Example: Deduction for income obtained in Ceuta or Melilla

Don MVC, single and without children, moved his residence from Cádiz to Ceuta on August 20, 2019, residing in this city since that date. During fiscal year 2021, it has obtained the following income:

• Reduced net return on work: 31,000

• Reduced net return on movable capital: 500

• Reduced net return on real estate capital: 3,200

• Reduced capital gain attributable to 2021: 20,000

The net income from the work comes from his employment relationship with a company located in Ceuta. The income from movable capital corresponds to interest from accounts of financial entities located in Ceuta. For its part, the real estate capital returns correspond to an apartment he owns located in Cádiz and which was rented from January 1, 2021 to September 30 of that year. On October 1, 2021, said apartment was sold, obtaining as a result of the transfer a reduced capital gain of 20,000 euros.

Determine the amount of the deduction for income obtained in Ceuta in fiscal year 2021.

Solution:

Previous note : Having resided in Ceuta for a period of less than three years, the deduction for income obtained in Ceuta may only be applied to the full state and regional contributions, which proportionally correspond to the income obtained in Ceuta (net income from work and net income from Capital furniture).

General taxable base and general taxable base (31,000 + 3,200) = 34,200

Taxable base of savings and taxable base of savings (20,000 + 500) = 20,500

Personal and family minimum = 5,550

1. Full fee corresponding to the general liquidable base

1. Application of tax scales to the general taxable base (34,200.00)

   General scale

   Up to 20,200.00: 2,112.75

   Rest 14,000.00 at 15%: 2,100

   Installment 1 (2,112.75 + 2,100) = 4,212.75

   Autonomous scale

   Up to 20,200.00: 2,112.75

   Rest 14,000.00 at 15%: 2,100

   Installment 2 (2,112.75 + 2,100) = 4,212.75

2. Application of the tax scales to the general taxable base corresponding to the personal and family minimum

   General scale 5,550 at 9.50%: 527.25

   Installment 3 = 527.25

   Autonomous scale 5,550 at 9.50%: 527.25

   Installment 4 = 527.25

3. Determination of the full general, state and regional quota

   Full state general fee (Fee 1 - Fee 3): 4,212.75 – 527.25 = 3,685.50

   Full regional general quota (Quota 2 - Quota 4): 4,212.75 – 527.25 = 3,685.50

2. Fee corresponding to the liquidable base of savings (20,500.00)

• State lien

  Up to 6,000.00: 570

  Rest 14,500.00 at 10.50%: 1,522.50

  State tax fee (570 + 1,522.50) = 2,092.50

• Autonomous tax

  Up to 6,000: 570

  Rest 14,500.00 at 10.50%: 1,522.50

  Regional tax fee (570 + 1,522.50) = 2,092.50

• Determination of full quotas

  State share (3,685.50 + 2,092.50) = 5,778

  Autonomous part (3,685.50 + 2,092.50) = 5,778

3. Deduction for income obtained in Ceuta or Melilla

To calculate it, the following steps must be followed:

• Calculation of the deduction corresponding to income obtained in Ceuta:  

  [ 60% x General full fee / General taxable base x General taxable base obtained in Ceuta]  

  60% [(3,685.50 + 3,685.50) ÷ 34,200 x 31,000] = 4,008.78

• Calculation of the deduction corresponding to the income obtained in Ceuta included in the taxable savings base:

  [ 60% x Full amount of savings/ Liquidable base of savings x Liquidable base of savings obtained in Ceuta]

  60% [(2,092.50 + 2,092.50) ÷ 20,500 x 500] = 61.24

• Total amount of the deduction for income obtained in Ceuta (4,008.78 + 61.24) = 4,070.02 euros

• This amount must be distributed 50% in the state part and the autonomous part, in accordance with the provisions of articles 67 and 77 of the Personal Income Tax Law

  State part: 2,035.01

  Autonomous part: 2,035.01

4. Liquid quota

• State share (5,778 – 2,035.01) = 3,742.99

• Autonomous part ((5,778 – 2,035.01) = 4,107.68