2. Obligation to report

People entitled to the minimum vital income regulated by Law 19/2021, of December 20, which establishes the minimum vital income and all members of the cohabitation unit are obliged to file a declaration of IRPF , in accordance with article 36.1.f and 2.c) of the aforementioned law regardless of whether or not they meet the requirements established in article 96 of the Personal Income Tax Law for the obligation to declare.

Taxpayers required to file

In general, taxpayers for Personal Income Tax are required to file and sign a declaration for this Tax, with the limits and conditions established by regulation.

However, taxpayers who obtain income exclusively from the following sources, whether individually or jointly taxed, are not required to file a tax return:

Gross employment income (including, but not limited to, pensions and passive earnings, as well as compensatory pensions and alimony payments) not exceeding the following amounts:
- 22,000 euros per year if they come from a single payer.
  
  This same limit also applies when the income from work comes from more than one payer, if the sum of the amounts received from the second and remaining payers, in order of amount, does not exceed the sum of 1,500 euros per year.
  
  The limit will also be 22,000 euros in the case of taxpayers whose only work income consists of the passive benefits referred to in article 17.2.a) and the determination of the applicable withholding rate has been carried out in accordance with the special procedure established by regulation. To do so, the pensioner with two or more payers must have requested the determination of the withholding rate using form 146.
- 14,000 euros per year in the following cases:
  - When they come from more than one payer (except for the exception provided for in the previous point).
  - When compensatory pensions are received from the spouse.
  - When annual payments are received for food that are not exempt.
  - When the payer of the income from work is not required to withhold in accordance with the regulations (see. art. 76 Rgl. Personal Income Tax (IRPF).
  - When full income from work is received at the fixed withholding rate of article 80.1. 3 and 4 of the Tax regulations.
Gross income from movable capital (dividends from shares, interest from accounts, deposits or fixed-income securities, etc.) and capital gains (gains derived from redemptions of shares in Investment Funds, prizes for participation in contests or games, etc.), subject to withholding or payment on account, with a joint limit of 1,600 euros per year.
When the withholding base has not been determined based on the amount to be included in the tax base, the capital gain obtained from transfers or reimbursements of shares or interests in collective investment institutions may not be attributed as a capital gain subject to withholding or payment on account for the purposes of the limits excluding the obligation to declare.
Imputed real estate income , gross income from movable capital not subject to withholding derived from Treasury Bills and subsidies for the acquisition of officially protected or appraised-price housing and other capital gains derived from public aid, with a joint limit of 1,000 euros per year.
When the taxpayer has not been the owner of the properties that generate imputed real estate income during the entire year (due to having acquired or transferred it in said year), the amount will be prorated based on the number of days of the year during which the taxpayer has been the owner of the same.

Exception to the obligation to declare

In no case will taxpayers who exclusively obtain gross income from work, capital (personal and real estate) or economic activities, as well as capital gains, with a joint limit of 1,000 euros per year and capital losses of less than 500 euros, be required to declare (except for the purposes of the following section).

Obligation to declare whether certain deductions or reductions are made

Taxpayers who are entitled to apply the following deductions or reductions are required to declare in all cases when exercising such right:

Contributions to protected assets of persons with disabilities, pension plans, insured pension plans or mutual social security funds, company social security plans and dependency insurance that reduce the tax base.
Deduction for investment in housing (Transitional regime)
Deduction for double international taxation.

Please note

To determine the obligation to declare, it is important to take into account the following:

Obtaining other types of income:
Taxpayers who receive any other type of income or who earn more than the indicated maximum amounts or limits are required to file a tax return.
Exempt income:
Income exempt from tax will not be taken into consideration (such as, for example, Social Security pensions for permanent total disability or severe disability, public scholarships for studies, annual maintenance payments received from parents by court order).
Income subject to the special tax on certain lotteries and bets, regulated in the Thirty-Third Additional Provision of the Tax Law, will not be taken into account.

Joint income tax return

In order to determine whether or not there is an obligation to declare the amount of income, the taxable and liquidable base and the tax debt, the rules of individual taxation will generally apply, without it being necessary, except in cases expressly provided for in the law, to increase or multiply the amounts or limits based on the number of members of the family unit.

Income of any kind obtained by each and every member of the family unit will be subject to taxation cumulatively. However, in order to determine the number of payers, the situation of each member of the family unit will be taken into account individually.

All members of the family unit will be subject to the tax jointly and severally, so that the tax debt, resulting from the declaration or discovered by the Administration, may be demanded in full from any of them.

The same tax scales apply as for individual taxation.

Except in cases expressly provided for in the Personal Income Tax regulations, the joint declaration does not entail the extension of any of the limits that affect certain deductible items.

Negative items from previous periods not offset by the taxpayers comprising the family unit may be offset in accordance with the general rules of personal income tax, regardless of whether they come from a previous individual or joint declaration.

Negative items determined in joint taxation will be offset, in the case of subsequent individual taxation, exclusively by those taxpayers to whom they correspond.

Reductions in the tax base for contributions to social security systems, including those established in favour of people with disabilities to protected assets of people with disabilities and to the Mutual Fund for Social Security of Professional Athletes, their maximum reduction limits will be applied individually by each participant, contributor, member or insured integrated into the family unit who is entitled to any of these reductions.

In any type of family unit, the personal minimum applicable in the joint declaration will be 5,550 euros per year, regardless of the number of members in the unit. The calculation of the increase in the personal minimum due to the age of the taxpayer will be carried out in accordance with the personal circumstances of each of the spouses in the family unit.

The calculation of the taxpayer's disability minimum will be carried out taking into account the circumstances of disability that, where applicable, exist in each of the spouses in the family unit.