2023-12-17 08:35:24
He Personal Income Tax (IRPF), being a tax figure of the Spanish Treasury, is a direct, personal, subjective, progressive, periodic and analytical tax that taxes the income obtained in a calendar year. And it is now, in these days that remain until the end of the year, when we have to plan what can be done to minimize the tax cost when the tax settlement is presented back in the spring of 2024. It is well understood that the maximum tax savings is limited to the amount of the fee resulting from the self-assessment, because the Treasury does not pay, it only returns, if necessary, the withholding made .
Las tax advantages that allow you to save taxes are easy to apply. However, due to the “Matthew effect”, it is those with greater wealth and higher incomes who can really take full advantage of all the advantages. The benefits for the taxpayer also come through correct personal income tax planning., without the need to defraud. Therefore, the taxpayer must make the decisions in advance that most benefit him/her: thus, he/she will anticipate making the appropriate decisions before the end of the year; and, on the other hand, he must postpone others that will be clearly detrimental to his interests.
The investment on assets has tax repercussions. But it is the case that the domestic investor does not take them into account on many occasions and personal finances require time to be dedicated to knowing their scope.
Therefore, it is worth remembering some tips that allow you to reduce the personal income tax bill, the Wealth Tax (IP) and the Solidarity Tax on Large Fortunes (ISGF):
Every taxpayer must take into account all the tax deductions that depend on your personal situation and the Autonomous Community where you reside.
Las withholdings on account of personal income tax They will depend largely on the family circumstances of each taxpayer. This is why Banqmi recommends having the family situation updated with the employer so that the employer can withhold it as appropriate.
Los professional fees may be deducted of their professional associations, unions and expenses for labor disputes.
Las membership fees to political parties, donations to NGOs, foundations and non-profit entities have their corresponding deduction in personal income tax.
Los work performancein addition to salary and other concepts, include benefits received from Pension plans; As a consequence, it is preferable to start collecting it when the income from all of those incomes decreases. If the contributions are prior to 2007 and are redeemed in the form of capital, you may benefit from a 40% reduction. Without retirement occurring in 2021, you only have until the end of this year to be entitled to the aforementioned reduction.
If they have income from work and, at the same time, rental income, you may be interested in doing contributions to a Pension Plan with a limit of €1,500 or 30% of the sum of the net earnings from the work, whichever is lower. If it is the company that contributes to an Employment Plan, the limit increases to €8,500. If the spouse does not have income or it is less than €8,000, they can contribute to the Spouse Plan up to a limit of €1,000 per year.
If you have purchased the Habitual housing Before 2013, a 15% deduction can be applied to contributions that do not exceed 9,040 euros.
The tax base of savings will be conditioned by the profits and returns that you have obtained from the different assets, being more burdensome depending on the section where you are located. So, all those actions dedicated to reduce the tax base They will be welcome.
The profits obtained by the sale of habitual residence They will be exempt if the total amount is reinvested in another habitual residence during the next two years or if you are over 65 years of age.
They can be offset capital gains with losses in order to reduce the savings rate section, although to do so it is necessary to make the appropriate changes.
Las capital gains obtained by those over 65 years will be exempt from taxation if the amount of the sale is used to construct a life annuity. This must be created within a period of no more than six months and with a maximum limit of 240,000 euros.
If, in order to reveal a handicap, a user is thinking about give a good You might as well sell it and then donate the money. The Treasury does not allow compensation for losses resulting from a donation.
You can not either reveal the loss of value of an asset that is sold and bought again in order to maintain the investment. There is an “anti-enforcement rule” that prevents this, as long as two months have not passed since the sale.
The dividend taxation varies depending on how they are received. If they are received in money, they will have an associated withholding of 19% and will form part of the savings income in the section of income from movable capital. In the event that they are distributed through a “scrip dividend”, the tax treatment will depend on whether new shares are received, if the rights are sold on the Market or if they are sold to the issuing company.
This will be the last year in which the outstanding losses from 2019 can be compensated. It may be interesting to surface some capital gains in order to fiscally clean up the assets.
In the case of the sale of an assetwhen calculating profit or loss, the transmission costs will be subtracted from the price obtained and the acquisition costs They will be added to the price paid, thus reducing the profit obtained or increasing the loss to be compensated. If the asset being sold is a property that has been rented, the amortizations that have been carried out during the rented period will have to be subtracted from the acquisition price.
Los benefits obtained through rent of a property will be reduced by deductible expenses (amortization, taxes, financial interest, repairs, insurance, etc.), but only up to the limit of the rental income, and cannot generate negative returns, but the excess expense may be compensated in the four following exercises.
The amortization of a rental home It will be 3%, taking as a basis the highest of the following values: the cadastral value of the construction or the acquired acquisition cost paid.
If they have been carried out energy efficiency works In the habitual home or in a rented home, they can be deducted, but payment for the works cannot be in cash.
In case of divorce from a marriage in community property The capital gain derived from the termination of the condominium will not be taxed, as long as there are no excess allocations.
From June 30, 2023, 15% of the price of a ticket may be deducted. installation of a battery charging system for electric vehiclesas long as the installation is not affected by an economic activity.
And a tenant has not paid rent In 2023 it must be included as income in personal income tax, even if an expense is later declared as a “doubtful balance”.
For 2023, a deduction for purchasing a “plug-in” electric vehicle.
For the rental contracts that take place from January 1, 2024 The reduction percentage that will be applied will be 50% of the net performance. Contracts in force prior to that date will continue to apply the 60% reduction.
It will be taxed for the subsidies that have been received from the Neighbor communitiesaccording to the participation coefficient, as a gain in equity.
You can deduct 30% of the amounts paid by the subscription of shares of newly created companies on an annual basis of 60,000 euros, which will be 50% if the company is considered an emerging company and the maximum base will increase to 100,000 euros.
The delivery of shares of the company where you work It will be exempt if certain requirements are met and up to a limit of 12,000 euros or 50,000 euros if it is an emerging company.
You will not miss the right to deduction for housing rental if the contract is subject to an extension, as long as the validity of the original contract is maintained.
For small savings in the medium and long term it may be interesting to open a Individual Long-Term Savings Account (CIALP) o one Individual Long-Term Savings Insurance (SIALP). Both will allow deposits to be made in the following 5 years without exceeding 5,000 euros per year, with the profitability being exempt if the amounts paid are not redeemed.
In the end, personal income tax is nothing more than a settling of accounts between the taxpayer and the Tax agency. Therefore, in many cases it is advisable to go to a tax advisor to mediate between both parties.
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At this point in the year, what is intended, with a view to the 2023 declaration, is to carry out a financial and tax planning exercise in case it is worth acquiring or selling an asset with which profits are obtained and compensating for the losses that have accumulated during the year. Taking advantage of the fact that this year has been positive in general, it can be used to compensate for losses from previous years that have been worse.
Likewise, it is important keep all documents and supporting documents of all the deductions that have been made. The Treasury is very suspicious and may demand its presentation during the next four years.
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