Last call to avoid shocks in the next income statement | My finances section

The approval of the General State Budgets by the Congress, on December 3, supposes the introduction of some novelties in the IRPF for 2021 that will have to be taken into account before the new year begins, if you want to avoid scares in the next tax return. In the same way, from the Registry of Tax Advisors (REAF) of the General Council of Economists (CGE), they point out the latest reviews that it is advisable to undertake in the little that remains of 2020 in terms of economic activities, profits and losses assets, reductions in the tax base, personal and family minimums, deductions and income integration and compensation. All this, with the aim of minimizing the impact of the tax.

State’s general budgets

Does your income from work or income exceed 300,000 euros? Starting next year, taxation for income from work and income of more than 300,000 euros will rise two percentage points, as established in the General State Budget. For this reason, the advice given by the REAF to workers whose income exceeds that limit is “advance income before the end of the year, for example, by agreeing with your company the delivery of bonuses, productivity or gratifications, among other things”. It is also a good time for entrepreneurs or professionals, whose income exceeds the previous threshold, “advance sales or income to 2020 and defer expenses to 2021,” they add.

Do you plan to transfer any assets with a capital gain of more than 200,000 euros? “It would be convenient to dispose of it before the end of the year,” they say from the REAF, “because as of 2021 the taxation of savings increases from the current 23% to 26%, for bases that exceed that threshold.” The same thing happens if you are a partner in a company and you are thinking of withdrawing profits from it, via distribution of dividends, return of the issue premium or through a capital reduction. “If the amount exceeds 200,000 euros, it is better to carry out these operations in 2020,” they emphasize.

Do you have a pension plan and contribute more than 2,000 euros? You can take advantage of this year to contribute up to 8,000 euros, the current maximum limit. Starting next year, the set of reductions made by all the people who pay amounts in favor of the same taxpayer, including those of the taxpayer himself, may not exceed 2,000 euros per year. “It is also convenient to exhaust the limit of 2,500 euros of the contribution to the spouse’s plan, if this is possible, because in 2021 it is expected that the maximum will be reduced to 1,000 euros,” suggest the CGE’s tax advisors.

Economic activities

Do you carry out an economic activity in a part of your habitual residence? If so, you can deduct the costs of supplies such as water, electricity, gas, telephone or internet. A 30% deduction will be applied, but only on the part of the expense that proportionally corresponds to the square meters dedicated to the activity.

Are you an entrepreneur or professional? Then living expenses can be deducted, as long as they occur in restaurant and hotel establishments and are paid using electronic means of payment. The daily limit is 26.67 euros when not staying overnight, if the expense occurs in Spain, and 48.08 euros abroad. If you stay overnight, these thresholds are multiplied by two.

Have you paid customer and supplier service expenses this year? “The maximum deductible is 1% of the net amount of the turnover for the year itself,” said the CGE’s tax advisors, “so it is best not to go overboard in this chapter.”

Be careful with these expenses. The acquisition of prescription glasses, clothing and footwear, the expenses of completing a master’s degree or the cost of the transport pass (except if the principle of correlation of income and expenses and exclusive use in the activity is proven) are not deductible.

Do you have a small company? “If you want to lower your tax bill, there is still time to acquire a new property, plant and equipment asset or related real estate investment and apply a deduction of 5% of the investment made with the net income from the activity in 2019 or 2020 ( or 2.5%, when the reduction had been practiced due to the start of activity)”, they suggest from the REAF.

Does the module regime apply? In this case, monitor compliance with the limits in 2020 so as not to have to go to direct estimation in 2021.

Do you plan to make a provision of services or some important sale? You can postpone this income to the next year. “In this way, it will mitigate the taxation of its income from the activity,” they say from the REAF. However, if the set of income exceeds 300,000 euros, it may be convenient for you to advance income to this year and defer expenses to the following year, because the tax rate will rise in 2021 two percentage points compared to the current one for income over 300,000 euros, according to the General State Budgets.

Capital gains and losses

Have you won a court case? The consequent recognition of the costs in his favor generates a capital gain. This year, however, as a result of a recent ruling by the Central Economic-Administrative Court, the profit will be determined by the difference between the recognized amount and the expenses incurred due to the lawsuit, although the calculation cannot yield a capital loss, because the The deduction of expenses is limited to the amount of costs. “It must be borne in mind that previous years that are not fiscally prescribed can be regularized by applying this criterion,” underline the CGE’s tax advisors. On the contrary, the award of costs generates a patrimonial loss for the losing party.

Do you own shares in an entity that went public years ago? If you wish to request the deregistration of your securities, keep in mind that you will not be able to allocate the loss of assets until the entity proceeds to its dissolution and liquidation.

Tax base reductions

Do you make contributions to pension plans? You can save a percentage of the amount allocated to this as well as to other social security products up to the lower of the following limits in 2020: 8,000 euros or 30% of the sum of earnings from work and economic activities. “At the end of the year it is time to think about whether we are interested in exhausting the limit, knowing that the tax savings is our maximum marginal rate applied to the contribution,” they explain from REAF.

In 2020, did your spouse obtain less than 8,000 euros from their work or economic activity? You can also reduce your base in 2020 by making contributions to your spouse’s plan, before the end of the year, with a maximum of 2,500 euros.

Does your spouse or relative have a disability? In this case, you can set up a protected estate in your favor and reduce your tax base with the contributions, up to an annual amount of 10,000 euros, with a maximum joint reducible limit of 24,250 euros, if several family members contribute. This reduction is compatible with that of the pension plan.

Do you pay a compensatory pension to the ex-spouse and other annuities for food? If these are different from those paid to the children, they reduce their tax base, by constituting income from work for the recipient. That yes, “it is necessary that the regulatory agreement or the judicial resolution specify what part is compensatory pension and what amount corresponds to other concepts”, they clarify from the REAF.

Personal and family minimums

Do you support your children, even if you do not live together and do not have guardianship and custody? You will have the right to apply half of the minimum for descendants, but only if you do not benefit from the special treatment for child support annuities.

What happens to child support annuities by court decision? When the amount is less than the general taxable base, they are taken to the personal income tax scale separately from the rest of the general taxable base and do not constitute income for the children. The personal and family minimums, in addition, are increased by 1,980 euros. However, this tax treatment will be possible “only if the regulatory agreement has been judicially approved, signed before a court clerk or in a public deed before a notary”, they point out from the REAF.

And the extraordinary payments? Dentist, orthopedics, optics, camps, English classes, extracurricular activities, among others, can be included in the concept of annuities for food in favor of the children, but only if the agreement establishes that these expenses will be assumed in halves by The parents.

Do you live with your parents and one of them earns less than 1,800 euros per year? In this case, the minimum can be applied for ascendants by this parent. In addition, your parents may file a joint return.


donations. Since January 1, the deduction for donations has been increased by five percentage points, so that you still have time to make them before the end of the year and reduce your tax bill. You can deduct 80% of the first 150 euros donated. The rest of the donation gives the right to deduct 35% of its amount, unless you make regular donations to that same entity, in which case it will be 40%.

Do you have capital that you plan to invest before the end of the year? Please note that 30% of subscriptions for shares or participations in start-up or recently created companies can be deducted, on a maximum annual basis of 60,000 euros. Both the partners who make monetary contributions and those who contribute credits that they have against the company, can apply this deduction.

Are you part of a large family? You are entitled to a deduction of 1,200 euros per year or 2,400 euros if it is a special category. In addition, you can deduct 50 euros per month more for each child that exceeds the number necessary to be a large family (of three, the general one, or of five, the special one). “Having the large family title is a requirement that is required for each month”, recall the REAF tax advisors. “If you still do not have it, request it as soon as possible and you will be able to deduct for the last month of the year,” they advise.

Do you have a non-legally separated spouse with a disability? You can deduct 1,200 euros per year for it, provided that the latter does not receive annual income, excluding exempt income, of more than 8,000 euros. It is not possible to apply this deduction when the child is entitled to the deduction for ascendants with disabilities, regardless of whether or not he applies the deduction on his return.

Integration and compensation of revenue

Have you obtained any capital gains by transferring assets? “There is still time to lower the cost of the tax bill by transmitting other items with losses, regardless of how long they have remained in your assets,” recommend the CGE’s tax advisors. These losses are subtracted from earnings derived from transfers.

Did you have a negative balance due to the transfer of assets in previous years? If no more than four years have passed, you can make capital gains. In this way, their taxation will be attenuated or annulled by the use of negative balances.

Do you have positive returns going into the savings portion? The typical example is interest and dividends, which can be reduced with the negative balance of the integration of capital gains and losses originating from transfers, up to a maximum of 25%. The remaining negative balance may offset the balance of income from capital in 2021 and subsequent years.

Do you have negative capital gains? In this case, you can reduce with them the taxation of the balance of capital gains and losses generated by transmissions, with the limit of 25% of the same.


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