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2018 Wealth Tax

4,3,6,1 Deductions for the Autonomous Community of Galicia

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

For CREATING NEW COMPANIES OR EXTENSION OF THE ACTIVITY OF COMPANIES IN A RECENT CREATION

If any of the assets and rights calculated for determining the taxable amount were to be applied to the deductions in the tax liability comprehensive regional Personal Income Tax for the creation of new companies or extension of the activity of newly created companies, or investment of shares or social holdings in new or recently created entities.

75% Of the share that proportionally corresponds to the aforementioned assets or rights may be deducted.

Failure to comply with the requirements set out in the regulations of the aforementioned Personal Income Tax deductions will determine the loss of this deduction in the Wealth Tax return.

Incompatibility This deduction is incompatible with the remaining deductions except, "Due to the impact of rural land on an agricultural holding" and "For the impact on economic activities of real estate in historic centres"

For INVESTMENT IN FORESTAL FOMENT COMPANIES

If the assets or rights of economic content calculated for determining the taxable base are included in the companies of Fomento Forestal. To apply this deduction, the taxpayer's assets must be maintained for a minimum period of 5 years from the date of acquisition.

100% Of the portion of the fee that is pro-forma corresponding to the aforementioned assets or rights may be deducted on 100// .

For THE PARTICIPATION IN THE CAPITAL OF AGRICULTURAL OPERATIONS OR COMMUNITY EXPLOTATION OF THE EARTH.

In order to apply this deduction, they must meet the following requirements:
- That the assets or rights of economic content calculated for determining the taxable base include holdings in the capital stock of agricultural or Community farming cooperatives of the land referred to in Act 5/1998 of 18 December on cooperatives in Galicia.
- The investments must be held in the taxpayer's assets for a minimum period of five years following their acquisition.

100% 100 Of the share of the fee proportionally corresponding to the aforementioned assets or rights may be applied.


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

PO R LA AFECTACIÓN DE TERRRENOS ruscos A EXPLOTACIÓN AGRARIA Y ARRÚSTICO RENDIMIENTO.

Requirements for the deduction application:


1. Agricultural operations

 That the assets or rights of economic content calculated for determining the taxable base include rural land used for an agricultural holding.

 The agricultural holding must be registered in the Register of Agricultural Exploitations of Galicia.

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

Taxpayers can deduct 100% from the share of the proportional payment corresponding to the aforementioned assets or rights provided that they are used for agricultural use at least during the half of the calendar year corresponding to the accrual. 100

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

For PARTICIPATION IN THE FUNDS OF AGRICULTURAL ENTITIES.

Requirements
-That the assets or rights of economic content calculated for determining the taxable base include holdings in the equity of entities whose corporate purpose is agricultural activities.
- The shares acquired must be held in the taxpayer's assets for a minimum period of five years following their assignment.
- Agricultural holding must be registered in the Register of Agricultural Exploitations of Galicia.

- The same deduction will be applied to credits granted to the same entities in the part of the amount financed by these agricultural activities.
- In the case of loans, these must refer to financing operations with a term of more than five years, without the possibility of repaying an amount greater than 20 per cent of the principal lent. 100

Taxpayers can deduct 100% from the share of the share that proportionally corresponds to the value of the shares. 100
 The value of the shares will be determined, according to the rules of the Wealth Tax, in the part corresponding to the proportion between the assets required 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 assets.
To determine this proportion, the value derived from the accounting will be taken, provided that it faithfully reflects the true equity situation of the company.


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

For THE AFECTATION TO ECONOMIC ACTIVITIES OF PROPERTIES IN HISTORY CENTRES

Requirements##44441## ##44441##-That the assets or rights of economic content calculated for determining the taxable base include assets properties located in one of the historic centres established in the Annex to the Order of 1 March 2018 (DOG of 13) ##44442## ##44442##- That these real estate assets are subject to an economic activity at least during the half of the calendar year corresponding to accrual.

Taxpayers can deduct the share of the share corresponding to these assets on 100% of the tax liability. 100


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

For PARTICIPATION IN THE OWN FUNDS OF ENTITIES THAT EXPLOSIVE PROPERTY IN HISTORY CENTRES

Requirements##44441## ##44441##-That the assets or rights of economic content calculated for determining the taxable base include holdings in the equity of entities in which real estate is located in one of the historic centres established in the Annex to the Order of 1 March 2018.
- That these real estate assets are subject to an economic activity at least during the half of the calendar year corresponding to the financial year.

Taxpayers can deduct 100% from the share of the proportional share corresponding to these investments. 100
- The deduction will only reach the value of the shares, determined according to the rules of this tax, in the proportion corresponding to the among these real estate assets, reduced by the amount of the debts intended to finance them, and the value of the entity's net assets.
To determine this proportion, the value derived from the accounting will be taken, provided that it faithfully reflects the true equity situation of the company.
Incompatibility
This deduction is incompatible with the application for the same assets or rights as exemptions in article 4 of the Wealth Tax Act, even if this exemption is partial.