PERSONAL INCOME TAX (IRPF)

Article 59 of the General State Budget Law for 2022 introduces the following modifications to Law 35/2006, of November 28, on Personal Income Tax and partial modification of the Corporate Tax laws , on Non-Resident Income and on Equity, with effects for tax periods beginning on January 1, 2022 , and indefinite validity:

• Reduction limits in the tax base of contributions and contributions to social security systems.

  Different limits are modified in relation to the social security systems .

  Private insurance that exclusively covers the risk of severe or high dependency:

  The set of reductions made by all people who pay premiums for the same taxpayer, including those of the taxpayer himself, may not exceed 1,500 euros per year (previously the limit was 2,000 euros per year).

  Joint Maximum Limit

  As a joint maximum limit for contributions or contributions to social security systems, the lowest of the following amounts will apply:

  1. 30% of the sum of net earnings from work and economic activities received individually during the fiscal year.

  2. 1,500 euros per year (previously the limit was 2,000 euros).

     As of January 1, 2022, this limit will increase by 8,500 euros , provided that such increase comes from employer contributions, or from worker contributions to the same instrument of social security (same pension plan, corporate social security plan, social security mutual fund, etc.) to which the business contributions have been made, for an amount equal to or less than the respective contribution business (previously the limit was 8,000 euros and the increase had to come exclusively from business contributions).

     The amounts contributed by the company that arise from a decision of the worker will be considered contributions by the worker.

     The contributions that the individual entrepreneur makes to employment pension plans or social security mutual societies, of which, in turn, he is a promoter and participant or mutual member, as well as those made to corporate social security plans or collective insurance policies. dependence on those who, in turn, are the policyholder and insured, will be considered as business contributions, for the purposes of computing this limit.

     In addition, the limit of 5,000 euros per year for collective long-term care insurance premiums paid by the company, which already existed previously, is maintained.

Article 60 of the General State Budget Law for 2022 introduces the following modifications to Law 35/2006, of November 28, on Personal Income Tax and partial modification of the Corporate Tax laws , on Non-Resident Income and on Equity, with effects for tax periods beginning on January 1, 2022 , and indefinite validity:

• Extension of the exclusive limits of the objective estimation method.

  The quantitative limits that have been applied in previous years and that delimit the scope of application of the objective estimation method for the economic activities included in the scope of application of said method, with the exception of agricultural and livestock activities, are extended for the year 2022. and forestry, which have their own quantitative limit by volume of income.

  Therefore, the exclusive general magnitudes will be the following for the 2022 financial year:

  • Volume of income in the immediately preceding year exceeding 250,000 euros for all economic activities, except agricultural, livestock and forestry activities. All the operations shall be taken into account, irrespective of whether there is a duty to issue an invoice. The operations in which there is an obligation to issue an invoice when the recipient is a businessman, may not exceed 125,000 euros.

  • Volume of income for all agricultural, forestry and livestock activities greater than 250,000 euros.

  • Volume of purchases of goods and services in the immediately preceding year, excluding acquisitions of fixed assets, exceeding 250,000 euros.

CORPORATION TAX

Article 61 of the General State Budget Law for 2022 introduces the following modifications to Law 27/2014, of November 27, on Corporate Tax, with effects for tax periods starting from from January 1, 2022 , and valid indefinitely:

• Modification of article 30 of Law 27/2014, on Corporate Tax, “Full quota and liquid quota”.

  Article 30 of Law 27/2014, of November 27, on Corporate Tax, is modified by article 61 One of the General State Budget Law for 2022, introducing a section 2 in article 30 that establishes that above To the full amount, the applicable bonuses and deductions provided for in the Tax regulations will be applied, giving rise to the liquid amount of the same which, in no case, may be negative.

• Regulation of minimum taxation for certain taxpayers.

  A new article 30 bis is added to Law 27/2014, of November 27, on Corporate Tax, by article 61. Two of the General State Budget Law for 2022:

  Minimum taxation:

  Taxpayers whose net turnover is at least 20 million euros during the 12 months prior to the date on which the tax period begins or who pay taxes under the tax consolidation regime regulated in Chapter VI of Title VII of Law 27/2014, regardless of the net amount of the turnover, the net amount may not be less than the result of applying 15 percent to the tax base, reduced or increased, where appropriate and as appropriate, by the amounts derived from article 105 of Law 27/2014 and reduced in the Investment Reserve regulated in article 27 of Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands. This fee will have the character of a minimum liquid fee.

  The minimum liquid quota will not be applied to taxpayers who pay taxes at the tax rates provided for in sections 3, 4 and 5 of article 29 of Law 27/2014 or to tax entities. Law 11/2009, of October 26, which regulates Listed Investment Companies in the Real Estate Market.

  For taxpayers who pay taxes at the rate of 15 percent according to the provisions of section 1 of article 29 of Law 27/2014, as they are newly created entities, the minimum net amount will be 10 percent of the tax base, as indicated above, and 18 percent if they are entities that pay taxes at the tax rate provided for in the first paragraph of section 6 of article 29 of Law 27/2014 .

  In the case of cooperatives, the minimum liquid quota may not be less than the result of applying 60 percent to the full quota calculated in accordance with the provisions of Law 20/1990, of December 19, on the Fiscal Regime of Cooperatives.

  For the entities of the Canary Islands Special Zone, the positive tax base on which the percentage is applied will not include the part of it corresponding to the operations carried out materially and effectively in the geographical scope of said Zone that is taxed at the special tax rate regulated in article 43 of Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands.

  Rules for determining the minimum liquid quota:

  Firstly, the full fee will be reduced by the amount of the applicable bonuses, including those regulated in Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands, and by the amount of the deduction provided for in article 38 bis of Law 27/2014.

  Secondly, the deductions for double taxation regulated in articles 31, 32, 100 and the twenty-third transitional provision of Law 27/2014 will be applied, respecting the limits that are applicable in each case.

  If as a result of the previous operations:

  • An amount is lower than the minimum liquid quota calculated as indicated in the previous paragraphs; this amount will, as an exception , be considered the minimum liquid quota.

  • If an amount is greater than the amount of the minimum liquid quota calculated as indicated in the previous paragraphs, the remaining deductions that are appropriate will be applied, with the limits applicable in each case, up to the amount of said minimum liquid quota.

  The deductions whose amount is determined in accordance with the provisions of Law 20/1991, of June 7, modifying the tax aspects of the Economic Fiscal Regime of the Canary Islands, and in Law 19/1994, of July 6, of modification of the Economic and Fiscal Regime of the Canary Islands, will be applied , respecting their own limits, even if the resulting liquid quota is lower than the aforementioned minimum liquid quota .

  The amounts not deducted by application of the previous rules may be deducted in the following tax periods in accordance with the regulations applicable in each case.

• Modification of article 41 of Law 27/2014, on Corporate Tax, “Deduction of withholdings, deposits on account and installment payments”.

  Article 41 of Law 27/2014, of November 27, on Corporate Tax, is amended by article 61.Three of the General State Budget Law for 2022, incorporating in the last paragraph the concept of minimum net amount by establishing that when the sum of withholdings on account, deposits on account and installment payments exceed the amount of the net amount of the Tax or, where applicable , of the minimum liquid quota , the Tax Administration will proceed to return, ex officio, the excess.

• Modification of the Special Regime of Entities dedicated to housing rentals.

  Section 1 of article 49 of Law 27/2014, of November 27, on Corporate Tax, is modified by article 61.Four of the General State Budget Law for 2022, establishing that it will have a 40 percent bonus (previously the bonus was 85 percent) the part of the full quota that corresponds to the income derived from the rental of homes that meet the requirements for the application of this regime.

• Modification of the Special Tax Consolidation Regime.

  Section 1 of article 71 of Law 27/2014, of November 27, on Corporate Tax, is modified by article 61.Fifth of the General State Budget Law for 2022, noting that the full quota of the tax group will be reduced by the amount of the deductions and bonuses provided for in Chapters II, III and IV of Title VI of Law 27/2014, as well as any other deduction that may be applicable, giving rise to the net amount thereof, qualifying, which, in no case, may be negative.

ECONOMIC ACTIVITIES TAX

Article 62 of the General State Budget Law for 2022 introduces the following modification in Royal Legislative Decree 1175/1990, of September 28, which approves the Rates and Instructions for the Tax on Economic Activities, with effects for the tax periods that begin after the entry into force of this Law and indefinite validity:

• A new group 863 is added to group 86 of the second section of the Economic Activities Tax Rates.

  Group 863. Journalists and other information and communication professionals.

  Share of: 115 euros.

  Note of this Group provides that the taxpayers classified in this group are authorized to obtain, process, interpret and disseminate information or content through any written, oral, visual means. , digital or graphic, as well as for the advice and execution of institutional or corporate communication plans.

INCOME TAX FOR NON-RESIDENTS

Article 63 of the General State Budget Law for 2022 introduces for permanent establishments the following modifications in the TRLIRNR, approved by Royal Legislative Decree 5/2004, of March 5, with effects for tax periods that begin on or after January 1, 2022 and are valid indefinitely:

• Modification of sections 4, 5 and 6 of article 19. “Full quota and liquid quota.”

  Sections 4, 5 and 6 of article 19 of the TRLIRNR are modified, in the same sense as the modification of article 30 of Law 27/2014, of November 27, on Corporate Tax.

  Specifically, it is established that in the full installment the appropriate bonuses and deductions provided for in the Corporate Tax regulations may be applied, giving rise to the net amount of the tax that, in no case case, it may be negative.

  The amount of withholdings, deposits on account and installment payments will be deductible from the liquid installment .

  Consequently, with these changes, section 6 makes express reference to the net amount of the Tax to indicate that when the withholdings, payments on account and fractional payments actually made exceed the net amount of the tax, the Tax Administration will proceed to return ex officio. the excess, in accordance with the provisions of article 127 of Law 27/2014, of November 27, on Corporate Tax.

• A new tenth Additional Provision is added. Minimum Taxation.

  This new tenth Additional Provision of the TRLIRNR establishes that for the purposes of the provisions of article 19 of the TRLIRNR , to determine the tax debt of the tax, the minimum taxation established in the article 30 bis of Law 27/2014, of November 27, on Corporate Tax.

VALUE ADDED TAX

Article 64 of the General State Budget Law for 2022, with effect from January 1, 2022 and indefinite validity, modifies the thirteenth transitional provision of Law 37/1992, of December 28, on Value Added Tax ( LIVA).

• Limits for the application of the simplified regime and the special regime for agriculture, livestock and fishing in the year 2022.

  With this modification, the increase to 250,000 euros of the magnitude of 150,000 euros established in the thirteenth transitional provision of the LIVA is extended to 2022, for the purposes of certain exclusion limits of the Simplified Regime and of the Agriculture, Livestock and Fishing Regime.

  In relation to the Simplified Regime the exclusion limit of 250,000 euros of income volume in the immediately preceding year is established for 2022 for all business or professional activities, except agricultural, forestry and livestock activities, carried out by the taxable person. Likewise, the exclusion limit of 250,000 euros is established for the acquisitions and imports of goods and services for all business or professional activities, excluding those related to fixed assets, carried out in the immediately preceding year by the taxable person.

  In relation to the Agriculture, Livestock and Fishing Regime the exclusion limit of 250,000 euros is established for 2022 for the acquisitions and imports of goods and services for all business or professional activities, excluding those related to fixed assets, carried out in the immediately preceding year by the taxable person.