«Confirming the draft without reviewing it may lead to errors or not applying certain tax advantages»

«Confirming the draft without reviewing it may lead to errors or not applying certain tax advantages»

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A new income campaign begins and, as usual, the Administrative Managers launch a series of recommendations for taxpayers to minimize errors in the declaration and efficiently apply the corresponding tax regulations. To this end, the following aspects stand out to take into account:

Main developments in the income campaign

Key dates

  • Start and End of Campaign: It begins on April 3 and ends on July 1, 2024. Those who choose to pay the tax by direct debit have until June 26 to do so.

  • Reference Number and Access to Tax Data: Since March 12, it has been possible to request the Reference Number, a key tool to access and process the income tax return. As of March 19, it has been possible to access tax data through the AEAT mobile App, facilitating the management of the declaration.

  • Draft income: As has been the case for several years, the AEAT presents a draft based on the data that has been sent to it by companies and by the taxpayers themselves. These data may not be correct or be outdated, so the declarant has the responsibility of checking them before accepting the result shown in said draft.

Fernando Jesús Santiago Ollero, president of the General Council of the Colleges of Administrative Managers, once again recommends “that the draft be reviewed in detail; It contains errors more often than you might think, and it is due to erroneous information on the part of companies, or to not being informed about having a child or renting a home. If we do not review the draft we run the risk of losing deductions or not properly allocating income or expenses.

“We are often asked how many errors occur in drafts and how many drafts contain errors. At this point I can only answer that having made an error is already harming a taxpayer. And when a citizen makes a statement confirming the draft, we are assuming the risk of not taking into account special circumstances that the AEAT is unaware of,” Santiago continues.

«In the medium term, paying an expert is cheap. But more important than paying when making the declaration is to go to the expert during the year to plan ahead,” concludes the president of the General Council of the Colleges of Administrative Managers.

News, modifications and deductions

News in Tax Data

  • Cryptocurrencies: Detailed information on offshore cryptocurrency holdings and movements is introduced, reflecting the growing importance and regulation of these digital assets.

  • Inherited Urban Real Estate: Specific information on inherited urban real estate is included, which may affect the declaration of taxpayers who have received this type of property.

  • Earnings in Online Games: The need to declare profits obtained through online games is recognized, thus reflecting changes in leisure habits and the digital economy.

  • Electric Vehicles and Charging Points: Deductions are introduced for the acquisition of electric vehicles (excluding hybrids) and for the installation of charging points, promoting sustainable mobility.

  • Low Income Aid: Information on the reimbursement of aid (200 euros) for taxpayers with low incomes who have been improperly collected, ensuring equity in the aid system.

  • Mutalities: Details on applicable adjustments to employment income related to retirement or disability pensions, specifically in relation to contributions to certain mutual societies before 1967 and between 1967 and 1978.

Regulatory Modifications

  • Deduction for Maternity and Daycare Expenses: The deduction for maternity and daycare expenses is expanded, including mothers who receive unemployment benefits or register with Social Security after the birth of the child.

  • Work performance: The threshold for the obligation to declare is increased from 14,000 to 15,000 euros in certain cases, adjusting the conditions for taxpayers with multiple payers or income not subject to withholding.

  • Self-employed: All self-employed workers, including collaborators and corporations, are required to submit the declaration this year, reflecting a significant change in tax obligations for this group.

  • Deductible General Expenses for Self-Employed: In the case of self-employed workers who make the declaration by Simplified Objective Estimation, the percentage of deductible general expenses goes from 5% to 7%, always with a limit of 2,000 euros. When using Objective Estimation, the percentage will be 10% of the estimated net return.

  • Minimum Living Income: The obligation to present the declaration for holders of the Minimum Living Income and their cohabitation units is clarified, guaranteeing the correct taxation of this aid.

  • Reductions and Exemptions:

  • Improvements in reductions for work income for low incomes.

  • News for property lessors, including changes in the reduction of net returns.

  • Expansion and improvements in the expatriate regime, with favorable conditions for digital nomads and other figures.

  • Exemptions for allocations for transportation expenses and CAP aid.

  • Increase in the exemption for the delivery of shares or participations to workers.

Specific Tax Deductions

  • Electric vehicles: A new state deduction is established for the acquisition of “plug-in” electric and fuel cell vehicles, with a limit on the deduction base, promoting the transition towards more sustainable mobility.

  • Recharging Facilities: Deduction for the installation of electric vehicle charging infrastructure on taxpayer properties, supporting the infrastructure necessary for the use of electric vehicles.

  • Investments in Cinematographic Productions and Audiovisual Series: Deductions for taxpayers in direct estimation.

Other Relevant Aspects

  • Regional Exemptions and Deductions: The particularities of personal and family minimums and specific deductions by Autonomous Communities must be taken into account.

  • Contributions to pension plans: The maximum contributions that the worker can make to the same social security instrument to which business contributions would have been made are extended (4,250 euros, by the worker and 4,250 euros by the company). Self-employed workers may make contributions to their own simplified employment pension planup to a limit of 4,250 euros.

  • It creates a 10% installment deduction for business contributions (self-employed with dependent workers) to corporate social security systems attributed in favor of workers with full labor income of less than 27,000 euros (both in Corporate Tax and Personal Income Tax), also being applied for the corresponding proportional part if These exceed that quantitative limit.

  • Works Done Abroad: Extension of the applicable exemption.

  • Redundancy payment: Application of exemption in new cases.

The president of the Administrative Managers points out that “we wanted to do a quick review of the main developments. However, we advise taxpayers that, given the complexity of the declaration in many cases, the novelties approved, the differences that have been established by Autonomous Community and the errors that, year after year, we verify that occur in the draft, “Go to a specialist to collaborate with your statement.”

Main developments in the Wealth Tax

Submission Deadlines:The period to submit the 2023 Wealth Tax returns is from April 3 to July 1, 2024. If the payment of a return to be deposited is domiciled, the deadline is June 26, 2024​​.

Modifications to the Exempt Minimum

Aragon increased the exempt minimum to 700,000 euros.

Murcia Region established an exempt minimum of 3,700,000 euros, applicable only for the years 2023 and 2024​​.

New Regional Bonuses

Andalusia offers two bonuses to be chosen by the taxpayer, related to the Temporary Solidarity Tax on Large Fortunes (ITSGF).

Estremadura approved a bonus of 100% of the reduced quota.

Galicia increased its general bonus from 25% to 50% of the reduced quota.

Madrid introduced a regional bonus that compensates the difference between the full amount of the own tax and that of the ITSGF, applying joint limits specified in its legislation​​.

State Wealth Tax Scale: The state scale for taxing the taxable base begins with a rate of 0.2% for bases up to 167,129.45 euros, progressively increasing up to 3.5% for bases greater than 10,695,996.06 euros​​.

Significant Variations by Communities:

  • Catalonia and the Valencian Community The maximum rates applicable to higher sections of assets have increased.

  • Galicia and Murcia have implemented notable changes in bonuses and exempt minimums, respectively, seeking a strategy to attract or retain equity

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