The State transfers taxes to Extremadura under new funding rules

Automatic summary, not yet reviewed

1. The law updates the taxes the State transfers to Extremadura: it transfers 50% of personal income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. (IRPF) and VAT, 58% of the special taxes on beer, wine, alcohol, hydrocarbons and tobacco, and the full amount of others such as the Wealth Tax, Inheritance and Gift Tax, Transfer Tax, Gambling Taxes, the Electricity Tax, the IEDMT and the IVMDH.
2. The scope and conditions of the transfer are those of Law 22/2009, on the new regional funding system. In addition, Extremadura takes on the power to resolve economic-administrative claims about the transferred taxes.
3. Extremadura may enact its own legislative rules on the transferred taxes, in the cases provided by Law 22/2009, and must send draft rules beforehand to the Commission of the Autonomous Communities of the Senate.
4. For the IVMDH and the IEDMT, the State Tax Agency will keep managing these taxes until services are transferred to the Region. The same applies to economic-administrative claims: they will be taken on together with the transfer of services.
5. For personal income tax in 2010, the tax scales and rates set in Law 35/2006 apply, as worded by Law 22/2009.
6. The law repeals the previous 2002 transfer law as of January 1, 2009. It takes effect the day after its publication in the Official State Gazette (BOE), but applies retroactively from January 1, 2009.

Who it affects

• The Autonomous Community of Extremadura: Receives the tax transfers and new powers to make rules and resolve claims.
• Taxpayers in Extremadura: Pay taxes partly managed by their Region, which can approve its own income tax deductions and scales.
• The State Tax Agency: Keeps temporarily managing the IEDMT and the IVMDH until services are transferred.
• The Senate: Receives the draft legislative rules Extremadura prepares on the transferred taxes.

Words worth knowing

Cesión de tributos (tax transfer)

The State lets an Autonomous Community keep all or part of the money collected through certain taxes.

Reclamación económico-administrativa (economic-administrative claim)

An appeal a person files with the tax authorities when they disagree with a decision about their taxes.

IRPF (personal income tax)

Impuesto sobre la Renta de las Personas Físicas: the tax paid on income, such as wages.

IEDMT (special tax on certain means of transport)

A tax paid when registering certain cars.

IVMDH (retail sales tax on certain hydrocarbons)

A tax on the final retail sale of certain fuels.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries