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Practical Heritage Manual 2022.

11. Administrative concessions

Regulations: Art. 21 Wealth Tax Law

The assessment of administrative concessions for the exploitation of services or goods of public domain or ownership, whatever their duration, must be carried out by applying the criteria contained in article 13 of the consolidated text of the Law on the Tax on Property Transfers and Documented Legal Acts. , approved by Royal Legislative Decree 1/1993, of September 24 ( BOE of October 20).

General valuation rules:

In accordance with the provisions of said article and as a general rule, the value of the right generated by the concession will be set by the application of the rule or rules that, taking into account the nature of the obligations imposed on the concessionaire, are applicable to those are indicated below:

  1. When the Administration indicates a total amount as price or fee, which must be paid by the concessionaire, for the amount thereof.

  2. When the Administration establishes a minimum fee, price, participation or benefit that the concessionaire must pay periodically, two assumptions must be distinguished:

    • If the duration of the concession does not exceed one year, for the total sum of the periodic benefits.

    • If the duration of the concession is greater than one year, capitalizing at 10% the annual amount paid by the concessionaire.

    When for the application of this rule it would be necessary to capitalize an annual amount that was variable as a consequence, exclusively, of the application of price review clauses, which take as reference objective indices of its evolution, the amount corresponding to the first year will be capitalized. If the variation depends on other circumstances, the mathematical reason for which is known at the time the concession is granted, the amount to be capitalized will be the annual average of those that the concessionaire must satisfy during the life of the concession.

  3. When the concessionaire is obliged to revert certain assets to the Administration, the estimated net book value of said assets on the date of reversion will be computed, plus the expenses anticipated for the reversion. To calculate the net book value of the assets, the amortization tables approved for the purposes of Corporate Tax will be applied in the average percentage resulting from them.

Special valuation rules:

In special cases in which, due to the nature of the concession, the value cannot be set by the rules set forth above, it will be determined in accordance with the following rules:

  1. Applying to the value of the fixed assets affected by the exploitation, use or exploitation in question, a percentage of 2 percent for each year of duration of the concession, with a minimum of 10 percent and without the maximum being able to exceed asset value.

  2. In the absence of the previous assessment, the one indicated by the respective public Administration will be taken.

  3. In the absence of the two previous rules, for the value declared by the interested parties, without prejudice to the right of the Administration to proceed with its verification by the means provided for in the General Tax Law.