TAX MEASURES OF THE COMMUNITY OF MADRID - LAW 6/2018 -

Modifications of the Revised Text of the laws of the Community of Madrid in terms of taxes transferred by the State (Legislative Decree 1/2010)

Personal income tax. regional scale

The applicable regional scale reduction of the overall tax base. Art.1 modification coming into force on December 31, 2018 and will apply to all tax periods ending in the year 2018.

Article 1. regional scale.

The regional scale in the Income Tax for Individuals is:

taxable income

(Up euros)

total tax liability

(euros)

law 6/2018

total tax liability

(euros)

Before to

law 6/2018

Other taxable income

(Up euros)

rate applicable

(percentage)

law 6/2018

rate applicable

(percentage)

Before to

law 6/2018

0,00 0,00 0,00 12.450,00 9,00 % 9,50 %
12.450,00 1.120,50 1.182,75 5.257,20 11,20 % 11,20 %
17.707,20 1.709,31 1.771,56 15.300,00 13,30 % 13,30 %
33.007,20 3.744,21 3.806,46 20.400,00 17,90 % 17,90 %
53.407,20 7.395,81 7.458,06 Onwards 21,00 % 21,00 %

Personal income tax. regional tax credits

Changes and developments that come into force on December 31, 2018 and will apply to all tax periods ending in the year 2018.

  • Deduction for refuge unpaid over 65 years and / or disabled. Increases the amount (Modification of 7.1)

Article 7. Deduction for unpaid placement over sixty-five years and / or with discapacidad.

  1. Taxpayers may deduct 1.500 euros for each person over sixty-five years or greater than or equal to 33 100 disability living with the taxpayer for more than one hundred and eighty three days a year in solitary refuge without consideration, when not give rise to obtaining aid or subsidies from the Community of Madrid ".

  • New deduction for donations to charities and sports clubs 9

"Article 9. Deduction for donations to foundations and sports clubs.

  1. Taxpayers may deduct 15 per 100 of the amounts donated to foundations that meet the requirements of Law 1/1998, of 2 March, Foundations of the Community of Madrid, and pursue cultural, welfare, educational or medical purposes or any other similar nature to these.

In any case, it will be necessary that these foundations are registered in the Register Foundations of the Community of Madrid, body accountable to the corresponding protectorate and that ordered its deposit in the Register of Foundations.

  1. Taxpayers may deduct 15 per 100 of the amounts donated to elementary and basic sports clubsAs defined in Articles 29 and 30 of Law 15/1994, of 28 December, on Sport of the Community of Madrid.

In any case, it will be necessary that these clubs are registered in the Register Sports Associations of the Community of Madrid ".

  • Deduction for educational expenses (Modification of 11.2 and 4)

the deduction is extended to school fees the first cycle of Early Childhood Education.

"two. The deduction base shall consist of the amounts paid by the concepts of schooling and school locker acquisition of exclusive use of the children or descendants during the corresponding steps to Early Childhood education, Compulsory basic education and basic vocational training, referred to in Articles 3.3, 3.10, 4 and 14.1 of the Organic Law 2/2006 of 3 May on Education, as well as language teaching, whether this is taught as an extracurricular activity as having the character education special regime. (Add) In the case of children or descendants who are enrolled in the first cycle Children's Education referred to in Article 14.1 of the Organic Law 2/2006 of 3 May on Education, the deduction base It will consist exclusivamente by the amounts paid by the concept of schooling are not paid by public or by private prices prices authorized by the Administration.

The deduction base will be reduced by the amount of scholarships and grants obtained from the Community of Madrid or other public administration covering all or part of the expenses cited ".

"4. The amount to be deducted shall not exceed 400 euros for each of the children or descendants that generate the right to deduct. In the event that the taxpayer was entitled to practice deduction for tuition fees, the previous limit will rise to 900 euros for each of the children or descendants.

(Añade) In the case of children or descendants who attend during exercise studies first cycle Early Childhood Education the limit to which the preceding paragraph shall be referred for 1,000 euros each”.

  • New deduction for care of children under 3 years (New 11a)

"Article 11a. Care deduction children under 3 years.

  1. Taxpayers who have hired a person for which contributions are made by the Special System for Domestic Employees of the General System of Social Security may deduct 20 percent quotas are entered by such quotes con el limit Deduction 400 euros anuales.

In the case of taxpayers who hold a large family the deduction will be 30 per cent the contributions paid with the deduction limit 500 per year.

The deduction will be applicable for contributions made in the months of the tax period in which the taxpayer has at least one child under 3 the minimum applied by descendants.

  1. For the implementation of this deduction the following requirements must be met:

  1. a) The taxpayer must be in a position High in Social Security as an employer owner of a home family, having hired and quote for one or more persons by the Special System for Domestic Employees of the General System of Social Security during the period in which the deduction is to be applied.

It will also be necessary for the person or persons hired Serving for the holder the family home for, at least 40 hours per month.

  1. b) The taxpayer employer and, where appropriate, the other parent the youngest son of 3 years for the minimum descendants are applied, must make a self-employed or employed why they are discharged from the corresponding Social Security regime or mutuality, at least for 183 days in the tax period.

If the taxpayer has children under 3 years different parents, The deduction may be applied when the requirement stated in the preceding paragraph with respect to any of them "are met.

  • Deduction for investment in the acquisition of shares and shares of new institutions or newly created (Modification 15)

And increases the percentage deduction limit in general and especially in case of industrial companies and investees by universities and research centers.

Extends the deduction contributions to cooperatives

"Article 15. Deduction for investment in the acquisition of shares and shares of new companies or start-ups.

  1. Taxpayers may apply a deduction 30 100 of amounts invested during the year in the acquisition of shares and shares resulting from agreements of incorporation or capital increases in commercial companies that take the form of SA and Limited Liability Company.

  1. The deduction limit will be applicable 6.000 euros anuales.

  1. For the application of the deduction shall be complied with the following requirements:

  1. a) as a result of the interest acquired by the taxpayer, computed along with possessing the same entity spouse or persons linked to the taxpayer by reason relationship, straight or collateral consanguinity or affinity to the third degree included, have not reached during any day of the calendar year more than 40 100 of the total capital of the entity or its voting rights.
  2. b) that such participation a minimum of three years is maintained.
  3. c) the institution from which the shares are acquired meets the following requirements:

1.o Having its registered offices in the Community of Madrid.

2.o Develop an economic activity. For these purposes it will not be considered an economic activity if the main activity is the management of a property or real estate, according to the provisions of Article 4.Ocho.Dos.a) of Law 19/1991 6 June, the wealth tax.

3.o That for the case where the investment corresponds to the constitution of the organization, from the first fiscal year this count, at least one person hired with employment contract and full-time and discharged in the General System Security Social.

4.o Que, para el caso en que la inversión efectuada corresponda a una ampliación de capital de la entidad, dicha entidad hubiera sido constituida dentro de los tres años anteriores a la ampliación de capital y que la plantilla media de la entidad durante los dos ejercicios fiscales posteriores al de la ampliación se incremente respecto de la plantilla media que tuviera en los doce meses anteriores al menos en una persona con los requisitos anteriores, y dicho incremento se mantenga durante al menos otros veinticuatro meses. Para el cálculo de la plantilla media total de la entidad y de su incremento se tomarán las personas empleadas en los términos que disponga la legislación laboral, teniendo en cuenta la jornada contratada en relación a la jornada completa.

(NUEVO) 4. The deduction in this Article shall be 50 100 of the amounts invested, with a limit of 12,000 euros, in the case of companies created or participated by universities or research centers.

(NUEVO) 5. The deduction in this article shall also apply in the percentage and limits set out in paragraph 4 and fulfill the requirements of paragraph 3, except contained in paragraph 3 of this paragraph, the amount invested in the year in the acquisition of shares and social contributions as a result of agreements constitution or capital increase labor corporations, limited liability companies and labor cooperatives”.

  • Limits and requirements Formal applicable to certain deductions:

Only entitled to the application of the new deduction for care of children under 3 years (Article 11 bis) those contributors whose taxable, Defined as the sum of the general tax base and savings, together with the corresponding to the other members of your household, no supere the amount corresponding to 30,000 multiplied by the number of members of that household (modification art.18.2) euros

For the purposes of applying the deduction for donations to charities and sports clubs (Art.9), the base thereof may not exceed 10% of the net base, defined as the sum of the general taxable and saving taxpayer "(art.18.3)

links application of the deduction for lease of residence to liquidation of ITP / AJD derivative lease unless They are not required to file tax return to apply the bonus Art.30 quater. (Art.18.4 c))

  • The total tax deductions regional

Modifies the art.3 to include the new deduction for donations and new deduction for child care under 3 years.

Inheritance tax

The amendments come into force on 01-01-2019

  • New taxable reduction of live inter acquisitions (New Art. 22a)

a reduction for cash donations is included to direct relatives to acquire common or individual companies or professional business or shareholdings in certain companies housing.

"Article 22a. Reductions taxable live inter acquisitions.

  1. In cash donations that meet the requirements of this Article, where the donee is included in group I or II of kinship those provided in Article 20.2) of Law 29/1987, of 18 December, the inheritance tax, that is a side of the second degree of consanguinity donor, It may apply a reduction of one hundred percent of donations received, with a maximum limit of 250,000 euros.

For the purpose of applying the limit indicated in the preceding paragraph, They were counted all donations made by the same donor to the same donee in the previous three years at the time of maturity, provided it is intended for the purposes indicated in paragraph 2 of this article, so not to be exceeded the reduction limit established by the set of all computable donations.

  1. The reduction provided for in the preceding paragraph shall apply on cash donations that are formalized in a public document and where the donated amount is allocated by the donee, in the within one year from the Donación, one of the following purposes:

- The purchase of a home that has the usual consideration.

To this purpose it shall be deemed residence which fits the definition and requirements of the twenty-third additional provision of Law 35/2006, of 28 November, Tax Personal Income and its implementing regulations development, in its wording in force since January 1, 2013.

- The acquisition of shares and shares resulting agreements constitution or capital of entities that take the form of SA, Sociedad Anonima Laboral, Limited Liability Company, Limited Liability Company Labor and Cooperative Society, under the conditions Article 15 of this law refers to.

- The acquisition goods, services and rights that affect the development of an individual company or a professional business donee.

In the public document formalizing the donation should manifest destiny of the donated amounts.

  1. In the case where the amounts donated fail to reach to be used for the purposes indicated in the prescribed time, the donee shall, within one month of default occurs, additional tax return without application of the reduction in this article and including default interest.

The same obligation will those who receive the donation for the purchase of residence in the event that the acquired dwelling does not reach inhabited effectively within 12 months of acquisition or construction or not actually dwell for a minimum period continued three years unless the circumstances indicated in the twentieth additional provision three of Law 35/2006, of 28 November, the Income Tax for Individuals, and its implementing regulations, in the version in force since 1 January 2013 ".

  • Bonus share (Amendment Art. 25)

bonus quota is established for the acquisition of goods and rights, whether by succession mortis causa or inter acquisition by living, whose beneficiaries are collateral consanguinity second and third degree (brothers, uncles or nephews) of the deceased or transferor.

"Article 25. Bonus share.

Shall apply the following bonuses:

  1. Bonus on acquisitions mortis causa.

Taxable included in groups I and II under Article 20.2) of Law 29/1987 of 18 December, the inheritance tax, apply a bonus 99 100 tax liability derived from acquisitions mortis causa and amounts received by beneficiaries of life insurance that accrues to other goods and rights that make up the hereditary portion of the beneficiary.

(Añade) Los sujetos pasivos que sean colaterales de segundo o tercer grado por consanguinidad del causante, incluidos en el grupo III de los previstos en el artículo 20.2.a) indicado en el párrafo anterior, aplicarán una bonificación del 15 por ciento, los de segundo grado, y del 10 por ciento, los de tercer grado, de la cuota tributaria derivada de las mismas adquisiciones a que se refiere el párrafo anterior. La bonificación a que se refiere este párrafo será aplicable, exclusivamente, sobre la parte de la cuota que proporcionalmente corresponda a los bienes y derechos declarados por el sujeto pasivo, considerándose como tales a los que se encuentren incluidos de forma completa en una autoliquidación o declaración presentada dentro del plazo voluntario o fuera de este sin que se haya efectuado un requerimiento previo de la Administración tributaria.

  1. Acquisitions inter vivos bonus:

1.o In inter living acquisitions taxable included in groups I and II of the relationship under Article 20.2) of Law 29/1987 of 18 December, the inheritance tax, apply a bonus 99 100 in the tax rate derived therefrom. It will be a prerequisite for the implementation of this bonus donation is formalized in a public document.

(Añade) Los sujetos pasivos que sean colaterales de segundo o tercer grado por consanguinidad del donante, incluidos en el grupo III de los previstos en el artículo 20.2.a) indicado en el párrafo anterior, aplicarán una bonificación del 15 por ciento, los de segundo grado, y del 10 por ciento, los de tercer grado, de la cuota tributaria derivada de las mismas adquisiciones a que se refiere el párrafo anterior. La bonificación a que se refiere este párrafo será aplicable, exclusivamente, sobre la parte de la cuota que proporcionalmente corresponda a los bienes y derechos declarados por el sujeto pasivo, considerándose como tales a los que se encuentren incluidos de forma completa en una autoliquidación o declaración presentada dentro del plazo voluntario o fuera de este sin que se haya efectuado un requerimiento previo de la Administración tributaria.

2.o When donating either in cash or in any assets or rights referred to in Article 12 of Law 19/1991, of 6 June, the wealth tax, the bonus will be applicable only when the source is donated funds duly justified, provided that also has manifested itself in the public document that formalizes the transmission origin of these funds. "

ITP - AJD The amendments come into force on 01-01-2019

  • Mode "Transfer Tax"

New Subsection 1.a. Tax rates ", it includes Articles 27 to 30 in Section 1 of the Tít.I Chap.IV

Tax rate applicable to the acquisition of residence for large families

Modif.Art.29.1 "b) that the property constitutes the main residence of the large family that is held by the taxpayer. residence which fits the definition and requirements will be considered in the twentieth additional provision three of Law 35/2006, November 28, Tax Personal Income, and its implementing regulations, in the version in force since 1 January 2013 ".

New Art.29. "3. In the event that the acquired dwelling does not reach inhabited effectively within 12 months of acquisition or construction or may not actually dwell continued for at least three years, unless the circumstances indicated in the twenty-third additional provision of Law 35/2006, of 28 November, Tax Personal Income, and its implementing regulations, in the version in force since January 1, 2013, the purchaser shall, within one month of default occurs, additional autoliquidación applying the standard tax rate in the Community of Madrid and including default interest ".

new bonuses

New Subsection 2.a. Bonuses "includes new items 30a, 30b and 30c in Section 1 of the Tít.I Chap.IV

New bonus tax liability for purchase of housing by individuals

New bonus tax liability by acquisition of movable property and livestock of little value.

New bonus on the total tax liability applicable to housing leases.

"Article 30 bis. Reduction of tax fee for purchase of residence for individuals.

  1. Individuals who purchase a property that will be your primary residence may apply a bonus 10 percent of the tax in the form of "Transfer Tax" resulting from the acquisition.

To this purpose it shall be deemed residence which fits the definition and requirements of the twenty-third additional provision of Law 35/2006, of 28 November, Tax Personal Income and its implementing regulations development, in its wording in force since January 1, 2013.

  1. The bonus applies exclusively when the real value of the property acquired is equal to or less than 250.000 euros.

In determining the actual value of the accompanying acquired housing and parking spaces that are transmitted together with that will be included, even if they are separate registry farms.

  1. In the event that the acquired dwelling does not reach inhabited effectively within 12 months of acquisition or construction or may not actually dwell continued for at least three years, unless the circumstances indicated in the twenty-third additional provision of Law 35/2006, of 28 November, the Income Tax for Individuals, and its implementing regulations, in the version in force since January 1, 2013 the purchaser shall, within one month of default occurs, a complementary autoliquidación applying the standard tax rate in the Community of Madrid and including default interest.

  1. The bonus in this article will incompatible with the application of the tax rate in Article 29 of this law refers to.

Article 30b. Reduction of tax fee for acquisition of movable property and livestock of little value.

Taxpayers who are natural persons who acquire personal property and livestock whose actual value is less than EUR 500 shall apply a bonus 100 100 of the tax in the form of "Transfer Tax" resulting from the acquisition.

the bonus not be applicable the following acquisitions:

1.o Those made by entrepreneurs or professionals for the purposes of value added tax if the purchased good is intended or affect the business or professional activity.

2.o Those of precious metal goods made by people who are obliged to keeping the logbook referred to in Article 91 of Royal Decree 197/1988, of 22 February, Regulation Act approved precious metal objects.

3.o The vehicles to be registered recorded in the register or any special or auxiliary that Article 2 of the General Vehicle Regulations approved by Royal Decree 2822/1998 of 23 December 'concerns.

"Article 30c. The total tax rebates applicable to housing leases.

  1. Taxpayers may apply a bonus 100 percent of the derivative market share of rental housing not intended to pursue a business or professional activity, Provided they are in possession of a copy of the receipt of deposit guarantee in Social Housing Agency of the Community of Madrid formalized by the lessor, in accordance with Article 36 of Law 29/1994, of 24 November, of Urban Leases, and Decree 181/1996, of December 5, whereby the regime leases deposit bonds is regulated in the Community of Madrid, or they possess copy of the complaint filed with that agency for not having given proof that the lessor.

The bonus in this article will be applicable only in relation to leases where the agreed annual income is less than 15,000 euros.

  1. Taxpayers who apply the bonus contained in this Article They shall not be required to submit tax return for the tax. " (Refer again Art.50 bis)

  • Mode "stamp duty". new bonuses

New bonus tax fee acquisition of residence for individuals (Article 38 bis 2nd subsection of Section 2 of Chap.IV title I)

New bonus tax fee acquisition of residence for large families (Article 38 ter 2nd subsection of Section 2 of Chap.IV title I)

"Article 38a. Reduction of tax fee for purchase of residence for individuals.

  1. Individuals who purchase properties that will constitute their principal residence may apply a bonus 10 100 the gradual tax rate in mode "Legal Documents" derived from the first copies of deeds documenting such acquisitions.

To this purpose it shall be deemed residence which fits the definition and requirements of the twenty-third additional provision of Law 35/2006, of 28 November, the Income Tax for Individuals, and its implementing regulations development, in the version in force since January 1, 2013.

  1. The bonus applies exclusively when the actual value of the property acquired is equal to or less than 250.000 euros.

In determining the actual value of the accompanying acquired housing and parking spaces that are transmitted together with that will be included, even if they are separate registry farms.

  1. 3. In the event that the acquired dwelling does not reach inhabited effectively within 12 months from its acquisition or construction or not it actually dwell continued for at least three years, unless the circumstances indicated in the twentieth additional provision three of Law 35/2006, of 28 November, Income tax of Individuals, and its implementing regulations, in the version in force since January 1, 2013, the purchaser shall, within one month of default occurs, additional autoliquidación applying general tax rate in the Community of Madrid and including default interest.

  1. The bonus in this article It is incompatible with the application of the allowance provided for in Article 38b of this law. "

"Article 38b. Reduction of tax fee for purchase of housing for large families.

  1. Taxpayers who hold a large family and acquire properties that will constitute their principal residence will apply a bonus 95 100 the gradual tax rate in mode "Legal Documents" derived from the first copy of deeds documenting such acquisitions.

For the implementation of this bonus will be necessary to meet the following requirements:

  1. a) The taxpayer holds a large family.
  2. b) Que el inmueble constituya la vivienda habitual de la familia numerosa de la que sea titular el sujeto pasivo. Se considerará vivienda habitual la que se ajusta a la definición y requisitos establecidos en la disposición adicional vigésima tercera de la Ley 35/2006, de 28 de noviembre, del Impuesto sobre la Renta de las Personas Físicas, y en su normativa de desarrollo, en su redacción vigente desde el 1 de enero de 2013.
  3. c) Que, en el supuesto de que la anterior vivienda habitual fuera propiedad de alguno de los titulares de la familia numerosa, la misma se venda en el plazo de dos años anteriores o posteriores a la adquisición de la nueva vivienda habitual. No será exigible este requisito cuando se adquiera un inmueble contiguo a la vivienda habitual para unirlo a esta, formando una única vivienda de mayor superficie.

  1. For the purposes of this article, the concept of large families is established by Law 40/2003 of 18 November on Protection of Large Families. Accreditation of the legal status of large family will be made by submitting large family, family book or other document proving that the condition already concurred on the date of accrual.

  1. In the event that the acquired dwelling does not reach inhabited effectively within 12 months from its acquisition or construction or not it actually dwell continued for at least three years, unless the circumstances indicated in the twentieth additional provision three of Law 35/2006, of 28 November, Income tax for Individuals, and its implementing regulations, in the version in force since January 1, 2013, the purchaser shall, within one month of default occurs, additional autoliquidación applying the overall tax rate in the Community of Madrid and including default interest.

  1. The bonus in this article It is incompatible with the application of the allowance provided for in Article 38a of this law. "

FORMAL OBLIGATIONS into force on 01-01-2019

  • Exclusion from the obligation to submit the stamp tax autoliquidación by acquisition of movable property and livestock of little value (New 50a)

Taxpayers who made purchases of goods to which the bonus is applicable in Article 30b of this Act shall not be required to submit tax return for the tax.

Notwithstanding the foregoing, maintain the obligation to submit the tax return purchasers of goods to be subject to registration in any public registry ".

LAW 9/2018 tax measuresOf 26 December, Quotes General of the Community of Madrid 2019. BOCM 28/12/2018

Article 68. Maintaining the amount of the fees. During fiscal 2019 the amount of the current rates will be maintained in 2018, except the unique modifications that might be approved by law.

first final disposition. Modification of the Revised Text of the legal provisions of the Community of Madrid in terms of taxes transferred by the StateApproved by Legislative Decree 1/2010, of 21 October

With effect from 1 January 2019 the sixth transitory provision of the Consolidated Text of the legal provisions of the Community of Madrid in terms of taxes transferred by the State, approved by Legislative Decree 1/2010 of 21 October, amending that It shall read as follows:

"Sixth transitory provision

It remains in effect for fiscal years 2016, 2017, 2018 and 2019 the rebate of the tax for acquisition of property for the development of industrial activities in the Corredor del Henares, Southeast and South Metropolitan in the Transfer Tax and Stamp Duty modalities provided for in the first additional provision of the Consolidated Text ".