New regulations for 2022

Main tax changes introduced by the General State Budget Law for the year 2022

PERSONAL INCOME TAX

Article 59 of the General State Budget Law for 2022 introduces the following amendments to Law 35/2006, of November 28, on Personal Income Tax and partial amendment of the laws on Corporate Tax, Non-Resident Income Tax and Wealth Tax, with effect for tax periods beginning on or after January 1, 2022 , and indefinite validity:

• Limits on reduction in the tax base of contributions to social security systems.

  are modified in relation to social security systems

  Private insurance that exclusively covers the risk of severe or high dependency:

  The total reductions made by all persons who pay premiums in favour of the same taxpayer, including those of the taxpayer himself, may not exceed 1,500 euros per year (previously the limit was 2,000 euros per year).

  Joint maximum limit

  As a joint maximum limit for contributions to social security systems, the lowest of the following amounts will be applied:

  1. 30% of the sum of net earnings from work and economic activities received individually during the fiscal year.

  2. 1,500 euros per year (previously the limit was 2,000 euros).

     As of 1 January 2022, this limit will be increased by €8,500 , provided that such increase comes from employer contributions, or from contributions by the employee to the same social security instrument (same pension plan, employer social security plan, social security mutual fund, etc.) to which the employer contributions have been made, in an amount equal to or less than the respective employer contribution (previously the limit was €8,000 and the increase had to come exclusively from employer contributions).

     The amounts contributed by the company that arise from a decision of the worker will be considered contributions by the worker.

     The individual entrepreneur's own contributions to employment pension plans or social welfare mutual funds, of which he is, in turn, the promoter and participant or mutual member, as well as those made to company social welfare plans or collective dependency insurance of which he is, in turn, the policyholder and insured, will be considered as company contributions, for the purposes of calculating this limit.

     In addition, the limit of 5,000 euros per year for premiums for collective dependency insurance paid by the company, which already existed previously, is maintained.

Article 60 of the General State Budget Law for 2022 introduces the following amendments to Law 35/2006, of November 28, on Personal Income Tax and partial amendment of the laws on Corporate Tax, Non-Resident Income Tax and Wealth Tax, with effect for tax periods beginning on or after January 1, 2022 , and indefinite validity:

• Extension of the exclusionary limits of the objective estimation method.

  The quantitative limits that have been applied in previous years and that delimit the scope of application of the objective estimation method for economic activities included in the scope of application of said method are extended for the year 2022, with the exception of agricultural, livestock and forestry activities, which have their own quantitative limit based on volume of income.

  Therefore, the general exclusion magnitudes will be the following for the year 2022:

  • Volume of income in the immediately preceding year greater than 250,000 euros for all economic activities, except agricultural, livestock and forestry activities. All the operations shall be taken into account, irrespective of whether there is a duty to issue an invoice. operations in which there is an obligation to issue an invoice when the recipient is a business, may not exceed 125,000 euros.

  • Volume of income for the set of agricultural, forestry and livestock activities exceeding 250,000 euros.

  • Volume of purchases of goods and services in the immediately preceding year, excluding acquisitions of fixed assets, exceeding 250,000 euros.

de Presupuestos Generales del Estado para el año 2022.(BOE, 29-diciembre-2021)