23-06-2021

Information note on the General State Budget for 2021

Law 11/2020 of 30 December 2020 on the General State Budget for 2021 (LPGE) was published in the Official State Gazette of 31 December 2020. TheLaw includes numerous tax measures related to various taxes, which are summarised below.

The LPGE enters into force the day after its publication in the BOE, although specific rules are established in some cases, as will be described below.

Corporate Income Tax (IS)

The LPGE incorporates the following amendments to Law 27/2014, of 27 November (LIS), with effect for periods beginning on or after 1 January 2021.

1.1 Reduction in the calculation of dividends and income from the transfer of securities for the purposes of the application of measures to avoid double taxation.

The amount of dividends and profit participations and income from the transfer of securities shall be reduced by 5% as management fees for the purpose of the application of measures to avoid double taxation.

1.1.1 In relation to the double taxation exemption

For the purposes of the exemption to avoid double taxation regulated in article 21 of the LIS, the amount of dividends and positive income derived from the transfer of shares will be reduced by 5% as non-deductible management expenses; this reduces the effective exemption to 95%.

In tax groups, this 5% is not subject to elimination, even in the case of dividends and income derived from the transfer of securities, distributed and obtained (respectively) within the tax group.

According to the wording of the law, it appears that this limitation to the exemption applies cumulatively to chains of shareholdings, irrespective of the number of indirectly owned entities.

Temporarily, this rule will not apply to dividends or profit shares (but not to income derived from the transfer of securities) when the following requirements are met (simultaneously):

In relation to the entity receiving the dividends:
It has a net turnover of less than EUR 40 million in the tax period immediately preceding that in which the dividends are distributed.

When the entity is newly created, the amount of turnover shall refer to the first tax period in which the activity is actually carried out. If the immediately preceding tax period has lasted less than one year, or the activity has been carried out for a shorter period, the net amount of turnover shall be one year.

b. That it is not an asset-holding company, in accordance with the provisions of Article 5(2) of the LIS.

c. It is not part of a commercial group within the meaning of Article 42 of the Commercial Code prior to the incorporation of the subsidiary distributing the dividends (irrespective of its residence and the obligation to prepare consolidated annual accounts).

d. It does not hold, prior to the incorporation of the subsidiary distributing the dividends, a direct or indirect interest of 5% or more in the capital or equity of another entity.

(b) in relation to the entity distributing the dividends:

that is incorporated after 1 January 2021 and, since its incorporation, is wholly owned, directly or indirectly, by the recipient of the dividends.

Received in the tax periods ending in the 3 years immediately following the year of incorporation of the distributing subsidiary.

As stated in the explanatory memorandum to the LPGE, these requirements limit this exception to “companies with a net turnover of less than EUR 40 million and which do not form part of a commercial group (…) for a period limited to three years, when they originate from a subsidiary, whether or not resident in Spanish territory, incorporated after 1 January 2021”.

1.1.2 In relation to the deduction for the avoidance of international economic double taxation: dividends and profit shares

In line with the aforementioned reduction of the exemption, the deduction to avoid international economic double taxation (for dividends and shares in profits) regulated in Article 32 of the LIS is also limited, reducing the basis for calculating the tax liability, which acts as the maximum amount of the deduction, by 5% of the income received (also in respect of non-deductible management expenses).

This reduction will not be applicable in those entities with a net turnover of less than 40 million euros (under the same conditions and with the same requirements as indicated in section 1.1.1 above).

1.1.3 In the international tax transparency regime (TFI)

The TFI scheme is amended as follows:

a) Until now, when income was imputed in the tax base by application of the TFI regime, dividends or shares in profits corresponding to that previously imputed income are not computed. As from the entry into force of this law, 5% of such dividends and shares in profits will be included as management expenses, except in those entities with a net turnover of less than 40 million euros (under the same conditions and with the same requirements as indicated in section 1.1.1 above).

b) Similarly, until now, in order to calculate the income derived from the transfer of shares, the acquisition value is increased by the profits which, without effective distribution, correspond to imputed income. From the entry into force of this law, 5% of these undistributed profits will not be taken into account for the purposes of increasing the aforementioned acquisition value.

It should be recalled that the Draft Law on Measures to Prevent and Combat Tax Fraud (Anti-Fraud Law), which proposes to introduce further amendments to the FTT regime, is currently in the pipeline.

1.2 Restriction of the “minimum shareholding requirement” for the application of double taxation avoidance measures and for the computation of deductible financial charges

1.2.1 With regard to the exemption in Article 21 of the LIS

One of the requirements for the application of the exemption under Article 21 of the LIS is that the shareholding in the capital or equity of the entity distributing the dividends or whose securities are transferred must be at least 5%. However, in the event that this percentage is not reached, this requirement may be considered to be met if the acquisition value exceeds 20 million euros.

This possibility is now eliminated, so that the exemption will not apply if the shareholding does not reach 5%, even if the acquisition value exceeds the aforementioned EUR 20 million.

However, for holdings acquired before 1 January 2021, a transitional regime is established for a period of five years (i.e. until the period beginning in 2025), whereby the aforementioned exemption may be applied provided that the remaining requirements of the regulation are met.

1.2.2 In relation to the deduction for the avoidance of international economic double taxation under Article 32 of the LIS: dividends and shares in profits

In the same vein, income from shareholdings in entities whose acquisition value exceeds 20 million euros, but in which the percentage shareholding is less than 5%, is excluded from the application of the deduction for the avoidance of double international taxation.

For shares acquired before 1 January 2021, a transitional regime is established for a period of five years (i.e. until the period beginning in 2025), where the deduction can be applied as long as the other requirements of the regulation are met.

1.2.3 Deductibility of financial expenses

Article 16 of the LIS establishes that deductible financial expenses may not exceed 30% of the operating profit for the year. For the calculation of this operating profit, financial income from holdings in equity instruments is taken into account, provided that it corresponds to dividends or shares in the profits of entities in which either the direct or indirect shareholding is at least 5% or their acquisition value exceeds €20 million.

In line with the above amendments, dividends or profit shares will be required to be included in operating profit for the purpose of deducting finance costs if they arise from holdings of 5% or more.

No transitional arrangements are provided for in this case.

1.3 Deduction for investments in film productions, audiovisual series and live performing arts and music shows

a) Deduction for the person financing the works:

The deduction for investments in film productions, audiovisual series of fiction, animation, documentary or production and exhibition of live shows of performing arts and music is modified to allow those who participate in the financing (“financier”) of the work carried out by another taxpayer to also apply it, but establishing the total or partial incompatibility between the deduction of one and the other.

The requirements are as follows:

i. The funder must provide funding to cover all or part of the costs of the production.

ii. The funder shall not acquire any intellectual property or other rights to the results of the production, which shall in any case remain the property of the production company.

iii. The funder’s contributions may be made at any stage of the production until the certificate of nationality is obtained.

iv. The producer and the financier must enter into a financing contract specifying, inter alia, the following points:

Identity of the contributors involved in the production.

Description of production.

Budget of the production with a detailed description of the expenses and, in particular, those to be incurred on Spanish territory.

The method of financing of the production, specifying separately the amounts provided by the producer, those provided by the financier and those corresponding to subsidies and other support measures.

Other matters established by regulation.

The reimbursement of the amounts contributed shall be made by means of the net deduction in quota to be agreed in the contract and in accordance with the provisions of Article 36(1) and (3) (regulating the deduction).

v. The deduction by the financier shall be wholly or partly incompatible with that of the producer.

The deduction shall be calculated and applied as follows:

The deduction shall be calculated in the same way as for the producer, but with the limit resulting from multiplying the financing granted by 1,20. The excess may be applied by the producer. The deduction shall be applied annually, depending on the contributions paid in each tax period.

In order to be entitled to the deduction, the financing contract and the certifications required by the regulation must be presented, by means of a communication to the tax authorities, signed by the producer and the financer, before the end of the tax period in which the deduction is generated, under the terms established by regulation.

b) Finally, in relation to the requirements for applying the deduction (both by the producer and by the financier), and specifically the need for the production to obtain (i) the certificate of nationality and (ii) the certificate attesting to the cultural nature in relation to its content, its link with the Spanish cultural reality or its contribution to the enrichment of the cultural diversity of the cinematographic works shown in Spain, the LPGE adds that those certificates will be binding for the competent tax administration in matters of accreditation and application of the deduction and identification of the beneficiary producer, regardless of the time of their issue.

1.4 Common rules applicable to investment deductions

Article 39 of the LIS regulates the rules common to the deductions for investments regulated in Chapter IV of Title VI of the law:

a) Limit for the application of deductions: The rule establishes that the deductions provided for in said chapter that are applied in the tax period may not jointly exceed 25% of the gross tax liability less deductions for the avoidance of double international taxation and allowances. However, this limit is raised to 50% for deductions for R&D&I corresponding to expenses and investments made in the tax period that exceed 10% of the gross tax payable minus the aforementioned deductions for double taxation and allowances.

The application of this increased limit is now also extended to the deduction for investments in film productions, audiovisual series and live performances of performing arts and music.

Maintenance of investments: In general, the assets subject to the deductions must remain in operation for a period of 5 years from their acquisition, or during their useful life if this is less than 5 years. In the case of movable assets, the period is reduced to 3 years or their useful life, whichever is shorter.

It is now added that, in the case of film productions and audiovisual series, this requirement shall be deemed to be fulfilled if the production company maintains its percentage of ownership of the work for a period of 3 years, without prejudice to its right to market all or part of its exploitation rights to third parties.

2. Non-resident income tax

The following amendments are incorporated into the Consolidated Text of the Non-Resident Income Tax Act, approved by Royal Legislative Decree 5/2004, of 5 March (LIRNR), with effect from the entry into force of the LPGE.

2.1 Extension of the interest and capital gains exemption to residents of the European Economic Area

Article 14(1)(c) of theLIRNR provides for EU residents to apply a specific exemption for (i) interest and other income derived from the transfer of own capital to third parties, and (ii) capital gains derived from the transfer of movable property without a permanent establishment.

However, unlike other exemptions in Article 14, such as (h) (parent-subsidiary dividends), (k) (dividends received by pension funds) and (l) (dividends received by certain collective investment undertakings), the exemption has so far not applied to residents of the European Economic Area (EEA).

The LPGE remedies this situation by also including the exemption for EEA residents when there is an effective exchange of tax information with EEA member states under the terms set out in section 4 of the first additional provision of Law 36/2006, of 29 November, on measures for the prevention of tax fraud (which is expected to be amended by the Anti-fraud Law).

2.2 Restriction of the “minimum shareholding requirement” for the application of the exemption for dividends distributed to EU resident parent companies

In line with the amendment mentioned in section 1.2.1 above, the possibility is also eliminated that, for the purposes of the exemption of dividends distributed to Community parent companies regulated in article 14.1 h) of the IRNA, the minimum shareholding requirement is considered to be met if the acquisition value is greater than 20 million euros, even if the shareholding does not reach 5%.

3. Personal Income Tax (IRPF)

With effect from 1 January 2021 and with indefinite validity, the following amendments are made to Law 35/2006, of 28 November, on Personal Income Tax (LIRPF).

3.1 Increase in the general scale of taxation and withholding tax on earned income

A new bracket is introduced for the part of the general taxable base exceeding 300,000 euros, which is now taxed at 22.5% to 24.5%. If there were no regional scale, the maximum marginal rate would rise to 47% (compared with the 45% applied until now).

In line with this, a new bracket is introduced for the withholding base for earned income exceeding 300,000 euros, which increases the maximum withholding rate from 45% to 47%.

3.2 Increasing the scale of savings

A new tax bracket is introduced for the part of the net savings tax base exceeding 200,000 euros, which is now taxed at 23% to 26%.

3.3 Increase of the scales applicable in the impatriate scheme

In line with the above, the scales applicable to workers posted to Spanish territory are modified as follows:

a) The rate applicable to the part of the general tax base exceeding 600,000 euros is increased from 45% to 47%.

b) A new bracket is introduced for the part of the taxable savings base exceeding 200,000 euros, from 23% to 26%.

c) Increases from 45% to 47% the withholding tax rate applicable to remuneration paid by a single payer exceeding 600,000 euros.

3.4 Reduction for contributions to social welfare systems

The maximum annual amount of contributions and contributions to social security systems eligible for reduction is reduced from 8,000 to 2,000 euros.

However, this limit will be increased by 8,000 euros (i.e. up to 10,000 euros), provided that the increase comes from employer contributions. For these purposes, own contributions made by the individual employer to occupational pension plans or mutual benefit societies, of which he/she is in turn a promoter and participant or member, as well as those made to company social welfare plans or collective dependency insurance of which he/she is in turn a policyholder and insured, will be considered as company contributions.

The financial limits for contributions and contributions to social security schemes are amended accordingly.

Finally:

a) The maximum annual limit of contributions with the right to reduction made to social welfare systems in favour of the spouse who does not obtain income from work or economic activities or who obtains less than 8,000 euros per year is reduced from 2,500 to 1,000 euros.

b) The maximum annual limit is reduced from 8,000 to 2,000 euros for all reductions made by all persons who pay premiums for private insurance policies that exclusively cover the risk of severe dependency or major dependency in favour of the same taxpayer, including those of the taxpayer himself.

3.5 Prolongation of the exclusion limits of the objective estimation method for personal income tax purposes

For the 2021 tax period, the quantitative limits that delimit the scope of application of the objective assessment method for personal income tax are extendedfor the 2021 tax period, based on the volume of gross income from all economic activities (250,000 euros – 125,000 euros when an invoice must be issued and the recipient is a businessperson or professional) and the volume of purchases of goods and services (250,000 euros), with the exception of agricultural, livestock and forestry activities, which have their own quantitative limit based on the volume of income (250,000 euros).

4. Wealth Tax

Royal Decree-Law 13/2011 re-established the Wealth Tax on a temporary basis for the years 2011 and 2012 (after its practical elimination since 2008 through the application of a 100% rebate). This regime has been successively extended.

Now, the LPGE introduces two measures in relation to Wealth Tax:

The indefinite maintenance of the tax without the need for annual reinstatement. To this end, it repeals the second section of the sole article of Royal Decree-Law 13/2011, of 16 September.

The increase in the rate of tax applicable to the last bracket of the rate. In other words, for assets exceeding 10,695,996.06 euros, an increase from 2.5% to 3.5% is approved.

In any case, it should not be forgotten that these modifications are introduced in the state regulations and that some autonomous communities have made use of their regulatory powers, establishing specific allowances. Therefore, the specific regulations of the Autonomous Community of residence must be taken into account.

5. Value Added Tax (VAT)

The following amendments are made to Law 37/1992 of 28 December 1992 on VAT.

5.1 Tax rates

The tax rate applicable to soft drinks, juices and carbonated beverages with added sugars or sweeteners is increased from 10% to 21%.

5.2 Localisation rules for the provision of services

The objective scope of the “closure clause”, which attracts the localisation of certain services that are effectively used or exploited in our territory, is modified so as not to apply this rule to services that, in accordance with the general rules, are understood to be located in the Canary Islands, Ceuta or Melilla.

5.3 Simplified regime and special regime for agriculture, livestock and fishing

As in the case of personal income tax for the objective assessment regime, the limits for the application of the simplified regime (150,000 euros) and the special regime for agriculture, livestock and fisheries (250,000 euros) are extended for 2021, with indefinite validity.

6. Local taxation and real estate cadastre

6.1 Tax on Economic Activities (IAE)

New headings are created in the IAE Tariffs, in order to:

a) Specifically classify the marketing activities of general supplies (electricity and gas). Specifically, the following headings are added, with national, provincial and municipal quotas:

– Entry 151.6, for “trading of electricity”.

– Heading 152.2, for the “marketing of gas”.

b) To have a specific heading for large retail outlets that are not primarily dedicated to clothing or food, treating them in a similar way to other shopping centres.

The heading is 661.9, called “other mixed or integrated trade in large retail outlets”, understood as that carried out in a specialised manner in establishments with a useful surface area for the display and sale to the public of products such as those related to DIY and household equipment, household and office furniture, electronic and electrical household appliances, articles for the automobile, sports articles and others. Its quota is municipal.

c) Finally, to have an epigraph for the new activity of supplying energy to electric vehicles through recharging points installed anywhere, whether on public roads, petrol stations, public and private garages or any other location. This is epigraph 664.2, “electric vehicle charging points”, with national and municipal quotas.

6.2 Real Estate Cadastre

The second transitory provision of the Revised Text of the Law on Real Estate Cadastre (Royal Legislative Decree 1/2004, of 5 March) is modified, in relation to the cadastral valuation of rustic real estate.

Specifically, it is envisaged that the evaluation rates referred to in the provision, corresponding to the different crops and uses, will be included, for their application, in the national, provincial and municipal tables approved by resolution of the Director General of Cadastre.

7. Excise Duties

With effect from the entry into force of the LPGE and valid indefinitely, the following amendments are made to Law 38/1992, of 28 December, on Excise Duties.

Electricity Tax

New exemptions are introduced for:

a) Electrical energy consumed on vessels because it was generated on board them. This exemption takes effect from 1 January 2015.

b) The electricity supplied that is subject to compensation with surplus hourly energy, in the form of self-consumption with surpluses subject to compensation, in accordance with the provisions of Royal Decree 244/2019, of 5 April, which regulates the administrative, technical and economic conditions for the self-consumption of electricity.

On the other hand, a new case of 100% reduction in the taxable base on the amount of electricity supplied or consumed in rail transport is introduced.

Finally, the minimum tax rate of 0.5 euros per megawatt-hour (MWh) currently provided for electricity used for industrial purposes or on vessels berthed in port, which do not have the status of private pleasure craft, is extended to electricity used for rail transport.

8. Other issues

8.1 Transfer Tax and Stamp Duty (Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados, ITPyAJD)

The scale of taxation of titles and nobiliary grandees applicable in the AJD-administrative documents modality is updated by 2%.

8.2 Insurance Premium Taxes

The tax rate on insurance premiums is raised from 6% to 8%.

8.3 Fees

a) The amount of flat-rate fees is increased by 1%, except for those specifically created or updated by regulations issued as from 1 January 2019.

The fees payable by the Jefatura Central de Tráfico will be adjusted, once updated to the aforementioned 1% and, when the resulting amount has three decimal places, to the next higher or lower euro cent, whichever is the nearest euro cent.

b) The amounts of the taxes on gambling, set out in Royal Decree-Law 16/1977 of 25 February 1977, which regulates the criminal, administrative and fiscal aspects of games of chance and betting, are maintained.

c) The quantification of the parameters necessary to determine the amount of the fee for the reservation of the public radioelectric domain is generally maintained.

d) The basic amounts of port dues are also maintained.

e) In addition, the allowances and corrective coefficients applicable in ports of general interest to the occupancy, ship, passenger and merchandise rates are established, as well as the corrective coefficients applicable to the fixed rate for the reception of waste generated by ships, in accordance with the provisions of the Consolidated Text of the Law on State Ports and the Merchant Navy, approved by Royal Legislative Decree 2/2011, of 5 September.

f) The tax rate for the tax on supervision, analysis, advice and monitoring of fiscal policy, regulated in section g) of the second additional provision of Organic Law 6/2013, of 14 November, on the Creation of the Independent Authority for Fiscal Responsibility, shall be 0.00144 per cent.

g) Finally, in the area of railway charges, the charges for (i) railway undertaking licence, (ii) granting of safety authorisation and safety certificate, (iii) approval of centres, (iv) certification of entities and rolling stock, (v) granting of tickets and authorisations for entry into service and (vi) provision of services and performance of activities in the area of railway safety are updated.

8.4 Non-profit entities and tax incentives for patronage

8.4.1 Events of exceptional public interest

The following events are declared to be events of exceptional public interest for the purposes of the provisions of Law 49/2002 of 23 December 2002 on the tax regime for non-profit organisations and tax incentives for patronage (the names of these events and the duration of the corresponding support programmes for these events are indicated):

1) “Bicentenaries of the independence of the Ibero-American Republics” (from the date of entry into force of the LPGE until 31 December 2023).

2) “150th Anniversary of the creation of the Spanish Academy in Rome” (from the entry into force of the LPGE until 31 December 2023).

3) Commemoration of the “125th anniversary of the Madrid Press Association” (from the entry into force of the LPGE until 31 December 2021).

4) Holding of the “MADBLUE” Summit (from the entry into force of the LPGE until 31 December 2023).

5) “30th Anniversary of the Queen Sofia School of Music” (from the entry into force of the LPGE until 31 August 2023).

6) “Año Santo Guadalupense 2021” (from the entry into force of the LPGE until 31 December 2022).

7) “Andalucía Valderrama Masters 2022/2024” (from 1 January 2022 to 31 December 2024).

8) “Davis Cup Madrid Tournament” (from the entry into force of the LPGE until 31 December 2021).

9) “MADRID HORSE WEEK 21/23” (from the entry into force of the LPGE until 31 December 2023).

10) “Centenary of Rugby in Spain and of the Unió Esportiva Santboiana” (from the entry into force of the LPGE until 31 December 2023).

(11) ‘Solheim Cup 2023’ (from the entry into force of the LPGE until 31 December 2023).

12) “IX Centenary of the Reconquest of Sigüenza” (from 1 July 2021 to 30 June 2024).

13) “Barcelona Mobile World Capital” (from the entry into force of the LPGE until 31 December 2023).

14) “Valencia, Capital Mundial del Diseño 2022 / Valencia World Design Capital 2022” (from the entry into force of the LPGE until 31 August 2023).

15) “Fiftieth anniversary of the National University of Distance Education (UNED)” (from the entry into force of the LPGE until 31 December 2022).

16) “Centenary of Revista Occidente” (from the entry into force of the LPGE until 31 December 2023).

17) “50th anniversary of the death of Clara Campoamor. 90 years since the beginning of a full democracy (from 1 March 2021 to 29 February 2024).

18) “V Centenary of the death of Elio Antonio de Nebrija (from the entry into force of the LPGE until 30 December 2023).

19) “New Goals II” (from 1 July 2021 to 30 June 2024).

(20) ‘250th anniversary of the National Museum of Natural Sciences (CSIC-MNCN)’ (from the entry into force of the LPGE until 31 December 2021).

21) “Andalusia European Region of Sport 2021” (from the entry into force of the LPGE until 31 December 2023).

(22) “75th anniversary of the Ópera de Oviedo” (from 1 July 2021 to 31 December 2023).

23) “Healthy Habits for the control of Cardiovascular risk “Learning to take care of ourselves” (from the entry into force of the LPGE until 31 December 2023).

(24) “Badminton World Championships Spain” (from 1 June 2021 to 31 December 2023).

(25) “Centenary of the Battle of Covadonga-Cuadonga” (from the entry into force of the LPGE until 31 December 2023).

26) “VII Centenary of the Cathedral of Palencia 2021-2022” (from the entry into force of the LPGE until 31 December 2023).

(27) ‘FITUR special: tourism recovery’ (from the entry into force of the LPGE until 31 December 2023).

28) “Inclusive Sport Programme II” (from 1 July 2021 to 30 June 2024).

29) “Valencia 2020-2021, Jubilee Year. Way of the Holy Chalice” (from the entry into force of the LPGE until 31 December 2022).

30) “Neurodegenerative Diseases. International Year of Research and Innovation. Period 2021-2022” (from the entry into force of the LPGE until 31 December 2022).

31) “50th anniversary of the Hospital Sant Joan de Deu” (from the entry into force of the LPGE until 31 December 2023).

On the other hand:

1) The event “Spain Guest of Honour at the Frankfurt Book Fair in 2021” (approved by Royal Decree-Law 17/2020 of 5 May, approving measures to support the cultural sector and tax measures to address the economic and social impact of COVID-2019) changes its name to “Spain Guest of Honour at the Frankfurt Book Fair in 2022” and the duration is extended until 31 December 2022 (previously until 30 November 2021).

2) The duration of the event ‘Alicante 2021. Salida Vuelta al Mundo de Vela”, approved by the same Royal Decree-Law 17/2020, is established between 1 January 2021 and 31 December 2023.

3) The duration of the event “Plan Decenio Milliarium Montserrat 1025-2025″, approved by Law 3/2017 of 27 June is established between 1 February 2019 and 31 January 2022.”

8.4.2 Priority sponsorship activities

Along the same lines as in previous years, the list of priority patronage activities and programmes is included for the purposes of applying the tax incentives provided for them in Law 49/2002, of 23 December, on the tax regime for non-profit organisations and tax incentives for patronage.

For these activities, as in previous years, the percentages and limits on deductions provided for in the aforementioned law will be raised by five percentage points. The limit of €50,000 per year for each contributor for any of the aforementioned activities will be maintained.

8.5 Public Indicator of Multiple Effect Incomes (Indicador Público de Rentas de Efectos Múltiples)

The Public Indicator of Multiple Effect Income (IPREM) to which, among others, the IRPF regulations refer (when regulating the exemption for financial aid granted by public institutions to disabled persons or persons over 65 years of age to finance their stay in residences or day care centres) is set, for 2021, at the following amounts:

Daily IPREM: 18.83 euros.

Monthly IPREM: 564.90 euros.

Annual IPREM: 6,778.80 euros.

It is also established that, when the reference to the minimum interprofessional wage (SMI) has been replaced by the reference to the IPREM (as occurs in the aforementioned exemption), the annual amount of this will be 7,908.60 euros, provided that the aforementioned reference to the SMI was on an annual basis (unless the extra payments were expressly excluded; in this case, the amount will be 6,778.80 euros).

8.6 Statutory interest on money and interest for late payment

Until 31 December 2021, the legal interest rate is set at 3% and the interest rate for late payment at 3.75%.