Delimitation of the obligation to declare in personal income tax

Note: For the purposes of determining the obligation to declare, exempt income is not taken into account.

Positive delimitation

The following are required to submit the declaration for Personal Income Tax for the year 2023 contributors ##4##:

New 2023:For this fiscal year 2023, the first Final Provision of Royal Decree-Law 13/2022, of July 26 ( BOE of July 27) has modified article 96.2 of the Law IRPF ##2##, establishing the obligation to declare for all those natural persons who at any time during the tax period had been registered, as self-employed workers, in the Special Regime for Self-Employed or Self-Employed Workers, or in the Special Social Security Regime for Sea Workers, regardless of the amount of their earnings.

a. Those who have obtained income in the year greater than the amounts indicated below for each class or source.

b. Those who , regardless of the amount and nature or source of the income obtained, had the right to apply the transitional regime of the deduction for investment in habitual residence, the deduction for international double taxation , or have made contributions to protected assets of people with disabilities, pension plans, insured pension plans, corporate social security plans, dependency insurance or mutual insurance companies social security that reduce the tax base, when they exercise the corresponding right.

c. Those not required to declare due to the amount and nature or source of the income obtained in the year, who request refund derived from the regulations of IRPF that, if applicable, correspond to them (among other cases due to withholdings and payments on account borne or due to deductions for maternity, large families or dependents with disabilities).

The provisional settlement that, if applicable, the Tax Administration may carry out on these taxpayers may not imply any obligation other than the restitution of what was previously returned plus the late payment interest referred to in article 26.6 of the LGT. . All of this without prejudice to the subsequent verification or investigation that, where appropriate, may be carried out by the State Tax Administration Agency.

In relation to LGT see Law 58/2003, of December 17, General Tax.

d. Starting in 2023, all those individuals who at any time during the tax period had been registered, as self-employed or self-employed workers :

• in the Special Regime for Self-Employed or Self-Employed Workers, or

• in the Special Social Security Regime for Sea Workers 

In both cases, whatever the amount of their returns.

Precision: Keep in mind that and are also affected by this obligation the collaborating family members of self-employed workers or self-employed, who are registered in the indicated regimes (Special Regime for Self-Employed or Self-Employed Workers, or Special Regime of Social Security for Sea Workers).

Negative delimitation

They are not required to present a declaration for the amount and nature of the income obtained:

1. Taxpayers whose income comes exclusively from the following sources, provided that they do not exceed any of the limits indicated in each case, in individual or joint taxation:

A. Full income from work (including, among others, pensions and liabilities, including those from abroad, as well as compensatory pensions and non-exempt alimony annuities) the amount of which is not exceed the amount of:

• 22,000 euros annually , generally.

• 15,000 euros annually , in the following assumptions:

1. When the work income comes from more than one payer.

   However, the limit will be 22,000 euros per year in the following cases :

   1. When, coming from more than one payer, the sum of the amounts received from the second and remaining payers, in order of amount, do not collectively exceed the amount of 1,500 euros per year.

   And this is regardless of whether the amounts paid by the second and subsequent payers are subject to the general withholding procedure, are compensatory pensions or other income not subject to withholding or are subject to a fixed withholding rate.

   In the specific case of receipt of a Social Security pension, by the INSS , and the Passive Classes pension, the General State Administration itself, it is considered that there are two payers in until the full assumption of the management of the State Passive Classes Regime by the INSS takes place, that is, until the integration of the General Subdirectorate of Passive Classes Management takes place. in INSS . 

   2. In the case of pensioners whose only income from work consists of the passive benefits referred to in article 17.2.a) of the Personal Income Tax Law coming from two or more payers, provided that the The amount of the withholdings made by them has been determined by the Tax Agency, upon request by the taxpayer for this purpose, through form 146 and, in addition, the following requirements are met:

   • That the number of payers of passive benefits has not increased throughout the year compared to those initially communicated when formulating the request.

   • That the amount of benefits actually paid by the payers does not differ by more than 300 euros per year from that initially communicated in the application.

   • That no other circumstances determining an increase in the withholding rate provided for in article 87 of the Personal Income Tax Regulations have occurred during the year.

   Precision: Regarding Form 146, see the Resolution of January 13, 2003 ( BOE of January 14), which approves Form 146 for the request for determination of the amount of withholdings, which Taxpayers receiving passive benefits from more than one payer can present, and the place, term and conditions of presentation are determined.

2. When compensatory pensions from the spouse or non-exempt alimony annuities are received.

   Please note that the annuities for maintenance ## Personal Income Tax ##1##. See in this regard Chapter 2.

3. When the payer of the work income is not obliged to withhold.

   Precision: when a taxpayer resident in Spain receives as the only income a pension from a foreign source and must pay tax on it in Personal Income Tax , either because this is provided for in the Convention to eliminate double taxation with the country of origin of the pension or because there is no such Convention, it must be taken into account that the non-resident payer of the pension is not obliged to withhold Personal Income Tax as long as it does not operate in Spain, being, consequently, the determining limit of the obligation to declare 15,000 euros. (Resolution of TEAC of June 28, 2022, Claim number 00/02210/2022, appeal relapsed for the unification of criteria).

4. When full income from work is received subject to a fixed withholding rate.

   This consideration has in 2023 the applicable withholding rate of 35% or 19% (when the income comes from entities with a net turnover of less than 100,000 euros). to the remuneration received for the status of administrators and members of the Boards of Directors, of the Boards that act in their place and other members of other representative bodies, as well as the 15% withholding rate applicable to income derived from teaching courses. , conferences and similar, or derived from the production of literary, artistic or scientific works, provided that the right to their exploitation is transferred. However, the withholding rate on income from work derived from the production of literary, artistic or scientific works will be 7% when the volume of such full income corresponding to the immediately preceding financial year is less than 15,000 euros and represents more than 75%. per 100 of the sum of the full income from economic activities and work obtained by the taxpayer in said year.

Note: In the case of joint taxation, the same quantitative limits indicated above must be taken into account. However, for the purposes of determining the number of payers, the situation of each member of the family unit individually considered will be taken into account. Thus, for example, in a joint declaration of both spouses, each of whom receives their salaries from a single payer, the limit determining the obligation to declare is 22,000 euros per year.

B. Full income from movable capital (dividends from shares, interest from accounts, deposits or fixed income securities, etc.) and capital gains (earnings derived from reimbursements of shares in Investment Funds, prizes for participation in contests or games, etc.), provided that both have been subject to withholding or payment to account and its global amount does not exceed the amount of 1,600 euros per year .

The Personal Income Tax regulations do not provide for the possibility of offsetting positive and negative full returns on movable capital for the purposes of the obligation to declare. Consequently, they will only be counted to determine whether there is an obligation to declare positive full returns.

Capital gains from transfers or redemptions of shares or participations in collective investment institutions in which the withholding base cannot be determined by the amount to be included in the tax base are excluded from the joint limit of 1,600 euros per year.

Note: When the withholding base has not been determined based on the amount to be included in the tax base, the capital gain obtained from transfers or redemptions of shares or participations in collective investment institutions cannot be computed as capital gain subject to withholding or income. on account for the purposes of the exclusionary limits of the obligation to declare.

C. Imputed real estate income , full income from movable capital not subject to withholding derived from Treasury bills and acquisition subsidies of officially protected or price-rated housing and other capital gains derived from public aid , with the joint limit of 1,000 euros per year.

Because it does not give rise to the imputation of real estate income, the taxpayer's habitual residence will not be taken into consideration for these purposes, nor will the parking spaces acquired jointly with it up to a maximum of two, as well as unbuilt land.

2. Taxpayers who have obtained exclusively full income from work, capital (movable or real estate) or economic activities in 2023, as well as capital gains, whether or not subject to withholding, up to a maximum joint amount of 1,000 euros per year and capital losses. of amounts less than 500 euros, in individual or joint taxation.

Exception:

However, as of January 1, 2023, in any case will be required to declare all those natural persons who at any time during the tax period would have been registered, as self-employed workers , in the Special Regime for Self-Employed or Self-Employed Workers, or in the Special Regime of Social Security for Sea Workers.

Precisions to points 1 and 2 above:

To determine the indicated amounts, income that is exempt from Personal Income Tax will not be taken into consideration, such as, for example, public scholarships to study at all levels and grades of the educational system, annuities for maintenance received from parents by judicial decision, etc.

Nor will the income subject to the special tax on the prizes of certain lotteries and bets, regulated in the thirty-third Additional Provision of the Personal Income Tax Law , be taken into account.

None of the amounts or limits will be increased or expanded in the case of joint taxation of family units.