Earned income

Employment income by express legal provision

Returns obtained from the management of funds linked to entrepreneurship, innovation and the development of economic activity

With effect from 1 January 2023, income from work is classified as income obtained by the administrators, managers or employees of the venture capital entities and funds referred to in the Fifty-third Additional Provision of the Income Tax Law, or their managing entities or entities in their group, when they derive directly or indirectly from shares, stocks or other rights, including success fees that grant special economic rights in any of said entities.

These returns will be included in the tax base at 50% of their amount when the requirements set out in said provision are met.

Earned incomes in kind

Exempt income from work in kind

Article 42.3.f) of the Personal Income Tax Law , which regulates the exemption on the delivery to workers of shares or interests in the company itself or in other companies in a group, is amended to raise the amounts exempt from 12,000 to 50,000 euros for the total amount delivered to each worker when it comes to shares or interests granted to workers in an emerging company, also simplifying the conditions and requirements demanded to enjoy the exemption.

Computation of labor income in kind

A special valuation rule is added to article 43.1.1 º of the Personal Income Tax Law to determine the work performance to be computed in the case of delivery of shares or participations granted to the workers of an emerging company that may benefit from the exemption provided for in article 42 of the Personal Income Tax Law .

Tax consideration of travel expenses and allowances

Letters b) of article 9.A.2 and a) of article 9.B.1 of the Personal Income Tax Regulation are modified to increase, as of July 17, 2023, from 0.19 euros to 0.26 euros per kilometer traveled the amount exempt from tax destined by the company to compensate the travel expenses of the employee or worker who travels outside the factory, workshop, office, or workplace, to carry out their work in a different place, provided that the reality of the trip is justified.

Temporary imputation of work income

Income from work in kind derived from the delivery of shares or interests in a start-up company

In addition to the exemption of up to 50,000 euros and the new special valuation rule, a special temporary imputation rule is also established for the part of the income from work in kind derived from the delivery of shares or interests in an emerging company that exceeds the exempt amount referred to in article ) of the Personal Income Tax Law, which allows its imputation be deferred until the tax period in which certain circumstances occur, and in any case, within ten years from the delivery of the shares or interests.

Determination of reduced net income

Reduction of the “XXXVII Copa América Barcelona”

The thirty-sixth Final Provision of the General State Budget Law for the year 2023 has established for natural persons who acquire the status of taxpayers for the IRPF as a result of their travel to Spanish territory on the occasion of this event, to apply a reduction of 65% on the net amount of employment income they receive from the organizing entity or the teams participating in this event, during the celebration of the same and to the extent that they are directly related to their participation in it.

General reduction for obtaining work income

The General State Budget Law for 2023 has modified article 20 of the Income Tax Law to increase both the maximum amount of the reduction for obtaining work income (which goes from 5,565 euros per year 6,498 euros per year) and the threshold of net work income that allows this reduction to be applied (which rises from 16,825 euros to 19,747.5 euros).