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Practical manual for Income Tax 2023.

3. Loss of taxpayer status due to change of residence

Regulations: Articles 14.3 and 95 bis Law PIT, 63.2 and 121 RegulationPIT

The assumptions that give rise to the submission of a supplementary self-assessment are the following:

a. In general

In the event that the taxpayer loses his status due to a change of residence, all income pending imputation, in accordance with the provisions of the first paragraph of article 14.3 of the Law of PIT, must be included in the tax base corresponding to the last tax period that must be declared for the aforementioned tax.

To do so, a supplementary self-assessment must be made, where applicable, without penalty or late payment interest or any surcharge, within three months from when the taxpayer loses his/her status due to a change of residence.

b. Transfer of residence to another Member State of the European Union

Furthermore, in accordance with the provisions of the second paragraph of article 14.3 of the Law of PIT, when the transfer of residence occurs to another Member State of the European Union, the taxpayer may choose to impute the pending income in accordance with the provisions of the previous paragraph, or to present, as each of the pending imputation income is obtained, a supplementary self-assessment without penalty, late payment interest or any surcharge, corresponding to the last period that must be declared by the taxpayer. PIT.

The self-assessment must be submitted within the declaration period for the tax period in which said income should have been imputed had the loss of taxpayer status not occurred.

c. Imputation of capital gains due to change of residence in article 95 bis of the Law of PIT

There is also, as of January 1, 2016, the special case of regularization by imputation of capital gains due to change of residence when the circumstances provided for in the Article 95 bis of the Law of PIT. The capital gains referred to in the aforementioned article must be included in the tax base corresponding to the last period that must be declared for this purpose. PIT Carrying out, where appropriate, a supplementary self-assessment, without penalty, late payment interest or any surcharge, within the declaration period of the PIT corresponding to the first fiscal year in which the taxpayer did not have such status.

If the taxpayer opts for the application of the specialities provided for in the aforementioned article 95 bis of the Law of PIT In the event of a change of residence to another Member State of the European Union, or of the European Economic Area with which there is an effective exchange of tax information, and any of the circumstances provided for in Article 95 bis.6.a) of the Law of the European Union occur. PIT that determine the obligation to self-assess the capital gain, the self-assessment will be submitted within the period between the date on which any of the circumstances referred to in article 95 bis.6.a) of the Law of the PIT and the end of the immediately following period for Personal Income Tax returns, or the period for Personal Income Tax returns corresponding to the first fiscal year in which the taxpayer did not have such status as a result of the change of residence, if this were later.

Therefore, according to this last rule, when the taxpayer loses his status in 2023, the tax period to which the complementary self-assessment will correspond will be 2022, as it is the last period in which he has had the status of taxpayer of the PIT.

Note: In the "Supplementary Declaration" section of the declaration, you must mark the box with an "X". [110] If the supplementary declaration is motivated by having lost the status of taxpayer due to change of residence (general assumption provided for in the first paragraph of article 14.3 of the Law of PIT); the box [111] If the reason is the transfer of residence to another Member State of the European Union and the taxpayer chooses to impute the pending income as it is obtained, in accordance with the provisions of the second paragraph of article 14.3 of the Law of PIT and the box [112]If the supplementary declaration is motivated by the occurrence of any of the circumstances provided for in article 95 bis of the Law of the PIT.

d. Loss of resident status of the partner who applied the tax deferral regime in spin-off, merger or absorption operations and exchange of securities when he transfers his residence to a Member State of the European Union or the European Economic Area

Regulations: Articles 80.4 and 81.3 LIS ; art. 14.3 Law PIT

In the case of individual partners who have applied the special tax deferral regimeprovided for in Chapter VII of Title VII of the LIS and lose their status as residents in Spanish territory, will be integrated into the tax base of the PIT of the last tax period that must be declared for this tax, the difference between the market value of the shares or participations received in the exchange or in the spin-off, merger or absorption operations, at the time of the change of residence, and their tax value (which is the acquisition value and seniority of the shares delivered), unless the shares or participations are assigned to a permanent establishment located in Spanish territory.

Regarding the LIS see Law 27/2014, of November 27, on Corporate Tax.

Now, when the partner acquires residence in a Member State of the European Union or the European Economic Area with which there is an effective exchange of tax information under the terms set forth in the First Additional Provision of Law 36/2006, of November 29, on measures to prevent tax fraud, payment of the tax debt resulting from the application of the above will be deferred by the Tax Authority at the request of the taxpayer until the date of transfer to third parties of the affected shares or participations, with the provisions of LGT and its implementing regulations applying, regarding the accrual of late payment interest and the establishment of guarantees for such deferral. If the supplementary declaration responds to this circumstance, the taxpayer must select this option in the "Supplementary declaration" section of the declaration.

Regarding the LGT see Law 58/2003, of December 17, General Tax Law ( BOE of December 18). It should also be noted that the first Additional Provision of Law 36/2006, of November 29, on measures for the prevention of tax fraud, has been modified by article sixteen.One of Law 11/2021, of July 9, on measures for the prevention and fight against tax fraud (BOE of July 10).