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 January 1, 2023, the 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 Law of the Treasury is classified as employment income. PIT, or its managing entities or entities in its group, when they derive directly or indirectly from participations, shares or other rights, including success fees, which 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 Law of the PIT which regulates the exemption in the delivery to employees of shares or participations in the company itself or in other groups of companies, to increase the exempt amounts for the total amount delivered to each employee from 12,000 to 50,000 euros when these are shares or participations granted to employees of a start-up company, also simplifying the conditions and requirements required to enjoy the exemption.

Computation of labor income in kind

Added in article 43.1.1º of the Law of PIT a special valuation rule to determine the work performance to be computed in the case of delivery of shares or participations granted to the workers of a start-up company that may benefit from the exemption provided for in article 42 of the Law of the PIT.

Tax consideration of travel expenses and allowances

Letters b) of article 9.A.2 and a) of article 9.B.1 of the Regulations of the PIT to increase, from July 17, 2023, from €0.19 to €0.26 per kilometer traveled, the amount exempt from tax allocated by the company to compensate the travel expenses of employees or workers who travel outside the factory, workshop, office, or workplace to carry out their work in a different location, provided that the reality of the travel 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

Completing the exemption of up to 50,000 euros and the new special valuation rule is also established for the part of the performance of work in kind derived from the delivery of shares or participations in a start-up company that exceeds the exempt amount referred to in article 42.3.f) of the Law of PIT, a special rule of temporary imputation that allows its imputation to 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 participations.

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 individuals who acquire the status of taxpayers by the PIT As a result of their travel to Spanish territory for this event, apply a 65% reduction on the net amount of work income they receive from the organizing entity or the participating teams of this event, during the event and to the extent that it is directly related to their participation in it.

General reduction for obtaining work income

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