WHO IS OBLIGED TO FILE INCOME TAX DECLARATION IN 2018?

Taxpayers are obliged to file annual Income Tax declaration 2018 to the Spanish Tax Agency when they have received ANY of the following incomes in the amount indicated:

1.       WORK OUTPUTS exceeding the annual amount of 22.000 gross

a.       When they come from an only payer

b.       When they consist of passive benefits (article 17.2.a of Income Tax Law), even if they come from two or more payers, provided that:

                                                               i.      the Tax Agency has determined the amount of the pertinent withholdings (by prior presentation of a form No. 146 by the taxpayer),

                                                             ii.      the actual number of payers does not enhance the number initially declared in the form No. 146,

                                                           iii.      the amount of the passive benefits actually received by the taxpayer does not exceed the amount initially declared in more than 300 € and

                                                           iv.      none of the circumstances determining the increase in the type of withholding has occurred within the year.

2.       WORK OUTPUTS exceeding the annual amount of 12.643 €:

a.       when they come from more than a payer and the amount obtained from the second and subsequent payers exceeds 1.500 € (except when the taxpayer had died before July 5^th 2018),

b.       when the related work outputs are not subject to withholding,

c.       when they consist of compensatory maintenance for the spouse economically affected by the divorce,

d.       when they are subject to a fixed retention.

3.       WORK OUTPUTS exceeding the annual amount of 12.000€, when they come from more than one payer, the amount obtained from the second and above exceeds 1.500€ and the taxpayer had died before July 5^th 2018.

4.       RETURNS ON PROPERTY INVESTMENT exceeding 1.000€

5.       YIELDS FROM CAPITAL exceeding 1.000€

6.       YIELDS FROM CAPITAL not subject to withholding

7.       ATTRIBUTED INCOME FROM URBAN BUILDINGS exceeding 1.000€

8.       HOUSING ALLOWANCE for the acquisition of social housing or housing with controlled price.

9.       INCOME FROM BUSINESS ACTIVITIES exceeding 1.000€

10.   CAPITAL GAINS exceeding 1.000€

11.   CAPITAL LOSSES exceeding 500€

12.   Taxpayers with the right to deduct their investment in HABITUAL RESIDENCE, DOUBLE INTERNATIONAL TAXATION, PENSION PLANS, etc.

13.   Taxpayers who want to request a REFUND derived from IRPF regulations.

(Article 96, 34^th and 18^th transitional provisions of Income Tax Law; article 61 of Income Tax Regulation)

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INFORMATIVE DECLARATION OF TOURIST RENTAL ACCOMMODATION

 

The Ministerial Decree HFP/544/2018, of May 24^th (BOE A-2018-7152) has regulated the obligation to inform about house renting for tourism purposes (seasonal rental), introducing a specific form, No. 179.

Any lessor of a house for tourism purposes (or person acting as an intermediary, according to art. 54.2 and 3 of Royal Decree 1065/2007, of July 27^th) must deliver the related quarterly informative statement, number 179, to the Spanish Tax Agency, providing the following details:

·         Identification of the owner (of the home or right) and of the assignees

·         Identification of the property

·         Number of days during which the property has been leased for tourism purposes

·         Amount received by the owner

·         Number of contract

·         Start date of the contract

·         Intermediation date

·         Means of payment used

This declaration has to be delivered within the calendar month immediately following the end of the quarter in which the house has been leased for tourism purposes.

 

NOTE THAT THERE IS NO REDUCTION IN THE TAX BASE

This kind of rental will not benefit from the reduction of 60% in the tax base, typical of house renting, provided in article 23.2 of Spanish Income Tax Law, because the contract is not intended to satisfy a permanent need for housing, but only a temporary one.

 

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TAX DECLARATION & MATERNITY ALLOWANCES

 

An innovation in the Spanish Income Tax declaration 2018 is the TOTAL EXEMPTION of maternity and paternity allowances.

This innovation is due to the Spanish Supreme Court judgement No. 1462/2018, of October 3rd 2018, which leads to a new regulation of the subject (1st article of Royal Decree-Law No. 27/2018, of December 28th). Maternity and paternity allowances are now totally exempt if they have been received from:

·         the Spanish public Social Security system or

·         friendly societies, as far as these societies are acting as an ALTERNATIVE to Social Security and the allowance received from them does not exceed the upper limit recognized by the Spanish Social Security for these concepts.

Allowances received within 2018 are automatically recognized, which means that taxpayers have only to deliver their Income Tax declaration according to the tax details provided by the Spanish Inland Revenue (=datos fiscales).

Notwithstanding, if the maternity or paternity allowances had been received in 2014 to 2017, these would have consequently been included in previous Income Tax declarations.  

In this case, taxpayers have the right to request for the rectification of the Income Tax declaration in which they had included the related maternity allowances.

 

HOW TO REQUEST FOR THE RECTIFICATION OF MATERNITY ALLOWANCES DECLARED IN 2014 - 2017

The Spanish Tax Office has already enabled a specific form to request for the rectification (see www.agenciatributaria.es). The form can be delivered via web site of the Spanish Tax Office, using an electronic certificate, a PIN code or the RENO system and it is not necessary to attach the accreditation certificate of the maternity/ paternity allowances.

 

 

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