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Practical manual for Income Tax 2022.

Special case: amounts received for the return of loan interest rate limitation clauses (floor clauses) that had formed part in previous years of the base of the deduction for investment in habitual residence or deductions established by the Autonomous Community

Regulations: Additional Provision forty-fifth Law IRPF

repayment, in cash or through other compensation measures, of amounts previously paid to financial institutions as interest for the application of interest rate limitation clauses on loans (the so- floor ), together with their corresponding compensatory interest, arising from both agreements entered into with financial institutions and compliance with judgments or arbitration awards, will not be included in the tax base of ##2## Personal Income Tax ##2## ##1##.

Please note that Chapter 2 includes a general and detailed study of the tax treatment of amounts received from the repayment of interest rate limitation clauses of loans arising from agreements entered into with financial institutions or from compliance with judgments or arbitration awards.

However, when such amounts previously paid by the taxpayer subject to the refund, 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 differentiated for the purposes of their tax treatment:

a. If the return of these amounts is made in cash:

  • The taxpayer will lose the right to the deductions made in relation to them, having to add to the state and regional net quota , accrued in the year in which the agreement with the financial institution was signed or in which a court judgment or arbitration award is issued (finality of the judgment, if applicable), exclusively the amounts improperly deducted in previous years in the terms provided for in article 59 of the Personal Income Tax Regulations , without including late payment interest.

    This regularization will only be carried out with respect to the in which the Administration's right to determine the tax debt through the appropriate liquidation has not expired.

    Remember: The regularization increases the state and regional net quota in the amounts unduly deducted in previous years without including late payment interest, that is, boxes [0573] , [0576] , [0578] and [0581] of the declaration, intended for late payment interest, should not be completed.

  • However, the amounts that would have been paid by the taxpayer in 2022 and in relation to which, before the end of the deadline for filing the self-assessment of the IRPF for said fiscal year (June 30, 2023), agreement is reached to repay 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 fiscal year 2022.

b. If the repayment of these amounts occurs through the offsetting of these 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 subject to repayment that are used to reduce the principal of the loan in 2022 will not form part of the deduction base for investment in habitual housing or any regional deduction of the IRPF of the aforementioned year.