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Form 100. Personal Income Tax Return 2018

9.6. Deductions for income obtained in Ceuta or Melilla

DEDUCTION FOR INCOME OBTAINED IN CEUTA AND MELILLA. COMPLETION (art. 68.4 Law)

This section must be completed if the taxpayer is entitled to a deduction for income obtained in Ceuta or Melilla.

  • Completion

    Through a data capture window, the income obtained in Ceuta or Melilla will be recorded, recording the following information:

  • Income included in the general tax base

    The amount of income obtained in Ceuta or Melilla included in the general tax base will be recorded in this box.

    The following will be included as income obtained in Ceuta and Melilla:

    • Net (reduced) income from work, capital (which should not be included in the savings tax base) and economic activities. 

    • Income from the ownership of real estate located in Ceuta and Melilla.

    • The net balance of capital gains and losses attributable to 2018 that do not arise from the transfer of assets. 

    Negative items originating in Ceuta and Melilla 

    If the net balance of capital gains and losses not arising from a transfer is negative, only the amount that has been included in the tax base for the year will be taken into account, without including, where applicable, the portion pending offset in subsequent years. If the negative balance does not correspond entirely to income obtained in Ceuta or Melilla, the portion pending compensation will be distributed proportionally.

    Likewise, to calculate the income obtained in Ceuta and Melilla included in the general tax base, the negative items from previous years originating in Ceuta and Melilla that have been offset in the current year in the general tax base must be subtracted.

    For the calculation of this deduction, the program does not contemplate the assumption that the compensation of negative taxable bases from previous years occurs.

  • Income included in the taxable savings base

    The amount of income obtained in Ceuta or Melilla included in the taxable savings base will be recorded in this box.

    The following are included in the taxable savings base:

    • The positive net balance of capital gains and losses attributable to 2018 arising from the transfer of assets.

    • The positive net balance of capital gains included in the taxable savings base.

    Negative items originating in Ceuta and Melilla

    To calculate the income obtained in Ceuta and Melilla included in the taxable savings base, the negative items from previous years originating in Ceuta and Melilla that have been offset in the current year must be subtracted. If the negative balance does not correspond entirely to income obtained in Ceuta or Melilla, the portion pending compensation will be distributed proportionally.

  • Joint income tax return

    In order for the program to calculate the deduction for this type of taxation, it must include the sum of the income obtained in Ceuta and Melilla by all members of the family unit.

    In general, the amount of income obtained in Ceuta and Melilla with the right to deduction will be the sum of the amount of those that give rise to this same right in the individual declarations of the declarant and the spouse.

    However, in some cases, the choice of tax type may result in variations in the amount of deductible expenses with a maximum limit, and in the reductions applicable to net work income.

  • Information about calculations

    For information purposes only, the data capture window shows the result calculated by the program for the part of the full quota that proportionally corresponds to the income computed to determine the general and savings tax base obtained in Ceuta or Melilla, both in the joint declaration and in the individual declarations of the declarant and the spouse and, where applicable, the children.

DEDUCTION FOR INCOME OBTAINED IN CEUTA OR MELILLA (art. 68.4 Law)

The deduction for income obtained in Ceuta or Melilla can be applied in the following cases:

  • TAXPAYERS LIVING IN CEUTA OR MELILLA

    1. For income obtained in Ceuta or Melilla

      Taxpayers who have their habitual residence in Ceuta or Melilla can apply this deduction for income obtained in Ceuta and Melilla.

      The deduction consists of 60% of the portion of the sum of the full state and regional or complementary quotas that proportionally corresponds to the income computed for the determination of the taxable bases that would have been obtained in said territories.

    2. For income obtained outside Ceuta or Melilla

      This deduction may also be applied by taxpayers who have their habitual residence in Ceuta or Melilla for income obtained outside of these cities, when they meet the following REQUIREMENTS:

      • That at least one third of the taxpayer's net assets, determined in accordance with the regulations governing the Wealth Tax, are located in said cities.

    Limit

    The maximum amount of income obtained outside of these territories that can benefit from the deduction will be the net amount of the returns and capital gains and losses obtained in these cities.

  • TAXPAYERS NOT RESIDENT IN CEUTA OR MELILLA

    Taxpayers who do not have their habitual residence in Ceuta or Melilla may apply this deduction for income obtained in Ceuta and Melilla.

    The deduction consists of 60% of the part of the sum of the full state and regional or complementary contributions that proportionally corresponds to the income computed for the determination of the positive taxable bases that would have been obtained in Ceuta or Melilla.

    In no case may this deduction be applied to the following incomes:

    • Those from Collective Investment Institutions, except when all of their assets are invested in Ceuta or Melilla.

    • To the income from work

    • To capital gains from movable property

    • To the income from deposits or accounts in all types of financial institutions

    ATTENTION : In no case may the amount of this deduction exceed 60% of the total gross tax amount, and the program will break down the corresponding state and regional portion.

INCOME OBTAINED IN CEUTA AND MELILLA (art. 68.4 Law)

The following will be considered income obtained in Ceuta or Melilla:

  1. Income from work, when derived from work of any kind performed in said territories, as well as income derived from unemployment benefits and social security systems referred to in article 17.2.a) of the Tax Law (art. 58.1 Rgl.).

    However, taxpayers who are not resident in Ceuta or Melilla will not be able to apply the deduction for this type of income under any circumstances.

  2. Income from ownership of real estate located in Ceuta or Melilla or property rights that affect them.

  3. Those arising from the exercise of economic activities actually carried out in Ceuta or Melilla.

    Operations actually carried out in Ceuta or Melilla are understood to be those that close a commercial cycle in these territories that determine economic results or involve the provision of a professional service in said territories.

    Such circumstances will not be deemed to occur when it concerns isolated operations of extraction, manufacturing, purchase, transportation, entry and exit of goods or effects therein and, in general, when the operations do not determine income by themselves (art. 58.2 Rgl.).

    In the case of fishing and maritime activities, the rules established in article 33 of the consolidated text of the Corporate Income Tax Law will apply.

  4. Capital gains arising from real estate located in Ceuta or Melilla.

  5. Capital gains arising from movable property located in Ceuta or Melilla.

    However, taxpayers who are not resident in these territories will not be able to apply the deduction for this type of income under any circumstances.

  6. Income from movable capital arising from bonds or loans, when the capital is invested in said territories and generates the corresponding income there.

  7. Income from movable capital arising from the leasing of movable property, businesses or mines, when the object of the lease is located and effectively used in Ceuta and Melilla (art. 58.4 Rgl.).

  8. Income from companies that operate effectively and materially in Ceuta or Melilla and with domicile and exclusive corporate purpose in said territories.

  9. Income from deposits or accounts in all types of financial institutions located in Ceuta or Melilla.

    However, taxpayers who are not resident in these territories will not be able to apply the deduction for this type of income under any circumstances.