The Reform of the Increasing Land Value Tax: Coordination Issues

Abstract

The paper focuses on coordination issues between the tax on Increasing Land Value and the personal taxes levied on those capital gains. The main conclusion is that the proposal for reform of the Committee of Experts in 2017, in terms of coordination, is the same as in the current legislation and does not allow the existing double taxation to be eliminated. To achieve this objective, it becomes necessary to introduce a tax credit in the personal tax of part of the municipal tax. The work closes with possible extensions arising from the complexity of the coordination mechanism in the case of the Individual Income Tax, the type of transmission (either onerous or costless).

Keywords:

Local Finance, Tax on Increasing Land Value, Tax Coordination and Double Taxation