The State transfers taxes to the Madrid region with new percentages

Automatic summary, not yet reviewed

1. The law updates the taxes the State transfers to the Community of Madrid: 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. (IRPFIRPF Impuesto sobre la Renta de las Personas Físicas: the tax paid on income, such as wages.) and of VAT, 58% of the special taxes on beer, wine, intermediate products, alcohol, hydrocarbons and tobacco, and the full amount of the Wealth Tax, the Inheritance and Gift Tax, the Tax on Asset Transfers and Documented Legal Acts, the taxes on gambling, the Electricity Tax, the Special Tax on Certain Means of Transport and the Retail Sales Tax on Certain Hydrocarbons.
2. The scope and conditions of the transfer are those of Law 22/2009, on the new regional funding system. The Community of Madrid also takes on the power to decide economic-administrative appeals about the transferred taxes.
3. The Community of Madrid is given the power to pass its own legislative rules on transferred taxes, in the cases provided by Law 22/2009. It must first send the draft rules to the Senate's committee of the Autonomous Communities.
4. Until services are handed over, the State Tax Agency will keep managing the Special Tax on Certain Means of Transport and the Retail Sales Tax on Certain Hydrocarbons. The same applies to economic-administrative appeals, which current bodies will keep deciding.
5. For personal income tax in 2010, the tax scales and rates set out in Law 35/2006, as amended by Law 22/2009, apply.
6. The previous 2002 transfer law is repealed. The new law takes effect the day after its publication in the Official State Gazette, but applies retroactively from January 1, 2009.

Who it affects

• The Community of Madrid, which receives the money from the transferred taxes and gains the power to pass its own rules on them.: Direct
• Taxpayers in Madrid who pay personal income tax, VAT, special taxes and the other transferred taxes.: Direct
• People who file economic-administrative appeals about transferred taxes, which Community bodies will now decide.: Direct
• The State Tax Agency, which will temporarily keep managing two special taxes until the handover.: Direct

Words worth knowing

Cesión de tributos (tax transfer)

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

Reclamación económico-administrativa (economic-administrative appeal)

An appeal a person can file when they disagree with a decision by the tax authorities.

IRPF

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

Impuestos especiales (special taxes)

Taxes on specific products, such as alcohol, tobacco, fuel or electricity.

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