On May 12 , Law 6/2017 (no. 7368) was published in the “ Diari Oficial de la Generalitat de Catalunya” (Official Gazette of the Generalitat of Catalonia ) and introduced a new tax for legal entities that own certain assets that would be considered non-productive assets .
It is a personal, direct tax that will tax the following assets, provided they are considered non-productiveand located in the territory of Catalonia:
- Real estate,
- Motor vehicles (with a power equal to or greater than 220 hp),
- Recreational boats,
- Aircraft,
- Art and antiques whose value exceeds that established by the Historical Heritage Law;
But… what is meant by a non-productive asset?
Article 4 of this new Catalan lawestablishes the concept for the purposes of this tax, delimited in the following cases:
“(a) If they are transferred free of charge to the owners, partners and shareholders of the taxpayer or to persons related to them, directly or through entities in which any of them hold a stake, and who allocate them wholly or partially for their own use or private benefit, unless their use constitutes income in kind, in accordance with the provisions of the regulations on personal income tax. If the asset is used partially for private purposes, only the part or proportion allocated to these purposes is considered a non-productive asset.
b) If its use is transferred , for a price, to the owners, partners and participants of the taxable person or to natural persons linked to them, or to entities in which any of them hold a stake, to be totally or partially used for private purposes or benefits , except :
- that the owners, partners, participants or related persons pay the market price for the transfer of the asset,
- work effectively in society
- and receive for this a remuneration of an amount higher than the transfer price.
Productive assets are considered to be those that are leased at market price to owners, partners and participants or to persons linked to them, or to entities in which any of them participate, and are intended for the exercise of an economic activity.
c) If they are not used in any economic activity or public service. Assets used in an economic activity are those that, as a factor or means of production, are used in the operation of the taxpayer's economic activity.
Therefore, in summary, those assets that the partner/owner/participant/related persons have a personal and/or private use of that asset or that are not part of an economic activity or public service will be subject to this new tax.
And what will constitute the taxable base?
It will be the sum of the values corresponding to all non-productive assets. For the purposes of the tax on non-productive assets, the assets must be valued according to the following rules:
- a) Real right over real estate: for the cadastral value of the real estate updated in the corresponding Budget Law.
- b) Motor vehicles, boats, aircraft, works of art, antiques and jewelry at their market value on the date the tax accrues.
- c) The goods whose use is assigned as a result of a financial lease operation, for the value determined by the rules applicable to leases in the property transfer tax and documented legal acts.
- d) If the above rules are not applicable, the assets and rights must be valued at their market value.
For the calculation of the full tax liability, we will apply to the aforementioned Taxable Base the scale specified in Article 8 of the Law, in which the applicable tax rate will vary from 0.21% to 2.75%.
It should also be noted that individuals or legal entities engaged in the sale of art objects, antiques and jewelry must submit certain information to the Catalan Tax Agency depending on who the buyer of these types of goods is.
Important! The tax on non-productive assets is due on January 1st of each year. However, since the regulation came into effect in May, the tax for the 2017 tax year will be due on June 30th.
The self-assessment form still needs to be approved by order of the councilor of the department responsible for finance.
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A graduate in Business Administration from the University of Barcelona, she supplemented her studies with courses in customer service and corporate tax. While working and studying, she worked in sales and teller operations at La Caixa d'Estalvis i Pensions de Barcelona (now Caixabank) in 2007. From 2010, she worked as an advisor and accountant at Fiscalsegur and PKF Asesores. In March 2017, she joined Àmbit Assessor, SL as a tax and accounting consultant.
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