Comments and queries re FAQ for Non-resident income tax

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Stoker
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Re: Comments and queries re FAQ for Non-resident income tax

Postby Stoker » Sun Sep 17, 2017 4:55 pm

Thanks for that Enrique.

Just need to get a digital certificate!

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Enrique
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Re: Comments and queries re FAQ for Non-resident income tax

Postby Enrique » Sun Sep 17, 2017 6:30 pm

Hi,

"Just need to get a digital certificate!"................and a CL@ve PIN.

http://www.agenciatributaria.es/AEAT.in ... _PIN.shtml
UNIX is basically a simple operating system, but you have to be a genius to understand the simplicity.

DesWalker
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Re: Comments and queries re FAQ for Non-resident income tax

Postby DesWalker » Wed Sep 27, 2017 2:39 pm

Hi Beachcomber and the other very helpful contributors to this board.

My municipality is La Oliva which is part of Las Palmas province (Gran Canaria).

Thanks to this board I have just paid my fourth annual non-resident income tax on my property. I know what to do to fill out and generate a form and what to take to the bank in order to pay it in cash. I have done it four times now without a problem. Until now .....

In 2016 my IBIU (Council Tax) went up 10% from the 2015 figure and everybody I spoke to in the municipality experienced the same 10% increase in IBIU.

Because I never received an invoice with a calculation to explain the increase I was guilty of assuming that this increase was due to an increase in the IBIU tax rate (the "Tipo Impositivo") but it wasn't. Even though this IBIU was paid by Direct Debit in June 2016 I have only just realised (by looking at the old .pdf receipt associated with that Direct Debit via online banking) that the increase was due to a 21% increase (from 2015 to 2016) in my Valor Catastral partially offset by a 9.2% decrease (from 2015 to 2016) in the Tipo Impositivo leading to a net increase in the IBIU tax payable of 10%. As I say, based on the people I have spoke to this seems to be a municipality wide change although I can't be sure.

Unfortunately I have just paid my non-resident income tax for 2016 and have used my old Valor Catastral, a tax base of 2% (because La Oliva has always shown a last VC revision date of 1994), and a tax rate of 19% and this is clearly wrong. However my question is "in which direction is it wrong ?".

Clearly if I am still required to use the 2% tax base multiplier rather than the 1.1% for properties revalued in the last ten years then I should have paid more income tax (by about €24) because I have used a VC which is too low, but if following the 2016 revaluation I am now allowed to use 1.1% for 2016 instead of the 2% for non-revalued properties then I have overpaid by about €38. Naively one would think this second situation is the case because I have been revalued !!!!

But the problem is that whilst my IBIU Direct Debit .pdfs for 2016 or 2017 does not show an official VC revision date, my friends .pdf for her 2017 IBIU (ie for this current year a full year after the VC change) still shows a last revision date of 1994. So I am left wondering a) is my VC increase a non-municipality wide increase for some bizarre reason so that is doesn't constitute a revaluation for income tax purposes, b) is the municipality trying to have its cake and eat it by revaluing VC's upwards but not declaring it as an official revaluation thus forcing people to continue to pay a higher income tax on their property as well (still must use 2% tax base multiplier) or c) should I ignore the "last revision date" on my friends .pdf and carry on as though my property HAS now been revised and use the lower 1.1% tax base multiplier ?

I recall from last year that somebody on here knew of a website where VC revision dates were laid out. Can someone please supply a link. Thanks.

Any thoughts and advice appreciated. I guess the best way would be to have it out with the Ayuntamiento face to face but they are currently 2000 miles away.

Cheers,

Des

ps. In a worst case scenario I have underpaid my income taxes by about €24. Will they ever notice ? Should I try and pay the extra ? Will fines be incurred if I don't pay ? Many thanks for any thoughts.

DesWalker
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Re: Comments and queries re FAQ for Non-resident income tax

Postby DesWalker » Wed Sep 27, 2017 3:28 pm

Hi again,

Regarding my post above, I have now found the website listing Valor Catastral revaluation dates ....

http://www.catastro.meh.es/esp/ponencia_valores.asp

This website continues to show the Provincia = Las Palmas, Municipio = La Oliva as having a "Ano effecto" = 1994 which agrees with my friends' 2017 IBIU receipt sent to her bank following her Direct Debit.

But my property WAS revalued in 2016 (to the tune of 21%) and I am under the impression that many others were too (as I know at the very least they were subject to the same precise 10% IBIU hike so I am guessing this is due to the same calculation as me ie 21% increase in VC, 9.2% decrease in Tipo Impositivo which when multiplied together gives a 10% increase in tax payable).

Any ideas what is going on here ? Can one's VC go up without the actual Revaluation Year changing so as to prevent one from paying less income tax by reducing the tax base down from 2% down to 1.1% ?

Des

DesWalker
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Re: Comments and queries re FAQ for Non-resident income tax

Postby DesWalker » Wed Sep 27, 2017 4:05 pm

Hi again again,

I see from reading pages 53 and 55 of this thread that a couple of other people have also experienced the same as me. Namely their Valor Catastral going up but no indication that this constitutes a revaluation so they must still pay a 2% tax base for income tax purposes. Indeed one person on page 53 implies that they have been formally told "this is an increase of your VC not a revaluation" !!!! Would that person be able to say a little more ?

So it looks like the VC can be arbitrarily increased when a particular municipality feels like it but without allowing a reduction in income tax due to a lower tax base of 1.1%. Is there any possible justification for this ? Is it worth a moan at the local Ayuntamiento or should it be regarded as par for the course and just "pay up and shut up" !?

Des

fgton
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Re: Comments and queries re FAQ for Non-resident income tax

Postby fgton » Sun Oct 15, 2017 1:51 pm

Hi Des

Not sure if you have found an official answer to your question about whether Valor Catastral has been officially reviewed.

Thanks for your post though it caused me to check my Bank Receipts and I discovered that my VC (also in La Oliva) went up by 10% in 2015 (perhaps earlier - the rest of my paperwork is in the UK) and again by 10% between 2015 and 2016.

The link below is the link to the Instructions in English for completion of the form. It states (on page 5) that 1.1% applies when the property register value has been 'reviewed or changed':

210 I Eligible income from real estate
Section 210 I must only be used to declare earnings from urban buildings used by natural persons for their own enjoyment. In box (02) “Type of income” enter code 02.
Taxable base [4]: Enter the result of applying one of the percentage amounts below, whichever corresponds, to the property register value of the building.
Applicable percentage:
Accruals up to 31 December 2014
• - Buildings whose property register value has been reviewed or changed with effect from 1 January 1994..1.1%
• - Other buildings................................................................................................................................................2%
Accruals from 1 January 2015
• Buildings whose rateable value has been reviewed or changed and has come into effect within the tax period or the within the ten previous tax periods .................................................................................................................1.1%
• Other buildings..................................................................................................................................................2% No expenses may be deducted from the resulting amount.
The resulting amount is understood to refer to the full calendar year. The number of days is proportionally reduced when ownership has not been throughout the entire year or when it has been rented for part of the year.


Personally I am going to continue to apply 2% and this year (for 2016 amounts due) I am going to apply it to the increased value. In my case this is 2% of €11k @19% tax rate which at approx. €40 is cheaper than trying to find out whether the lower 1.1% is applicable.

It would be good though if someone more fluent than I am in Spanish, could ask the La Oliva Auyntamiento why they have not filed a 'Ponencia de valores de la Gerencia Palmas (Las) / Municipio: La Oliva' to reflect the changes in the Valor Catastral.

http://www.agenciatributaria.es/static_ ... _en_gb.pdf

Frank.


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