4.2.4. D) Exempt goods and rights related to economic activities

Within this section, the assets and rights, including real estate, necessary for the development of any economic activity carried out by the taxpayer, as well as the debts derived from the same, that are exempt in the current year, will be indicated.

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

That it is a business or professional activity

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

It will be understood that the leasing or sale of real estate is carried out as an economic activity when the circumstances established for this purpose in article 27.2 of the Personal Income Tax Law and other tax regulations occur.
That the activity is carried out in a habitual, personal and direct manner by the taxpayer

The exemption will only be applicable to the taxpayer who owns the affected assets or rights who carries out the activity in a habitual, personal and direct manner, in accordance with the Personal Income Tax regulations.

In the case of minors or incapacitated persons who are owners of the assets, this requirement will be considered met when the exercise of the activity in a habitual, personal and direct manner is carried out by their legal representatives.

In the case of elements common to a marriage that are affected by an economic activity carried out by one of its members, the exemption will also be applicable to the spouse.
That said activity is your main source of income

The exemption will only be applicable if the activity carried out by the taxpayer habitually, personally and directly constitutes their main source of income.

For these purposes, it will be understood that economic activity constitutes the main source of income when at least 50% of the amount of the tax base of the Personal Income Tax corresponding to the year 2021 comes from net income from said activity.

When the same taxable person carries out two or more activities in a habitual, personal and direct manner, the exemption may extend to all the assets and rights affected by them, although considering that the main source of income is determined by the set of income. of all of them.

For the purposes of calculating the main source of income, all those remunerations that are caused by the taxpayer's participation in the entities referred to in section "H" will not be computed. Exempt securities representing participation in own funds of legal entities", provided that the conditions required for the exemption to be applicable are met (without considering the minimum remuneration requirement for the management functions performed in the entity).
That these are goods and rights related to an economic activity

Assets and rights affected by an economic activity will be considered those that are used for the purposes thereof in accordance with the provisions of the Personal Income Tax Law, whether they are exclusively owned by the taxpayer, or whether they are common to the taxpayer. himself and his spouse, taking into account the rules on ownership of assets established in article 7 of the Wealth Tax Law.

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

Completion

If the exempt asset or right is a property, you must previously mark it with an “X” in the box established for this purpose.

If you have to list more elements than those contemplated in the program, you can declare them cumulatively in the last box. In this case you will only have to fill in the data related to the description and the rating.

IAE heading

The heading will be indicated, if it is a business activity, or the group, if it is 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 with the Economic Activities Tax, this box will be left unfilled.
Password

When the exempt element is a property affected by the activity, the key corresponding to full ownership or usufruct will be completed, depending on the case.
% Ownership/usufruct.

If you have one part in ownership and another in usufruct, the completion will be done by differentiating the percentage of ownership from that of usufruct and completing the data corresponding to each of them by clicking "register asset or right".
Nature

When the exempt element is a property affected by the activity, this section will be completed using the following keys:

OR: urban nature property

A: rustic nature property
Situation
In the case of real estate, one of the following keys will be selected:

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

Key 2 . Property located in the Autonomous Community of the Basque Country or in the Foral Community of Navarra.
Key 3 . Property located in the Foral Community of Navarra
Key 4 . Property without cadastral reference.

Key 5. Property located abroad.
Land registry reference number
When the exempt element is a property assigned to the activity, the "cadastral reference" will be recorded as the one that appears on the Real Estate Tax receipt.
Description
A succinct description of the assets and rights will be made, as well as the debts derived from the activity.
Value
The value of the goods and rights will be determined by applying the general valuation rules relating to goods and rights affected by economic activities. If the affected asset is a property, the key corresponding to the value used will be indicated.

This value will be reduced by the amount of debts derived from the activity. In no case will the amount of such debts be taken into account again for the purposes of determining the tax base of the Tax.