These are the fiscal measures approved by the Budget Law for 2023 that you should consider for your pending tax declarations
The majority of the fiscal measures approved in 2023 have been introduced through Law 31/2022, dated December 23, on the General State Budget for the year 2023. Below, we provide a summary of the most important measures that have implications for this year and, consequently, for pending tax declarations.
- The amount of the reduction for obtaining employment income, the reduction applicable to economically dependent self-employed workers, and the income thresholds are increased.
- The lower threshold exempting recipients of employment income from the obligation to file the tax return is raised. Specifically, taxpayers who receive income from more than one payer (and in other very specific cases, as before) are not required to file the tax if the sum of such income does not exceed €15,000 (previously €14,000).
- The deduction percentage for the set of deductible provisions and expenses of difficult justification in simplified direct estimation will be 7 percent (previously 5 percent). Remember that the deduction cannot exceed €2,000, and this absolute limit remains unchanged.
- The exclusive limits of the objective estimation method are extended. Specifically, the magnitudes of €150,000 and €75,000 are set at €250,000 and €125,000, respectively. Likewise, the magnitude of €150,000 is set at €250,000.
- New tax rates are regulated in the savings scale, adding two brackets to the taxable base between €200,000 and €300,000 with a rate of 27 percent (previously 26 percent) and from €300,000 onwards, where a rate of 28 percent applies (previously 26 percent).
- The scope of application of the maternity deduction is expanded (previously applicable only to women with children under 3 years, entitled to the minimum for dependents, engaged in self-employment or employment, and registered with Social Security or mutual society). It now applies to the following cases: women who, at the time of the child’s birth, receive contributory or assistance benefits from the unemployment protection system, and those who, at that time or at any later time, are registered with the corresponding Social Security or mutual society with a minimum period, in the latter case, of 30 days contributed.
- The retention percentage of 15 percent on income derived from the creation of literary, artistic, or scientific works will be 7 percent when the volume of such gross income for the immediate previous year is less than €15,000 and represents more than 75 percent of the sum of the gross income from economic activities and work obtained by the taxpayer in that year.
- The income attribution percentage of 1.1 percent applied to urban or rural properties with constructions that are not essential for the development of agricultural, livestock, or forestry activities, not allocated to economic activities, not rented, and not the habitual residence, will be applicable in the case of properties located in municipalities where cadastral values have been revised, modified, or determined through a general collective valuation procedure, in accordance with cadastral regulations, provided that they have entered into force from January 1, 2012 (previously when they had been revised and entered into force in the 10 previous tax periods).
- The 60 percent deduction of the total quota for income obtained in Ceuta and Melilla is extended to residents in La Palma for 2022 and 2023.
Do you have questions about your taxes? At Moya&Emery, we can help.
If you found this topic interesting and want to learn more about taxation and taxes, we invite you to continue exploring our blog. Don’t forget that at Moya&Emery, we have a multidisciplinary team of professionals who can provide guidance on the tax implications that may arise in your specific case, based on your circumstances. This way, you’ll know which taxes to file and can make appropriate tax planning for yourself, your company, or your business. Don’t hesitate to get in touch with Moya&Emery
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