1E9Ct5D

1. Penalties and fines2. Corporate income tax payments3. Gifts and donations4. Expenditures for the improvement or enhancement of capital assets5. Depreciation charges that exceed the maximum rates prescribed by law, unless it can beproved that the rates correspond to the actual depreciation incurredTax ratesThe general tax rate for residents and non-residents that conduct business activities in Spainthrough a permanent establishment is 30%..Entities that earned net turnover of less than EUR 8million in the immediately preceding tax year are taxed at a rate of 25% on profits up to EUR300,000.00, and at a rate of 30% on profits exceeding this amount. A super-reduced rate of 20%-25% will also apply for certain companies of a reduced size that create or maintain jobs. Othertax rates apply to certain specified entities.Loss carry forwardsAs a general rule, a resident entity can carry forward tax losses for offset against the taxableincome of the following 18 years. For newly incorporated entities, this 18-year periodcommences in the first fiscal year in which the entity reports taxable income.For tax periods beginning in 2011 through 2015, companies must consider the followinglimitations when using (offsetting) tax losses generated in prior periods:• Companies or tax groups whose turnover during the 12 months preceding the beginning of theyear has been at least EUR 20 million and less than eUr60 million: carried forward losses mayonly be used to offset up to 50 percent of the taxable income.• Companies or tax groups whose turnover during the 12 months preceding the beginning of theyear has been at least EUR 60 million: carried forward losses may only be used to offset up to 25percent of the taxable income.Withholding Taxes and advance payments.Spanish companies are also required to make three advance payments ( in April, October andDecember of each year) based on any of the following methods:1. Payments are calculated as 18% of the previous year’s tax liability. General rate is 18%. Thepayments are due on 20 April, 20 October and 20 December.2. Payments are based on the forecasted taxable income of the period as follows. General rate is21%. Three payments due on:23