New regulations for 2023

Main new features Royal Decree-Law 8/2023, of December 27, adopting measures to address the economic and social consequences arising from the conflicts in Ukraine and the Middle East, as well as to alleviate the effects of drought

PERSONAL INCOME TAX

With effect from 1 January 2024 following amendments are introduced to Law 35/2006 of 28 November on Personal Income Tax:

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

  DT 32 of Law 35/2006, of November 28, on Personal Income Tax, is modified, extending for the year 2024 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, with the exception of agricultural, livestock and forestry activities, which have their own quantitative limit by volume of income.

  Therefore, the general exclusion magnitudes will be the following for the year 2024:

  • 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. The operations in which there is an obligation to issue an invoice when the recipient is a businessman, 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.

  Additionally, a new deadline is established to renounce or revoke the renunciation to the objective estimation regime from the following date of publication of this Royal Decree-Law until January 31, 2024.

  Resignations and revocations submitted for the year 2024 during the month of December 2023, prior to the new deadline, will be deemed to have been submitted during the valid period.

• Deduction for energy efficiency improvement works in homes.

  DA 50 of Law 35/2006, of November 28, on Personal Income Tax is amended by extending the period during which efficiency improvement works may be carried out to apply this deduction:

  • The deduction for works to reduce heating and cooling demand may be applied for amounts paid for works carried out until December 31, 2024 in the habitual residence or any other residence owned by the person that was rented for use as a residence at that time or in expectation of renting, provided that, in the latter case, the residence is rented before December 31, 2025.

  • The deduction for works to improve the consumption of non-renewable primary energy may be applied for the amounts paid for works carried out until December 31, 2024 in the habitual residence or any other residence owned by the person rented for use as a residence at that time or in expectation of renting, provided that, in the latter case, the residence is rented before December 31, 2025.

  • The deduction for works carried out in buildings of predominantly residential use may be applied for the amounts paid for such works until December 31, 2025.

  This last deduction will be applied in the tax periods 2021, 2022, 2023, 2024 and 2025 in relation to the amounts paid in each of them.

• Establishment of electronic means as the only channel for filing the Personal Income Tax return.

  Article 96 of Law 35/2006, of November 28, on Personal Income Tax is amended, adding in section 5 thereof that may establish the obligation to submit returns by electronic means provided that the tax administration ensures personalized attention to taxpayers who require assistance to fulfill the obligation.

por el que se adoptan medidas para afrontar las consecuencias económicas y sociales derivadas de los conflictos en Ucrania y Oriente Próximo, así como para paliar los efectos de la sequía.(BOE, 28-diciembre-2023)