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V1323-14 16 May 2014 · SG de Tributos Locales Criterion in force
OTRO · icio

Municipalities may set ICIO tax rates up to 4% using a single rate

A consultation was held regarding the capacity of municipalities to regulate the tax rate of the Special Tax on Construction, Installations and Works (ICIO). The Directorate-General for Tax (DGT) clarifies that local authorities have the autonomy to set this rate through tax ordinances, provided it does not exceed 4% and a single rate is applied regardless of the type of work.

The question raised

Question posed The consultant raises the following question:

The DGT's ruling

Municipalities have autonomy to establish and demand the ICIO through tax ordinances that regulate its tax rate. However, this power is limited by law: the rate may not exceed four percent and different tax rates cannot be established for different constructions, installations, or works.

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