Liquidation treatment of progressively exempt income that forms part of the savings tax base
In cases where there is a remainder of the personal and family minimum which, as it cannot be applied to the general taxable base to determine the full contributions, becomes part of the savings taxable base, as well as when the amount of this increased by the amount of exempt income with progressivity exceeds the sum of 6,000 euros, the liquidation treatment of exempt income with progressivity which, according to its nature, forms part of the savings taxable base, is structured in the following phases:
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The amount of income exempt from progressive taxation must be added to the taxable savings base subject to tax, in order to apply the tax rates of the corresponding state and regional savings scales to its result. The result is partial quotas A and B.
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If there is a remainder of the personal and family minimum not applied in the general taxable base, the quotas corresponding to said remainder are found by applying the tax rates of the state and regional savings scales. The result is partial quotas C and D.
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The following figures are calculated from the four partial quotas obtained in the previous phases:
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Share 1 = partial share A - partial share C.
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Installment 2 = partial installment B - partial installment D.
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Based on the 1st and 2nd quotas calculated in the previous phase, the average tax rate, both national and regional, is determined. In both cases, the resulting amount is divided between the sum of the taxable savings base and the exempt income with a progressive integration into the taxable savings base. The quotient thus obtained is multiplied by 100 to determine the average tax rate.
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Once these average rates have been obtained, they will be applied exclusively to the taxable savings base, without including progressively exempt income. In this way, the full state and regional quota, respectively, corresponding to the taxable savings base, will be obtained.
Note: In those cases where there is no remaining personal and family minimum, if the amount of the taxable base of savings increased by the amount of exempt income with progressivity does not exceed the figure of 6,000 euros, it will not be necessary to carry out the calculations mentioned above.
Example
In the 2023 personal income tax return of Mr. JLM, resident in Aragon, the following amounts are recorded relative to the taxable savings base:
- Savings taxable base: 50,000
- Amount of the personal and family minimum that forms part of the taxable savings base: 4.200
In the 2023 financial year, the taxpayer sold an urban property located in the Netherlands from which he obtained a capital gain of 80,000 euros determined in accordance with the regulations governing personal income tax.
Determine the amount of the state portion and the regional portion of the contributions corresponding to the taxable savings base.
Solution:
In accordance with the provisions of article 25.3 of the Agreement between the Government of the Spanish State and the Government of the Kingdom of the Netherlands for the avoidance of double taxation with respect to taxes on income and on capital and its protocol, done in Madrid on June 16, 1971 ( BOE of October 16), the capital gain derived from the transfer of the real estate is exempt from personal income tax, but this income will be taken into account to calculate the personal income tax corresponding to the remaining income to be included in the taxpayer's savings taxable base.
Since there is a remainder of the personal and family minimum that reduces the taxable base of savings to determine the amount of the same that is subject to tax, the progressive exemption of the capital gain derived from the transfer of urban property located in the Netherlands must be taken into account. The calculations to be made for this purpose are as follows:
1. Sum of the taxable savings base and the amount of exempt income with progression
50,000 + 80,000 = 130,000
2. Application of the IRPF scales to the result of the previous sum (130,000)
3. Application of the tax scales to the amount of the personal and family minimum
4. Determination of quota differences
5. Determination of average tax rates
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Average state savings tax rate (TMAE) = (13,991 ÷130,000) x 100 = 10.76%
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Average tax rate on regional savings (TMGAA) = (13,991 ÷130,000) x 100 = 10.76%
6. Determination of the quotas corresponding to the taxable savings base (50,000):