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2018 Wealth Tax

4.2.4. D) Goods and exempt rights relating to economic activities

This section will indicate the assets and rights, including real estate, required to carry out any economic activity carried out by the taxpayer, as well as the debts derived from the same, which are exempt in the current financial year.

The exemption of the aforementioned assets and rights is conditional on the fulfilment of the following requirements on the date of accrual of the Tax (31 December):

  1. That IS TRADED FROM A BUSINESS OR PROFESSIONAL ACTIVITY

    Business and professional activities are those that have the nature of economic activities in accordance with the rules of Personal Income Tax.

    It will be understood that the lease or sale of real estate is carried out as an economic activity when the circumstances that, for this purpose, are established in article 27,2 of the Personal Income Tax Act and other tax rules.

  2. The ACTIVITY IS EXAMPLE USLY, PERSONNEL AND DIRECTLY BY THE CONTRACTING PARTY

    The exemption will only be applied by the taxpayer who owns the assets or rights that are used in the activity in a normal, personal and direct manner, in accordance with the Personal Income Tax regulations.

    In the case of minors or disabled persons who are holders of the assets, this requirement shall be considered as fulfilled when the exercise of the activity is carried out by their legal representatives on a regular basis, personal and direct basis.

    In the case of elements common to a marriage that are subject to an economic activity carried out by one of its members, the exemption will also be applicable by the spouse.

  3. That ACTIVITY IS AWARDED YOUR PRINCIPAL SOURCE OF INCOME

    The exemption will only apply if the taxpayer's usual, personal and direct activity constitutes its main source of income.

    For these purposes, economic activity will be understood as the main source of income when at least 50% of the amount of the taxable income of Personal Income Tax corresponding to 100 comes from net income from this activity. 2018

    When the same taxpayer carries out two or more activities on a regular basis, personal and direct basis, the exemption may reach all the assets and rights associated with them, although considering that the main source of income is determined by all of them.

    For the purposes of calculating the main source of income, no remuneration shall be included that brings the taxpayer's share in the entities referred to in section "H. Securities exempt from participation in corporate entity equity, "provided that the conditions required for the exemption to be applicable to them (without considering the minimum remuneration requirement for the management functions exercised at the bank) are met.

  4. That THE RIGHTS AND RIGHTS AFFECTED TO ECONOMIC ACTIVITY ARE TRADED

    Assets and rights relating to an economic activity shall be considered to be those used for the purposes of the same in accordance with the provisions of the personal Income Tax Act, whether exclusively owned by the taxpayer, already common to the taxpayer and his/her spouse , taking into account the rules that are established on the ownership of the equity elements in article 7 of the Wealth Tax Act.

    As indicated above, in the case of elements common to a marriage that are subject to an economic activity carried out by one of its members, the exemption will also be applicable by the spouse.

Completion

If the exempt property or right is a property, you must first mark it with an "X" in the box established for this purpose.

  • IAE heading

    Indicate the heading, if it is a business activity, or the group, if professional, in which the activity is classified for the purposes of the Economic Activities Tax.

    Exceptionally, if the activity carried out does not require registration in the Economic Activities Tax, this box will be left incomplete.

  • Password

    When the exempt element is a property that is used for the activity, this section will be completed using the following codes:

    U: Urban property

    R: Rural property

  • Situation

    Select one of the following passwords:

    Key 1. Property with land registry reference located anywhere in Spain, except the Basque Country and Navarre.

    Key 2. Property in the Autonomous Community of the Basque Country or in the Autonomous Community of Navarra.

    Key 3. Property with any of the above statuses but without a land registry reference.

    Key 4. Property located abroad.

  • Land registry reference number

    When the exempt element is a property used for the activity, the "Land registry reference" shall be that which is included in the receipt of the Property Tax.

  • Description

    A summary of the assets and rights will be prepared, as well as the debts derived from the activity

  • Value

    The value of the assets and rights will be determined by applying the general valuation rules relating to the assets and rights associated with economic activities.

    This value will be reduced in the amount of the debts derived from the activity. Under no circumstances will the amount of such debts be taken into account again for the purpose of determining the tax base.