3. Advance disposition of the assets or rights provided

Note: Acts of early disposal are not considered to be those that, subject to the administration regime of the aforementioned Law 41/2003, involve an active administration of the protected assets aimed at maintaining the productivity and integrity of the assets.

The assets and rights contributed to the protected assets of persons with disabilities cannot be disposed of in the tax period in which the contribution is made or in the following four.

The expenditure of money and the consumption of fungible goods included in the protected assets, when made to meet the vital needs of the beneficiary, should not be considered as disposal of assets or rights for the purposes of the requirement to maintain the contributions made during the four years following the exercise of their contribution, established in article 54.5 of the Tax Law.

However, since tax benefits are linked to the effective creation of assets, the latter must be created, which means that, except in exceptional circumstances that the disabled person may be experiencing from time to time, the expenditure of money or consumable goods before four years have passed since their contribution should not prevent the creation and maintenance of the aforementioned protected assets over time.

Failure to comply with this requirement, except in cases of death of the owner of the protected assets, the contributor or the workers referred to in the current article 37.2 of the LIS, entails the following tax obligations, which are discussed below:

a) Obligations for the contributor who pays the IRPF .

The contributor must replace any reductions in the tax base that have been unduly made by submitting the appropriate supplementary self-assessment, including any applicable late payment interest, within the period between the date on which the withdrawal is made and the end of the regulatory declaration period corresponding to the tax period in which said withdrawal is made.

b) Obligations for the owner of the protected assets.

The owner of the protected assets who received the contribution must include in the tax base the part of the contribution received that would have failed to be included in the tax period in which the contribution was received due to the application of the exemption regulated in article 7.w) of the Personal Income Tax Law , by submitting the appropriate supplementary self-assessment including any applicable late payment interest, within the period between the date on which the provision is made and the end of the regulatory declaration period corresponding to the tax period in which said provision is made.

Contributions made to the protected assets of persons with disabilities are considered work-related for the disabled person, but benefit from the exemption regulated in article 7.w) of the IRPF Law which reaches a maximum annual amount of three times the IPREM .

In cases where the contribution has been made to the protected assets of relatives, spouses or dependents of workers under guardianship or foster care, by a taxpayer of Corporate Tax, the obligation to regularize described in the previous section must be fulfilled by said worker.

The employee who owns the protected assets is obliged to inform his contributing employer of any advance provisions made during the tax period.

In cases where the provision has been made from the protected assets of relatives, spouses or dependents of workers under guardianship or foster care, the aforementioned communication must also be made by said worker.

Failure to communicate or making false, incorrect or inaccurate communications will constitute a minor tax offence punishable by a fixed monetary fine of 400 euros.

Note: In the case of homogeneous assets or rights, it will be understood that those contributed first were disposed of.