8.9.3. Deduction due to international double taxation
When the taxpayer's income includes capital gains or profits obtained and taxed abroad, the lowest of the following amounts will be deducted:
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The effective amount paid abroad for a tax of an identical or analogous nature to this tax or to the Non-Resident Income Tax on said income or capital gains.
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The result of applying the average effective tax rate to the portion of the taxable base taxed abroad.
For these purposes, the average effective tax rate will be the result of multiplying by 100 the quotient obtained by dividing the total net tax by the taxable base. To this end, the type of tax that corresponds to general income and savings income must be differentiated, as appropriate. The tax rate will be expressed with two decimal places.
When income is obtained abroad through a permanent establishment, this deduction will be applied, and in no case will the procedure for eliminating double taxation provided for in article 22 of the consolidated text of the Corporate Income Tax Law be applicable.