New features published in INFORMA 2022

News published in INFORMA in December

From 1 January 2023, the amount of the reduction for obtaining earned income provided for in Article 20 of the Personal Income Tax Act is increased and the amount below which this reduction will be applied is increased.

The procedure is regulated to calculate the withholding rate of earned income in 2023.

Agricultural and livestock activities may reduce the net yield before 2022 and 2023 by 35% of the purchase price of agricultural diesel and 15% of the purchase price of fertilisers.

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

The quantitative limits of previous years that delimit the scope of the objective estimation method are extended for 2023 for the economic activities included in the same, except for agricultural, livestock and forestry activities, which have their own quantitative limit for the volume of income.

From 2023, the exclusive limit of the obligation to declare applicable to earned income provided for in Article 96,3 of the LIRPF, which comes from more than one payer, except for the exceptions indicated, will be 15,000 euros (previously the limit was 14,000 euros).

They are incompatible. If the child benefit supplement is received by any of the parents in relation to the same descendant, the child will not be entitled to deduction for maternity during the time when the child is received, unless they were received by someone before January 1, 2023.

From 1 January 2023, the percentage of withholding and payment on account of returns from intellectual property, whatever its rating, will be 15%. However, the rate of 7% will be applied in certain cases.

If the child turns three years old in January, the deduction for maternity cannot be applied, but if the contribution requirement is met, the increase in childcare expenses or childhood education centre authorised for expenses incurred up to the month in which the child can start the second childhood education cycle.

If the advance payment of the deduction for maternity is received, no new application must be filed, if the established requirements are met, the amount will continue to be paid. New applicants must submit form 140.

The amounts that will reduce the net returns of economic activities are increased when the requirements set out in Article 32,2 are met. 2 Of the LIRPF, and the amount below which this reduction will be applied is also increased.

The general reduction on the net yield of modules is increased for 2023 from 5% to 10% for all taxpayers who determine the net return of its activity according to the objective estimation method (giving the range of Law in the PGE Act to D.A. 1 Order of modules for 2023 that already regulated this tax benefit).

The applicable regulations in this performance determination method for 2023.

In the tax periods 2022 and 2023, the deduction provided for in section 1 of article 4 of this Act will be 68 applicable to taxpayers with their usual and effective residence on the island of La Palma, and must be understood to references made to Ceuta and Melilla in this article and in its regulatory development are to the island of La Palma (D.A. 53 Personal Income Tax Act added by article 67 LPGE for 2023).

From 1 January 2023, the taxation of CAP grants in proportion to the income of crops or holdings is conditioned on obtaining a minimum income in the activity other than that of direct aid.

From January 1, 2023, the employee's contribution may be higher than the business 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 Act (amended. By art. 62 LPGE for 2023).

Since 1 January 2023, the percentage of withholding on earned income from the production of literary, artistic or it will be 7% when the volume of such full scientific returns corresponding to the previous financial year is less than 15,000 euros and represents more 75% of the sum of the full income from economic activities and the work obtained by the taxpayer in that financial year.

From 1 January 2023 all individuals who at any time of tax period would have been registered as self-employed workers in the Special Regime for Self-Employed Workers or Self-employed Workers, or in the Special Regime for the Social Security of Sea Workers.

The amount of the deduction for maternity will be 100 euros per month for each child, however, when the deduction is entitled for having registered with the Social Security Institute or mutual society after the birth, in the month in which the period of contributions is reached of 30 days the amount of that month will be increased by 150 euros .

Are regulated by article 5 of Order HFP/1172/2022, of 29 November, which develops the modules for 2023, and are extended by DT 6 of the PGE Act for 2023 the deadlines for carrying out the waiver and express revocation of the objective assessment scheme until 31 January 2023.

Maternity deduction is extended to mothers under 3 years of age who are unemployed or registered in Social Security at the time of birth and for whom they are registered at a later date for 30 days.

Order HFP/1172/2022, of 29 November, which develops the method of estimation for 2023 objective of Personal Income Tax, as a result of the volcanic eruptions that took place in 2021 in La Palma Island, establishes a reduction for activities economic factors that determine their yield by the objective estimation method developed on that island, of 20%.

From 1 January 2023, when the recipient of the direct aid had earned income from agricultural and livestock activities, different of the direct aid, for amounts less than 25% of the total income from such activities, the net yield index to be applied to direct aid will be 0.56. 

Since January 1, 2023, the deduction for investment in newly created companies has increased the deduction percentage from 30% to 50% and the deduction base from 60,000 to 100,000 euros. 68,1 LIRPF mod. by DF 3 Act 28/2022 on the promotion of the ecosystem of emerging companies (Official State Gazette 22-12).

The increase will be 1,000 euros per year, with the limit of the total annual amount of the non-subsidised cash expense paid in the period to the nursery or educational centre.

The percentage of deduction for all deductible provisions and expenses of difficult justification for taxpayers who determine their net return using the simplified direct assessment method will be 2023% in 7.

Due to the drought and the increase in prices of feed and electricity, the reductions that for 2022 2023 2021 were established for agricultural and livestock activities in the corrective indices for fodder acquired from third parties and for crops in irrigated lands.