Example: Income obtained from participation in the own funds of any entity

Mr. LHL has received the following income in the 2019 financial year for its status as a shareholder in certain listed companies.

From the company “Alfa, SA ", he has received the following amounts:
- Dividends:
  
  Full amount: 1.020
- Attendance bonuses for meetings:
  
  Full amount: 300
- Shares issued from a capital increase:
  
  Market value: 3.005
On February 10, 2019, a temporary usufruct of 10 years was established in favor of the entity "Beta, SA " on a package of shares of the company "Gamma, SA " for a total amount of 21,000 euros, which will be received in installments at a rate of 2,100 euros on February 13 of each of the respective years of the duration of the usufruct.

The credit institution has charged you 31 euros for the service of administration and deposit of the shares. Determine the amount of computable net income and withholding taxes.

Solution:

Company "Alpha SA ":
- Dividend amount: 1.020
- Amount of attendance bonuses at meetings: 300
- Free shares ⁽¹⁾: ----
- Supported retention ⁽²⁾: 250.80
Constitution of usufruct:
- Computable performance: 2,100
- Withholding tax (19% s/2,100): 399
Total gross income (1,020 + 300 + 2,100): 3.420
Deductible expenses: 31
Net income to be included in the taxable savings base: 3.389

Notes to the example:

⁽¹⁾The receipt of fully paid-up shares does not constitute income from movable capital. The tax treatment applicable to the receipt of fully paid-up shares (of securities admitted to trading) is discussed in Chapter 11 of this Manual.^(Back)

⁽²⁾The withholding rate applicable to income derived from participation in the equity of entities for the 2019 financial year is 19%.

Consequently, the withholdings incurred were as follows:

Dividend (19% s/1,020) = 193.80
Attendance bonus at meetings (19% s/300) = 57
Amount of withholdings: 193.80 + 57 = 250.80 ^(Back)