This elimination has been possible thanks to the general bonus of 99.9 percent of the tax quota that has been established in the Budget Law of 2008. The remaining 0.1 percent that must be paid for this tax is maintained by the Autonomous Community as a mechanism of tax control.
In the case of donations, the new fiscal situation establishes that in the possible case of a donation of 60,000 euros from a father to a child under 35 years of age, as aid for the purchase of a habitual residence, the child, until last December, had to pay 3,294.44 euros, while now, due to the application of the 99.9 percent bonus, he will only have to pay 3.29 euros.
For the case of successions, if a hypothetical situation were to occur in which three children inherited, together with the surviving spouse of 70 years, a current account, a package of shares and an apartment, all valued at 200,000 euros, the Succession Tax quota would be today, for each child, 3.86 euros and 0.57 euros for the spouse, while last year, without the existence of the 99.9 percent bonus, the children and the spouse would have had to pay 3,863.10 euros and 573.75 euros, respectively.
The requirements to apply the 99.9 percent bonus of the Inheritance and Gift Tax are, in the acquisitions of donations, that the formalization and acceptance of the donation occurs after January 1, 2008; that the taxpayer (donee) is integrated into one of the Groups I and II of kinship (children, spouses or common-law partners); that the donation is formalized in a public document and that the donee has his habitual residence in the islands for the last five years. Likewise, if the donation has as its exclusive object real estate, the Law requires that these be located in the Canary Islands.
In the case of successions, the requirements are that the death occurs after January 1, 2008; that the heir is integrated into Groups I and II of kinship (parents, children, spouses or common-law partners) and that the cause of the succession has had his habitual residence in the Canary Islands for the last five years. The bonus will not be applicable when the death has occurred before January 1, 2008, even if the presentation of the Tax declaration is made during the year 2008.
The elimination of the Inheritance and Gift Tax, together with the consolidation of the tax deductions established in previous economic years - there is not a single tax in the Canary Islands that increases the tax rate in 2008 - seek to reduce the tax burden of Canary taxpayers and contribute to increase the disposable income of families and, therefore, consumption, savings and investment in the Islands.
The Canary Islands enjoy a certain strength in their public accounts that grants a margin of maneuver in the establishment of counter-cyclical fiscal policies, which in fact have been reflected in the form of tax cuts in the Budget Law for 2008, essential to reactivate the Canary economy as a whole
ACN Press
