News published in INFORMA 2022

News published in INFORMA in December

Due to the drought and the increase in feed and electricity prices, the reductions established for 2021 for agricultural and livestock activities in the correction indices for feed purchased from third parties and for crops on irrigated land will continue to be maintained in 2022 and 2023.

The deduction percentage for all deductible provisions and expenses that are difficult to justify for taxpayers who determine their net income using the simplified direct estimation method will be 7 percent during the 2023 fiscal year.

The increase will be 1,000 euros per year, with a limit of of the total annual amount of the actual non-subsidized expenditure paid during the period at the nursery or educational center.

From January 1, 2023, the deduction percentage for investment in newly created companies will be increased from 30% to 50% and the deduction base from 60,000 to 100,000 euros . 68.1 LIRPF mod. by DF 3 Law 28/2022 to promote the ecosystem of emerging companies ( BOE 22-12).

As of January 1, 2023, when the recipient of direct aid has obtained income from agricultural and livestock activities, other than direct aid, in an amount less than 25 percent of the total amount of income from such activities, the net return index to be applied to direct aid will be 0.56 . 

Order HFP/1172/2022, of November 29, by which the objective estimation method of IRPF is developed for the year 2023, as a consequence of the volcanic eruptions that occurred in 2021 on the Island of La Palma, establishes a reduction for economic activities that determine their performance by the objective estimation method developed on said island, of 20% .

The maternity deduction is extended to mothers of children under 3 years of age who are unemployed or registered with Social Security at the time of birth and to those who register at a later time for 30 days.

They are regulated by article 5 of Order HFP/1172/2022, of November 29, which develops the modules for 2023, and are extended by DT 6 of the Law of PGE for 2023 the deadlines to carry out the resignation and express revocation of the objective estimation regime until January 31, 2023 .

The amount of the maternity deduction will be 100 euros per month for each child, however, when you are entitled to the deduction for having registered with Social Security or a mutual fund after birth, in the month in which the 30-day contribution period is reached the amount for that month will be increased by 150 euros .

From January 1, 2023 all natural persons who at any time during the tax period had been registered as self-employed workers in the Special Regime for Self-Employed Workers or in the Special Social Security Regime for Sea Workers

From 1 January 2023, the withholding rate on the income from work derived from the production of literary, artistic or scientific works will be 7 percent when the volume of such gross income corresponding to the immediately preceding fiscal year is less than 15,000 euros and represents more than 75 percent of the sum of the gross income from economic activities and work obtained by the taxpayer in said fiscal year.

From January 1, 2023, the employee's contribution may be higher than the employer's contribution if it is equal to or less than 1,500 euros, under the terms established in article 52.1 of the Personal Income Tax Law (mod. by art. 62 LPGE for 2023).

As of January , the taxation of aid in proportion to the income from crops or farms is conditional on obtaining a minimum income from the activity other than that of the direct aid itself

In the 2022 and 2023 tax periods, the deduction provided for in number 1 of section 4 of article 68 of this Law will be applicable to taxpayers with habitual and effective residence on the island of La Palma, it must be understood, for these purposes, that the references made to Ceuta and Melilla in said article and in its regulatory development are to the island of La Palma ( DA 53 Law of IRPF added by art. 67 LPGE for 2023).

The applicable regulations in this performance determination method for 2023.

The general reduction on the net income of modules is increased from 5% to 10% for 2023 for all taxpayers who determine the net income of their activity according to the objective estimation method (giving the rank of Law in the Law of PGE to the DA 1 Order of modules for 2023 that already regulated this tax benefit).

The amounts that will reduce the net income from economic activities are when the requirements set forth in article 32.2 are met. 2 of the LIRPF , also raising the amount below which this reduction will be applied.

If the advance payment of the maternity deduction is being received, it is not necessary to submit a new application , if the established requirements are met, the payment will continue to be made. New applicants must submit Form 140.

If the child turns three in January, the maternity deduction cannot be applied, but if the contribution requirement is met, the increase in the expenses of the nursery or early childhood education center authorized by the expenses incurred can be applied until the month in which the child can begin the second cycle of early childhood education .

As of January 1, 2023, the withholding and payment on account percentage on income from intellectual property, regardless of its classification, will be 15 percent . However, the rate of 7 percent will apply in certain cases.

They are incompatible . If one of the parents receives the child support supplement for the same offspring, they will not be entitled to the maternity deduction during the time in which it is received, unless one of them was receiving it prior to January 1, 2023.

As of the 2023 financial year, the exclusion limit of the obligation to declare applicable to the income from work provided for in article 96.3 of the LIRPF that comes from more than one payer , except for the exceptions indicated, will be 15,000 euros (previously the limit was 14,000 euros).

The quantitative limits of previous years that delimit the scope of application of the objective estimation method for the economic activities included therein are extended for the year 2023, with the exception of agricultural, livestock and forestry activities, which have their own quantitative limit based on volume of income.

For 2022, the general reduction on the net income of modules is increased from 5% to 15% for all taxpayers who determine the net income of their activity according to the objective estimation method.

Agricultural and livestock activities may reduce the previous net yield in the years 2022 and 2023 by 35% of the purchase price of agricultural diesel and by 15% of the purchase price of fertilizers .

The procedure is regulated to calculate the withholding rate of employment income in the fiscal year 2023.

As of January 1, 2023, the amount of the reduction for obtaining employment income provided for in article 20 of the LIRPF is increased and the amount below which this reduction will be applied is also increased.