9.7. Deductions for income obtained in Ceuta or Melilla
Deduction for income obtained in Ceuta or Melilla (art. 68.4 Law)
The deduction for income obtained in Ceuta or Melilla can be applied in the following cases:
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Taxpayers residing in Ceuta or Melilla
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Taxpayers residing in Ceuta or Melilla for a period of less than three years
Taxpayers who have their habitual residence in Ceuta or Melilla can apply this deduction for income obtained in Ceuta and Melilla.
The deduction consists of 60 percent of the part of the sum of the full state and regional or complementary contributions that proportionally corresponds to the income computed for the determination of the taxable bases that had been obtained in said territories.
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Taxpayers residing in Ceuta or Melilla for a period of no less than three years
This deduction may also be applied to taxpayers who have resided in Ceuta or Melilla for a period of no less than three years, in tax periods beginning after the end of that period for income obtained outside of said cities, when the following requirement is met. :
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That, at least one third of the taxpayer's net assets, determined in accordance with the regulations governing the Wealth Tax, be located in said cities.
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Limit
The maximum amount of income, obtained outside said territories, that can enjoy the deduction will be the net amount of the income and capital gains and losses obtained in said cities.
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Non-resident taxpayers in Ceuta or Melilla
Taxpayers who do not have their habitual residence in Ceuta or Melilla may apply this deduction for income obtained in Ceuta and Melilla.
The deduction consists of 60 percent of the part of the sum of the full state and regional or complementary contributions that proportionally corresponds to the income computed for the determination of the positive taxable bases that would have been obtained in Ceuta or Melilla.
In no case may this deduction be applied to the following income:
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To those from Collective Investment Institutions, except when all of their assets are invested in Ceuta or Melilla.
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To the performance of work
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To capital gains that come from personal property
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To income from deposits or accounts in all types of financial institutions
Attention : In no case may the amount of this deduction exceed 60 percent of the total full amount of the Tax, and the program will break down the corresponding state and regional part.
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Income obtained in Ceuta or Melilla
For these purposes, the following will be considered income obtained in Ceuta or Melilla:
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The income from work, when derived from work of any kind carried out in said territories, as well as those derived from unemployment benefits and the social security systems referred to in article 17.2.a) of the Tax Law (art. 58.1 Rgl.).
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The income that comes from the ownership of real estate located in Ceuta or Melilla or from real rights that fall on them.
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Those that come from the exercise of economic activities actually carried out in Ceuta or Melilla.
Operations actually carried out in Ceuta or Melilla are understood to be those that close a commercial cycle in these territories that determines economic results or involve the provision of a professional service in said territories.
It will not be considered that these circumstances occur when it comes to isolated operations of extraction, manufacture, purchase, transportation, entry and exit of goods or effects thereof and, in general, when the operations do not determine income by themselves (art. 58.2 Rgl.).
When it comes to fishing and maritime activities, the rules established in article 33 of the consolidated text of the Corporate Tax Law will apply.
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Capital gains that come from real estate located in Ceuta or Melilla.
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Capital gains that come from movable property located in Ceuta or Melilla.
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Income from movable capital from obligations or loans, when the capital is invested in said territories and generates the corresponding income there.
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Income from movable capital from the leasing of movable property, businesses or mines, when the object of the lease is located and is effectively used in Ceuta and Melilla (art. 58.4 Rgl.).
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Income from companies that operate effectively and materially in Ceuta or Melilla and with domicile and exclusive corporate purpose in said territories.
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Income from deposits or accounts in all types of financial institutions located in Ceuta or Melilla.
Completion
Through a data capture window, the income obtained in Ceuta or Melilla will be recorded, recording the following information:
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Income included in the general tax base
The amount of income obtained in Ceuta or Melilla included in the general tax base will be entered in this box.
The following will be included as returns obtained in Ceuta and Melilla:
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The net (reduced) returns from work, capital (which should not be included in the tax base of savings) and economic activities.
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The income that comes from the ownership of real estate located in Ceuta and Melilla.
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The net balance of capital gains and losses attributable to 2019 that do not derive from the transfer of capital elements.
Negative items originating in Ceuta and Melilla
If the net balance of capital gains and losses that do not arise from a transfer is negative, only the amount that has been integrated into the tax base for the year will be taken into account, without including, where applicable, the part pending compensation in years. successive. If said negative balance does not correspond entirely to income obtained in Ceuta or Melilla, the part pending compensation will be distributed proportionally.
Likewise, to calculate the income obtained in Ceuta and Melilla included in the general tax base, the negative items from previous years originating in Ceuta and Melilla that have been offset in the current year in the general tax base must be subtracted.
To calculate this deduction, the program does not consider the assumption that negative taxable bases from previous years will be offset.
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Income included in the savings tax base
The amount of income obtained in Ceuta or Melilla included in the tax base of savings will be entered in this box.
Included in the savings tax base:
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The positive net balance of equity gains and losses attributable to 2019 that derive from the transfer of equity elements.
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The positive net balance of capital gains included in the savings tax base.
Negative items originating in Ceuta and Melilla
To calculate the income obtained in Ceuta and Melilla included in the tax base of savings, the negative items from previous years originating in Ceuta and Melilla that have been offset in the current year must be subtracted. If said negative balance does not correspond entirely to income obtained in Ceuta or Melilla, the part pending compensation will be distributed proportionally.
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Joint income tax return
For the program to calculate the deduction in this type of taxation, it must include the sum of the income obtained in Ceuta and Melilla by all members of the family unit.
In general, the amount of income obtained in Ceuta and Melilla with the right to deduction will be the sum of the amount of those that give rise to this same right in the individual declarations of the declarant and the spouse.
However, in some cases, the option for the type of taxation may cause variations in the amount of deductible expenses with a maximum limit, and the reductions applicable to net work income.