News published in INFORMA 2019

News published in INFORMA in January

Effective from 30 December 2018 and previous fiscal years when it was not applicable, in the case of public employees adhered to a Social Security regime that does not give rise to a maternity allowance, the remuneration received by such employees during leave for birth, adoption or fostering will be exempt by virtue of article 7.h) of the Personal Income Tax Act. The exempt amount of the relevant remuneration or provisions will have a limit, which will be the amount of the maximum provision recognised by Social Security for the corresponding concept. Any excess will be taxed as earned income.

If the relocation entails a change of usual residence, the right to apply the 60% reduction is lost (up to 4 July 2018 the reduction was 50%).

Effective from 30 December 2018 and previous fiscal years when it was not applicable, the paternity provision received from Social Security will be exempt by virtue of article 7.h) of the Personal Income Tax Act.

Effective from 30 December 2018 and previous fiscal years when it was not applicable, the paternity provision received by professionals not adhered to the special Social Security regime for self-employed or autonomous workers from social security mutual funds acting as alternatives to public Social Security will be exempt by virtue of article 7.h) of the Personal Income Tax Act. The exempt amount will be limited to the amount of the maximum benefit recognized by Social Security for the corresponding concept. Any excess will be taxed as earned income.

The maternity allowance received from Social Security will be exempt by virtue of article 7.h) of the Personal Income Tax Act.

If the relocation entails a change of usual residence, the withholding rate applicable to returns obtained in Ceuta and Melilla from the time of the relocation must be adjusted to that which was being applied beforehand, reduced by 60% (up to 4 July the reduction was 50%).

When there is a regularisation of the withholding rate of work earnings, this cannot exceed 18% when the whole amount of work earnings is obtained in Ceuta and Melilla and is subject to the deduction established in article 68.4 of the Personal Income Tax Act.

Effective from 30 December 2018 and previous fiscal years when it was not applicable, in the case of public employees adhered to a Social Security regime that does not give rise to a paternity allowance, the remuneration received by such employees during leave for adoption or fostering and paternity will be exempt by virtue of article 7.h) of the Personal Income Tax Act. The exempt amount of the relevant remuneration or provisions will have a limit, which will be the amount of the maximum provision recognised by Social Security for the corresponding concept. Any excess will be taxed as earned income.

Effective from 30 December 2018 and previous fiscal years when it was not applicable, the maternity provision received by professionals not adhered to the special Social Security regime for self-employed or autonomous workers from social security mutual funds acting as alternatives to public Social Security will be exempt by virtue of article 7.h) of the Personal Income Tax Act. The exempt amount will be limited to the amount of the maximum benefit recognized by Social Security for the corresponding concept. Any excess will be taxed as earned income.

From 1 January 2019, the percentage of withholdings and payments on account against returns on moveable assets derived from intellectual property when the taxpayer is not the author is 15%.