Tax on non-productive assets of legal entities
The deadline for filing the tax return on non-productive assets for the 2017, 2018 and 2019 financial years is 30 November.
The Tax on Non-Productive Assets of Legal Entities (IANP) is levied on non-productive assets located in Catalonia owned by legal entities and entities without legal personality that constitute an economic unit or a separate estate that is subject to taxation and that are tax resident in Catalonia.
As we anticipated in our AddNEWS of May, the deadline for submitting this return is 1 to 30 June following the date on which the tax becomes due (1 January). However, for the years 2017, 2018 and 2019, it must be submitted between 1 October and 30 November 2019.
Non-productive assets subject to the tax are real estate (located in Catalonia) and motor vehicles with a power of two hundred horses or more, pleasure boats, aircraft, art objects and antiques with a value greater than that set by the Law on Historical Heritage, and jewellery.
In addition, the regulations consider as non-productive assets those transferred for no consideration, those transferred for a consideration when a series of conditions that must be analysed are not met, and assets that are not assigned to economic activity.
In order to clarify various doubts, the Generalitat de Catalunya has established that asset-holding entities regulated by the Corporate Income Tax Act are not subject to the tax due to the fact that they do not carry out an economic activity.
It should be noted that the purpose of the tax is to discourage possible tax avoidance strategies consisting of transferring personal assets to corporate structures, to improve efficiency in the use of these assets and to contribute by placing a greater tax burden on those who have a larger volume of this type of asset.
Note that the form of presentation is telematic and must be made using the new 540 Self-Settlement Model.
Finally, due to the complexity of the study and preparation of this statement, we recommend that these assets be carefully reviewed to determine their need for inclusion and quantification as soon as possible in order to file the statement before the deadline – November 30 – for the financial years 2017, 2018 and 2019.
