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Practical Income Manual 2021.

Income that is considered obtained in Ceuta or Melilla

For these purposes, the following income is considered obtained in Ceuta or Melilla:

  • Income from work , when derived from work of any kind carried out in said territories and, in particular, unemployment benefits and those regulated in article 17.2.a) of the Law IRPF ##2##(pensions and passive assets, benefits received by beneficiaries of mutual societies, pension plans, insurance contracts concluded with social security mutual societies that generate income from work in accordance with the provisions of the aforementioned article, insured pension plans and the benefits received by the beneficiaries of corporate social welfare plans and long-term care insurance).

    Note: The deduction for income obtained in Ceuta and Melilla cannot be applied when it comes to income from work if one does not have habitual and effective residence, meaning, for the purposes of the deduction, a factual situation that is given by the fact to live or reside in Ceuta or Melilla in a real and effective way.

    Therefore, if during the year 2021 the change of residence occurs to another Autonomous Community, the taxpayer who, at least during part of the tax period you have resided in Ceuta or Melilla, you are entitled to the deduction in proportion to the time of your residence in said cities. Interpretative criterion established by the Supreme Court in Sentence no. 1219/2020, of September 29, relapsed into contentious-administrative appeal no. 1735/2019 (ROJ: STS 3175/2020).

    The above is not applicable in cases of "temporary displacements" as there is no change of residence, "residence" being an essential factual budget to have the right to deduct.

  • The income that comes from the ownership of real estate located in Ceuta or Melilla or from real rights that fall on them.

  • The income that comes from the exercise of economic activities actually carried out in Ceuta or Melilla. For these purposes, economic activities actually carried out in Ceuta or Melilla are considered those that close in these territories a commercial cycle that determines economic results or involves the provision of a professional service in said territories.

    It is estimated that these circumstances do not arise when dealing with isolated operations of extraction, manufacturing, purchase, transportation, entry and exit of goods or effects and, in general, when the operations do not determine income by themselves.

    When it comes to fishing and maritime activities, the rules established in article 33.4 and 5 of Law 27/2014, of November 27, on Corporate Tax ( BOE of the 28).

  • Capital gains that come from real estate located in Ceuta or Melilla or from movable property located in said territories.

  • The income from movable capital from obligations or loans, when the capital is invested in said territories and the corresponding income is generated there.

  • The income from movable capital from the leasing of movable property, businesses or mines, when the object of the lease is located in Ceuta or Melilla and is effectively used in said territories.

  • Income from companies that operate effectively and materially in Ceuta or Melilla that correspond to income to which the bonus established in article 33 of the Corporate Tax Law applies, in the following assumptions:

    1. When they have their domicile and exclusive corporate purpose in said territories.

    2. Returns from deposits or account s in all types of financial institutions located in Ceuta or Melilla.

    3. When they operate effectively and materially in Ceuta or Melilla for a period of no less than three years and obtain income outside of said cities, provided that with respect to these incomes they are entitled to the application of the bonus provided for in section 6 of article 33 of the Law of Corporate Tax. For these purposes, the reserves from income to which the bonus established in article 33 of the Corporate Tax Law would have been applied must be identified.

      To identify the reserves from these incomes, entities that obtain income with the right to apply the bonus provided for in article 33.6 of the Corporate Tax Law must include in the annual accounts report the information determined in article 58.2 of the Personal Income Tax Regulation

      Precision: Article 33 of Law 27/2014, of November 27, on Corporate Tax, establishes for taxpayers of the aforementioned tax a 50% bonus on the part of the full quota that corresponds to the income obtained in Ceuta or Melilla by entities. that operate effectively and materially in said territories.

      Section 6 of the aforementioned article 33 of the LIS determines that entities that operate effectively and materially in Ceuta or Melilla for a period of no less than 3 years, may apply the bonus provided for in said article. 33 for income obtained outside said cities in the tax periods that end after the aforementioned period has elapsed when, at least, half of its assets are located in those cities. However, income that comes from the leasing of real estate located outside said territories is exempt from the provisions of this section. The maximum amount of income with the right to the rebate is that of the income obtained in Ceuta and Melilla.