8.7.2. Increase in the net tax rate due to loss of the right to certain deductions from previous years

When, in tax periods subsequent to the period of application, the right to the deductions made is lost, in whole or in part, the taxpayer will be obliged to add to the state net quota and the autonomous net quota accrued in the year in which the requirements were not met, the amounts unduly deducted, plus the corresponding late payment interest.

To increase the amounts, the following must be taken into account:

General deductions from the quota corresponding to the years 1996 and earlier.

In these years, the current regional financing system was not in force, therefore, the amount of the undue deductions, together with the late payment interest, will be added in full to the state net quota.
General deductions from the quota corresponding to the years 1997 and following

The following must be distinguished:
1. General deductions from the quota corresponding to the years 1997 to 2001.
  
  85% of the improperly made deductions will be added to the state net quota, together with late payment interest, and the remaining 15% will be added to the regional net quota, plus the corresponding interest, since those were the participation percentages in force in those years.
2. General deductions from the quota corresponding to the years 2002 to 2008.
  
  67% of the improperly made deductions will be added to the state net quota, together with late payment interest, and 33% plus the corresponding late payment interest will be added to the regional net quota.
3. General deductions from the tax rate for the years 2009 to 2021.
  
  50% of the improperly made deductions will be added to the state net quota, together with late payment interest, and the remaining 50% will be added to the regional net quota, plus the corresponding late payment interest.
4. Deductions for investment in primary residence from 2002 to 2022.
  
  The amount of the state portion of the undue deduction (plus late payment interest) will be applied to increase the state net quota and the amount of the regional portion (plus late payment interest) will be applied to increase the regional quota.
Regional tax deductions for the years 1998 to 2022.

All deductions made unduly, together with late payment interest, will be added to the regional net quota.

Among the deductions whose loss of the right will determine an increase in the rate, we can point out:

The deduction for the acquisition of housing (transitional regime DT 18). The right will be lost if the continuous period of 3 years of occupation is not met, unless one of the exceptions included in the IRPF occurs; When the 12-month period for the taxpayer to permanently and effectively occupy the dwelling is not met.
Deduction for amounts invested to subscribe to shares or interests in newly or recently created companies: The right will be lost when any of the requirements established in art. 68.1 of the LIRPF are not met.
Amounts received for the repayment of the interest rate limitation clauses on loans (floor clause) DA 45.2.a) or in DA 45.3 of the Law.

The return, in cash or through other compensation measures, of amounts previously paid to financial institutions as interest for the application of floor clauses, together with their corresponding compensatory interest, arising from agreements entered into with financial institutions as well as from compliance with judgments or arbitration awards, will not be included in the tax base.

However, when the amounts previously paid had formed part, in previous years, of the basis for the deduction for investment in habitual housing or of deductions established by the Autonomous Community, the following assumptions must be distinguished for the purposes of their tax treatment:
1. If the return of these amounts is made in cash:
  
  The taxpayer will lose the right to the deductions made in relation to them, and must add to the state and regional net tax, accrued in the year in which the agreement was signed with the financial institution or in which the latter proceeded to the refund in execution or compliance with a court ruling or arbitration award, exclusively the amounts unduly deducted in previous years in the terms provided for in article 59 of the Personal Income Tax Regulations, without including late payment interest.
  
  Such regularization will only be carried out with respect to the years in which the Administration's right to determine the tax debt through the appropriate liquidation has not expired.
  
  However, the amounts that would have been paid by the taxpayer in 2023 in relation to which, before the end of the deadline for filing the self-assessment of the IRPF for said year, an agreement is reached to return them with the financial institution or as a result of a court ruling or arbitration award, will not form part of the deduction base for investment in habitual housing or any regional deduction for the aforementioned year.
2. If the repayment of these amounts occurs through offsetting them with a portion of the capital pending amortization, the addition to the state and regional net quota mentioned above will not apply with respect to the portion of the amounts that are directly allocated by the financial institution, after the agreement with the affected taxpayer, to reduce the principal of the loan.
  
  However, the amounts to be repaid that are used to reduce the principal of the loan in 2023 will not form part of the deduction base either.
Deduction for works to improve the energy efficiency of homes

Among other assumptions, the loss of the right will occur: When a subsidy is granted and the amounts subsidized correspond to amounts that have formed part of the basis for the deduction; when the property is not rented within the legally established time periods.

Completion

Amount of undue deductions

The amount of deductions made in previous years will be recorded when the right to the deduction has been lost in the year 2023 as a result of non-compliance with any of the requirements established for its application.

For general deductions from 1997 to 2019, you must distinguish the part corresponding to the state section and the regional section of the deduction according to the rules cited in the previous section.
Late payment penalty

When filling in the dates, years and amounts, the program calculates the late payment interest by applying to the amount of the undue deduction the late payment interest rate in force in each of the years between the due date of the declaration period for the year in which the undue deduction was made (or, where applicable, from the day following the date on which the refund was obtained) and the date on which the declaration corresponding to the year is submitted.

The amount of late payment interest corresponding to the deductions improperly made that have been included in the previous section will be recorded, distinguishing between those corresponding to the state section and the regional section of the deduction.

The program also includes an option to calculate interest through a data capture window, which collects the following information:

"End Date" Date for calculation purposes": The date on which the tax return will be submitted for the fiscal year will be indicated.
"Exercise": You must indicate the year corresponding to the declaration in which the deduction was made, the requirements for which have not been met in this year.
"Amount": The amount of the deduction improperly made will be indicated.
" To Enter/To Return": indicate the result of the declaration in which the deduction was made ("I" or "D").
" Start date":
1. 1. Declarations to be entered: If the declaration was to be paid, the program itself reflects the start date for the calculation of interest, which will be the expiration date of the declaration period for the fiscal year in question.
  2. Returns to be returned: If the declaration in which the deduction was made was a refund, the date on which the refund was obtained must be indicated in this section.
In the particular case where the amount of the refund received is less than the amount of the deduction being restored, the latter must be broken down into two parts:

On the one hand, up to the amount of the refund, indicating as the start date the date on which the refund was obtained.

And on the other hand, the excess of the undue deduction over the amount of the refund, indicating as the start date the expiration of the declaration period for the fiscal year in question:

Deadline for submission of the declarations to be entered		T Types of late payment interest in force in each of the years indicated
Financial year	Date	Financial year	Current rate
1993	20-06-1994	1994	11.00
1994	20-06-1995	nineteen ninety five	11.00
nineteen ninety five	20-06-1996	1996	11.00
1996	20-06-1997	1997	9.50
1997	22-06-1998	1998	7.50
1998	21-06-1999	1999	5.50
1999	20-06-2000	2000	5.50
2000	20-06-2001	2001	6.50
2001	01-07-2002	2002	5.50
2002	30-06-2003	2003	5.50
2003	01-07-2004	2004	4.75
2004	06-30-2005	2005	5.00
2005	06-30-2006	2006	5.00
2006	02-07-2007	2007	6.25
2007	06-30-2008	2008	7.00
2008	06-30-2009	2009 (up to 31 March)	7.00
2009	06-30-2010	2009 (from 1 April)	5.00
2010	06-30-2011	2010	5.00
2011	02-07-2012	2011	5.00
2012	01-07-2013	2012	5.00
2013	06-30-2014	2013	5.00
2014	06-30-2015	2014	5.00
2015	30-06-2016	2015	4,375
2016	06-30-2017	2016	3.75
2017	02-07-2018	2017	3.75
2018	01-07-2019	2018	3.75
2019	06-30-2020	2019	3.75
2020	06-30-2021	2020	3.75
2021	06-30-2022	2021	3.75
2022	06-30-2023	2023	40625
		2024	4.0625

The program reflects the due date of the declaration period if the "To Pay/To Return" section is marked "I".

If the increase in the net rate is motivated by the loss of the right to deductions for investment in habitual housing, both state and regional, due to the occurrence of the circumstances provided for in Additional Provision 45 of the Tax Law, you must mark with an X the boxes enabled for this purpose. (Loss of deductions due to the return of floor clauses)

By checking this box, the program will not calculate late payment interest.