News published in INFORMA 2019

News published in INFORMA in December

The limit for the application of this increase for childcare expenses will be the lowest of the following amounts: the total contributions to Social Security and mutual funds accrued in each tax period following birth or adoption. For these purposes, contributions and fees will be calculated in their full amounts, without taking into account any bonuses that may apply or the total amount of the actual non-subsidized expense paid in each tax period to the nursery or educational center in relation to that child.

When the descendant is under three years old, the minimum for descendants will increase by 2,800 euros per year. This increase will also apply in cases where the descendant has died during the tax period. In cases of guardianship, simple foster care (current emergency or temporary foster care or in cases of minors over whom custody and care are granted by court order, the increase in the minimum for descendants does not apply regardless of the age of the minor as in the cases set out in the previous paragraph, but rather it will only be applicable when the descendant is under 3 years of age.

Article 81 of the LIRPF establishes that in cases of adoption or foster care, both pre-adoptive and permanent, the deduction may be applied, regardless of the age of the minor, during the three years following the date of registration in the Civil Registry. Therefore, the deduction for maternity will be applicable if the adopted person is of legal age, taking into account that there will be no right to it when the adopted person reaches 25 years of age as the minimum for descendants does not apply.

For the purposes of the maternity deduction, the total contributions and fees to Social Security and mutual insurance companies accrued in each tax period after the birth or adoption are computed in their full amounts without taking into account any bonuses that may apply. Contributions must also be taken into account in exceptional cases where contributions are made to Social Security without being employed (special agricultural regime, unemployment situation or special agreement with Social Security). In the tax period in which the descendant turns three, only the Social Security contributions accrued during the period in which the child is entitled to apply the deduction must be taken into account and not those for the entire year in which the child turns three. Likewise, if the descendant dies during the year, only the Social Security contributions for the months up to the death will be computed and not those for the entire tax period.

In the event that the child turns three in January or in the event that the mother starts working in the year in which the child turns that age, but after having turned that age, the maternity deduction cannot be applied, although this will not prevent the increase in expenses for a nursery or early childhood education centre from being applied, authorised for the expenses incurred up to the month in which the child can start the second cycle of early childhood education.

In these cases, if both parents are entitled to the deduction, because they both carry out an activity on their own or as employees, the amount of the deduction (100 euros) will be prorated between them (50 euros) in each of the months in which both are entitled. If, on the other hand, only one person meets the requirements in a month, only he or she will be entitled to apply the deduction in that month.

Once the amount of the deduction applicable to each parent has been calculated based on the months in which each of them meets the requirements for its application, the resulting amount will be limited for each parent by the amount of their own contributions to Social Security or mutual insurance in the tax period, regardless of whether individual or joint taxation is chosen.

In these cases, if both parents were entitled to the increased maternity deduction for childcare expenses, because they both carry out an activity on their own or as employees, the amount of the same (83.33 euros) will be prorated between them (41.67 euros) in each of the months in which both were entitled. If, on the other hand, only one person meets the requirements in a month, only he or she will be entitled to apply the deduction in that month.

Once the amount of the increase in the deduction applicable to each parent has been calculated based on the months in which each of them meets the requirements for its application, the resulting amount will have as a limit for each parent, regardless of whether individual or joint taxation is chosen, the lowest of the following amounts: the amount of their own contributions to Social Security or mutual insurance in the tax period or the sum of half of the actual non-subsidised expenses (regardless of which parent pays them) paid to the nursery in the months in which both parents were entitled to said increase, plus all of the actual non-subsidised expenses (regardless of which parent pays them) in the months in which only the parent in question was entitled to the increase.

Article 148 of the Civil Code establishes that the obligation to provide maintenance will be enforceable from the moment the person who has the right to receive it needs it for subsistence, but it will not be paid until the date on which the claim is filed. Consequently, for the purposes established in article 81.bis of the LIRPF, the right to receive alimony requires a judicial resolution that so determines. It should also be noted that the judicial resolution of divorce is equivalent to the agreement of the spouses through the formulation of a regulatory agreement before the judicial secretary or in a public deed before a notary.