1E9Ct5D

The positive balance resulting from adding and offsetting against each other, exclusively, capitalgains and losses which are not considered savings income, such as:1 Income derived from an entity due to the status of partner, shareholder.2 Income from movable capital derived from the assignment of own funds to third entitiesnot related to the taxpayer or derived from related entities that meet the requirements inorder not to be included as general income (indicated above); and3 The monetary return or payment in kind on capitalization transactions and life ordisability insurance contracts.Only the capital gains and losses which are classified as savings income will be included andoffset against each other. If such result is negative, it may only be offset against positive balancesof this type of income which are shown in the following four years, and only the maximum limitallowed by the law may be offset.Exempt income. Noteworthy among the exemptions is that relating to salary income for workperformed abroad. This exemption will apply to salary income accrued during the days spent bythe employee abroad up to a limit of EUR 60,100 per year, if certain requirements are met,namely:1 Salary income must be paid in respect of work effectively performed abroad, i.e., thetaxpayer must be rendering services physically abroad.2 In the case of services rendered by related entities to each other, an advantage or benefitoccurs or may occur for the recipient.3 The recipient of the services must be either a non-Spanish-resident entity or a permanentestablishment situated abroad of a Spanish-resident company, and4 A tax identical or similar to the Spanish personal income tax must exist in the othercountry and such country must not be a territory classified as a tax haven, thisrequirement being deemed to have been met when in that territory a Convention for theavoidance of double taxation with an exchange of information clause with Spain isapplied.Net tax base reductions. There are certain reductions which will be used to reduce the generalnet tax base without making it negative, while any remainder will be used to reduce the savingsnet tax base. The main applicable reductions are:1 The taxpayer’s personal allowance.2 Allowance for descendants.3 Allowance for ascendants.4 Allowance for disability:Determination of the gross tax payable. For the calculation of the (national and regional)gross tax payable for the general net tax base which exceeds the amount of the personal andfamily allowances, a general tax scale and an Autonomous Community tax scale are established.28