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Practical Income Manual 2019.

Individual taxation and option for joint taxation

Regulations: Art. 83 Law Personal Income Tax

Approach

In general, the Personal Income Tax declaration is submitted individually. However, people integrated into a family unit, in the terms previously mentioned, may choose, if they wish, to declare jointly, as long as all its members are taxpayers for this tax.

In de facto couples without a marriage bond, only one of their members (father or mother) can form a family unit with the children who meet the requirements mentioned above and, consequently, opt for joint taxation. The other member of the couple must declare individually.

However, it must be taken into account that article 84.2.4 of the Personal Income Tax Law (which establishes the "Rules applicable to joint taxation") indicates the inappropriateness of the reduction of 2,150 euros per year in the second of the types of family unit referred to in article 82 of the Personal Income Tax Law , in cases where the taxpayer lives with the father or mother of someone of the children who are part of their family unit.

In cases of marital separation or divorce or absence of marital bond, the option for joint taxation will correspond to whoever has custody of the children on the date of accrual of Personal Income Tax , as it is the parent who lives with them. Where custody is shared, either parent may file a joint tax return, while the other must file an individual tax return.

Once the option to pay taxes individually or jointly has been exercised, it is not possible to later modify said option by submitting new returns, unless these are also submitted within the regulatory deadline for submitting returns; Once this period has ended, the tax option for that tax period cannot be changed.

The option to declare jointly:

  • It is manifested when submitting the personal income tax return corresponding to the year with respect to which the election is made. Once the option has been exercised, it can only be modified within the regulatory deadline for filing returns.

    In the event that no declaration has been submitted, the Tax Administration, when carrying out the appropriate settlements, will apply the rules of individual taxation, unless the members of the family unit expressly state otherwise within a period of ten days from the date of payment. Administration requirement.

  • It does not bind the family unit for successive years.

    Thus, the joint declaration in the 2018 financial year does not require you to also have to declare jointly in 2019; Likewise, the joint declaration in 2019 does not bind for 2020.

  • It obligatorily covers all members of the family unit.

    If any of the members of the family unit files an individual tax return, the remaining members must use this same taxation system.

Note: Keep in mind that in the case of family units referred to in article 82.1 of the Personal Income Tax Law formed by taxpayers of this Tax and by residents in another Member State of the European Union or of the European Economic Area has established, since January 1, 2018, a new deduction on the quota that is discussed in Chapter 16 of the Manual. The aforementioned deduction is intended, given that such family units cannot choose to file jointly, to equate the fee payable to that which the taxpayer would have borne if all members of the family unit had been tax residents in Spain. However, this deduction is not applicable when any of the members of the family unit have chosen to pay taxes in accordance with the special tax regime applicable to workers posted to Spanish territory provided for in article 93 of the Law of IRPF to which we refer in this Chapter.

General characteristics of joint taxation

Regulations: Art. 84 Law Personal Income Tax

Regardless of other particularities that will be indicated in the corresponding chapters of this Manual, the joint taxation regime has the following general characteristics:

  • To determine the existence or not of the obligation to declare , the amount of income, the taxable and liquidable base and the tax debt, will be applied, in general, the individual taxation rules , without the increase or multiplication of the amounts or limits depending on the number of members of the family unit, except in the cases expressly provided for in the rule discussed below.
  • Income of any type obtained by each and every member of the family unit will be taxed cumulatively .

  • 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 its entirety from anyone from them.

    However, the right of the members of the family unit to internally prorate the tax debt among them is recognized, according to the part of the joint income that corresponds to each one, without said proration having tax effects.

  • The same tax scales apply as for individual taxation .
  • Except in the 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 compensated by the taxpayers that make up the family unit can be offset in accordance with the general rules of Personal Income Tax , regardless of that come from a previous individual or joint declaration.

    The negative items determined in joint taxation will be offset, in the case of subsequent individual taxation, exclusively by those taxpayers to whom they correspond, in accordance with the rules on individualization of income contained in the Personal Income Tax Law .

  • Reductions in the tax base for contributions to social security systems, including those established in favor of people with disabilities, to protected assets of people with disabilities and to the Social Security Mutual Fund for professional athletes have the following treatment.

    The maximum reduction limits for contributions to the aforementioned social security systems, to the protected assets of disabled people and to the Social Security Mutual Fund for professional athletes will be applied individually by each participant, contributor, mutual member or insured integrated into the family unit that be entitled to any of these reductions.

    The maximum reduction limits for contributions to the aforementioned social security systems are discussed in Chapter 13.

  • Minimum taxpayer staff.

    In any of the types of family unit, the personal minimum applicable in the joint declaration will be 5,550 euros per year , regardless of the number of members included in it.

    The calculation of the increase in the personal minimum by age of the taxpayer will be carried out in accordance with the personal circumstances of each of the spouses integrated into the family unit.

  • Minimum for taxpayer disability.

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

    Note: The personal minimum and the minimum for disability of the taxpayer will not be applied in the joint declaration for the children, without prejudice to the amount that may be applied as the minimum for descendants and for disability.

  • Reduction for joint taxation.

    1. In joint declarations of family units made up of both spouses , not legally separated, and their children , if any (modality 1 of family unit), a reduction in the tax base of 3,400 euros per year will be applied , prior to the reductions for contributions and contributions to social security systems, including those established in favor of people with disabilities, as well as as well as the protected assets of people with disabilities and the Social Security Mutual Fund for professional athletes provided for in the Personal Income Tax Law .

      This reduction will be applied, first of all, to the general tax base without it being negative as a consequence of such reduction. The remainder, if any, will reduce the tax base of the savings, which may not be negative either.

    2. In joint declarations of family units formed by the father or mother and all the children who live with one or the other (2 type of family unit, in cases of legal separation or when there is no marital bond) a reduction in the tax base of 2,150 euros per year will be applied , prior to the reductions for contributions and contributions to social security systems, including those established in favor of people with disability, as well as the protected assets of people with disabilities and the Social Security Mutual Fund for professional athletes provided for in the Personal Income Tax Law .

      This reduction will be applied, first of all, to the general tax base without it being negative as a consequence of such reduction. The remainder, if any, will reduce the tax base of the savings, which may not be negative either.

    Note: The reduction for joint taxation will not be applied when the taxpayer lives with the father or mother of any of the children who are part of their family unit.