4.3.6. Deduction for taxes paid abroad
In the case of PERSONAL OBLIGATION to contribute and without prejudice to the provisions of International Treaties or Agreements, the lesser of the following two amounts will be deducted from the quota of this Tax, based on assets located and rights that could be exercised or had to be fulfilled outside of Spain:
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The effective amount paid abroad for personal tax purposes that affects the assets included in the Tax.
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The result of applying the average effective tax rate, expressed with two decimal places, to the portion of the taxable base taxed abroad.
average effective tax rate shall be understood as the result of multiplying by 100 the quotient obtained by dividing the full rate resulting from the application of the scale by the taxable base. The average effective tax rate will be expressed to two decimal places.
The Autonomous Community may establish deductions for this tax, which will be compatible with those established by the State, without being able to imply their modification, being applied after the state ones. In 2019, deductions were only established in the Autonomous Community of Galicia.
COMPLETION
For the program to perform this calculation, the following information must be entered through a data capture window:
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Cash amount paid abroad
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Net value of assets taxed abroad
The net value is obtained by subtracting from the value of these assets the deductible debts corresponding to them, as well as the proportional part of those other debts that, while also deductible, are not linked to any asset.
The deduction is calculated individually for each asset located abroad. The program supports up to three different elements.