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Form 100. 2019 Personal Income Tax return

Rents and charges

This heading includes expenses incurred in the rental of movable or immovable property, as well as the amounts paid for the right to use patents, brands and other industrial property.

Benefits paid to other members of the family unit (Article 30,3 of the Act)

When the spouse or minor children of the taxpayer who live with him/her, transfer goods or rights (provided that they are not property or rights common to both spouses) that serve the purpose of the business activity, the stipulated compensation may be deducted for determining the return on the activity, if it does not exceed the market value. In the absence of a stipulated consideration, the market value may be deducted.

The consideration or market value will be considered as capital gains of the spouse or children under the age of for all tax purposes.

Financial lease contracts

A specific tax regime is established for financial lease contracts in which the following requirements are met:

  • The lessor is a credit institution or a financial credit institution. 
  • That they have a minimum duration of 2 years when they are for movable property and 10 years when they are for real estate or industrial establishments.
  • The financial lease payments are expressed in the respective contracts, differentiating the part corresponding to the recovery of the cost of the asset by the the leasing company, excluding the value of the purchase option and the financial burden required by it, without prejudice to the application of the corresponding indirect tax.
  • That the annual amount of the part of the financial lease payments corresponding to the recovery of the cost of the asset must remain the same or be of an increasing nature throughout the contractual period.

Once these requirements have been met, the following may be deducted:

  1. The entire portion of the payments corresponding to the financial burden paid to the leasing company is considered tax deductible.
  2. The part of the financial lease payments paid to the leasing company corresponding to the recovery of the cost of the asset is considered a deductible expense with the following two limitations:
    1. The deductible amount cannot be greater than the result of applying the maximum linear depreciation coefficient to the cost of the asset, according to the tables of officially approved amortisation (the coefficient will be multiplied by three in the case of taxpayers who are considered tax of a small company).
    2. In the event that the purpose of the contract is land, land and other non-depreciable assets, this part of the payment does not constitute a deductible expense. If such a condition is only in part of the asset that is the object of the operation, only the proportion corresponding to the elements that may be redeemed may be deducted, which must be expressed differently in the respective contract.