1 URBANIZACIÓN Y POBREZA

a) Child care of children aged 3 or less tax credit (Deducción por cuidado de hijos menores): 51 15% of expenditures in the tax period to take care of children below 3 years of age (maximum is €150 for individual scheme and €300 for joint scheme). Parents must both work and the general tax base reduced by allowances cannot exceed €13,222.27 (individual scheme) or €23,138.97 (joint scheme). Also the special tax base must be below €1,202.02 both for the individual and joint scheme.

Year 2005 2006 2007 2008 2009

Amount (Euro per year):

Max. individual scheme 150 200 220 300 300

Max. Joint scheme 300 400 440 600 600

Limit individual scheme 13,222.27 14,544 16,000 17,600 17,600 Limit joint scheme 23,138.97 25,452.9 28,000 30,800 30,800

In 2007, 2008 and 2009: ordinary tax base minus personal and family allowances is the variable to use for limit.

2.3.7.5.14 La Rioja

a) Second of further child’s birth or adoption tax credit (Deducción por nacimiento y adopción del segundo o ulterior hijo). €150 for the second. €180 for the third or more. €60 more per child in multiple births. In the case that two or more taxpayers are eligible for this tax credit, the total amount will be equally shared by them.

In 2006, 2007, 2008 and 2009: same as in 2005. 2.3.7.5.15 Comunidad Valenciana

a) Child’s birth or adoption tax credit (Deducción por el nacimiento o adopción de hijos): €250 per child born or adopted. In the case that two or more taxpayers are eligible for this tax credit, the total amount will be equally shared by them. Tax credit is compatible withother tax credits such as Multiple children’s birth or adoption tax credit, Disabled child’s birth or adoption tax credit and Large families tax credit.

Year 2005 2006 2007 2008 2009

Amount (Euro per year): 250 255 260 265 270

In 2007 introduction of tax base limit: The sum of the ordinary tax base minus reductions (base liquidable general) and the savings tax base minus reductions (base liquidable del ahorro) must not exceed €26,711 (individual scheme) or €43,210 (joint scheme).

In 2008: The sum of the ordinary tax base minus reductions (base liquidable general) and the savings tax base minus reductions (base liquidable del ahorro) must not exceed €27,245 (individual scheme) or €44,074 (joint scheme).

51

Issue There is no information in the data on child care expenditure Assumption Child care amount is imputed in sheet s_es

In 2009: The sum of the ordinary tax base minus reductions (base liquidable general) and the savings tax base minus reductions (base liquidable del ahorro) must not exceed €27,790 (individual scheme) or €44,995 (joint scheme).

b) Multiple children’s birth or adoption tax credit (Deducción por nacimiento o adopción múltiples): €205 per child born in multiple births. In the case that two or more taxpayers are eligible for this tax credit, the total amount will be equally shared by them.

Year 2005 2006 2007 2008 2009

Amount (Euro per year): 205 210 214 220 224

c) Disabled child’s birth or adoption tax credit (Deducción por nacimiento o adopción de hijos discapacitados) 52: €205 if first child born or adopted is disabled. €255 if a second or further child born or adopted is also disabled. In the case that two or more taxpayers are eligible for this tax credit, the total amount will be equally shared by them.

Year 2005 2006 2007 2008 2009

Amount (Euro per year):

First child 205 210 214 220 224

Second or further 255 260 265 270 275

d) Large families tax credit (Deducción por familia numerosa): €185 if cohabiting individuals classify as a large family. €430 if five or more dependent children (special large families). In the case that two or more taxpayers are eligible for this tax credit, the total amount will be equally shared by them.

Year 2005 2006 2007 2008 2009

Amount (Euro per year):

Large family 185 190 190 200 204

Special large family 430 435 435 455 464

e) Disabled taxpayers 65 or more tax credit (Deducción por contribuyentes discapacitados de edad igual o superior a 65 años). €165 if disabled (33% or more53) taxpayer 65 or more years of age.

Year 2005 2006 2007 2008 2009

Amount (Euro per year): 165 168 171 220 179

52

Issue There is no information in the data about disability of household members aged under 16. Assumption Tax credit is disregarded

Impact Unknown, there aren’t statistics on the size of this tax credit 53

Issue There is no information in the data about the disability level

Assumption All disabled with 33% of disability, hence this tax credit is simulated Impact Unknown.

f) Housework tax credit (Deducción por la realización por uno de los cónyuges de la unidad familiar de labores no remuneradas en el hogar): €125 if only one family member receives income from work and there are, at least, two cohabiting children Taxpayer must be eligible for child tax allowance for each child generating the tax credit (see general conditions for child tax allowance eligibility). The couple cannot be divorced and children cannot work. The general tax base reduced by allowances must be below €12,260. No family member can obtain more than €305 in capital gains54.

Year 2005 2006 2007 2008 2009

Amount (Euro per year): 125 128 131 150 153 Limit tax base 12,260 12,696 22,650 27,245 27,790

Limit capital gains 305 316 322 350 357

In 2007, 2008 and 2009: limit tax base is the sum of the ordinary (base imponible general) and the savings tax base (base imponible del ahorro).

g) Child care for children below 3 years of age tax credit (Deducción or cantidades destinadas a la custodia en guarderías y centros de primer ciclo de educación infantil de hijos menores de tres años): 15% of expenditures in the tax period to take care of children below 3 years of age (maximum is €250 for whatever scheme) 55. Parents must both work and the general tax base reduced by allowances must be below €21,455 (individual scheme) and €31,110 (joint scheme). Also the special tax base must not exceed €615. In the case that two or more taxpayers are eligible for this tax credit, the total amount will be equally shared by them.

Year 2005 2006 2007 2008 2009

Maximum 250 255 260 265 270

Limit tax base (individual) 21,455 22,219 26,711 27,245 27,790 Limit tax base (joint) 31,110 32,218 43,210 44,074 44,955

Limit special tax base 615 615 -- -- --

In 2007, 2008 and 2009: limit tax base is the sum of the ordinary (base imponible general) and the savings tax base (base imponible del ahorro).

54

Issue There is no information in the data about capital gains. Assumption No one receives capital gains.

Impact Unknown. 55

Issue There is no information in the data on child care expenditure Assumption Child care amount is imputed in sheet s_es

h) 2006 Disabled parents over 75 years of age or over 65 and disabled tax credit (Deducción por ascendientes mayores de 75 años o mayores de 65 discapacitados): €168 per elderly over 75 (or over 65 if disabled more than 33% (if psychic disability) 56 or more than 66% if physic disability) non cohabiting with taxpayer and whose non- exempt incomes are below €8,000. Ordinary tax base before personal and family allowances must not exceed €22,219 (individual scheme) or €32,218 (joint scheme).

Year 2005 2006 2007 2008 2009

Amount (Euro per year): 250 255 260 265 270

Limit tax base (individual) 21,455 22,219 26,711 27,245 27,790

Limit tax base (joint) 615 615 -- -- --

In 2007, 2008 and 2009: limit tax base is the sum of the ordinary (base imponible general) and the savings tax base (base imponible del ahorro) after allowances.

i) 2007 Work-life balance tax credit (Deducción por conciliación del trabajo con la vida familiar): Working mothers may benefit from a €400 tax credit per child of 4 years of age (over 3 and below 5 years of age). Taxpayer must be eligible for child tax allowance for each child generating the tax credit. In the case that two or more taxpayers are eligible for this tax credit, the total amount will be equally shared by them.

Year 2007 2008 2009

Amount (Euro per year): 400 410 418

j) Renting first home tax credit (Por arrendamiento de vivienda habitual): 10% of annual rent. Maximum: €185 per year. If in joint scheme tax credit will be multiplied by two if both taxpayers are eligible for the credit. Tax base (both ordinary and special tax base) before personal and family allowances must not exceed €21,455 (individual scheme) or €31,110 (joint scheme). The date of the contract must be after 23th April 1998 and its duration is cannot be less than one year.

Year 2005 2006 2007 2008 2009

Amount (Euro per year): 185 190 194 450 459

Limit tax base (individual) 21,455 22,219 26,711 27,245 27,790 Limit tax base (joint) 31,110 32,218 43,210 44,074 44,955

In 2008: the percentage increases to 15% of annual rent. Maximum: €450 per year. 20% of annual rent for taxpayers below 35 years of age or disabled (maximum €600). 25% os anual rent for taxpayers below 35 years of age and disabled, máximum €750.If in joint scheme tax credit will be multiplied by two. The sum of the ordinary (base imponible general) and the savings tax base (base imponible del ahorro) minus allowances must not exceed €27,245 (individual scheme) or €44,074 (joint scheme).

56

Issue There is no information in the data about the level or type (psychic or other) disability

Assumption All disabled with 33% of “physic” disability, hence this element of the tax credit is not simulated

In 2009: the percentage increases to 15% of annual rent. Maximum: €459 per year. 20% of annual rent for taxpayers below 35 years of age or disabled (maximum €612). 25% euros anual rent for taxpayers below 35 years of age and disabled, máximum €765.If in joint scheme tax credit will be multiplied by two. The sum of the ordinary (base imponible general) and the savings tax base (base imponible del ahorro) minus allowances must not exceed €27,790 (individual scheme) or €44,955 (joint scheme). k) 2008 Renting housing for activities in different municipalities’ tax credit

(Deducción por arrendamiento de una vivienda, como consecuencia de la realización de una actividad, por cuenta propia o ajena, en distinto municipio): 57 10% of annual rent for taxpayers renting housing for activities in different municipalities (more than 100 km of distance between municipalities). Maximum: €200 per lease (individual and joint scheme). The sum of the ordinary (base imponible general) and the savings tax base (base imponible del ahorro) must not exceed €27,245 (individual scheme) or €44,074 (joint scheme). In the joint scheme the limit of this tax credit will be €200 times the number of eligible individuals in the household.

In 2009: Maximum: €204 per lease (individual and joint scheme). The sum of the ordinary (base imponible general) and the savings tax base (base imponible del ahorro) must not exceed €27,790 (individual scheme) or €44,955 (joint scheme). In the joint scheme the limit of this tax credit will be €204 times the number of eligible individuals in the household.

f) 2009 Mortgage cost increase tax credit (Deducción por el incremento de los costes de la financiación ajena en la inversión de la vivienda habitual 58: Ordinary tax base before personal and family allowances must not exceed €25,000 (individual scheme) or €40,000 (joint scheme). This tax credit is calculated using information on interest rates payed for main residence mortgage with the limit of €9,015. The interest rate quantity will be multiplied by 0.8 until €4,507 and 0.85 for over that value until a maximum of €9,015. To obtain the tax base the result of the previous calculation will be furtherly multiplied by 0.33. In order to obtain the percentage of tax credit we should divide the mean value of EURIBOR (1 year) by the mean value of EURIBOR (1 year) in 2007 (see publications of Bank of Spain). The result of the previous fraction multiplied by 100 will be the tax credit rate by which one should multiply the tax base to obtain the tax credit value.

57

Issue There is no information in the data about whether municipality of residence and work are different.

Assumption All individuals are assumed to work in the same municipality as of residence. Hence, this tax credit is not simulated.

Impact Unknown. 58

Issue There is no information in the data on interest rates of the mortgage deed Assumption Not simulated