2024-01-05 01:21:04
Friday, January 5, 2024, 00:21
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The year 2024 brings new developments in the Personal Income Tax (IRPF) for Basque taxpayers, among whom are a good part of pensioners. The withholding table approved by the provincial councils for this year includes a deflation of 2.5% aimed at alleviating the effects of the price escalation caused by the war in Ukraine.
This formula prevents the updating of salaries and pensions from producing a jump to a higher income bracket, with the consequent greater retention by the Treasury.
Personal income tax is divided into income brackets that set the tax burden borne by each taxpayer according to their income and personal situation. And they are also used to calculate the withholdings made each month on work or pension payrolls.
It is common that upon reaching retirement age, pensioners wonder if they are obliged to file an income tax return. For tax purposes, pensions are considered income from work. So they are subject to withholdings, like salaries received during working life, and therefore their recipients have to settle accounts with the treasury.
Bizkaia personal income tax table in 2024. DFB
Pensions exempt from making the declaration
However, Basque regional regulations include some situations in which pensioners do not have to make the declaration.
As a general rule, taxpayers with labor income exceeding 20,000 euros are required to declare, or when their gross capital gains and capital gains – income from the sale of shares or a flat, for example – jointly exceed 1,600 euros. If the taxpayer receives income from the work of two or more payers, he will not be obliged to make the declaration if it is less than 14,000 euros per year. If this income is between 14,000 and 20,000 euros, they will not have to submit the declaration if the income obtained from the second and remaining payers does not exceed 2,000 euros.
It is worth clarifying that many pensioners have more than one payer, since the rescue of a pension plan, or the collection of a benefit from another country, are considered income from work. It also happens when in a year the retirement pension begins to be received and in that same year an unemployment benefit or subsidy has been collected.
In addition to income reasons, there are a series of pensions exempt from personal income tax:
– Public benefits received for acts of terrorism.
– Benefits for permanent non-disabling injuries, permanent partial, total, absolute or severe disability recognized by Social Security or by an entity that replaces it. In the event of collecting a benefit for total permanent disability (in Álava the partial disability is also included), there will be no exemption if the taxpayer is 55 years old or younger and receives other work income other than pensions or benefits from Social Security, health insurance plans, pensions, voluntary social security entities, insured pension plans and group insurance, or economic activities. However, periodic benefits are always exempt in the tax period in which they are received for the first time.
-Pensions for uselessness or permanent disability of the passive class regime (which includes certain groups of civil servants, military personnel, presidents of the Government, former presidents and other high-ranking officials) provided that the injury or illness that had been the cause of those completely disabled the recipient of the pension for any profession or trade.
-The pensions recognized in favor of those people who suffered injuries or mutilations on the occasion or as a consequence of the Spanish civil war.
-Pensions and passive assets for orphans and for grandsons and granddaughters of brothers and sisters, under 22 years of age (in Álava it is 25 years) or incapable of all types of work, received from the public Social Security and Classes regimes. Passive.
When calculating the personal income tax on a pension, in addition to the amount received, the personal and family situation of the holder must be taken into account: whether he or she has a spouse, is single, widowed, divorced or legally separated. Also if you have children under 18 years of age, adults with disabilities, or over 25 years of age who live with the pensioner and do not have an annual income greater than a certain amount.
New in deductions
There are also changes in the deductions that Biscayan taxpayers over 65 and 75 years of age can apply, whether they are pensioners or not. As for those over 65 years of age, those whose taxable income is equal to or less than 20,000 euros may deduct 385 euros (previously it was 375).
If the base is greater than that amount and less than 30,000 euros, a deduction of 385 euros may be applied (until now it was 375 euros) less the result of multiplying by 0.0700 the amount resulting from reducing the tax base by 20,000 euros.
For their part, taxpayers over 75 years of age with a tax base equal to or less than 20,000 euros will benefit from a deduction of 700 euros (previously they were 682). If said base is between 20,000 and 30,000, the result of multiplying by 0.0700 the amount resulting from reducing the tax base by 20,000 euros must be subtracted from this deduction.
These deductions, which came into effect on January 1, will be applied to the 2025 income tax return.
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