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Practical Income Manual 2022.

For hiring indefinitely people affiliated with the Special System of Domestic Employees of the General Social Security Regime for the care of people

Regulations: Art. 4.One.i), Four and Fifth Law 13/1997, of December 23, which regulates the autonomous section of the Income Tax of Natural Persons and other transferred taxes, of the Valencian Community

Deduction amount

50 percent of the contributions paid for contributions made during the tax period for the hiring of a person indefinitely to care for dependent descendants or ascendants of the taxpayer indicated, and that is included in the Special System for Domestic Employees of the General Social Security Regime.

The percentage of 50 percent will be applied to the amount of contributions paid in the months on the last day of which the following requirements indicated below in the section “Requirements and other conditions for the application of the deduction” are met.

Important : taxpayers entitled to the deduction must include the NIF of the person employed in Annex B.7 of the declaration.

Requirements and other conditions for the application of the deduction

The amount of this deduction will be applied for contributions made in the months on the last day of which the following requirements are met:

  • That the taxpayer has been responsible for:

    1. one or several persons under 5 years of age born, adopted or fostered who meet the coexistence and income requirements that give the right to the application of the minimum for descendants .

    2. one or more ascending persons in a direct line, by consanguinity or adoption, who meet the requirements of coexistence and income are entitled to the application of the minimum for ascendants and let them be:

      - Over 75 years of age, or

      - People over 65 years of age if they are considered people with physical, organic or sensory disabilities with a degree equal to or greater than 65 percent or with cognitive, psychosocial, intellectual or developmental disabilities with a grade equal to or greater than 33 percent.

    3. ascendants linked by ties of affinity in whom, meeting the above requirements (75 years or 65 years with a degree of physical, organic or sensory disability with a degree equal to or greater than 65 percent or with cognitive, psychosocial, intellectual or developmental disabilities with a degree equal to or greater than 33 percent), meet the coexistence and income requirements that are required to generate the right to apply the minimum for ascendants for relatives by blood or adoption .

      This is:

      -Living with the taxpayer for at least half of the year.

      -That you have not obtained income in the year exceeding 8,000 euros per year, excluding those exempt from Personal Income Tax .

      -Do not file a personal income tax return with income greater than 1,800 euros.

  • That the taxpayer carries out activities on his own or as an employee for which he receives income from work or economic activities.

  • That the sum of the general taxable base and the savings taxable base (boxes [0500] and [0510] of the declaration) does not exceed the following amounts:

    • 30,000 euros in individual declaration.

    • 47,000 euros in joint declaration.

    Note: For taxpayers who died before October 28, 2022 the sum of the general taxable base and the savings taxable base may not exceed 25,000 euros.

  • When two taxpayers are entitled to the application of this deduction, their limit will be prorated between them in equal parts.

To the extent that the deduction is applied by the taxpayer who pays amounts and appears as an employer, as long as he is responsible for ascendants and/or descendants who meet the requirements set out in the regulations, the proration of the limit will only proceed if two taxpayers have hired during the year to one or more people to care for the same ascendants/descendants who meet the established requirements so that the right to apply the minimum for their direct relatives can be generated.

Deduction maximum limits

The amount of this deduction, calculated based on the months on the last day of which the indicated requirements are met, may not exceed the following limits:

  1. For taxpayers who died before October 28, 2022

    • For dependent descendants:

      - 600 euros in the event that the taxpayer is responsible for a child under 5 years of age who was born, adopted or fostered.

      - 1,000 euros in the event that the taxpayer is responsible for two or more minors or in the case of single-parent families.

      For these purposes, the provisions of Decree 19/2018, of March 9, of the Consell, which regulates the recognition of the status of single-parent family in the Valencian Community, will be followed.

    • By dependent ascendants:

      - 300 euros when the taxpayer is responsible for an ascendant .

      - 500 euros in the event that you are responsible for two or more ascendants .

    Please note that this deduction, which was introduced by Law 7/2021, of December 29, on fiscal measures, administrative and financial management and organization of the Generalitat 2022, with effect from January 1, 2022, has been modified recently by Decree Law 14/2022, of October 24, with the date of entry into force October 28, 2022.

  2. For the rest of taxpayers

    • For dependent descendants:

      - 660 euros in the event that the taxpayer is responsible for a child under 5 years of age who was born, adopted or fostered.

      - 1,100 euros in the event that the taxpayer is responsible for two or more minors or they are single-parent families.

      For these purposes, the provisions of Decree 19/2018, of March 9, of the Consell, which regulates the recognition of the status of single-parent family in the Valencian Community, will be followed.

    • By dependent ascendants:

      - 330 euros when the taxpayer is responsible for an ascendant .

      - 550 euros in the event that you are responsible for two or more ascendants .

    Note:The amounts and quantitative limits of this deduction established for the purposes of individual taxation will be applied in the same amount in joint taxation, without their elevation or multiplication depending on the number of members of the family unit .

Example

Couple formed by Mrs. PRM and Mr. JSR with two common children for whom both apply the minimum for descendants. Furthermore, Mr. JSR's father lives with them throughout the year, for whom he has the right to apply a minimum for descendants.

Ms. PRM appears as the employer of a person who was hired on April 1, 2022 to care for her children and her ascendant and for whom she has paid contributions in said years for a total amount of 2,541.42 euros.

Determine the deduction to apply.

Solution

Previous note: Only Ms. PRM has the right to apply this deduction, since she is the one listed as the employer of the domestic worker in Social Security.

Taxpayer Mrs. PRM: 50% s/ 2,541.42 = 1,270.71

Maximum limit: 1,430 euros (1,100 for the two children + 330 for an ascendant by affinity who meets the required coexistence and income requirements)

Since 1,270.71 does not exceed the maximum limit, you will have the right to deduct said amount (1,270.71 euros).

Application of deduction limits according to taxable base

  1. For taxpayers who died before October 28, 2022

    • The maximum limits of the deduction (600, 1,000 or 300, 500 euros, as appropriate) will only be applicable to taxpayers whose sum of the general taxable base and the savings taxable base is less to 23,000 euros, in individual taxation.

    • When the sum of the general taxable base and the taxpayer's savings taxable base is between 23,000 and 25 .000 euros , in individual taxation, the limits of the deduction will be the result of multiplying the maximum limit (600, 1,000 or 300, 500 euros, as appropriate) by a percentage obtained from the application of the following formula:

      100 × (1 – the coefficient resulting from dividing by 2,000 the difference between the sum of the general taxable base and the savings of the family unit and 23,000)

    Please note that this deduction, which was introduced by Law 7/2021, of December 29, on fiscal measures, administrative and financial management and organization of the Generalitat 2022, with effect from January 1, 2022, has been modified recently by Decree Law 14/2022, of October 24, with the date of entry into force October 28, 2022.

  2. For the rest of taxpayers

    • The maximum limits of the deduction (660, 1,100 or 330, 550 euros, as appropriate) will only be applicable to taxpayers whose sum of the general taxable base and the savings taxable base is less to 27,000 euros, in individual taxation, or 44,000 euros, in joint taxation.

    • When the sum of the general taxable base and the taxpayer's savings taxable base is between 27,000 and 30,000 euros , in individual taxation, or between 44,000 and 47,000 euros, in joint taxation, the limits of the deduction will be the following:

      1. In individual taxation, the result of multiplying the maximum limit of the deduction (660, 1,100 or 330, 550 euros, as appropriate) by a percentage obtained from the application of the following formula:

        100 × (1 – the coefficient resulting from dividing by 3,000 the difference between the sum of the general taxable base and the savings of the family unit and 27,000)

      2. In joint taxation , the result of multiplying the maximum limit of the deduction (660, 1,100 or 330, 550 euros, as appropriate) by a percentage obtained from the application of the following formula:

        100 × (1 – the coefficient resulting from dividing by 3,000 the difference between the sum of the general taxable base and the savings of the family unit and 44,000)

Incompatibility

This deduction is incompatible with the previous deductions, "For the amounts destined for non-occasional custody in daycare centers and early childhood education centers of children or those fostered in the form of permanent foster care, under three years of age", "By conciliation of the work with family life "and "For ascendants over 75 years of age or over 65 years of age with disabilities."