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

Example:

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

During the year, he has paid annual maintenance payments to his children amounting to 2,800 euros, as provided for in the judicially approved divorce settlement 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 unique article. Two of Law 8/2022, of November 16 ( BOCM 21-11-2022), has modified, with effect from January 1, 2022, the autonomous scale of the Community of Madrid provided for in article 1 of the Revised Text.

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

Since he paid annuities to his children during the year by court order and the amount was less than the amount of his general taxable base, the general and regional scales of the tax must be applied separately to the amount of the annuities (2,800) and to the amount of the rest of the general taxable base.

This last amount is determined by increasing the general taxable base (23,900 euros) by the amount of exempt income with progression (2,950) and decreasing the result by the amount of the annual alimony paid in 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 the 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

  Odds 3 = 2,690.25

• Autonomous scale

  Until: 18,433.20 = 1,687.22

  Other: 5,616.80 at 12.80% = 718.95

  Odds 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

Since 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 forms part of the general taxable base in its entirety.

• Overall scale

  Since 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), it forms part of the general taxable base in its entirety.

  7,530 at 9.50% = 715.35

  Odds 5 = 715.35

• Autonomous scale

• Note: With effect from 1 January 2022, the sole article of Law 8/2022, of 16 November (BOCM 21-11-2022) has amended article 2 and added articles 2 bis, 2 ter and 2 quater in the Revised Text of the legal provisions of the Community of Madrid on taxes ceded by the State, to establish the regional amounts corresponding to the taxpayer's minimums, for descendants, for ascendants and for disability, with effect from 1 January 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), so that said amount forms part in its entirety of the general taxable base.

  7,757.55 at 8.50% = 659.39

  Odds 6 = 659.39

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

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

• State fee = (fee 1 + fee 3 - fee 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 integral quota

• General state total rate (general taxable base x TME) 23,900 x 8.34% = 1,993.26

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