{"id":3733,"date":"2021-11-18T09:47:36","date_gmt":"2021-11-18T09:47:36","guid":{"rendered":"http:\/\/www.gmtaxconsultancy.com\/?p=3733"},"modified":"2021-11-18T09:47:36","modified_gmt":"2021-11-18T09:47:36","slug":"modifications-local-tax-added-value-property","status":"publish","type":"post","link":"https:\/\/gmtaxconsultancy.com\/en\/news\/modifications-local-tax-added-value-property\/","title":{"rendered":"Local Tax Modifications: Added Value of Property"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The Constitutional Court, in judicial decision 182\/2021, of October 26, established the unconstitutionality and nullity of the articles of the TRLHL referring to the determination of the taxable base for the calculation of the \u201c<\/span><i><span style=\"font-weight: 400;\">plusval\u00eda municipal<\/span><\/i><span style=\"font-weight: 400;\">\u201d, for contravening the principle of economic capacity.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-white ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">\u00cdndice contenidos<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/gmtaxconsultancy.com\/en\/news\/modifications-local-tax-added-value-property\/#What_situations_are_likely_to_be_reviewed_based_on_this_ruling\" >What situations are likely to be reviewed based on this ruling?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/gmtaxconsultancy.com\/en\/news\/modifications-local-tax-added-value-property\/#What_is_the_method_of_calculating_the_%E2%80%9Cplusvalia_municipal%E2%80%9D_with_the_new_regulations\" >What is the method of calculating the \u201cplusval\u00eda municipal\u201d with the new regulations?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/gmtaxconsultancy.com\/en\/news\/modifications-local-tax-added-value-property\/#What_are_the_temporary_effects_of_the_judicial_decision_and_the_new_RDL\" >What are the temporary effects of the judicial decision and the new RDL?<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_situations_are_likely_to_be_reviewed_based_on_this_ruling\"><\/span><strong>What situations are likely to be reviewed based on this ruling?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The TC establishes that those tax obligations that have a definitive character will not be reviewed, including:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">a) Provisional or definitive returns that have not been challenged as of the date of the judicial decision [10\/26\/2021].<\/span><\/p>\n<p><span style=\"font-weight: 400;\">b) Self-returns whose rectification has not been requested (\u2026) on that date [10\/26\/2021]<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In order to end the regulatory legal void left by the said ruling, the Council of Ministers approved by Royal Decree-Law 26\/2021, of November 8, a new regulatory framework for the \u201c<\/span><i><span style=\"font-weight: 400;\">plusval\u00eda municipal<\/span><\/i><span style=\"font-weight: 400;\">\u201d, which comes into force on date 10\/11\/2021.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_the_method_of_calculating_the_%E2%80%9Cplusvalia_municipal%E2%80%9D_with_the_new_regulations\"><\/span><strong>What is the method of calculating the \u201c<i>plusval\u00eda municipal<\/i>\u201d with the new regulations?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The most relevant modification implies that from now on there will be no subjection to said tax when it is found that there is no increase in value. The taxpayer must prove the non-existence of an increase in value through the contribution of transmission and acquisition titles.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is established that now <\/span><b>the taxpayer will be able to choose between the following two methods<\/b><span style=\"font-weight: 400;\"> to determine the taxable base, as appropriate:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">1) <\/span><b>Real value method<\/b><span style=\"font-weight: 400;\">: The taxable base will be the difference between the transmission value and the acquisition value, applying the proportion between the cadastral value of the land with respect to the total cadastral value.<\/span><\/p>\n<p><b>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0BI<\/b><span style=\"font-weight: 400;\"> = (V. Transmission &#8211; V. Acquisition) * (V. Land Cadastral \/ Total Cadastral V.)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">2) <\/span><b>Objective method<\/b><span style=\"font-weight: 400;\">: It was the only method until today. The tax base is determined taking into account the cadastral value of the land and the approved coefficients.<\/span><\/p>\n<p><b>BI<\/b><span style=\"font-weight: 400;\"> = (Land Cadastral V.) * Coefficients<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Specifications:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Now it is taxed for value increases generated in periods of more than one month.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The City Councils have 6 months from the approval of the RDL to adapt their ordinances to the new regulations and set the coefficients whose maximum value is set by the RDL.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The coefficients are increased for short generation periods and reduced for long generation periods.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Now City Councils are allowed to reduce the tax base by up to 15%, based on the evolution of the real estate market.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The maximum tax rate remains at 30%.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_are_the_temporary_effects_of_the_judicial_decision_and_the_new_RDL\"><\/span><strong>What are the temporary effects of the judicial decision and the new RDL?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Although the judicial decision and the RDL are not very clarifying in this sense, the effects would be the following:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Accruals prior to 10\/26\/2021: According to our criteria, it is not taxed if:<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">(a) There has been no return or self-return as of that date.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">(b) There is return or self-return, but it is contested as of that date.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">* Doubts about whether a final return or self-return could be appealed, although the sentence rejects it.<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Accruals between 10\/26\/2021 and 11\/1\/-2021: in principle, it is not taxed.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Accruals as of 11\/10\/2021: taxed with new regulations.<\/span><\/li>\n<\/ul>\n<p>In the event that there is a transfer of the property that is subject to the tax and this has to be settled before the City Council in question has updated its regulations, it must be processed according to what each City Council has approved during this period of time in between.<\/p>\n<p>&nbsp;<\/p>\n<p>Si tienes alguna pregunta sobre este tema, contacta por tel\u00e9fono o por email con nuestros\u00a0<a href=\"https:\/\/gmtaxconsultancy.com\/es\/despacho-barcelona\/\">abogados fiscalistas en Barcelona<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Constitutional Court, in judicial decision 182\/2021, of October 26, established the unconstitutionality and nullity of the articles of the TRLHL referring to the determination of the taxable base for the calculation of the \u201cplusval\u00eda municipal\u201d, for contravening the principle of economic capacity. What situations are likely to be reviewed based on this ruling? The [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":3728,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[127],"tags":[],"class_list":["post-3733","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/posts\/3733","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/comments?post=3733"}],"version-history":[{"count":0,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/posts\/3733\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/media\/3728"}],"wp:attachment":[{"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/media?parent=3733"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/categories?post=3733"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/tags?post=3733"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}