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Practical Heritage Manual 2023.

Rules

1. In order to determine the amount of the tax base of personal income tax savings , the following rules must be applied:

  1. part of the aforementioned savings tax base that corresponds to the positive balance of the capital gains and losses obtained by transfers of acquired assets or improvements made therewith will not be taken into account ##1## more than one year in advance of the date of the transfer, the amount of which will be entered in box [32] of the Tax return. Heritage.

    To determine this amount, the net balance of the capital gains and losses obtained in the year that derive from the transfer of assets acquired more than one year before the date of transfer must be calculated, first of all.

    If the previous balance was negative or zero, zero will be entered in box [32].

    If the balance is positive, the positive net balance of capital gains and losses attributable to 2023 must be taken into consideration to be included in the savings tax base (box [0424] of the Personal Income Tax declaration ), and, where applicable, the compensation of the following balances.

    • Negative net balance of capital gains attributable to 2023 to be integrated into the savings tax base (with a limit of 25 percent positive net balance of capital gains and losses attributable to 2023). Box [0436]

    • Negative net balances of capital gains and losses for 2019, pending compensation as of January 1, 2023, to be integrated into the savings tax base. Box [0439]

    • Negative net balances of capital gains and losses for 2020, pending compensation as of January 1, 2023, to be integrated into the savings tax base. Box [0440]

    • Negative net balances of capital gains and losses for 2021, pending compensation as of January 1, 2023, to be integrated into the savings tax base. Box [0441]

    • Negative net balances of capital gains and losses for 2022, pending compensation as of January 1, 2023, to be integrated into the savings tax base. Box [0442]

    • Remaining negative net balances of income from movable capital from 2019, pending compensation as of January 1, 2023, to be integrated into the savings tax base, with a limit of 25 percent of the positive net balance of attributable capital gains and losses to 2023. Box [0443]

    • Remainder of negative net balances of income from movable capital from 2020, pending compensation as of January 1, 2023, to be integrated into the savings tax base, with a limit of 25 percent of the positive net balance of attributable capital gains and losses to 2023. Box [0444]

    • Remainder of negative net balances of income from movable capital of 2021, pending compensation as of January 1, 2023, to be integrated into the savings tax base, with the limit of 25 percent of the positive net balance of attributable capital gains and losses to 2023. Box [0445]

    • Remainder of negative net balances of income from movable capital of 2022, pending compensation as of January 1, 2023, to be integrated into the savings tax base, with the limit of 25 percent of the positive net balance of attributable capital gains and losses to 2023. Box [0447]

    If the difference between the amount of box [0424] and the amounts of the sum of boxes [0436] and [0439] to [ 0445] and [0447] is equal to zero, in box [32] of the Wealth Tax declaration will be entered as zero.

    If the difference between the amount of box [0424] and the amounts of the sum of boxes [0436] and [0439] to [ 0445] and [0447] is positive, and the balance of capital gains and losses derived from the transfer of assets acquired more than one year before the date of transfer (GyP>1) was equal to or greater than the amount entered in box [0424] of the Personal Income Tax declaration , in box [32] of The Wealth Tax declaration will include the difference between the amounts entered in boxes [0424] and the sum of boxes [0436] and [0439] to [0445] and [0447] of the statement IRPF ##26##.

    If the difference between the amounts in box [0424] and the amounts in the sum of boxes [0436] and [0439] to [ 0445] and [0447] is positive, and the balance of capital gains and losses derived from the transfer of assets acquired more than one year before the date of transfer (GyP>1) was less than the amount entered in box [0424] of the Personal Income Tax declaration , in box [32] of the declaration of the Wealth Tax, the amount resulting from the following operation will be recorded.

    (Profits and losses >1 ÷ Box [0424] ) x (Boxes [0424] - [0436] - [0439] - [0440] - [0441] - [0442] - [0443] - [0444] - [0445] - [0447] )

  2. The amount of dividends and shares in profits obtained by holding companies will be added, regardless of the entity that distributes the profits obtained by the aforementioned holding companies. 

    In accordance with the provisions of letter a) of section 1 of the tenth transitional provision of Law 27/2014, of November 27, on Corporate Tax ( BOE of November 28) , dividends and shares in profits received by Personal Income Tax taxpayers and obtained by holding companies are not included in the tax base of Personal Income Tax nor are they subject to withholding or payment on account of said tax.

2. For the purposes of determining the full Personal Income Tax savings quota , the part of said quota corresponding to the positive balance of will not be taken into account. those obtained from the transfers of assets acquired or improvements made therein more than one year prior to the date of the transfer, the amount of which will be entered in box [35] of the Wealth Tax declaration and which is the result of the following operation:

Box [35] = (Instalments corresponding to the taxable savings base Boxes [0540] - [0541] ÷ tax base of savings Box [0460] ) x Box [32]

3. For the purposes of determining the full amount of the Wealth Tax , part of the full amount corresponding to assets that , due to their nature or destination, are not capable of generating income taxed in the Personal Income Tax .

For the purposes of determining the assets that are excluded in the calculation of the limit of the full quota referred to in article 31.One.b) of the Wealth Tax Law, their “nature or destination” must be taken into account. the moment of accrual of the Wealth Tax.

In this sense, clearly unproductive goods such as objects of art and antiques, jewelry, boats and automobiles for private use, unbuilt land, etc. are excluded.

However, apart from the clearly unproductive assets that we have referred to in the previous section, it should be noted that the destination assigned by the owner to an asset element can be decisive regarding its capacity to generate returns. For these purposes, after the Supreme Court ruling of March 16, 2011, cassation appeal no. 212/2007 ( RED : STS1346/2011) which, in its FJ5, established that “from the literal wording of this article it is deduced that the inclusion or exclusion derives from the nature or destination of the assets, at the time to which the liquidation refers , regardless of the fact that at a later time they may be subjected to operations that accrue returns ", it is considered that, if the taxpayer's assets, at the time the accrual of the Wealth Tax occurs , are not capable of producing income taxed by the Personal Income Tax Law , will not be taken into account in the calculation of the limit of article 31 of the Wealth Tax Law, regardless of whether At a later time they may be subjected to or destined for operations that earn returns.

Now, the determination of the assets that are capable of producing income constitutes a matter of fact, so it must be determined, in any case, by the Administration managing the tax, in view of the specific circumstances of the assets in each case concrete.

Without prejudice to the foregoing, it should be noted that in the case of the habitual residence, to the extent that the properties are assets that by their nature are capable of generating income, the value thereof that exceeds the maximum amount of 300,000 euros declared exempt in article 4. Nine of the Wealth Tax Law must be computed as part of the taxable base of the tax for the purposes of calculating the limit of the full quota.

The full quota magnitude corresponding to unproductive assets (CIBI) can be determined using the following formula:

 CIBI = EPN x Full Fee ÷ Taxable Base

CIBI being the full quota corresponding to unproductive assets and EPN being the net value of the assets that are not capable of producing income in the Personal Income Tax . That is, the value of such assets or rights reduced, where appropriate, by the amount of the deductible debts corresponding to them and the proportional part of the debts that, being equally deductible, are not linked to any specific asset element.

If there is an excess of the 60 percent limit, said excess must be reduced in the Wealth Tax quota, without the reduction being able to exceed 80 percent of said quota. That is, a non-reducable minimum fee is established in the Wealth Tax equivalent to 20 percent of the full fee of the Tax itself.

Note: The quota limit established in article 31.1 of the Wealth Tax Law is not applicable to non-resident who have opted in accordance with the provisions of article 5.Uno.a) of the aforementioned Wealth Tax Law, due to the personal obligation to contribute to said tax, since by not paying tax in Personal Income Tax , there is no possibility of adding the remaining full contributions in both taxes and put them in relation to a percentage of the taxable base of Personal Income Tax .