# Rebate of the payment in Ceuta and Melilla

Regulations: Art. 33 Wealth Tax Act

If any of the goods or rights of economic content calculated for determining the taxable base were to be found to be located or that it should be exercised if the tax is paid or paid in Ceuta and Melilla and its dependencies, the tax payment will be reduced by 75% of the part corresponding proportionately to the aforementioned assets or rights. 100

This bonus shall not apply to non-residents in these Cities, except for those that refer to securities representing the share capital of legal entities domiciled and with a corporate purpose in the aforementioned places, or in the case of permanent establishments located in them.

The portion of the tax on which the bonus is applied can be calculated by dividing the net value corresponding to the assets and rights located in Ceuta and Melilla and their dependencies (VN) between the taxable base and multiplying this quotient by the total tax liability. That is,

VN x Gross tax base

## Example:

Mr. S.M.G., resident in Málaga, presents the following details in his 2021 Wealth Tax return:

• Taxable base:  1,400,000
• Net tax base: 700,000

The declared assets include, among others, the following:

• Business premises in Ceuta with a net value of: 195,000
• Shares of the S.A. "X," domiciled and with an exclusive corporate purpose in Ceuta, whose net value is: 100,000

Determine the amount corresponding to the bonus of the share for equity elements located in Ceuta and Melilla:

Solution

• Full payment of Wealth Tax (1) = 3,207.99
• Net value of assets in Ceuta and Melilla (2): 100,000
• Share of the payment corresponding to these assets (3) = 229.14
• Bonus (75 for 100 s/229.14) = 171.85
• Payment to be paid (3,207.99-171.85) = 3,036.14

Sample notes:

(1) See tax scale applicable in Autonomous Community of Andalusia in chapter 4.

Up to 668,500.00 = 2,757.54

Other (31,500) x 1,43% = 450.45

Total tax liability (2757.54 + 450.45) = 3,207.99  (Back)

(2) Since you are not a resident of Ceuta or Melilla, the taxpayer is not entitled to apply a bonus for the premises. (Back)

(3) The full share of the shares of S.A. "X" is determined by the following operation: (100,000 X 3,207.99) ÷ 1,400,000 = 229.14. (Back)