On 22 March 2024, the Order approving the Personal Income Tax (IRPF) and Corporation Tax was published in the Official State Gazette.
With regard to Personal Income Tax, Tax Campaign began on 3 April, the date from which taxpayers can now access their draft tax return and their tax data, as well as file their tax return.
The deadline to make the return ends on 1 July, with the exception of those taxpayers who choose to pay the tax by direct debit, whose terms ends on 26 June.
As a general rule, taxpayers are obliged to file a tax return if their income from employment in 2023 exceeds EUR 22.000 or if their income from several payers exceeds EUR 15.000 (when the second and subsequent payers together exceed EUR 1.500).
The newest developments for the 2023 financial year include the following:
Reduction for obtaining employment income:
The amounts that will reduce net earned income are increased and the amount below which this reduction will be applied are also increased.
This reduction will be applied to taxpayers with a net income from work of less than EUR 19.747,50, provided that they do not have income, excluding exempt income, other than from work, of more than EUR 6.500.
New brackets in the savings tax scale:
With effect from 1 January 2023, a new tax bracket is added to the savings tax scale which, adding together the national and regional scales, amounts to 28% for income exceeding EUR 300.000.
This amendment also applies to taxpayers benefiting from the special scheme for workers posted to Spanish territory.
Self-employed:
Royal Decree-Law 13/2022 introduces important changes for the self-employed. Now, all self-employed persons must file tax returns regardless of their annual income, eliminating the previous limit of EUR 1.000 In addition, self-employed taxpayers paying simplified direct assessment will be able to deduct up to EUR 2.000 per year for expenses that are difficult to justify, at a rate of 7%, and they will be able to deduct up to EUR 4.250 per year for pension plans.
Deduction for Maternity leave:
With effect from 1 January 2023, women with children under 3 years of age and entitled to the minimum for descendants may benefit from the deduction and may reduce the differential tax liability by up to EUR 1.200 per year for each child, provided that any of the requirements regulated in article 81 of the LIRPF are met.
Electric vehicle:
Taxpayers who purchased an electric vehicle in 2023 will be able to deduct 15% of the purchase value, including expenses and taxes, with the exception of public subsidies received for the purchase. However, there is a maximum deduction limit of EUR 20.000.
Deduction for investment in new or recently created companies:
Investors in new or newly created companies will be able to deduct 50% of the amounts invested in shares or participations during the period, with a maximum tax deduction limit of EUR 100.000 per year.
Changes in autonomies:
Lastly, it is important to bear in mind that, in addition to changes at the state level, it is very likely that there will be changes at the regional level that may affect taxpayers depending on their place of residence.
Below is a summary of the upcoming dates to consider for the 2023 financial year:
- 29 April 2024: Start of telephone service appointment request.
- 7 May 2024: Start of ¨Renta¨ WEB presentation by telephone.
- 29 May 2024: Start of appointment request for face-to-face service.
- 3 June 2024: Start of ¨Renta¨ WEB presentation in person (offices).
- 26 June 2024: Deadline for direct debit of income to be paid.
- 28 June 2024: End of appointment request (for in-person service).
- 1 July 2024: End of campaign.
