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2018 Wealth Tax

4.2.14. N) Administrative concessions

In this section, administrative concessions for the exploitation of services or assets of public domain or ownership, regardless of their duration, whose ownership corresponds to the taxpayer, must be declared by means of a succinct description.

Assessment

The value will be recorded as the amount resulting from applying the criteria indicated in article 13 of Royal Legislative Decree 1/1993, which approves the Revised Text of the Law on Property Transfer Tax and Documented Legal Acts. (BOE of October 20, 1993).

In general, the value will be set by applying the rule or rules that, taking into account the nature of the obligations imposed on the concessionaire, are applicable from those indicated below:

  1. If the Administration indicates a total amount as a price or fee that the concessionaire must pay, for the amount thereof.

  2. If the Administration establishes a minimum fee, price, participation or profit that the concessionaire must pay periodically and the duration of the concession is not greater than one year, for the sum of the periodic benefits. If the duration of the concession is longer than one year, the annual amount paid by the concessionaire will be capitalized at 10%.

    When applying this rule, when it is necessary to capitalize an annual amount that is variable exclusively as a result of the application of price review clauses that take objective indexes of their evolution as a reference, the amount corresponding to the first year will be capitalized. If the variation depends on other circumstances, the mathematical reason for which is known at the time of granting the concession, the amount to be capitalized will be the annual average of those that the concessionaire must pay during the life of the concession.

  3. When the concessionaire is obliged to revert certain assets to the Administration, the value of the Reversion Fund that the concessionaire must establish in compliance with the provisions of Royal Decree 1643/1990, of December 20, or the regulation that replaces it, will be computed.

In special cases where, due to the nature of the concession, the value cannot be set by the rules set out above, it will be determined in accordance with the following rules:

  1. Applying to the value of the fixed assets affected by the exploitation, use or benefit in question, a percentage of 2% for each year of duration of the concession, with a minimum of 10% and without the maximum being able to exceed the value of the assets.

  2. In the absence of the previous assessment, the one indicated by the respective Public Administration will be taken.

  3. In the absence of the two previous rules, by the value declared by the interested parties, without prejudice to the right of the Administration to proceed with its verification by the means provided for in the General Tax Law.