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# Special cases of income concurrence: Annuities for alimony for children and progressively exempt income

The procedure applicable in the event that there are simultaneous annuities for child support and progressively exempt income includes the liquidation specialties of each of said incomes, as discussed in the following example.

## Example:

Mr. JRF, resident in the Community of Madrid, has obtained a general tax base of 23,900 euros in fiscal year 2022. He has also obtained progressively exempt income amounting to 2,950 euros.

During the year he has paid annuities for maintenance to his children in the amount of 2,800 euros, as provided for in the judicially approved divorce agreement.

Determine the full contributions corresponding to the 2022 financial year, knowing that the amount of the personal and family minimum amounts to 5,550 euros.

Solution:

Previous note: It should be noted that the item is unique. Two of Law 8/2022, of November 16 ( BOCM 11-21-2022), has modified, with effect from January 1, 2022, the autonomous scale of the Community of Madrid provided for in article 1 of the Consolidated Text.

1. Determination of the bases for the application of tax scales

Since you have paid annuities to your children during the year by judicial decision and the amount is lower than the amount of your general taxable base, the general and regional scale of the tax must be applied separately to the amount of the annuities (2,800) and the amount of the rest of the general liquidable base.

This last amount is determined by increasing the general taxable base (23,900 euros) by the amount of the exempt income progressively (2,950) and decreasing the result by the amount of the annuities for alimony paid during the year (2,800). Definitely:

Base "A" = 2,800

Base "B" = (23,900 + 2,950) − 2,800 = 24,050

2. Application of the tax scales to the amount of annuities, base "A" (2,800 euros)

• General tax scale 2,800 x 9.50% = 266

Odds 1 = 266

• Autonomous scale

2,800 x 8.50% = 238

Odds 2 = 238

3. Application of the tax scales to the rest of the general taxable base, base "B" (24,050 euros)

• General tax scale

Up to 20,200 = 2,112.75

Other: 3,850 at 15% = 577.50

Installment 3 = 2,690.25

• Autonomous scale

Until: 18,433.20 = 1,687.22

Other: 5,616.80 at 12.80% = 718.95

Installment 4 = 2,406.17

4. Application of the tax scales to the general taxable base corresponding to the personal and family minimum increased by 1,980 euros

Given that the amount of the general taxable base (23,900) is higher than the personal and family minimum increased by 1,980 euros (5,550 + 1,980 = 7,530), this is entirely part of the general taxable base.

• General scale

Given that the amount of the general taxable base (23,900) is higher than the personal and family minimum increased by 1,980 euros (5,550 + 1,980 = 7,730), this is entirely part of the general taxable base.

7,530 at 9.50% = 715.35

Share 5 =715.35

• Autonomous scale

• Note: With effect from January 1, 2022, the sole article of Law 8/2022, of November 16 (BOCM 11-21-2022) has modified article 2 and added articles 2 bis, 2 ter and 2 quater in the Consolidated text of the legal provisions of the Community of Madrid on taxes transferred by the State, to establish the regional amounts corresponding to the minimum taxpayers, by descendants, by ascendants and by disability, with effect from January 1, 2022 .

In this case, the autonomous amount of the taxpayer's minimum (set at 5,777.55 euros) increased by 1,980 euros (5,777.55 + 1,980) determines an amount of 7,757.55 euros, lower than the general taxable base (23,900), therefore which said amount forms part in its entirety of the general taxable base.

7,757.55 at 8.50% = 659.39

Installment 6 = 659.39

5. Calculation of quotas for the purposes of determining average tax rates

To determine the average state and regional tax rates, it is necessary to previously calculate the respective state and regional quotas. These fees are calculated as follows:

• State quota = (quota 1 + quota 3 - quota 5):

266 + 2,690.25 – 715.35 = 2,240.90

• Regional quota = (quota 2 + quota 4 - quota 6):

238 + 2,406.17 – 659.39= 1,984.78

6. Determination of average tax rates

1. Average state tax rate TME: 2,240.90 ÷ 26,850 x 100 = 8.34%

2. Average regional tax rate = AMR = 1,984.78 ÷ 26,850 x 100 = 7.39%

7. Determination of the general state and regional full quota

• Full general state quota (general liquidable base x TME) 23,900 x 8.34% = 1,993.26

• Full regional general quota: (general taxable base x TMA) 23,900 x 7.39% = 1,766.21