In the face of the 2018-2019 Income campaign that begins next Tuesday, April 2, the Technicians of the Ministry of Finance (Gestha) remind that the most important news of this year they are related to the exemption from maternity and paternity benefits, the additional increase to the deduction for maternity for expenses in nurseries or the increase of the exclusionary limit of the obligation to declare.
The taxpayers should start already to collect all the data that may affect them from a fiscal point of view and Gestha recommends take into account the regulations of the autonomous communities, since each one of them has its own deductions in certain matters, such as rent or the acquisition of a habitual residence, or due to some personal or family situations.
This year almost 20 million declarations will be presented, of which approximately 70% will be returned. But nevertheless, many people could benefit more than they do. Gestha technicians have prepared this decalogue that allows you to avoid mistakes before confirming the draft and make the most of the income statement:
1. Exempt benefits
The exemption of maternity and paternity benefits received from the public Social Security system is the main novelty of this year's campaign. Here, we have also included those recognized by professionals by social insurance mutuals that act as alternatives to the Special Regime of Self-Employed Workers and the remuneration received during the leave for childbirth, adoption or guardianship and paternity of public employees under a regime of Social Security that does not give the right to receive the Social Security benefit.
The technicians explain that for professionals and public employees, the exemption will be limited to the amount of the maximum benefit recognized by Social Security and that the excess will be taxed as a return on work. In this sense, they clarify that the paying entities must have recorded these benefits as exempt in their declarations and, therefore, do not have to appear in the draft prepared by the Tax Agency, although they would have been subject to retention Therefore, Gestha recommends reviewing that these returns are not included.
The exempt limits of public scholarships and those granted by non-profit organizations or by banking foundations are also increased to study regulated studies as of January 1, 2018. In general, up to the second university cycle it goes from 3,000 to 6,000 annual euros without including disbursements of transport and accommodation and for the third university cycle goes from 18,000 to 21,000 euros per year.
In relation to the prizes of certain lotteries and bets, technicians clarify that the prizes of games celebrated before July 5, 2018 are exempt up to a maximum of 2,500 euros, and in those held from July 5 to December 31 of 2018, are exempt up to 10,000 euros. The amount that exceeds these exempt limits will be taxed at 20% as a special tax on the prizes of certain lotteries and bets. However, the payer of the prize will practice the retention at the time of collection, so that the lucky ones will receive the amount with the tax already discounted. Hence, the prizes have no impact on the IRPF of the graced, who will only have to add in their statement the possible returns that the money could generate, such as bank interest. Be that as it may, the winners will not be affected when it comes to requesting scholarships, assistance benefits or other public aids that depend on income and not on heritage, since the amount of the prize is not included in the general income tax base, nor in the savings. However, the technicians remember that it must be taken into account for the purposes of the Property Tax.
On the other hand, it should be remembered that lunion dues and professional associations they are expenses deductible from the income from work that must be included in the declaration whenever the membership is mandatory and with a limit, in the latter case, of 500 euros per year. This also includes what was paid to lawyers to defend against the payer with a limit of 300 euros per year or the expenses that may arise from the geographical mobility of the employee and up to 2,000 euros. Of this last advantage, only the unemployed registered in the employment office who accept a job that requires them to change their habitual residence can benefit. And it will apply both in the tax period in which the change of residence occurs and in the next one.
The workers must not forget some exemptions in income in kind that are subject to requirements such as worker's health insurance, spouse and descendants – up to 500 euros per person, or 1,500 euros with disabilities -, the cost of preschool, child, primary, compulsory secondary education, high school and vocational training in authorized educational centers, the expense of collective transport of employees between their home and work – up to 1,500 euros -, the free delivery or for a price below the market price for employees of shares or shares of the company or of others in the group of companies – up to 12,000 euros per year-, or deliveries of discounted products in company canteens, canteens or social stores. From January 1, 2018, the daily exempt amount of food vouchers or similar documents, cards or any other electronic means of payment for the dining service rises from 9 to 11 euros per day.
In addition, workers with disabilities who are active, depending on the degree of disability can deduct from 3,500 to 7,750 euros.
2. Ownership of the properties
Empty homes and premises generate what is called «Imputation of real estate income», an income that is calculated as a percentage of the property's cadastral value. In this regard, we must check that these charges -whose tax treatment worsened after the 2015 reform- are correct, that there are no homes that are no longer our property, that are owned by several holders or that the former spouse is living there.
In general, urban buildings are considered to be except the habitual residence and the unbuilt land, generate an income for fiscal purposes of 2% of the cadastral value or 1.1% if the value has been revised in 2018 or in the previous ten years.
On the other hand, taxpayers should not forget to include tourist rental income as real estate capital after 2018 the obligation to inform about the cession of the use of housing for these purposes was regulated for the first time. And for this, a specific model was approved, the 179th or the "Quarterly informative declaration of the transfer of use of homes for tourist purposes". As well, These tourist rentals can not be applied 60% reduction, since they do not satisfy a permanent need for housing but rather cover a temporary need.
3. Capital gains
The incentives of the PIVE Plan for the purchase of a vehicle or aid for the purchase or reform of a home they are patrimonial gains that usually come incorporated in the draft of declaration that the Tributary Agency makes, although it is advisable to review it with the purpose of making sure and avoiding a liquidation, which entails its corresponding sanction. The technicians warn that, from January 1, 2018, public aid is included within the joint limit of 1,000 euros per year that determines the obligation to declare personal income tax, together with imputed real estate income, intact income from movable capital not subject to retention derived from Treasury Bills and subsidies for the purchase of officially protected housing or appraised property.
Regarding the capital gains for transfers of real estate and other goods, technicians remember the elimination of the monetary correction coefficients from 2015. And in relation to the so-called abatement coefficients, which allow part of the capital gains to be reduced in sales of goods not related to economic activities acquired before December 31, 1994, they are applied only up to an amount of 400,000 euros and to the proportional part of the gain obtained until January 20, 2006 – which could be free of taxation.
At this point, technicians highlight lThe exemptions available for capital gains when those over 65 or people who are in a situation of severe dependence or high dependency transmit their habitual residence; for those obtained by those over 65 years of age with the sale of any type of asset, provided that the amount of the sale is destined to the creation of an insured annuity, with a limit of 240,000 euros and within a period of six months; and for those achieved after the transfer of the habitual residence when the amount obtained is reinvested in the acquisition or rehabilitation of another habitual residence within a period of two years.
50% of the capital gains that are made clear when transmitting urban properties acquired between May 12 and December 31, 2012 will also be exempt.
The Negative returns from savings can be offset by the positive balance of equity gains and losses obtained in the same tax period, with a limit that since 2018 has increased to 25% of said positive balance, and vice versa, the losses with positive returns. In addition, the same compensation and with the same limit will be made with the negative balances of the returns of movable capital and of the capital gains and losses of the tax base of the savings of 2015, 2016 and 2017 pending compensation on January 1, 2018 .
4. Changes in the family situation
At the time of making the Income statement it is necessary to consider changes in marital status, deaths and especially births that entail changes not only in the family minimum, but also the possibility of apply family deductions. Likewise, disability situations, both personal and family, must be taken into account.
In this respect, in January 2018 it was introduced a new deduction for those taxpayers who can not file a joint return by residing part of the members of their family unit in another Member State of the European Union or the European Economic Area with which there is an effective exchange of tax information. The purpose of this new deduction is to match the fee payable by these taxpayers with the corresponding one if all the members of the family unit had been tax residents in Spain.
Regarding the minimums by descendants, the technicians point out that it is a common mistake to include a son who has done small jobs, and has presented a declaration, obtaining for them incomes higher than 1,800 and less than 8,000 euros. A) Yes, It may be preferable for a child not to file the return if it is not required, since the return you will get will be less than the benefit of including it.
In this line, another of the most significant developments of this year's campaign is in the increase of up to an additional 1,000 euros of the amount of the maternity deduction when the taxpayer entitled to it has expenses in nurseries or kindergartens of their children under three years. Gestha points out that even in the year in which the youngest child turns three, this increase can be applied to the expenses that are made up to the previous month in which the second cycle of early childhood education can begin.
This year's campaign also includes as a novelty the extra raise of up to 250 additional euros for each of the children, only for the months of August to December -50 euros per month- of the deduction for large families, which will be applied for each one of the children from which the minimum number of children required for said family to have acquired the status of a large family of a general or special category is exceeded. The technicians remember that the amount of these deductions is 1,200 euros per year, or 100 euros per month if requested in advance, except for large families of special category, who receive 2,400 euros per year.
Similarly, it has been created ora deduction for a spouse not legally separated with a disability provided that it does not have income, excluding exempt ones, greater than 8,000 euros per year, and does not generate the right to deductions for descendant with disability or ascendant with disability with the right to apply the minimum.
The deductions are compatible with each other, except for large families and single-parent families with two children, which means that a standard large family with a child with disability would charge 2,400 euros a year, but if you have an ascendant with a disability, you could deduct other 1,200 euros.
In addition, if in a large family one of the parents works – it is necessary to contribute to the Social Security – but does not have to present a declaration when earning less than 22,000 euros per year, can assign the right to deduction to the other parent and avoid the process of the declaration.
5. Autonomous deductions
It is important to spend a little time reading the autonomic deductions because they can imply important fiscal benefits such as expenses for studies of children, adoption or rental of housing, among others.
The technicians remember that the deduction for income obtained in Ceuta and Melilla has risen from 50% to 60%. For its part, La Rioja has set the minimum disability for descendants -3,300 euros with disabilities between 33% to 65% or 9,900 euros with disabilities from 65% -.
6. Rent of habitual residence
Although the state deduction for rental of habitual residence has already disappeared, it remains valid for contracts signed before January 1, 2015. Tenants with contracts prior to that date can continue to deduct 10.05% of the installments in the tax period for the rental of their habitual residence, provided that their tax base is less than 24,107.20 euros per year.
Also all the autonomous communities, except the Region of Murcia, have established deductions to rent with other requirements.
7. Home purchase and floor clauses
Likewise, the deduction for acquisition of a habitual residence, which also disappeared, continues to be applicable for those who bought their house or made some payment for its construction before January 1, 2013. These taxpayers maintain the right to relief in 2013 and years successive, provided they have deducted for that house in 2012 or in previous years. In this case, up to 15% of the amounts invested can be deducted with a limit of 9,040 euros.
Therefore, it is essential to verify that this deduction is included in the draft, since in some cases, due to errors of the financial institution, after the merger or integration processes, the mortgage loan data does not appear, or when there is more than one loan Treasury does not include it because it does not know which one was destined to the purchase of the house. Similarly, Gestha encourages you to verify the amount, checking if there are premiums for life insurance or changes in the mortgages that must be added to the calculation.
Taxpayers who have made some cost in rehabilitation works, adaptation of the habitual residence of people with disabilities or extension of the habitual residence before January 1, 2013, provided that those works had been completed before January 1, 2017, you should also review the draft thoroughly.
Further, the ex-spouse who has left the family home purchased before January 1, 2013 and who continues to pay all or part of the mortgage of the property where the minor children reside should not forget to include the deduction for habitual residence. And technicians clarify that this deduction is compatible with the rent to which you may be entitled.
On the other hand, still in 2018 they still exist returned amounts from the floor clauses of mortgages, and should not be forgotten when confirming the draft. Although it is normal for it to warn of these revenues and the need to regularize them, the taxpayer must make the corresponding modifications. Gestha clarifies that the money that was paid to the bank, and that it will return later, is the refund of an undue payment, so it does not constitute income. In parallel, the compensation interests related to land clauses will not be included in the tax base either. However, there are exceptions: the cases in which these interests would have been part of the deduction for investment in habitual residence or of deductions established by the autonomous communities will have to regularize said undue deductions. It would also happen if they had been considered as a deductible expense in rental income or economic activities.
8. Contributions to parties and donations
Contributions to political parties give the right to a deduction of 20% of the membership fees. The maximum base for this deduction will be 600 euros per year and will be constituted by the membership fees and contributions provided for in the Law on financing of political parties. Also, the last fiscal reform introduced improvements for some deductions for donations.
9. Pension plans
Even though the draft includes contributions to pension plans according to the data provided by the manager, it is convenient to verify them before validating it since they allow to lower the tax base. The latest tax reform reduced the limit amount that can be provided, from 10,000 to 8,000 euros, as long as it does not exceed 30% of the income from work and economic activities, regardless of age.
In addition, contributions to pension plans of the taxpayer's spouse can also be reduced in the tax base when the taxpayer does not receive income from work or economic activities, or is less than 8,000 euros per year. In this case, the limit of the contribution has increased from 2,000 to 2,500 euros.
Gestha reminds that the tax savings of these contributions ranges from a minimum of 19% to a maximum of 45% of the investment made, with some differences depending on the rates approved by the autonomous communities.
10. Expenses for working at home
Self-employed people who work in their own home can deduct certain expenses, such as water, gas, electricity, telephone or internet bills. Specifically, in the campaign of this year may be deducted the resulting percentage of applying 30% to the existing ratio between the square meters of the house intended for the activity with respect to its total area, unless another higher or lower percentage can be proved.
In addition, it is also possible to deduct some expenses incurred by the self-employed in the development of their activity in catering and hospitality establishments, and to pay using any electronic means, with a limit of 26.67 euros per day in Spain and 48, 08 euros abroad; although if I had to spend the night as a result of displacement, these limits increase to 53.34 euros per day in Spain and 91.35 euros per day abroad.