions or religious communities that have signed agreements of cooperation with the Spanish State, and to the Institute of Spain and the Royal Academies integrated in it, as well as the institutions of the Communities Autonomous with official language of its own which are similar to those of the Royal Spanish Academy.

addition, the Law provides for the possibility that non-profit entities may allocate their assets in case of dissolution of the social work of savings banks, not being of application in this case the number 6. Article 3.

Similarly, the Law provides for an exception to the requirement laid down in Article 3 (3) in relation to the income earned in sports performances by the sports federations, the Spanish Olympic Committee and the Spanish Paralympic Committee.

On the other hand, the Law regulates the tax regime of construction charities formed under Article 5 of the Law of 15 July 1954, so that these entities may opt for the tax regime. special provisions laid down in this Law, provided that they comply with the requirements laid down in their own regulatory regulations, are duly registered in the relevant register of the Central or Autonomous Administration, and fulfil the requirement established in Article 3 (5) of this Law.

Finally, it is regulated, in the interests of satisfying the requirements arising from the principle of legal certainty, the right, within the first six months following its entry into force, to consult the administration tax on its application, the defence of which shall be binding.

In relation to the exemption of local taxes, and like Law 30/1994, the non-application of the provisions of Article 9 (2) of the Law on Local Government Law is available and clarifies that referrals Regulations that in any text be made to Title II of Law 30/1994, of November 24, of Foundations and of Tax Incentives to Private Participation in Activities of General Interest, shall be construed as references to this Law.

The transitional provisions of the Law establish the validity, during the two years following the entry into force of this Law, of the exemptions in the Company Tax granted under Law 30/1994, as well as the granting of a one-year period for existing entities to be able to meet the requirements in relation to the remuneration of managers in commercial entities that they have appointed, and two years to adapt their statutes to the requirement on dissolution.

The only repeal of the Law provides for the repeal, from its entry into force, of all provisions that are contrary to the provisions of the Law.

The final provisions provide for an enabling of the State General Budget Law to modify the tax rate and the deductions contained in this Law, while enabling the Government to dictate the right regulatory development and regulate its entry into force.

TITLE I

Object and Scope

Article 1. Object and scope of application.

1. The purpose of this Law is to regulate the tax regime of non-profit-making entities defined therein, in consideration of their social function, activities and characteristics.

Similarly, it is intended to regulate tax incentives for patronage. For the purposes of this Law, the private participation in the performance of activities of general interest is understood by patronage.

2. As not provided for in this Law, the general tax rules will apply.

3. The provisions of this Law shall be without prejudice to the foral tax regimes of the Convention and the Economic Convention in force, respectively, in the Historical Territories of the Basque Country and in the Autonomous Community of Navarre and without prejudice to the provisions of this Law. the international treaties and conventions that have become part of the internal order, in accordance with Article 96 of the Spanish Constitution.

TITLE II

Special tax regime for non-profit entities

CHAPTER I

General rules

Article 2. Non-profit entities.

They are considered to be non-profit entities for purposes of this Act, provided that they meet the requirements set out in the following article:

a) Foundations.

b) Public utility declared associations.

(c) Non-governmental development organizations referred to in Law 23/1998 of 7 July of International Cooperation for Development, provided that they have any of the legal forms referred to in the paragraphs above.

d) The delegations of foreign foundations registered in the Register of Foundations.

e) Spanish sports federations, territorial sports federations of regional autonomy integrated in those, the Spanish Olympic Committee and the Spanish Paralympic Committee.

(f) The federations and associations of the non-profit entities referred to in the preceding paragraphs.

Article 3. Requirements of non-profit-making entities.

The entities referred to in the previous article, which meet the following requirements, shall be considered, for the purposes of this Act, as non-profit entities:

1. To pursue purposes of general interest, such as those for the defence of human rights, victims of terrorism and violent acts, social welfare and social inclusion, civic education, education, cultural, scientific, sports, health, work, institutional strengthening, development cooperation, promotion of volunteering, promotion of social action, environmental protection, promotion and attention to the persons at risk of exclusion for physical, economic or cultural reasons, for the promotion of the constitutional values and the defence of democratic principles, the promotion of tolerance, the promotion of the social economy, the development of the information society, or scientific research and technological development.

2. º For these purposes to be carried out at least 70 per 100 of the following income and income:

(a) The income of the economic holdings that they develop.

(b) The income derived from the transfer of property or rights of ownership. The calculation of these income shall not include those obtained in the onerous transfer of immovable property in which the entity carries out the activity of its specific object or purpose, provided that the amount of such transfer is reinvest in goods and rights in which that circumstance is present.

(c) Revenue from any other concept, deducted from the costs incurred in obtaining such income. The expenditure incurred in obtaining such revenue may be integrated, where appropriate, by the proportion of expenditure for external services, expenditure on staff, other management expenditure, expenditure on financial expenditure and expenditure on expenditure incurred by the Member States. taxes, in so far as they contribute to obtaining the income, excluding from this calculation the expenses incurred for the fulfilment of the statutory purposes or the object of the non-profit-making entity. The calculation of revenue shall not include contributions or donations received in respect of assets at the time of their establishment or at a later date.

Non-profit entities should allocate the rest of the income and income to increase the endowment or reserves.

The deadline for compliance with this requirement shall be that of the beginning of the year in which the respective income and income have been obtained and the four years following the end of that financial year.

3. The activity carried out does not consist of the development of economic holdings outside its object or its statutory purpose. This shall be understood

requirement if the net amount of the business figure for the financial year corresponding to the set of economic holdings not exempt from their statutory purpose or purpose does not exceed 40 per 100 of the total income of the entity, provided that the development of these non-exempt economic holdings does not infringe the regulatory rules for the defence of competition in relation to undertakings performing the same business.

For the purposes of this Law, non-profit-making entities are deemed to develop an economic exploitation when they perform the own-account management of the means of production and human resources, or of one of the two, with the the purpose of intervening in the production or distribution of goods or services. The leasing of the entity's property is not, for this purpose, economic exploitation.

4. That the founders, associates, employers, statutory representatives, members of the governing bodies and the spouses or relatives up to and including the fourth grade are not the primary recipients of the activities carried out by the entities, or benefit from special conditions for the use of their services.

The provisions of the preceding paragraph shall not apply to scientific research and technological development activities or to the activities of social or sports assistance referred to in Article 20 (1) of the Treaty. 8. º and 13. º, respectively, of Law 37/1992, of December 28, of the Tax on Value Added, nor to the foundations whose purpose is the preservation and restoration of the goods of the Spanish Historical Heritage that meet the requirements of Law 16/1985, of 25 June, of the Spanish Historical Heritage, or of the Law of the respective Autonomous community that is applicable to it, in particular with regard to the duties of visiting and public exposure of such goods.

The first paragraph of this number shall not apply to the entities referred to in paragraph (e) of the preceding article.

5. º that the charges of employer, statutory representative and member of the governing body are free, without prejudice to the right to be reimbursed of the duly justified expenses that the performance of their function causes them, without the amounts received for this purpose exceeding the limits laid down in the rules of the Income Tax of the Physical Persons to be considered as allowances excepted from taxation.

The provisions of the preceding paragraph shall not apply to the entities referred to in paragraph (e) of the preceding article and shall respect the specific regime established for those associations which, in accordance with the Law Organic 1/2002, of 22 March, regulatory of the Law of Association, have been declared of public utility.

Employers, statutory representatives and members of the governing body may receive from the institution remuneration for the provision of services, including those provided in the framework of a working relationship, other than of which it implies the performance of the functions that correspond to them as members of the Board of Trustees, provided that the conditions laid down in the rules governing the entity are met. Such persons shall not be able to participate in the economic performance of the entity, either by itself or through a person or entity.

The provisions of this number shall also apply to administrators representing the entity in the commercial companies in which it participates, unless the remuneration received by the administrator is reintegrate the entity they represent.

In this case, the remuneration received by the administrator will be exempt from the Income Tax of the Physical Persons, and there will be no obligation to practice withholding tax.

6. º that, in the event of dissolution, its patrimony is fully uncovered to any of the entities considered as beneficiaries of the patronage for the purposes provided for in Articles 16 to 25, both inclusive, of this Law, or to public entities of a non-foundational nature that pursue purposes of general interest, and this circumstance is expressly contemplated in the founding business or in the statutes of the dissolved entity, being applicable to such entities without Article 97 (1) (c) of Law No 43/1995 of 27 March 1995, as provided for in Article 97 (1) (c) of the Treaty December, the Company Tax.

In no case shall they have the status of non-profit entities, for the purposes of this Law, those entities whose legal status permits, in the cases of extinction, the reversal of their assets to the person or their heirs or legal persons, unless the reversal is provided for in favour of any entity benefiting from the sponsorship for the purposes provided for in Articles 16 to 25, inclusive of this Law.

7. º That are enrolled in the corresponding record.

8. º that meet the accounting obligations laid down in the rules governing or, failing that, in the Code of Commerce and accompanying provisions.

9. º That meet the accountability obligations that you set your specific legislation. In the absence of specific legal provision, they shall be held to account within six months of the end of their financial year before the public body responsible for the relevant registration.

10. Each year to prepare an economic memory specifying the revenue and expenditure of the year, so that they can be identified by categories and by projects, as well as the percentage of participation that they maintain in commercial entities.

Entities that are required under the accounting rules that apply to the annual processing of a memory shall include in that memory the information referred to in this issue.

Reglamentarily, the contents of this economic memory will be established, its time of filing and the organ before which it must be presented.

Article 4. Tax domicile.

The tax domicile of the non-profit-making entities shall be that of the place of their statutory domicile, provided that the administrative and management management of the institution is effectively centralised in the latter. In another case, that address shall be the place where such management and management are carried out.

If the place of the tax domicile cannot be established in accordance with the above criteria, the place where the highest value of the fixed assets is to be regarded as such.

CHAPTER II

Corporate Tax

Article 5. Applicable rules.

As not provided for in this chapter, the Company Tax rules will apply to non-profit entities.

Article 6. Exempt income.

The following income obtained by non-profit entities are exempt from the Corporate Tax:

1. The derived from the following income:

(a) The donations and donations received to assist in the purposes of the institution, including contributions or donations in respect of the endowment, at the time of its constitution or at a later time, and the aid received under the business collaboration agreements covered by Article 25 of this Law and under the advertising sponsorship contracts referred to in Law 34/1998 of 11 November, General Advertising.

(b) The fees paid by associates, collaborators or benefactors, provided that they do not correspond to the right to receive a benefit derived from an economic exploitation that is not exempt.

(c) Grants, other than those intended to finance the implementation of non-exempt economic holdings.

2. The proceeds of the entity's movable and real estate, such as dividends and shares in corporate profits, interest, royalties and rentals.

3. The derivative of acquisitions or of transmissions, for any title, of goods or rights, including those obtained on the occasion of the dissolution and liquidation of the entity.

4. º Those obtained in the exercise of the exempt economic holdings referred to in the following Article.

5. The ones that, according to the tax rules, must be attributed or imputed to the non-profit entities and that they come from exempt income included in any of the previous paragraphs of this article.

Article 7. Exempt economic holdings.

Are exempt from the Corporate Tax the income obtained by non-profit entities that come from the following economic holdings, as long as they are developed in compliance with their object or purpose specifies:

1. The economic holdings of the provision of services for the promotion and management of social action, as well as the social welfare and social inclusion activities listed below, including ancillary activities or complementary to those, such as power, accommodation or transport accessories:

a) Protection of children and youth.

b) Third age assistance.

c) Assistance to persons at risk of exclusion or social hardship or victims of ill-treatment.

d) Assistance to persons with disabilities, including occupational training, job insertion and the exploitation of farms, workshops and special centres where they develop their work.

e) Assistance to ethnic minorities.

f) Assistance to refugees and asylum seekers.

g) Assistance to emigrants, immigrants and bystanders.

h) Assistance to people with unshared family loads.

i) Community and family social action.

j) Assistance to former inmates.

k) Social reintegration and crime prevention.

l) Assistance to alcoholics and drug addicts.

m) Development cooperation.

n) Social inclusion of the persons referred to in the preceding paragraphs.

2. The economic holdings of the provision of inpatient or healthcare services, including ancillary or ancillary activities, such as the delivery of medicines or services power, housing, and transport accessories.

3. The economics of scientific research and technological development.

4. The economic holdings of goods declared of cultural interest in accordance with the rules of the State and Autonomous Communities, as well as museums, libraries, archives and centres of documentation, provided that the requirements laid down in that legislation are met, in particular with regard to the duties of visiting and public exposure of such goods.

5. The economic holdings consisting of the organization of musical, choreographic, theatrical, cinematographic or circus performances.

6. The economic farms of parks and other protected natural spaces with similar characteristics.

7. Education and vocational training, at all levels and degrees of the education system, as well as those for child education up to the age of three, including the keeping and custody of children up to that age. age, special education, compensatory education and adult and continuing education, where they are exempt from the value added tax, as well as the economic holdings of food, accommodation or transport carried out by higher education institutions and colleges belonging to non-profit-making entities.

8. The economic holdings consisting of the organization of exhibitions, conferences, colloquia, courses or seminars.

9. The economic development, publishing, publishing and selling of books, magazines, brochures, audiovisual material and multimedia material.

10. The economic holdings of the provision of services of a sporting nature to natural persons engaged in sport or physical education, provided that such services are directly related to such practices and with the exception of services related to sporting events and those provided to professional sportspersons.

11. Economic holdings which have a purely auxiliary or complementary nature of the exempt economic holdings or of the activities intended to comply with the statutory purposes or the purpose of the non-profit lucrative.

Economic holdings shall not be deemed to be of a purely ancillary or supplementary nature where the net amount of the business figure for the financial year corresponding to the whole of the financial year exceeds 20% of the total revenue of the entity.

12. Low-relevance economic holdings. They are considered to be those whose net amount of the business figure for the financial year does not exceed 20. 000 EUR.

Article 8. Determination of the tax base.

1. The income derived from non-exempt economic holdings shall be included in the tax base of the corporate tax on non-profit-making entities.

2. They shall not have the consideration of deductible expenses, in addition to those laid down by the general rules of corporation tax, the following:

(a) Expenses attributable exclusively to exempt income.

Expenses partially attributable to non-exempt income shall be deductible in the percentage representing the income earned in the exercise of non-exempt economic holdings in respect of the total income of the entity.

(b) The amounts for the depreciation of assets not affected by the economic holdings subject to taxation.

In the case of property assets which are partially affected by the carrying out of exempt activities, the amounts intended for depreciation in the percentage in which the asset is located will not be deductible. affect the performance of such activity.

(c) The amounts which are the result of the application of the results, and in particular of the surplus of non-exempt economic holdings.

Article 9. Valuation rules.

The assets and rights belonging to the assets resulting from the dissolution of a non-profit-making entity which are transmitted to another non-profit-making entity, in accordance with the provisions of Article 3 (6) of the Treaty. this Act shall be valued at the acquirer for tax purposes by the same securities as they held in the dissolved entity prior to the transfer, and the date of acquisition by the dissolved entity shall also be maintained.

Article 10. Type of lien.

The positive tax base corresponding to income derived from non-exempt economic holdings will be taxed at the rate of 10 per 100.

Article 11. Accounting obligations.

Non-profit-making entities that derive income from non-corporate income tax holdings shall have the accounting obligations laid down in the regulatory rules of that tax. The accounting of these entities shall be carried out in such a way as to identify the revenue and expenditure for non-exempt economic holdings.

Article 12. Income not subject to retention.

Income exempt under this Act shall not be subject to withholding or income.

Reglamentarily, the procedure for the accreditation of non-profit entities shall be determined for the purposes of the exclusion of the obligation to retain.

Article 13. Obligation to declare.

Entities that opt for the tax regime established in this Title will be required to declare all their income, exempt and non-exempt, for the Company Tax.

Article 14. Application of the special tax regime.

1. Non-profit-making entities shall be eligible for the special tax regime set out in this Title within the time limit and in the form that they regulate.

Exercised the option, the entity will be bound to this regime indefinitely during the following tax periods, as long as the requirements of Article 3 of this Law are met and as long as its application is not waived in the form that you regulate.

2. The application of the special tax regime shall be conditional upon compliance with the requirements and assumptions in fact relating thereto, which shall be tested by the entity.

3. Failure to comply with the requirements laid down in Article 3 of this Law shall determine for the institution the obligation to enter all the shares corresponding to the financial year in which the non-compliance with the tax is due. Companies, local taxes and the Tax on Inheritance Transmissions and Legal Acts Documented, in accordance with the regulatory regulations of these taxes, together with the interest of late payment.

The obligation laid down in this paragraph shall relate to the fees for the year in which the results and revenue not applied correctly were obtained, in the case of the requirement laid down in the number 2. Article 3 of this Law, and the quotas for the year in which the non-compliance occurs and the previous four, in the case of the one set out in the number 6. of the same Article, without prejudice to the penalties which, where appropriate, proceed.

CHAPTER III

Local tributes

Article 15. Local tributes.

1. The goods of which the holders are entitled, in accordance with the rules laid down in the rules governing the Local Government, shall be exempt from the tax on immovable property, except for the purposes of non-economic holdings. exempt from Corporate Tax.

2. Non-profit-making entities shall be exempt from the Economic Activities Tax on the economic holdings referred to in Article 7 of this Law. However, such entities shall be required to make a high declaration of registration of this tax and a declaration of absence in the event of termination of the activity.

3. The corresponding increases shall be exempt from the Tax on the Value of the Land of Urban Nature, when the legal obligation to satisfy the tax is imposed on a non-profit entity.

In the event of transfers of land or of incorporation or transfer of real rights of the domain over the same, carried out for consideration by a non-profit-making entity, the exemption in the Tax shall be conditional on such land meeting the requirements laid down for the application of the exemption in the Property Tax.

4. The application of the exemptions provided for in this Article shall be conditional on non-profit-making entities communicating to the municipality concerned the exercise of the option referred to in paragraph 1 of the preceding Article and to compliance with the provisions of this Article. of the requirements and assumptions relating to the special tax regime governed by this Title.

5. The provisions of this Article shall be without prejudice to the exemptions provided for in Law 39/1988 of 28 December 1988 on Local Government Regulations.

TITLE III

Patronage tax incentives

CHAPTER I

Qualifying Entities

Article 16. Entities benefiting from patronage.

The tax incentives provided for in this Title shall be applicable to donations, donations and contributions that, in compliance with the requirements set out in this Title, are in favor of the following entities:

(a) Non-profit entities to which the tax regime established in Title II of this Law applies.

(b) The State, the Autonomous Communities and the Local Entities, as well as the autonomous agencies of the State and the autonomous entities of an analogous nature of the Autonomous Communities and of the Local Entities.

c) The public universities and the major colleges attached to them.

(d) The Instituto Cervantes, the Institut Ramón Llull and the other institutions for similar purposes of the Autonomous Communities with their own official language.

CHAPTER II

Tax regime for donations and contributions

Article 17. Donations, donations and deductible contributions.

1. The following donations, donations and irrevocable contributions, pure and simple, made in favour of the entities referred to in the previous article shall be entitled to practice the deductions provided for in this Title:

a) Donatives and donations of money, goods or rights.

b) Membership fees for associations that do not correspond to the right to receive a present or future benefit.

c) The constitution of a real usufruct right on goods, rights or values, carried out without consideration.

(d) Donations or donations of goods forming part of the Spanish Historical Heritage, which are registered in the General Register of goods of cultural interest or included in the General Inventory referred to in Law 16/1985, of 25 June, of the Spanish Historical Heritage.

e) Donatives or donations of cultural goods of guaranteed quality in favor of entities that pursue between their ends the realization of museum activities and the promotion and diffusion of the artistic historical patrimony.

2. In the event of revocation of the donation by any of the cases referred to in the Civil Code, the donor shall, in the tax period in which the revocation occurs, the quotas corresponding to the deductions applied, without prejudice to any interest on late payment.

The provisions set out in the preceding paragraph shall apply in the cases referred to in Article 23 (2) of Organic Law 1/2002 of 22 March 2002, which is the rule of law of association.

Article 18. Basis of deductions for donations, donations and contributions.

1. The basis of the deductions for donations, donations and contributions made in favour of the entities referred to in Article 16 shall be:

a) In cash donations, their amount.

(b) In donations or donations of goods or rights, the book value they have at the time of the transfer and, failing that, the value determined in accordance with the rules of the Heritage Tax.

(c) In the constitution of a real right of usufruct on real estate, the annual amount that is to be applied, in each of the periods of duration of the usufruct, the 2 per 100 to the cadastral value, determined proportionally to the number of days corresponding to each tax period.

(d) In the constitution of a real right of usufruct on securities, the annual amount of dividends or interest received by the usufruct in each of the periods of time of the usufruct.

e) In the constitution of a real right of usufruct on other goods and rights, the annual amount resulting from applying the legal interest of the money from each financial year to the value of the usufruct determined at the time of its constitution in accordance with the rules of the Tax on Proprietary Transmissions and Documented Legal Acts.

(f) In the donations or donations of works of art of guaranteed quality and of the goods forming part of the Spanish Historical Heritage referred to in paragraphs (d) and (e) of Article 17 (1) of this Law, the valuation made by the Board of Qualification, Valuation and Export. In the case of cultural objects that are not part of the Spanish Historical Heritage, the Board will also assess the adequacy of the quality of the work.

2. The value determined in accordance with the provisions of the preceding paragraph shall have as the maximum limit the normal value in the market of the good or right transmitted at the time of its transmission.

Article 19. Deduction of the Income Tax quota of the Physical Persons.

1. The taxpayers of the Income Tax of the Physical Persons shall be entitled to deduct from the full quota 25 per 100 of the basis of the deduction determined as provided for in Article 18.

2. The basis of this deduction shall be calculated for the purposes of the limit laid down in Article 56 (1) of Law 40/1998 of 9 December 1998 on the Income Tax on Physical Persons and other Tax Rules.

Article 20. Deduction of the Company Tax quota.

1. The taxable persons of the corporation tax shall be entitled to deduct from the full quota, which is reduced by the deductions and allowances provided for in Chapters II, III and IV of Title VI of Law 43/1995 of 27 December 1995 on the tax on Companies, 35 per 100 of the basis of the deduction determined in accordance with Article 18. The amounts corresponding to the non-deductible tax period may be applied in the settlement of the tax periods ending in the immediate and successive 10 years.

2. The basis of this deduction may not exceed 10 per 100 of the taxable amount of the tax period. The amounts exceeding this limit may be applied in the tax periods concluded in the immediate and successive ten years.

Article 21. Deduction of Non-Resident Income Tax quota.

1. Taxpayers of the Income Tax of non-residents who operate in Spanish territory without permanent establishment may apply the deduction provided for in Article 19 (1) of this Law in the declarations made by the Tax for taxable events occurring within one year from the date of the donation, donation or contribution.

The basis of this deduction may not exceed 10 per 100 of the tax base of the set of declarations submitted within that period.

2. Non-Resident Income Tax taxpayers who operate in Spanish territory through permanent establishment may apply the deduction set out in the previous article.

Article 22. Priority activities of patronage.

The General Budget Law of the State may establish a list of priority activities of patronage in the field of the general interest mentioned in Article 3 (1) of this Law, as well as the entities beneficiaries, in accordance with Article 16 thereof.

In relation to these activities and entities, the General Budget Law of the State may raise by five percentage points the percentages and limits of the deductions provided for in Articles 19, 20 and 21. of this Law.

Article 23. Exemption from income derived from donations, donations and contributions.

1. They shall be exempt from the Income Tax of the Physical Persons, the Corporate Tax or the Income Tax of non-residents that will cause the donor's income or the income of the income and the positive income to be paid. in the event of donations, donations and contributions referred to in Article 17 of this Law.

2. Increases which are evident in the transmission of land, or in the establishment or transmission of real rights of the limited nature of the Community, shall be exempt from the tax on the value of the value of the Land of Urban Nature. domain, made on the occasion of donations, donations and contributions referred to in Article 17 of this Law.

Article 24. Justification for donations, donations, and deductible contributions.

1. The effectiveness of the donations, donations and deductible contributions shall be justified by certification issued by the beneficiary entity, with the requirements to be established.

2. The beneficiary entity shall forward the information on the certificates issued

the tax administration, in the form and within the time limits laid down in regulation.

3. The certification referred to in the preceding paragraphs shall contain at least the following points:

a) The tax identification number and personal identification data of the donor and the donor entity.

(b) Express Mention that the donor entity is included in the regulated entities in Article 16 of this Law.

c) The date and amount of the donation when this is a cash.

d) A public document or other authentic document that accredits the delivery of the donated goods when it is not a donation of money.

e) Destination that the donor entity will give to the object donated in the fulfillment of its specific purpose.

f) Mention expresses the irrevocable nature of the donation, without prejudice to the provisions of the mandatory civil rules governing the revocation of donations.

CHAPTER III

Tax regime for other forms of patronage

Article 25. Business collaboration agreements in activities of general interest.

1. A business collaboration agreement shall be understood as activities of general interest, for the purposes provided for in this Law, the one for which the entities referred to in Article 16, in exchange for economic aid for the implementation of the activities carried out in compliance with the specific object or purpose of the entity, undertake in writing to disseminate, by any means, the participation of the collaborator in those activities.

The dissemination of the participation of the partner in the framework of the collaboration agreements defined in this article does not constitute a provision of services.

2. The amounts paid or the expenses incurred shall be considered as deductible expenses to determine the tax base of the Company Tax of the contributing entity or the Non-Resident Income Tax. taxpayers who operate in Spanish territory by permanent establishment or net income from the economic activity of the taxpayers under the direct estimate of the Income Tax on the Income of the Physical Persons.

3. The tax regime applicable to the amounts paid in compliance with these collaboration agreements will be incompatible with the other tax incentives provided for in this Law.

Article 26. Expenditure on activities of general interest.

1. For the determination of the tax base of the Company Tax, the Income Tax of non-residents of the taxpayers operating in Spanish territory by permanent establishment or the net performance of the activity The costs incurred for the purposes of general interest referred to in the number 1 shall be considered to be deductible from the taxpayers who have received the direct estimate of the income tax on the income of the physical persons. Article 3 of this Law.

2. The deduction of expenditure on activities of general interest referred to in the preceding paragraph shall be incompatible with the other tax incentives provided for in this Act.

Article 27. Programmes to support events of exceptional public interest.

1. These are programmes of support for events of exceptional public interest, the set of specific tax incentives applicable to actions to be taken to ensure the proper development of events which, if necessary, are determined by Law.

2. The Law approving each of these programmes shall, at least, regulate the following:

a) The duration of the program, which may be up to three years.

(b) The creation of a consortium or the appointment of an administrative body responsible for the implementation of the programme and certifying the adequacy of the expenditure and investments made to the objectives and plans of the programme.

In such a consortium or body, the public administrations interested in the event will necessarily be represented and, in any case, the Ministry of Finance.

For the issuance of the certification it will be necessary to vote in favor of the representation of the Ministry of Finance.

(c) The basic lines of the actions to be organised in support of the event, without prejudice to its subsequent development by the consortium or by the relevant administrative body in plans and programmes of specific activities.

(d) The tax benefits applicable to the actions referred to in the preceding paragraph, within the limits of the following paragraph.

3. The tax benefits set out in each programme shall be as follows:

First. The taxable persons of the Company Tax, the taxpayers of the Income Tax of the Physical Persons who carry out economic activities under direct estimation and the taxpayers of the Income Tax of no Residents operating in Spanish territory through permanent establishment may deduct from the full quota of the tax the 15 per 100 of the expenses and investments that, in compliance with the plans and programs of activities established by the consortium or by the relevant administrative body, perform in the following concepts:

(a) Acquisition of elements of the fixed new material, without, in any event, being considered as such land.

It shall be understood that they are not carried out in compliance with the plans and programmes of activities established by the consortium or by the administrative body corresponding to the investments made for the installation or extension of the Telecommunications or electricity services networks, as well as for the supply of water, gas or other supplies.

b) Rehabilitation of buildings and other constructions that contribute to the enhancement of the physical space affected, if any, by the respective program.

The aforementioned works must meet the requirements laid down in the regulations on the financing of protected actions in the field of housing and, in addition, the architectural and urban norms that can be established in this respect the municipalities concerned by the respective programme and the consortium or administrative body responsible for its organisation and implementation.

c) Realization of propaganda and advertising expenses of multi-annual projection that directly serve to promote the respective event.

When the content of the advertising support is essential to the disclosure of the event, the basis of the deduction shall be the total amount of the investment made. Otherwise, the basis of the deduction shall be 25 per 100 of that investment.

This deduction, in conjunction with those governed by Chapter IV of Title VI of Law 43/1995 of 27 December 1995, of the Company Tax, may not exceed 35 per 100 of the full quota, which is reduced by to avoid double taxation both internally and internationally and in bonuses, and will be incompatible for the same goods or expenses with those provided for in Law 43/1995 of 27 December 1995. The amounts not deducted may be applied, subject to the same limit, in the settlements of the tax periods concluded in the immediate and successive 10 years.

The calculation of the time limits for the application of the deductions provided for in this number may be deferred until the first exercise in which, within the period of limitation, positive results occur, in the following cases:

a) In the newly created entities.

(b) In institutions that heal losses from previous years by the effective contribution of new resources, without the application or capitalization of reserves being considered as such.

Second. Taxpayers of the Income Tax of the Physical Persons, the taxable persons of the Tax on Societies and the taxpayers of the Income Tax of non-residents who operate in Spanish territory by means of establishment (a) permanent entitlement to the deductions provided for, respectively, in Articles 19, 20 and 21 of this Law, for donations and contributions made in favour of the consortium which, where appropriate, is established in accordance with the provisions of the previous.

The priority patronage scheme provided for in Article 22 of this Law shall apply to programmes and activities related to the event, provided that they are approved by the consortium or administrative body. in charge of its implementation and carried out by the entities referred to in Article 2 of this Law or by the consortium, by raising the percentages and limits of the deductions laid down in Articles 19, 20 and 21 by five percentage points. of this Law.

Third. Transmissions subject to the Tax on Proprietary Transmissions and Documented Legal Acts shall have a bonus of 95 per 100 of the fee when the goods and rights acquired are intended, directly and exclusively, by the taxable person. to the making of investments with the right of deduction referred to in the first subparagraph of this paragraph.

Fourth. The taxable persons of the Economic Activities Tax shall have a bonus of 95 per 100 in the quotas and surcharges corresponding to the activities of artistic, cultural, scientific or sporting character to be carried out during the conclusion of the respective event and which are set out in the plans and programmes of activities drawn up by the consortium or by the relevant administrative body.

Fifth. Companies or entities that develop the objectives of the respective programme will have a bonus of 95 per 100 in all taxes and local fees that may be placed on the operations related exclusively to the development of the programme. program.

Sixth. For the purposes referred to in the preceding numbers, the provisions of the first subparagraph of Article 9 (2) of Law No 39/1988 of 28 December 1988 on Local Government Hacienda shall not apply.

4. The tax administration shall verify the concurrency of the circumstances or requirements necessary for the application of the tax benefits, by practicing, where appropriate, the regularisation resulting from it.

5. The procedure for implementing the tax benefits provided for in the event support programmes of exceptional public interest shall be established.

Additional disposition first. Amendment of Law 40/1998 of 9 December of the Tax on the Income of Physical Persons and other Tax Rules.

1. A new paragraph (j) is added to Article 14 (2) of Law 40/1998 of 9 December of the Income Tax of the Physical Persons and other Tax Rules, which is worded as follows:

" (j) Public aid granted by the competent authorities to the holders of the Spanish Historical Heritage members entered in the General Register of goods of cultural interest referred to in the Law 16/1985, of 25 June, of the Spanish Historical Heritage, and intended exclusively for their conservation or rehabilitation, may be imputed by fourths in the tax period in which they are obtained and in the following three, provided that the requirements laid down in that Law, in particular with regard to the duties of visit and public exposure of such goods. '

2. Article 55 (3) of Law 40/1998 of 9 December 1998 on the Income Tax of Physical Persons and other Tax Rules is amended, which is worded as follows:

" 3. Deductions for donations.

Contributors will be able to apply, in this concept:

(a) The deductions provided for in Law 49/2002, of 23 December, of the tax regime of non-profit entities and of tax incentives for patronage.

(b) 10 per 100 of the amounts donated to the legally recognised foundations which are held accountable to the body of the corresponding protectorate, and to the associations declared for public utility, not included in the previous paragraph. "

3. Article 55 (5) of Law 40/1998 of 9 December 1998 on the Income Tax of Physical Persons and other Tax Rules is amended, which is worded as follows:

" 5. Deduction for actions for the protection and dissemination of the Spanish Historical Heritage and of the cities, assemblies and assets declared World Heritage.

Taxpayers will be entitled to a deduction in the 15 per 100 share of the amount of investments or expenses they make for:

(a) The acquisition of property of the Spanish Historical Heritage, carried out outside the Spanish territory for introduction into that territory, provided that the goods remain in the territory and within the patrimony of the holder during at least three years.

The basis for this deduction will be the valuation by the Rating, Valuation and Export Board.

(b) the preservation, repair, restoration, dissemination and exhibition of the property of his property which are declared of cultural interest in accordance with the rules of the Historical Heritage of the State and the Autonomous Communities, provided that the requirements laid down in that legislation are met, in particular with regard to the duties of visiting and public exposure of such goods.

c) The rehabilitation of buildings, the maintenance and repair of their roofs and facades, as well as the improvement of their property located in the environment that is the object of protection of the Spanish cities or of the architectural, archaeological, natural or scenic sets and of the goods declared World Heritage by Unesco located in Spain. "

Additional provision second. Amendment of Law 43/1995 of 27 December of the Company Tax.

1. Article 9 (2) of Law 43/1995 of 27 December 1995 on Corporate Tax is amended to read as follows:

" 2. They shall be partially exempt from the tax, in accordance with the terms of Title II of Law 49/2002 of 23 December of the tax regime of non-profit-making entities and of tax incentives for patronage, institutions and institutions not for profit to which this Title applies. "

2. Article 26 (2) of Law 43/1995 of 27 December 1995 on Corporate Tax is amended to read as follows:

" 2. They will be taxed at the rate of 25 per 100:

(a) General insurance mutuals, social security mutual societies and mutual occupational accidents and occupational diseases which meet the requirements laid down by their regulatory regulations.

(b) Mutual guarantee companies and reincorporation companies governed by Law 1/1994 of 11 March on the Legal Regime of Reciprocal Guarantee Societies, registered in the special register of the Bank of Spain.

(c) Credit cooperative societies and rural boxes, except as regards extracooperative results, which will be taxed at the general rate.

d) Professional colleges, business associations, official chambers, workers ' unions and political parties.

e) Non-profit entities to which the tax regime laid down in Law 49/2002 of 23 December of the tax regime of non-profit-making entities and tax incentives does not apply patronage.

f) The employment promotion funds constituted under Article 22 of Law 27/1984 of 26 July on Reconversion and Reindustrialisation.

g) Unions, federations and associations of cooperatives. "

3. Article 26 (4) of Law 43/1995 of 27 December 1995 on Corporate Tax is amended to read as follows:

" 4. The entities to which the tax regime laid down in Law 49/2002 of 23 December, the tax regime of non-profit entities and the tax incentives for patronage shall be taxed at the rate of 10 per 100. "

4. The heading of Article 35 of Law 43/1995 of 27 December of the Corporate Tax and paragraph 1 of that Article, which are drawn up in the following terms, is amended:

" Article 35. Deduction for actions for the protection and dissemination of the Spanish Historical Heritage and of the cities, sets and assets declared World Heritage, as well as for investments in film productions and in book editing.

1. The taxable persons of the Company Tax shall be entitled to a deduction in the full quota of 15 per 100 of the amount of investments or expenses they make for:

(a) The acquisition of property of the Spanish Historical Heritage, carried out outside the Spanish territory for introduction into that territory, provided that the goods remain in the territory and within the patrimony of the holder during at least three years.

The basis for this deduction will be the valuation by the Rating, Valuation and Export Board.

(b) the preservation, repair, restoration, dissemination and exhibition of the property of his property which are declared of cultural interest in accordance with the rules of the Historical Heritage of the State and the Autonomous Communities, provided that the requirements laid down in that legislation are met, in particular with regard to the duties of visiting and public exposure of such goods.

c) The rehabilitation of buildings, the maintenance and repair of their roofs and facades, as well as the improvement of their property located in the environment that is the object of protection of the Spanish cities or of the architectural, archaeological, natural or scenic sets and of the goods declared World Heritage by Unesco located in Spain. "

5. Article 134 of Law 43/1995 of 27 December of the Company Tax is amended, which is worded as follows:

" Article 134. Exempt income.

1. The following income obtained by the entities referred to in the previous Article shall be exempt:

(a) Those that come from the performance of activities that constitute their social object or specific purpose.

For the purposes of the application of this regime to the Entity of Public Law Ports of the State and to the Harbour Authorities will be considered not to come from the realization of economic exploitations the tax and those from the exercise of the sanctioning power and the administrative activity carried out by the Harbour Authorities, as well as those from the activity of coordination and efficiency control of the harbour system conducted by the Ente Público Ports of the State.

(b) Derivatives of acquisitions and transfers for a profit, provided that some and other are obtained or performed in compliance with their specific object or purpose.

(c) Those which are shown in the onerous transmission of goods affected by the specific purpose or purpose when the total product obtained is intended for new investments related to that object or specific purpose.

The new investments must be made within the period from the year before the date of the delivery or making available to the assets element and the three years after and to remain in the assets of the for seven years, except that its useful life according to the method of depreciation, of those admitted to Article 11.1 of this Law, which is applied is lower.

If the investment is not made within the time limit, the part of the full share corresponding to the income obtained will be entered, in addition to the interest on the delay, together with the quota corresponding to the period the tax on which he won.

The transmission of such items before the end of the term of office shall determine the integration into the taxable amount of the non-taxed part of the income, unless the amount obtained is the subject of a new reinvestment.

2. The exemption referred to in the preceding paragraph shall not cover income from economic holdings, income derived from the assets, or income obtained from transmissions other than those mentioned in it.

3. The income of an economic holding shall be regarded as income of all those who, in the case of personal and capital work together, or of only one of these factors, assume that the taxable person is to be employed by the means of production and human resources or of one of them for the purpose of intervening in the production or distribution of goods or services. "

6. Article 135 of Law 43/1995 of 27 December of the Company Tax is amended, which is worded as follows:

" Article 135. Determination of the tax base.

1. The tax base will be determined by applying the rules provided for in Title IV of this Law.

2. They shall not have the consideration of fiscally deductible expenses, in addition to those laid down in Article 14 of this Act, the following:

(a) Expenses attributable exclusively to exempt income. Expenditure in part attributable to non-exempt income shall be deductible in the percentage representing the income earned in the exercise of non-exempt economic holdings in respect of the total income of the institution.

(b) the amounts which are the result of the application of the results and, in particular, those which are intended to support the exempt activities referred to in paragraph 1 (a) of the previous Article. "

7. A new paragraph is added to Article 139 (1) of Law 43/1995 of 27 December of the Company Tax, which is worded as follows:

" 1. The taxable persons of this tax shall keep their accounts in accordance with the provisions of the Trade Code or with the provisions of the rules for which they are governed.

In any event, the taxable persons referred to in Chapter XV of Title VIII of this Law shall keep their accounts in such a way as to permit the identification of income and expenditure corresponding to income and economic holdings. not exempt. "

Additional provision third. Amendment of the Royal Legislative Decree 1/1993, of 24 September, approving the recast of the Law on the Tax on Proprietary Transmissions and Documented Legal Acts.

Article 45.4 (A) of the recast text of the Tax on Heritage Transmissions and Documented Legal Acts, approved by the Royal Legislative Decree 1/1993 of 24 September, is amended to read in the following terms:

" I. (a) They shall be exempt from the tax:

(a) The State and the territorial and institutional public administrations and their establishments of beneficence, culture, social security, teachers or scientific purposes.

This exemption will also apply to entities whose tax regime has been equated by a law to that of the State or to the public administrations cited.

(b) Non-profit entities referred to in Article 2 of Law 49/2002, of ..., of a tax regime of non-profit entities and of tax incentives for patronage, which are engaged in the special tax regime in the form provided for in Article 14 of that Act.

The self-validation of the exemption shall be accompanied by the documentation certifying the right to the exemption.

c) Savings boxes, for acquisitions directly intended for their social work.

d) The Catholic Church and churches, confessions and religious communities that have signed cooperation agreements with the Spanish State.

e) The Institute of Spain and the Royal Academies integrated in it, as well as the institutions of the Autonomous Communities that have similar purposes to those of the Royal Spanish Academy.

f) The Spanish Red Cross and the Spanish National Blind Organization.

g) The Work of the Holy Places. "

Additional provision fourth. Tax regime for the property belonging to the Historical Heritage of the Autonomous Communities.

The regime established in this Law concerning the assets belonging to the Spanish Historical Heritage, entered in the General Register of goods of cultural interest or included in the General Inventory referred to in the Law 16/1985, of 25 June, of the Spanish Historical Heritage, will apply to the cultural goods declared or registered by the Autonomous Communities, in accordance with the provisions of its regulatory norms.

For the purposes of Article 18 of this Law and in Article 73 of Law 16/1985 of 25 June of the Spanish Historical Heritage, the valuation of such goods by the Autonomous Communities shall be carried out by their competent bodies in accordance with the respective regulatory rules. Likewise, the valuation shall be carried out by the same bodies when the donor is an Autonomous Community.

Additional provision fifth. Tax regime of the Spanish Red Cross and the National Organization of the Blind Spaniards.

The regime provided for in Articles 5 to 15, inclusive, of this Law will apply to the Spanish Red Cross and the National Organization of the Blind Spanish, provided that they meet the requirement set out in the last paragraph Article 3 (5) of this Law, while retaining the validity of the exemptions granted prior to its entry into force.

These entities will be considered as beneficiaries of sponsorship for the purposes provided for in Articles 16 to 25, both inclusive, of this Law.

Additional provision sixth. Tax regime of the Work Pia of the Holy Places.

The scheme provided for in Articles 5 to 15, inclusive, of this Law shall apply to the Work of the Holy Places, provided that it complies with the requirement laid down in Article 3 (5) of this Law.

The Work Pia will be considered as a beneficiary of the patronage for the effects foreseen in Articles 16 to 25, both inclusive, of this Law.

Additional provision seventh. Tax regime of the consortia Casa de América, Casa Asia e "Institut Europeu de la Mediterranía".

The consortia Casa de América, Casa Asia e "Institut Europeu de la Mediterranía" will be considered to be beneficiaries of the patronage for the purposes provided for in Articles 16 to 25, both inclusive, of this Law.

Additional disposition octave. Foundations of religious entities.

The provisions of this Law are without prejudice to the provisions of the agreements with the Catholic Church and the agreements and agreements of cooperation signed by the State with the churches, confessions and religious communities, as well as in the rules laid down for their application, for the foundations themselves of these entities, which may be eligible under the tax arrangements provided for in Articles 5 to 25 of this Law, provided that in the latter case they are certified by their registration in the Register of Religious Entities, and satisfy the requirement set forth in the number 5. Article 3 of this Law.

Additional provision ninth. Tax regime of the Catholic Church and other churches, confessions and religious communities.

1. The arrangements provided for in Articles 5 to 15, inclusive of this Law, shall apply to the Catholic Church and to the churches, confessions and religious communities which have signed cooperation agreements with the Spanish State, without prejudice to the arrangements referred to in the agreements referred to in the previous provision.

2. The scheme provided for in this Law shall also apply to associations and religious entities covered by Article V of the Agreement on Economic Affairs between the Spanish State and the Holy See, as well as to the entities referred to in Article 11 (5) of Law 24/1992, of 10 November, approving the Cooperation Agreement of the State with the Federation of Evangelical Religious Entities of Spain; in Article 11 (5) of the Law 25/1992 of 10 November 1992 establishing the Agreement on the Cooperation of the State with the Federation of European Communities Israel and Spain, and Article 11 (4) of Law 26/1992 of 10 November, approving the State Cooperation Agreement with the Islamic Commission of Spain, provided that these entities comply with the requirements of the This Law shall apply to non-profit-making entities for the purposes of applying that scheme.

3. Entities of the Catholic Church referred to in Articles IV and V of the Agreement on Economic Affairs between the Spanish State and the Holy See, and those also existing in the cooperation agreements of the Spanish State with other churches, Confessions and religious communities shall be considered to be beneficiaries of the patronage for the purposes provided for in Articles 16 to 25, inclusive of this Law.

Additional provision 10th. Tax regime of the Institute of Spain and the Royal Academies integrated in it, as well as of the institutions of the Autonomous Communities that have similar purposes to those of the Royal Spanish Academy.

The exemptions provided for in Article 15 of this Law will apply to the Institute of Spain and to the Royal Academies integrated in it, as well as to the institutions of the Autonomous Communities with their own official language. which are similar to those of the Royal Spanish Academy. These entities shall be considered to be beneficiaries of sponsorship for the purposes provided for in Articles 16 to 25, inclusive of this Law.

Additional provision 13th. Social work of savings banks.

Non-profit entities may allocate the assets resulting from their dissolution to the social work of the savings banks, provided that this is expressly contemplated in the founding business or in the statutes of the "dissolved entity", not being applicable in this case the

6.

Additional provision twelfth. Sports federations, Spanish Olympic Committee and Spanish Paralympic Committee.

1. The revenue from sports performances obtained by the entities referred to in Article 2 (e) of this Law shall not be included in the calculation of 40 per 100 of the income of non-exempt economic holdings to which the Article 3 (3) requirement of Article 3.

2. The income obtained by the entities related in paragraph (e) of Article 2 of this Law that come from the celebration, retransmission or dissemination by any means of the friendly competitions are exempt from the Tax on Societies officers in which the national or regional national teams are involved, provided that the organisation of such competitions is their exclusive competence.

Additional disposition thirteenth. Tax regime of the construction charities.

Construction charities incorporated under Article 5 of the Law of 15 July 1954 may opt for the scheme provided for in Articles 5 to 15, inclusive of this Law, provided that they comply with the provisions of Article 5 of the Law of 15 July 1954. requirements laid down in the regulatory own rules of these entities, are duly registered in the relevant register of the Central or Autonomous Administration, and satisfy the requirement laid down in Article 3 (5). of this Law. The provisions of Articles 16 to 25, inclusive of this Law, shall not apply to these entities.

Additional disposition fourteenth. Binding queries.

During the first six months following the entry into force of this Law, the tax administration may be asked to consult on the application of the Law, whose response will be binding in its terms. following:

First. The consultations may be considered exclusively by the federations and associations of the entities referred to in paragraph (f) of Article 2 of this Law, by the Spanish Sports Federations and by the Conferences, Commissions and Secretariats which represent, respectively, the entities referred to in the ninth provision of this Law, referring to matters affecting their members or associates.

Second. The replies of the tax authorities to the consultations which are formulated in the above terms shall be communicated to the consulting entity and shall be published in the "Official Gazette of the Ministry of Finance".

Third. The presentation, processing and defence of these consultations, as well as the effects of their reply, shall be governed by the provisions of Royal Decree 404/1997 of 21 March 1997 laying down the arrangements applicable to consultations whose response must be binding on the tax administration.

Additional provision 15th. Cities, sets and goods declared World Heritage by Unesco located in Spain.

For the purposes of the deductions provided for in the additional first and second provisions of this Law, the Spanish cities and the architectural, archaeological, natural or other Spanish cities are listed in the Annex to this Law. landscape and the goods declared World Heritage by Unesco located in Spain.

Additional provision sixteenth. Local farms.

For the purposes of this Law, the provisions of the first paragraph of Article 9 (2) of Law 39/1988, of December 28, regulating local farms, shall not apply.

Additional 17th disposition. Regulatory referrals.

The regulatory referrals made to Title II of Law 30/1994, of 24 November, of Foundations and of Tax Incentives to Private Participation in Activities of General Interest, shall be construed as references to the provisions of this Law. Law.

First transient disposition. Transitional arrangements for exemptions granted under Law 30/1994, of 24 November, of Foundations and of Tax Incentives for Private Participation in Activities of General Interest.

The exemptions granted to the entities referred to in Article 2 of this Law, under Law 30/1994, of 24 November, of Foundations and Tax Incentives for Private Participation in Interest Activities General, they shall remain in force for a period of two years from the entry into force of this Law.

Second transient disposition. Transitional arrangements for managers of commercial companies appointed by non-profit-making entities.

Non-profit-making entities incorporated prior to the entry into force of this Law which choose to apply the special tax regime provided for in Title II thereof shall have one year from the date of entry into force for the purpose of giving compliance with the requirement laid down in the last paragraph of Article 3 (5), in relation to the administrators that these entities have appointed in the commercial companies in which they participate.

Transitional provision third. Adaptation of the statutes.

Non-profit entities incorporated prior to the entry into force of this Law which choose to apply the special tax regime provided for in Title II thereof shall have a period of two years from the date of entry into force of this Act. to adapt its statutes to the provisions of Article 3 (6

.

Single repeal provision.

The entry into force of this Law shall be repealed with all provisions which are contrary to the provisions of this Law, and in particular Title II and the Additional Provisions Fourth to Seventh, Ninth to 12th and 15th and sixteenth of Law 30/1994, of 24 November, of Foundations and of Tax Incentives to Private Participation in Activities of General Interest.

Final disposition first. Enabling the State General Budget Law.

The General Budget Law of the State may modify, in accordance with the provisions of Article 134 (7) of the Spanish Constitution:

(a) The type of taxation of non-profit-making entities.

b) The percentages of deduction and quantitative limits for their application provided for in this Law.

Final disposition second. Regulatory enablement.

The Government is authorised to make the necessary provisions for the development and implementation of this Law.

Final disposition third. Entry into force.

This Law will enter into force on the day following its publication in the "Official State Gazette".

The provisions relating to the Corporate Tax, the Property Tax and the Tax on Economic Activities will have effects only for the tax periods starting from the entry into force. of the Law.

Therefore, I command all Spaniards, individuals and authorities, to keep and keep this Law.

Madrid, 23 December 2002.

JOHN CARLOS R.

The President of the Government,

JOSÉ MARÍA AZNAR LÓPEZ

ANNEX

Cities and architectural, archaeological, natural or landscape sets and goods declared World Heritage by Unesco located in Spain:

Park and Guell Palace and Casa Mila, Barcelona.

Monasterio and Sitio de El Escorial, Madrid.

Burgos Cathedral.

Alhambra, Generalife and Albaicin, Granada.

Historical Center of Córdoba.

Monuments of Oviedo and the Kingdom of Asturias.

Altamira caves.

Old City of Segovia and its Aqueduct.

Old City of Santiago de Compostela.

Old city of Avila and extra-walled churches.

Aragón mudejar architecture.

Garajonay National Park.

Old City of Cáceres.

Historical City of Toledo.

Cathedral, Alcazar and Archivo de Indias, Seville.

Old City of Salamanca.

Monastery of Poblet.

Archaeological site of Merida.

The Royal Monastery of Saint Mary of Guadalupe.

El Camino de Santiago de Compostela.

Donana National Park.

Historic fortified city of Cuenca.

La Lonja de la Seda de Valencia.

Palau de la música Catalana y Hospital de San Pau, Barcelona.

The Medula.

San Millan Monasteries of Yuso and Suso.

Rock Art of the Mediterranean Arc of the Iberian Peninsula.

University and historic precinct of Alcala de Henares.

Ibiza, biodiversity and culture.

San Cristobal de La Laguna.

Atapuerca Archaeological Site.

Elche Palmeral.

Catalan Romanesque churches of the Boi Valley.

Roman Wall of Lugo.

Archaeological site of Tarragona.

Cultural Landscape of Aranjuez.