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Main tax changes introduced by the General State Budget Law for 2022

PERSONAL INCOME TAX (IRPF)

Article 59 of the General State Budget Law for 2022 introduces the following amendments to Law 35/2006, of 28 November, on personal income tax and partially amending the laws on corporate income tax, non-resident income tax and wealth tax, with effect for tax periods beginning on or after 1 January 2022, which will remain in force indefinitely:

  • Limits on the reduction in the tax base for contributions to social security systems.

    Various limits are amended in relation to the social security systems.

    Private insurance policies that exclusively cover the risk of severe or major dependency:

    The total reductions made by all persons paying premiums for the same taxpayer, including the taxpayer him or herself, may not exceed 1,500 euros per year (previously the limit was 2,000 euros per year).

    Límite máximo conjunto

    The lower of the following amounts shall apply as a joint ceiling for contributions to social security systems:

    1. 30% of the sum of net earnings from work and economic activities received individually during the fiscal year.

    2. 1,500 euros per year (previously the limit was 2,000 euros).

      From 1 January 2022, this limit will be increased by 8,500 euros, provided that this increase comes from company contributions or contributions made by the employee to the same social security scheme (the same pension plan, company social welfare plan, mutual social welfare scheme, etc.) to which business the contributions have been made, in an amount equal to or less than the respective business contribution (previously the limit was 8,000 euros and the increase had to come exclusively from business contributions).

      The amounts contributed by the company resulting from a decision by the employee shall be considered as contributions by the employee.

      Contributions made by the individual employer to employment pension plans or mutual social welfare schemes, of which he/she is in turn is a promoter and participant or member, as well as those that he/she makes to company social welfare plans or collective dependency insurance policies of which he/she in turn is the policyholder and insured person, shall be considered as company contributions, for the purposes of calculating this limit.

      In addition, the EUR 5,000 per year limit for premiums paid by the company for premiums of joint insurance policies are maintained, as was previously the case.

Article 60 of the General State Budget Law for 2022 introduces the following amendments to Law 35/2006, of 28 November, on personal income tax and partially amending the laws on corporate income tax, non-resident income tax and wealth tax, with effect for tax periods beginning on or after 1 January 2022, which will remain in force indefinitely:

  • Extension of the exclusionary limits of the flat-rate method.

    The quantitative limits applied in previous years determining the scope of the flat-rate method for economic activities included in the scope of the method are extended for 2022, with the exception of agriculture, farming, and forestry activities, which have their own quantitative limit according to turnover.

    Therefore, the general exclusionary amounts for 2022 will be as follows:

    • Turnover earned in the previous year exceeding 250,000 euros for the set of economic activities, excluding those relating to agriculture, livestock farming and forestry.All the operations shall be taken into account, irrespective of whether there is a duty to issue an invoice.Operations in which there is a duty to issue an invoice when the recipient is a business owner shall not exceed 125,000 euros.

    • Combined turnover for agricultural, forestry, and livestock activities exceeding 250,000 euros.

    • Amount of purchases in goods and services in the previous year, excluding fixed-asset purchases, exceeding 250,000 euros.

CORPORATION TAX

Article 61 of the General State Budget Law for 2022 introduces the following amendments to Law 27/2014, of 27 November, on corporate income tax, with effect for tax periods beginning on or after 1 January 2022, which will remain in force indefinitely:

  • Amendment of Article 30 of Law 27/2014, on corporate income tax, "Gross and net tax liability".

    Article 30 of Law 27/2014, of 27 November, on corporate income tax, is amended by Article 61.1 of the General State Budget Law for 2022, introducing a second paragraph in Article 30 which establishes that the applicable allowances and deductions provided for in the tax regulations shall be applied to the gross tax liability, giving rise to the net tax liability, which in no case may be negative.

  • Regulation of minimum taxation for certain taxpayers.

    A new Article 30 bis is added to Law 27/2014, of 27 November, on corporate income tax, by Article 61.2of the General State Budget Law for 2022:

    Minimum taxation:

    For taxpayers whose net turnover is at least 20 million euros during the 12 months prior to the date on which the tax period begins or who pay tax under the tax consolidation regime regulated in Chapter VI of Title VII of Law 27/2014, regardless of their net turnover, the net tax liability may not be less than the result of applying 15 per cent to the tax base, reduced or increased where applicable and as appropriate by the amounts derived from Article 105 of Law 27/2014 and reduced by the Investment Reserve regulated in Article 27 of Law 19/1994, of 6 July, amending the Canary Islands economic and tax system.This liability shall have the character of a minimum net tax liability.

    The minimum net tax liability will not be applied to taxpayers who pay tax at the rates provided for in sections 3, 4 and 5 of Article 29 of Law 27/2014 or to the entities of Law 11/2009, of 26 October, governing real estate investment trusts.

    For taxpayers taxed at the rate of 15 per cent pursuant to Article 29.1 of Law 27/2014 because they are newly created entities, the minimum net tax liability shall be 10 per cent of the tax base, as indicated above, and 18 per cent in the case of entities taxed at the rate provided for in the first paragraph of Article 29.6 of Law 27/2014.

    In the case of cooperatives, the minimum net tax liability may not be less than the result of applying 60 per cent to the gross tax liability calculated in accordance with the provisions of Law 20/1990, of 19 December, on the tax system for cooperatives.

    For entities in the Canary Islands Special Zone, the positive tax base on which the percentage is applied shall not include that part of the base corresponding to operations materially and effectively carried out within the geographical area of the said Zone, which is taxed at the special tax rate regulated in Article 43 of Law 19/1994, of 6 July, amending the Canary Islands economic and tax system.

    Rules for determining the minimum net tax liability:

    Firstly, the gross tax liability will be reduced by the amount of the applicable allowances, including those regulated in Law 19/1994, of 6 July, amending the Canary Islands economic and tax system, and by the amount of the deduction provided for in Article 38 bis of Law 27/2014.

    Secondly, the deductions for double taxation regulated in articles 31, 32 and 100 and the twenty-third transitory provision of Law 27/2014 will be applied, respecting the limits applicable in each case.

    If as a result of the above operations:

    • The amount is lower than the minimum net tax liability calculated in accordance with the above paragraphs, this amount will be considered as the minimum net tax liability, as an exception.

    • The amount is greater than the amount of the minimum net tax liability calculated in accordance with the above paragraphs, the remaining deductions that may be applicable shall be applied, with the limits applicable in each case, up to the amount of the said minimum net tax liability.

    The deductions whose amount is determined in accordance with the provisions of Law 20/1991, of 7 June, amending the tax aspects of the Canary Islands economic and tax system, and Law 19/1994, of 6 July, amending the Canary Islands economic and tax system, shall be applied, respecting their own limits, even if the resulting net tax liability is lower than the aforementioned minimum tax liability.

    Amounts not deducted by application of the above rules may be deducted in subsequent tax periods in accordance with the regulations applicable in each case.

  • Amendment of Article 41 of Law 27/2014, on corporate income tax, "Deduction of withholdings, payments on account and instalments".

    Article 41 of Law 27/2014, of 27 November, on corporate income tax, is amended by Article 61.3 of the General State Budget Law for 2022, incorporating in the last paragraph the concept of minimum net tax liability by establishing that when the sum of withholdings on account, payments on account and instalments exceed the amount of the net tax liability or, where applicable, of the minimum net tax liability, the Tax Administration will proceed to refund, ex officio, the excess.

  • Special system for entities engaged in home rental

    Article 49.1 of Law 27/2014, of 27 November, on corporate income tax, is amended by Article 61.4 of the General State Budget Law for 2022, laying down that the part of the gross tax liability corresponding to income derived from the home rental that meets the requirements for the application of this system shall have a 40 per cent rebate (previously the rebate was 85 per cent).

  • Amendment to the special tax consolidation system.

    Article 71.1 of Law 27/2014, of 27 November, on corporate income tax, is amended by Article 61.5 of the General State Budget Law for 2022, indicating that the gross tax liability of the tax group shall be reduced by the amount of the deductions and allowances provided for in chapters II, III and IV of Title VI of Law 27/2014, as well as any other deduction that may be applicable, giving rise to the net tax liability of the group, which under no circumstances may be negative.

ECONOMIC ACTIVITIES TAX

Article 62 of the General State Budget Law for 2022 introduces the following amendment to Royal Legislative Decree 1175/1990, of 28 September, approving the rates and the instruction of the economic activities tax, with effect for tax periods commencing as from the entry into force of this Law and valid indefinitely:

  • A new group 863 is added to group 86 of the second section of the economic activities tax rates.

    Group 863Journalists and other information and communication professionals.

    Amount:115 euros.

    The note on this group provides that taxpayers classified in this group are authorised to obtain, process, interpret and disseminate information or content by any written, oral, visual, digital or graphic means, as well as to provide advice and execute plans for institutional or corporate communication.

INCOME TAX FOR NON-RESIDENTS

Article 63 of the General State Budget Law for 2022 introduces the following amendments to the consolidated text of the Law on income tax for non-residents, approved by Royal Legislative Decree 5/2004, of 5 March, for permanent establishments, effective for tax periods beginning on or after 1 January 2022 and valid indefinitely:

  • Amendments to sections 4, 5 and 6 of Article 19."Gross and net tax liability".

    Sections 4, 5 and 6 of Article 19 of the consolidated text of the Law on income tax for non-residents are amended, in the same sense as the amendment of Article 30 of Law 27/2014, of 27 November, on corporate income tax.

    Specifically, it is established that the appropriate allowances and deductions provided for in the corporate income tax regulations may be applied to the gross tax liability, giving rise to the net tax liability, which under no circumstances may be negative.

    The amount of withholdings, payments on account and instalments shall be deductible from the net tax liability.

    Consequently, with these changes, section 6 expressly refers to the net tax liability to indicate that when the withholdings, payments on account and instalments actually made exceed the net tax liability, the Tax Agency will automatically refund the excess, in accordance with the provisions of Article 127 of Law 27/2014, of 27 November, on corporate income tax.

  • A new tenth additional provision is added.Minimum taxation.

    This new tenth additional provision of the consolidated text of the Law on income tax for non-residents establishes that for the purposes of the provisions of Article 19 of said consolidated text, in order to determine the tax liability, the minimum taxation established in Article 30 bis of Law 27/2014, of 27 November, on corporate income tax, will apply.

VALUE ADDED TAX

Article 64 of the General State Budget Act for 2022, with effect from 1 January 2022 and indefinite validity, amends the thirteenth transitional provision of Law 37/1992, of 28 December, on value added tax.

  • Limits for applying the simplified system and the special system for agriculture, livestock farming and fishing for 2022.

    This amendment extends to 2022 the increase to 250,000 euros of the amount of 150,000 euros established in the thirteenth transitory provision of the Law on value added tax, for the purposes of certain limits for exclusion from the simplified system and the agriculture, livestock farming and fishing system.

    In relation to the simplified system, an exclusion limit of 250,000 euros of income in the immediately preceding year is established for 2022 for all business or professional activities, except agricultural, forestry and livestock farming activities, carried out by the taxpayer.The exclusion limit of 250,000 euros is also established for acquisitions and imports of goods and services for all business or professional activities, excluding those relating to fixed assets, carried out in the immediately preceding year by the taxpayer.

    In relation to the agriculture, livestock farming and fishing system, the exclusion limit of 250,000 euros is established for 2022 for acquisitions and imports of goods and services for all business or professional activities, excluding those relating to fixed assets, carried out in the immediately preceding year by the taxpayer.

Ley 22/2021, de 28 de diciembre,, se abre en ventana nueva

de Presupuestos Generales del Estado para el año 2022.