8.4.5. Reductions for contributions to protected assets of persons with disabilities

Beneficiaries of Protected Heritage

1. The protected assets of persons with disabilities will have as their exclusive beneficiary the person in whose interest they were established, who will be its owner.

2. For the purposes of this law, only the following will be considered persons with disabilities:

   • Those affected by a mental disability equal to or greater than 33%.

   • Those affected by a physical or sensory disability equal to or greater than 65%.

Contributions to protected assets of persons with disabilities will give the right to reduce the tax base under the following conditions:

1. The tax base will be reduced by contributions made by persons who have a direct or collateral relationship with the disabled person up to the third degree inclusive, as well as by the spouse of the disabled person or by those who have the disabled person under a guardianship or foster care regime, with a maximum limit of 10,000 euros per year for each contributor and for the set of protected assets to which they make contributions.

2. The total amount of reductions made by all persons who make contributions to the same protected assets may not exceed 24,250 euros per year. When several contributions are made in favour of the same protected assets, the reductions corresponding to said contributions must be reduced proportionally.

3. The positive amount of the contributor's general tax base once the appropriate reductions have been applied.

In no case will contributions made by the disabled taxpayer who is the owner of the protected assets give rise to a reduction.

Non-monetary contributions

When contributions are non-monetary, the amount of the contribution will be taken as that resulting from the provisions of article 18 of Law 49/2002, of December 23, on the tax regime of non-profit entities and tax incentives for patronage.

Contributions of elements related to the activity made by taxpayers of Personal Income Tax who obtain income from economic activities will not generate the right to reduction.

Excess of contributions made and not reduced

1. Contributions that exceed the limits set out in the previous section will entitle the taxpayer to reduce the tax base for the following four tax periods, until the maximum reduction amounts are exhausted, where applicable, in each of them.

2. Contributions that cannot be reduced due to insufficient tax base may be reduced in the following four tax periods.

3. When reductions in the tax base for contributions made in the year concur in the same tax period with reductions from previous years pending application, the reductions from previous years will be applied first, until the maximum reduction amounts are exhausted.

Disposition of assets or rights contributed to the protected estate 

The disposition of any asset or right contributed to the protected assets of the disabled person in the tax period in which the contribution is made or in the following four periods will determine the following tax obligations:

a) If the contributor was a taxpayer of Personal Income Tax, he/she must replace the reductions in the tax base unduly made by submitting the appropriate supplementary self-assessment including the applicable late payment interest, within the period between the date on which the disposition is made and the end of the regulatory declaration period corresponding to the tax period in which said disposition is made.

b) The owner of the protected assets who received the contribution must include in the tax base the part of the contribution received that he or she would have failed to include in the tax period in which he or she received the contribution as a result of the application of the provisions of letter w) of article 7 of the law, by submitting the appropriate supplementary self-assessment plus any applicable late payment interest, within the period between the date on which the provision is made and the end of the regulatory declaration period corresponding to the tax period in which said provision is made.

In cases where the contribution has been made to the protected assets of relatives, spouses or dependents of workers under guardianship or foster care, as referred to in section 1 of this article, by a taxpayer of Corporate Tax, the obligation described in the previous paragraph must be fulfilled by said worker.

The expenditure of money and the consumption of fungible movable property included in the protected assets will not be considered as acts of advance disposal, when they are made to meet the vital needs of the beneficiary.

However, for such a conclusion to be possible, given that the tax benefits are linked to the effective creation of assets, the latter must be created, which implies that, except in exceptional circumstances that the disabled person may be experiencing from time to time, the expenditure of money or fungible goods before four years have passed since their contribution should not prevent the creation and maintenance of the aforementioned protected assets over time.

For the purposes set forth in this section, in the case of homogeneous assets or rights, it shall be understood that those contributed first were disposed of.

In the event of the death of the owner of the protected assets, the contributor or the workers referred to in section 2 of article 43 of the consolidated text of the Corporate Income Tax Law, the provisions of letters a) and b) of this section shall not apply.

Completion

A data capture window will open in which you must indicate the following data: 

• NIF of the disabled owner of the protected assets to which the contributions have been made.

• Pending excesses to be reduced from the years 2017 to 2020.

  Taxpayers who have requested in said declarations to be able to reduce the excess in the following four fiscal years, will indicate in this box the amount that, pending application for this concept, must be applied in the declaration for fiscal year 2021.

• Contributions made in 2021 to the protected assets of persons with disabilities.

• Set of contributions, and excesses pending reduction, from all contributors to the same protected assets, with the right to be reduced in 2021, when they exceed 24,250 euros per year. 

• To correctly complete this last section, you should take into account the following examples:

  1. Two taxpayers make contributions to their son's protected estate, for 15,000 each. The box should not be filled in because the total amount eligible for reduction in the year, 20,000 euros (10,000 euros per taxpayer), is less than 24,520 euros.

  2. Three taxpayers make contributions to the protected assets of a family member. Each of them contributes 15,000 euros. Yes, this box must be completed because the total amount eligible for reduction, 30,000 euros (10,000 euros per taxpayer), is greater than 24,520 euros. The amount of 30,000 euros must be entered in the box.

• The program will transfer unapplied contributions and contributions to the corresponding section of Annex C.4.