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Practical Heritage Manual 2020.

Example

Mr. JBA, single and resident in Toledo, presents the following tax information corresponding to his tax returns for the year PIT and the Wealth Tax (IP) in fiscal year 2020.

  • General tax base of thePIT: 50,000
  • General taxable base of the PIT: 48,000
  • Minimum personal and family: 5.550
  • Taxable and liquidable base of savings PIT: 2,000
  • Full general state and regional quota of PIT:12.407
  • Full savings quota PIT: 380
  • Taxable base of the Wealth Tax ( IP ): 8,000,000
  • Total amount of the Wealth Tax: 112,354.37

Determine the amount to be paid for the Wealth Tax corresponding to the 2020 financial year, knowing that the part of the taxable base of savings derived from capital gains and losses that corresponds to the positive balance of those obtained from transfers of assets acquired more than one year prior to the date of the transfer amounts to 1,000 euros, and that the net value of the assets declared not likely to produce returns in the PIT amounts to 250,000 euros

Solution:

  • Wealth Tax rate corresponding to unproductive assets: (250,000 x 112,354.37) ÷ 8,000,000 = 3,511.07
  • Wealth Tax Quota susceptible to limitation (112,354.37 – 3,511.07) = 108,843.30
  • Full general state and regional quota of PIT: 12.407
  • Full state and regional quota from the savings of PIT for the purposes of the limit (to):190
    • Sum of full installments of the PIT (12,407 + 190) = 12,597
    • Sum of full installments of the PIT and IP (12,597 + 108,843.30) = 121,440.30
  • Limit of full quotas PIT and IP (60% of 51,000) = 30,600
    • General tax base of IRPF:  50,000
    • Taxable base of savings PIT: 1,000 (b)
  • Theoretical reduction to be made in the total amount of the Wealth Tax (121,440.30 – 30,600.00) = 90,840.30
  • Maximum limit for reduction of the total share of assets: (80% of 112,354.37) = 89,883.50
    • Amount to be paid Tax on Assets (112,354.37 – 89,883.50) (c)
      •  22,470.87

Notes to the example:

(to) For the purposes of determining the full savings quota of the PIT, the part corresponding to the positive balance of capital gains and losses obtained from the transfer of assets acquired more than one year prior to the date of transfer has not been taken into account. That is, (380 ÷ 2,000) x 1,000 = 190 euros.(Back)

(b) For the purposes of determining the taxable base of the savings of the PIT, the part corresponding to the positive balance of capital gains and losses obtained from the transfer of assets acquired more than one year prior to the date of transfer has not been taken into account. That is, (1,000 ÷ 2,000) x 2,000 = 1,000 euros.(Back)

(c) The amount to be paid for the Wealth Tax coincides with the amount of the minimum fee (20% of 112,354.37 = 22,470.87 euros). By applying this minimum rate, a non-reducible excess of 956.80 euros is produced, which is the difference between the theoretical reduction (90,840.30) and the maximum reduction limit (89,883.50).(Back)