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Taxation of strips


 Classification
The securities arising from the stripping out of Bonos and Obligaciones del Estado (strips) are implicit yield assets. As such, the difference between their sale or redemption price and acquisition price is treated as capital income and subject, therefore, to Personal Income Tax.


 Taxation
The difference between the transfer, amortisation or reimbursement price and the acquisition price is a capital gain subject to withholding, which is included in the savings income and taxed at 19% for taxable bases up to 6,000 €. Taxable bases between 6,000 € and 50,000 € shall be taxed at 21%, and taxable bases exceeding 50,000 € shall be taxed at 23%.


 Withholdings
In the case of the sale or amortisation of the asset, the managing entity handling such sale or amortisation is obliged to make an 19.5% withholding on the yield on account of Personal Income Tax.