July 29, 2021

Banks will be able to deduct the mortgage tax only this year

Banks will be able to deduct the mortgage tax only this year


The banks will assume from tomorrow the payment of the tax of documented legal acts that taxes the mortgages and that until now it was in charge of the clients, except in the loans granted to the Church, the political parties with parliamentary representation or the State, between others. Likewise, the bank may deduct the tax in the Corporation tax in the remainder of the year. This is established by the royal decree law approved on Thursday by the Council of Ministers that was published this morning in the BOE.

The standard adds a paragraph to article 15 of the Law on Corporate Tax mentioning its non-deductibility with "effects for tax periods that start from the entry into force of this royal decree-law". As the Corporation Tax is an annual payment tax, the entities can deduct it in the settlement they will make in July 2019, the declaration that companies make annually of this tax to the Treasury.

For later, yes, they must pay. "The objective is for the bank to face 100% of the tax, and not 70% -banking has a nominal rate of 30% on Corporate Tax-. On the contrary, 70% would be paid by the bank and the remaining 30% by all the taxpayers who would see it subtracted from the collection of Companies», Explains the president of the Registry of Economist Tax Advisors (REAF) of the General Council of Economists, Jesús Sanmartín, who does not see signs of unconstitutionality in the non-deduction of the tax from next year. The non-deductibility of the tax will begin as of the 2019 fiscal year.

As reported by Efe, the measure, adopted as a matter of urgency, comes after the Plenary of the Contentious-Administrative Chamber of the Supreme Court decided that the rate should be assumed by the client and not by financial entities, contrary to what was determined in Three sentences of mid-October.

The regulation modifies article 29 of the consolidated text of the Law on Transfer Tax and Stamp Duty to establish that in the case of loan deeds with mortgage guarantee the taxpayer of this tax will be the lender, that is to say, that is the bank who must pay it.

Nothing changes in the state exemptions

In addition, the Government decree also modifies Article 45 to prevent banks from paying this tax when they grant mortgages to entities that the law already exempted from paying it. They are about the largest percentage of state tax exemptions, which do not vary, while the regional bonuses are eliminated to natural persons, mainly destined to families, young people and the disabled, as ABC reported.

In its article 45, the law establishes that the tax is exempt from payment State and the Administrations public territorial and institutional and their establishments of charity, culture, Social Security, teachers or scientific purposes.

The exemption is also applicable to political parties with parliamentary representation, the Spanish Red Cross, the National Organization of the Spanish Blind (ONCE), the Pious Work of the Holy Places and the Catholic Church and churches, confessions and religious communities that have signed cooperation agreements with the State.

Neither should the non-profit entities under the special fiscal regime, such as foundations, associations declared of public utility, NGO of development or sports federations.

Likewise, the exempts savings accounts and banking foundations, by the acquisitions directly destined to its social work.

The tax on property transfers and documented legal acts is a tribute of indirect nature that the autonomies collect and taxes onerous patrimonial transfers, corporate transactions and documented legal acts.


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