Income Tax Return

Domoblock will withhold taxes on the income (proceeds) earned from the sale of the project, in accordance with the following terms:

• The taxable base will be equal to the capital gain (total profit minus initial investment) received by the investor.
• The tax rate applied by Domoblock to individuals or legal entities with tax residency in Spain will be 19%.
  
  * This payment may be deductible from the investor’s Individual Income Tax (IRPF) or Corporate Income Tax (IS).
  When? In the tax year in which it is received. However, there are some exceptions
  
  : - For foreign EU residents (residents of an EU member state), income earned from a participatory loan will not be subject to withholding tax provided that the investor submits a certificate of residence from their country attesting to their residence in an EU member state. If the investor does not provide this certificate, Domoblock will apply a 19% withholding tax.
  
  - For non-EU foreign residents and in cases where the Double Taxation Agreement (DTA) in effect between Spain and the investor’s country of residence establishes a tax rate lower than 19%, the investor must submit a certificate of residence. If the investor does not submit this certificate, Domoblock will apply the 19% rate.
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• The time of withholding (payability) will occur upon the expiration of the date agreed upon in the investment contract (Whitepaper) or when the funds are credited to the investor's account.
• The Domoblock withholding tax will be settled using Form 123.

Although Domoblock bears primary responsibility for taxing investment returns, it is important that each investor fulfill their personal obligation to report capital gains on their respective tax returns. Depending on the country of residence and other income earned from loans or other financial instruments, the tax rate may need to be adjusted.
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Investors must report this income in their savings base, under the category of “capital gains” as “income obtained from the transfer of own capital to third parties” (Article 25.2 of the Personal Income Tax Law).

In Spain, tax brackets are determined by law, and we have summarized them below: