New regulations for 2024

Main regulatory developments Royal Decree-Law 4/2024, of June 26, extending certain measures to address the economic and social consequences arising from the conflicts in Ukraine and the Middle East and adopting urgent measures in fiscal, energy and social matters

PERSONAL INCOME TAX

With effect from January 2024 the following amendments are introduced to Law 35/2006, of November 28, on Income Tax IRPF ).

• Reduction for obtaining work income

  Article 20 of the LIRPF is modified by Article 3. One. of Royal Decree-Law 4/2024.

  The amount of the reduction for obtaining work income is increased from the current 6,498 euros to 7,302 euros per year, an amount that will subsequently decrease linearly in two tranches as income increases so that:

  Taxpayers with net income from work of less than 19,747.5 euros, provided that they do not have income, excluding exempt income, other than income from work exceeding 6,500 euros, will reduce their net income from work by the following amounts:

  1. Taxpayers with net income from work equal to or less than 14,852 euros: 7,302 euros per year.

  2. Taxpayers with net income from work greater than 14,852 euros, but equal to or less than 17,673.52 euros: 7,302 euros less the result of multiplying by 1.75 the difference between work performance and 14,852 euros per year.

  3. Taxpayers with net income from work between 17,673.52 and 19,747.5 euros: 2,364.34 euros less the result of multiplying by 1.14 the difference between the work performance and 17,673.52 euros per year.

• Obligation to report

  Section 3 of article 96 the LIRPF is amended by article 3. Two. of Royal Decree-Law 4/2024 so that:

  The exclusive limit of the obligation to declare in the case of receiving the work income provided for in article 96.3 of the LIRPF (those that come from more than one payer with the exceptions indicated in said article; spousal alimony or non-exempt alimony annuities; In cases where the payer is not required to withhold or when the income is subject to a fixed withholding rate) is raised to 15,876 euros per year (previously the limit was 15,000 euros).

• Deduction for habitual and effective residence on the island of La Palma

  Additional Provision fifty-seventh is modified by article 3. Three. of Royal Decree-Law 4/2024.

  The time scope of the deduction provided for in section 68, section 1 of the LIRPF so that:

  1. In the tax periods 2022, 2023 and 2024, the deduction provided for in section 1 of section 4 of article 68 of this law will be applicable, under the same terms and conditions, to taxpayers with habitual and effective residence on the island of La Palma, it being understood, for these purposes, that the references made to Ceuta and Melilla in said article, in article 101 of this law and in its respective regulatory development, are to the island of La Palma.

  2. In the 2024 tax period, the provisions of section 1 above will only be applicable to determine:

     • The type of withholding and payment on account to be applied to the income to which the aforementioned deduction is applicable that has been paid after the entry into force of said Royal Decree-Law (June 28, 2024).

     • The type of split payment corresponding to the economic activities that are entitled to it and whose submission period had not started at the time of the entry into force of said Royal Decree-Law (June 28, 2024).

     In particular, in order to calculate the withholding or payment on account rate applicable to the employment income to which the general withholding procedure referred to in article 82 of the Tax Regulations is applicable, which are paid or satisfied from said date, the provisions of the previous section 1 shall be taken into account, regularising, if applicable, the withholding or payment on account rate in the first employment income that is paid or satisfied from said date.

     However, the provisions of the preceding paragraph may be applied, at the payer's option, to the first employment income paid or paid from the month following the entry into force of said Royal Decree-Law, in which case the type of withholding or payment on account to be made on employment income paid prior to this date will be determined without taking into consideration the provisions of section 1 above.

•  Freedom of amortization on certain vehicles and new charging infrastructures

  A new fifty-ninth Additional Provision is added. Freedom of amortization on certain vehicles and new charging infrastructures under Article 3. Four. of Royal Decree-Law 4/2024.

  The application of the freedom of amortization provided for in the Corporate Tax is made possible for all taxpayers regardless of the method of determining their net income so that:

  1. The freedom of depreciation provided for in the Eighteenth Additional Provision of Law 27/2014, of November 27, on Corporate Tax, will apply to taxpayers of this tax who carry out the economic activity to which the vehicles and recharging facilities are assigned, regardless of the method of determining their net income.

  2. When vehicles or charging facilities that have enjoyed the freedom of depreciation provided for in the Eighteenth Additional Provision of the Corporate Tax Law are transferred, for the calculation of the capital gain or loss, the acquisition value will not be reduced by the amount of tax-deductible depreciation that exceeds what would have been tax-deductible had the aforementioned provision not been applied. For the transferor, the aforementioned excess will be considered as full income from the economic activity in the tax period in which the transfer is made, regardless of the method of determining it.

por el que se prorrogan determinadas medidas para afrontar las consecuencias económicas y sociales derivadas de los conflictos en Ucrania y Oriente Próximo y se adoptan medidas urgentes en materia fiscal, energética y social.(BOE, 27-junio-2024)