The Council of Ministers today approved a Royal Decree-law that also allows public employees to return the income tax withheld in maternity and paternity benefits, as is done with the rest of the workers.
To undertake this return it was necessary to declare exempt the remuneration received during the childbirth and paternity leave of the public employees integrated in the administrative mutualism (MUFACE, MUGEJU and ISFAS, fundamentally).
The same had to be done with professionals who are not part of the special Social Security scheme for self-employed or self-employed workers, who receive such benefits from social welfare mutual funds.
This initiative takes place after a ruling of the Supreme Court on 3 October declared public maternity benefits received from Social Security to be exempt.
The Treasury decided to also extend the exemptions to paternity aid and set in motion a system of refund through the Tax Agency of the years not prescribed.
There is the circumstance that certain public employees do not receive a Social Security benefit during maternity and paternity leave, but they maintain their remuneration by paying the corresponding IRPF, so in principle they were not covered by the judgment of the Supreme Court.
For the Treasury, it was a "hardly justifiable situation of discrimination" that today has palliated by expressly exempting maternity or paternity benefits paid by Social Security and extending the exemption to the benefits received by the other groups mentioned.
The Royal Decree-law approved today by the Council of Ministers also extends for the tax period 2019 the limits of billing defined in the taxation by modules in the IRPF.
The current legislation until now contemplated that this year the thresholds would be reduced, from which a self-employed person can not be taxed by the objective estimation method. The new text modifies this situation and leaves those limits unchanged.
Thus, self-employed workers can not be taxed by the objective estimation method when the total of their activities exceeds 250,000 euros or when the turnover to other entrepreneurs or professionals exceeds 125,000 euros.
If this Royal Decree-Law had not been approved, the previous limits would be set at 150,000 euros and 75,000 euros, respectively.
In addition, the self-employed who acquire goods and services up to 250,000 euros will be able to remain in the module system, despite the fact that this limit was expected to be reduced to 150,000 euros in 2019.
Similar to the previous measure, the limits for the application of the simplified regime and the special regime of agriculture, livestock and fisheries, in the Value Added Tax are also extended for 2019.