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2018 Wealth Tax

4.3.6.1 Deductions of the Autonomous Community of Galicia

For the 2018 financial year, taxpayers residing in the Autonomous Community of Galicia may apply the following deductions:

BY CREATION OF NEW COMPANIES OR EXPANSION OF THE ACTIVITY OF RECENTLY CREATION COMPANIES

If among the assets and rights computed for the determination of the tax base there is any to which the deductions were applied in the full autonomous personal income tax quota related to the creation of new companies or expansion of the activity of recently created companies, or investment of shares or social participations in new or recently created entities.

75 percent of the part of the fee that proportionally corresponds to the aforementioned assets or rights may be deducted.

Failure to comply with the requirements established in the regulations for the aforementioned personal income tax deductions will determine the loss of this deduction in the Asset declaration.

Incompatibility This deduction is incompatible with the remaining deductions except, "For the impact of rural land on agricultural exploitation" and "For the impact on economic activities of properties in historic centers"

BY INVESTMENT IN FOREST DEVELOPMENT COMPANIES

If the assets or rights of economic content computed for the determination of the tax base include participations in Forest Development companies. To apply this deduction, they must be kept in the taxpayer's assets for a minimum period of 5 years from their acquisition.

100 per 100 may be deducted from the part of the fee that proportionally corresponds to the aforementioned goods or rights.

FOR PARTICIPATION IN THE SHARE CAPITAL OF AGRICULTURAL COOPERATIVES OR COMMUNITY LAND EXPLOITATION.

In order to apply this deduction, the following requirements must be met:
- That among the assets or rights of economic content computed for the determination of the tax base include participations in the share capital of agricultural cooperatives or community exploitation of land referred to in Law 5/1998, of December 18 , from cooperatives in Galicia.
- The shares must be maintained in the taxpayer's assets for a minimum period of five years following their acquisition.

100 per 100 of the part of the quota that proportionally corresponds to the aforementioned goods or rights may be applied.


Incompatibility
This deduction will be incompatible with the application for the same assets or rights of the exemptions of article 4 of the Wealth Tax Law, although said exemption is partial.

PO R THE AFFECTION OF RUSTIC LAND TO AN AGRICULTURAL EXPLOITATION AND RUSTIC LEASING.

Requirements for the deduction application:


1. Agricultural exploitation

 That among the goods or rights of economic content computed for determining the tax base include rural land used for agricultural exploitation.

 The agricultural holding must be registered in the Registry of Agricultural Holdings of Galicia.

2. Rural lease
l Those taxpayers who lease rural land for the same period of time will also be entitled to this deduction, in accordance with the conditions established in Law 49/2003, of November 26, on rural leases.

Taxpayers may deduct 100 percent of the part of the quota that proportionally corresponds to the aforementioned assets or rights as long as they are used for agricultural exploitation for at least half of the calendar year. corresponding to the accrual.

Incompatibility
This deduction will be incompatible with the application for the same assets or rights of the exemptions of article 4 of the Wealth Tax Law, even if said exemption is partial.

FOR PARTICIPATION IN THE OWN FUNDS OF AGRICULTURAL ENTITIES.

Requirements
- That among the assets or rights of economic content computed for the determination of the tax base include participations in the own funds of entities whose purpose social are agricultural activities.
- The acquired shares must be maintained in the taxpayer's assets for a minimum period of five years following their acquisition.
- The agricultural holding must be registered in the Registry of Agricultural Holdings of Galicia.

- Credits granted to the same entities will enjoy the same deduction in the part of the amount that finances said agricultural activities.
- In the case of credits, these must refer to financing operations with a term of more than five years, without being able to amortize an amount greater than 20 percent per year of the amount of the principal lent.

Taxpayers may deduct 100 percent of the part of the fee that proportionally corresponds to the value of the shares.
 The value of the shares will be determined, according to the rules of the Wealth Tax, in the part that corresponds to the existing proportion between the assets necessary for the exercise of the agricultural activity, reduced by the amount of the debts derived from it, and the value of the entity's net worth.
To determine this proportion, the value deduced from the accounting will be taken, provided that it faithfully reflects the true financial situation of the company.


Incompatibility
This deduction will be incompatible with the application for the same assets or rights of the exemptions of article 4 of the Wealth Tax Law, although said exemption is partial.

DUE TO THE AFFECTATION ON THE ECONOMIC ACTIVITIES OF PROPERTIES IN HISTORICAL CENTERS

Requirements
- That among the assets or rights of economic content computed for the determination of the tax base, real estate located in one of the historic centers is included determined in the annex to the Order of March 1, 2018 (DOG of 13)
- That said real estate is subject to an economic activity for at least half of the calendar year corresponding to the accrual

Taxpayers may deduct 100% of the part of the tax that proportionally corresponds to said assets.


Incompatibility
This deduction will be incompatible with the application for the same assets or rights of the exemptions of article 4 of the Wealth Tax Law, although said exemption is partial.

FOR PARTICIPATION IN THE OWN FUNDS OF ENTITIES THAT EXPLOIT REAL ESTATE IN HISTORIC CENTERS

Requirements
- That among the assets or rights of economic content computed for the determination of the tax base, participations in the own funds of entities in whose assets are real estate located in any of the historic centers determined in the annex to the Order of March 1, 2018.
- That said real estate is used for economic activity for at least half of the calendar year corresponding to the fiscal year.

Taxpayers may deduct 100 percent of the part of the quota that proportionally corresponds to said participations.
- The deduction will only reach the value of the shares, determined according to the rules of this tax, in the part that corresponds to the existing proportion between said real estate, reduced by the amount of the debts intended to finance them, and the value of the net assets. Of the entity.
To determine this proportion, the value deduced from the accounting will be taken, provided that it faithfully reflects the true financial situation of the company.
Incompatibility
This deduction is incompatible with the application for the same assets or rights of the exemptions of article 4 of the Wealth Tax Law, although said exemption is partial.