Law 26/2014, of November 27, amending Law 35/2006, of November 28, on Personal Income Tax, the revised text of the Law on Non-Resident Income Tax, approved by Royal Legislative Decree 5/2004, of March 5, and other tax regulations.

The proposed reform maintains the basic structure of the Personal Income Tax on which a plurality of modifications are introduced with which it is intended to advance in terms of efficiency, equity and neutrality, without neglecting the principle of sufficiency.

The joint effect of such amendments will allow a generalized reduction of the tax burden borne by the taxpayers of this Tax, which will be especially significant for the recipients of income from work or economic activities of lower income and for those who bear greater family burdens, in particular large families or persons with disabilities, at the same time that the taxation threshold for this Tax is extended, all of them measures that will make possible an increase of the disposable income in the hands of the taxpayers, with the beneficial effects that will derive from this for several economic variables.

What is the taxable income in the income tax return?

To keep things simple, in the IRPF the taxable base is the sum of all income, of all income, whether in cash or in kind (children’s school fees, transportation, etc.) … These incomes will then be taxed in order to calculate how much you have to pay in the corresponding tax.

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What do you put in box 19 of the income tax return?

19 ,LIRPF, only the following will be considered as deductible expenses for work income IRPF: Deductible expenses for obtaining the net income from work. Contributions to the Social Security or to general compulsory mutual insurance companies for civil servants.

How to fill in the 210?

How to fill out Form 210? It must be done telematically through the Electronic Headquarters of the Tax Agency. It can also be filed on paper at collaborating entities (banks and other financial institutions) and Tax Agency offices.

Income Manual 2020

The general taxable base is made up of income such as income derived from work or income from the rental of real estate, but also some income of a financial nature, such as benefits from Pension Plans.

The savings base is where most of the income derived from investment in financial products is integrated and taxed. In turn, the savings base is divided into two sections, the first, which includes income from financial products classified as income from movable capital, and the second, which includes capital gains or losses derived from transfers.

The income classified as income from movable capital is integrated and compensated in the first place among themselves, and only if the final balance is negative can it be compensated in turn with the positive balance of capital gains and losses of the savings base, although with the limit, in 2017, of 20% of the same (25% from 2018 onwards).

What is part of the general personal income tax base?

The general taxable income is composed of income derived from work or income from the rental of real estate, but also some income of a financial nature, such as benefits from pension plans.

What is the taxable base of the 2021 Income Tax?

The income tax base (taxable income minus deductible expenses) for individuals in 2021 will be USD 11,212. Taxpayers with annual income above this amount will pay income tax.

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What is the taxable income?

The taxable base is ultimately the magnitude used in each tax to measure the economic capacity of the taxpayer, which is reflected in ceilings.

Taxable income 2020 taxable income box

It is common to wonder how to calculate the gross annual income and in which box of the 2020 income taxable income you have to put the gross income. We remind you that the taxpayer’s income will be classified as general income or as savings income. And the taxable base is calculated as the sum of all the income obtained by the taxpayer during the tax period.

2. The positive balance resulting from integrating and offsetting, exclusively among themselves, in each tax period, the capital gains and losses that do not derive from the transfer of assets.

1. Positive balance of capital gains and losses derived from the participation in the equity of entities; transfer to third parties of equity capital (unless they come from entities related to the taxpayer);

Box 431: Offsets (if box [0420] is positive and up to the maximum of its amount):Negative net balances of capital gains and losses from 2016 to 2019 not derived from transfers, pending offset at January 1, 2020, to be integrated in the general taxable base (Complete Annex C.2).

How to put disability on the income tax return?

These data are entered in boxes 517 (state part) and 518 (regional part). The minimum for disability is the sum of the minimum for disability of the taxpayer and the minimum for disability of ascendants and descendants.

How much is disability tax deductible?

Taxpayers aged 65 or over who have a degree of disability equal to or greater than 65% and who require assistance from third parties can deduct 10% of the amounts paid to them, up to a limit of 600 € if they meet the requirements.

How much is the IRPF reduced for disability?

The deduction will be 80 euros in the case of physical or sensory disability of more than 33% but less than 65%, and 150 euros in the case of physical or sensory disability of more than 65% or mental disability of more than 33%.

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Explanation of income tax return boxes

The modality on Onerous Patrimonial Transmissions must be presented when transfers are made in return for payment and inter vivos of all kinds of goods and rights that make up the patrimony of individuals or legal entities, as well as the constitution of real rights, loans, guarantees, leases, pensions and administrative concessions, for example, the purchase and sale of a second hand apartment.

To know more in detail the delimitation between the Transfer Tax and the VAT, access the following link:

Ask for an appointment for the preparation of self-assessments of the Transfer Tax.  This service will be provided exclusively to the taxpayer/s of the transaction to be declared, or to a direct relative (ascendants, descendants and/or spouse).

At the moment you request the appointment you must send us the deed or private document where the transfer is recorded, because if you do not send it we will not be able to prepare the self-assessments and your appointment will be CANCELLED.

By Rachel Robison

Rachel Robison is a blogger who collects information on court filings and notices.