Taxpayers will have until June 30 to prepare their returns in a year that will be marked by certain tax developments, many due to the COVID-19 pandemic.
BY RRHHDigital, 3:30 p.m. – April 07, 2021
Today, Wednesday April 7, begins the filing period of the tax return for fiscal year 2020. Taxpayers will have until June 30 to prepare their returns in a year that will be marked by certain tax developments, many of which are the consequence of the COVID-19 pandemic, and this should be taken into account when submitting the draft tax return.
In this sense, for 3.5 million taxpayers, 2020 was marked by the integration of a temporary employment regulation file (ERTE) and they will now have to pay the benefits received which did not include any type of withholding. source. However, the Tax Agency has already announced that this will not be the only novelty of the campaign. In this sense, the Memento Prctico IRPF 2021 from Lefebvre, a leading company in legal solutions for lawyers and advisers, explains all the particularities to be taken into account this year and next. The Lefebvre experts have analyzed some key aspects that will help to present the personal income tax return 2020:
Having been in an ERTE, the number of payers changes. This is the main novelty of this year, since the workers who were the subject of a case for the regulation of temporary work in 2020 had two payers: their company and the public employment service. This means that approximately 327,000 taxpayers, who did not file last year, are required to do so this year because they receive income from two different sources. The reason is that the minimum income threshold requiring the filing of the declaration is set at 14,000 euros per year, provided that more than 1,500 euros have been obtained from the second payer, and not at 22,000 euros per year when they come from a single payer. As Susana Izquierdo, editorial director of Lefebvre confirms, “in the case of a single payer, in general, if a worker receives an income from activity of an amount not exceeding € 22,000 per year and works alone for a business, he is not required to file a personal income tax return. If a worker has been affected by an ERTE and has received a benefit, he will have received a salary from two or more payers. In this case, they will be required to submit a declaration “if the total remuneration, added to the salary plus unemployment, exceeds € 14,000 and if the sum of the remuneration of the second and subsequent payer exceeds € 1,500”. Minimum living income. The 460,000 beneficiaries of the minimum living income (IMV) are required to submit the income tax return in the years in which they are received, according to RDL 20/2020 art. 33. Although the minimum living income is in itself an exempt income, I must declare, as income from work, those exceeding 11,279.39 euros, in the event that, together with the IMV, other aid to threatened groups social exclusion. Recipients must declare it and pay taxes for the excess. Business termination benefits for the self-employed. The extraordinary indemnity received for the cessation of activity is classified as a work performance and not as an economic activity, in accordance with Article 17.1 b) of the Law on Personal Income Tax. Therefore, although its origin is in the economic activity of the self-employed person, it is not income for this reason and cannot be qualified as income from economic activities. Reduction of contribution limits to pension plans with the right to reduction. From 1-1-2021, the ceiling for maximum contributions to individual provident plans with reduction rights decreases, from 8,000 to 2,000 euros. Similarly, the ceiling for contributions to pension plans in favor of a spouse who does not work is reduced from 2,500 to 1,000 euros. However, in the case of occupational or company provident plans, the ceiling is increased from 8,000 to 10,000 euros to deduct contributions. This change does not affect the tax declaration for 2020. New bracket of general income and savings. From 1-1-2021, workers with an annual income above 300,000 euros will be subject to a withholding tax of 47%, which is two points more than in the previous section, while those who earn between 60,000 and 300,000 euros maintain a retention of 45%. . Regarding savings income, a new tranche is added. On the date indicated, all those exceeding 200,000 euros will be taxed at 26%. This change does not affect the tax return for 2020.
Finally, as the personal income tax is a tax attributed to the CCAA, all have integrated this year new features that affect taxpayers who have established their habitual residence in the territory of each of them, it is therefore essential to see them again. In this regard, Susana Izquierdo, editorial director at Lefebvre, considers that it should be remembered that “the lower the remuneration paid by each taxpayer, the lower the withholding tax and, in addition, the tax. on the income of natural persons is a progressive tax, therefore, the rate increases if the declared income increases ”.
Lefebvre’s Memento Prctico IRPF 2021 is an essential reference book for finding all the answers on taxation that directly affects the majority of Spanish families, individual entrepreneurs and tax advisers. It is a practical, illustrative and clear guide on the different stages of the income tax declaration process, but not only, it is also the reference text for those who wish to function effectively in the management of tax and be informed of all legislative developments.
The Memento Prctico IRPF 2021 can be purchased in the Lefebvre online store.