It’s here. On April 6, a new settlement period for the income statement opens and this year with many changes. In theory, a large part of taxpayers will pay less taxes. They already began to notice it in their payrolls at the beginning of 2015 and with the following adjustment of July of that same year, but now it is when it is necessary to compare what was paid with the withholdings with all the income and deductions, and in this year, there are many novelties .
All these changes came into force in 2015, but many of them have gone unnoticed or not applied – as it happens with exempt minimums – until the time comes to confirm the draft or to use the help program (FATHER) that this year will generate more doubts than in previous years.
Talking about all the news would take us to fill many pages. Therefore, we point out the most important ones, due to their economic relevance or because they affect all or a large part of the taxpayers:
Deductible expenses and reduction for obtaining work income
This year, the general reduction of 2,652 euros disappears, due to the achievement of labor income, whatever the net positive return, and whatever the amount of “other income” received. But a new deductible expense of 2,000 euros is approved for other expenses. This expense will be increased by another 2,000 euros annually, in the case of unemployed people who accept a new job that requires a change of residence, as well as an increase in the amount of 3,500 euros or 7,750 euros per year for the case of disabled active workers according to the degrees of their disability.
The dividend exemption is deleted
Dividends and participations in profits obtained by having shares in any type of entity were exempt with a limit of 1,500 euros per year. This exemption is suppressed since 2015. Dividends are already subject to a withholding when you collect it, so the change is that if last year you were paid back these advance payments, this year will not be like that.
Income from work in kind
Everything that your company gives you in kind, such as restaurant checks or life insurance taxed as work income. There are only two exceptions:
- The amounts allocated to the updating, training or recycling of the personnel employed, when they are required by the development of their activities or the characteristics of the jobs.
- The premiums or fees paid by the company under an accident contract or civil liability insurance contract.
Important changes in rental agreements
For the owner, a single reduction of 60% of the net declared return derived from the lease of real estate intended for housing is fixed. Until last year there was a 100% reduction when you did it to under 30s.
For the one who rents, the deduction for rent is lost for all contracts signed as of January 1, 2015, that is, it is fiscally equated to the purchase of a habitual residence that lost the deduction on January 1, 2013.
Modification of reduction limits for contributions to social security systems
The maximum limit of reduction in contributions to social security systems has been modified. Thus, the lower of the following amounts will be applied as a reduction:
30% of the sum of the net income from work and economic activities received individually during the year. The increase of this limit for taxpayers older than 50 years, which fixed it at 50%, is eliminated.
8,000 euros per year for all taxpayers. The limit previously set at 10,000 euros is modified, or 12,500 for those over 50 years old.
Contributions to spousal social security systems are also modified. This limit becomes 2,500 euros per year, instead of the 2,000 existing in the previous version of the Law.
Minimum of the taxpayer
The taxpayer’s minimum is raised. Moving from the amount of 5,151 to 5,550 euros. Likewise, the amounts are raised in reference to the age of the taxpayer. Thus, when the taxpayer is over 65 years of age, the amount of the minimum will be increased by 1,150 euros per year. Moving from 6,069 euros to 6,700 euros with the reform.
When the taxpayer is over 75 years of age, the amount of the minimum will be increased additionally by 1,400 euros per year. Moving from 7,191 to 8,100 euros with the reform.
The minimum is also raised by descendants. For the first child goes from 1,836 euros to 2,400 euros. For the second goes from 2,040 euros to 2,700 euros, the third from 3,672 euros to 4,000 euros, and the fourth and following from 4,182 euros to 4,500 euros. When the descendant is less than three years, the amount will increase by 2,800 euros per year (before the reform was 2,244 euros).