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Practical Income Manual 2021.


The current financing system of the Autonomous Communities is articulated in Law 22/2009, of December 18, which regulates the financing system of the Autonomous Communities of the common regime and Cities with Statute of Autonomy and modifies certain regulations. tributary ( BOE of 19).

The scope of the regulatory powers of the Autonomous Communities in the Personal Income Tax is established in article 46 of the aforementioned Law 22/2009, according to which the Autonomous Communities can assume, among others regulatory powers , that relating to the approval of deductions applicable to the full regional quota for:

  • Personal and family circumstances.
  • Non-business investments.
  • Income application.

    In any case, the approval of regional deductions for personal and family circumstances, for non-business investments and for application of income, cannot imply, directly or indirectly, a reduction in the effective taxation of one or some categories of income.

  • Non-exempt public subsidies and aid received from the Autonomous Community , with the exception of those that affect the development of economic activities or the income that is integrated into the savings base.

In addition to the approval of regional deductions, the regulatory powers of the Autonomous Communities also cover the determination of the following matters related to them:

  1. The required justification to be able to practice them.
  2. Deduction limits.
  3. Whether or not to submit to the requirement to verify the financial situation.
  4. The special rules applicable in cases of joint taxation, tax period less than the calendar year and determination of family situation.

Notwithstanding the above, if the Autonomous Community does not regulate any of these matters, the rules provided for these purposes in the state personal income tax regulations will apply.

Using the assumed regulatory powers, the Autonomous Communities of the common regime have approved for the 2021 financial year autonomous deductions that may be applied in their personal income tax returns exclusively by taxpayers who during said financial year had had the habitual residence in their respective territories.

Note: In the case of taxpayers integrated into a family unit who reside in different Autonomous Communities and submit a joint return, the member of the family unit with the largest tax base will be considered residents of the Autonomous Community in which they reside. Consequently, in the joint declaration of the family unit, the deductions established by said Autonomous Community may be applied, even if any of the members of the family unit had not resided there.