Transfer of Wealth Tax to Autonomous Communities

Regulations: Art.2.2. Wealth Tax Law

The Wealth Tax is a tax whose income is entirely ceded to the Autonomous Communities, under the terms established in Organic Law 8/1980, of September 22, on the Financing of the Autonomous Communities ( LOFCA ), last amended by Organic Law 3/2009, of December 18 ( BOE of December 19), and 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 tax regulations ( BOE of December 19).

As a result of the transfer, the Autonomous Communities will be able to assume regulatory powers over the minimum exemption, tax rate and deductions and bonuses of the quota.

The deductions and bonuses approved by the Autonomous Communities will, in any case, be compatible with those established in the state regulations governing the Tax and may not entail a modification of the same. These regional deductions or bonuses are applied after those regulated by state regulations.

If the Autonomous Communities do not make use of the regulatory powers over this Tax, the State regulations will apply instead.

Furthermore, it should be noted that Law 41/2003, of 18 November, on the Protection of the Assets of Persons with Disabilities and the amendment of the Civil Code, the Civil Procedure Law and the Tax Regulations establishes, in its Second Additional Provision, that the Autonomous Communities may declare an exemption from the Wealth Tax on the assets and rights that make up the protected assets of persons with disabilities.