Tax declaration campaign starts today

The 2023 Income and Wealth Campaign starts today, Wednesday 3 April, with the presentation of returns online, but from this week taxpayers can access their tax data from the Tax Agency ‘s website and mobile application.

According to the published calendar, the Campaign starts on April 3, and will extend until July 1, 2024, one day longer than usual, since June 30 falls this year on Sunday.

From May 7 to July 1, 2024, the Tax Agency will be able to prepare the taxpayer’s declaration by telephone, the appointment request will be available from April 29 to June 28.

It will be between June 3 and July 1, 2024 when the Tax Agency will be able to prepare taxpayers’ declarations in person at its offices, with an appointment request from May 29 to June 28.

In the year to which the Campaign refers, 2023, the Government implemented some fiscal measures in the General State Budgets, such as the increase in the reduction of personal income tax withholdings on incomes of up to 21,000 euro, something that will affect this campaign to taxpayers with this annual income.

News for Self-Employed and IMV beneficiaries

Another novelty to take into account for this campaign is that all self-employed workers will be required to file their Income Tax Return, regardless of their income.

Likewise, holders of the minimum vital income and members of the cohabitation unit are required to annually submit a declaration corresponding to the Personal Income Tax.

Exempt minimum of 15,000 euro per year

On the other hand, in relation to the obligation to declare, the General State Budgets for the year 2023 raised the lower threshold of the obligation to declare for recipients of work income from 14,000 euro to 15,000 euro per year.

However, the Treasury insists that taxpayers not required to declare, although they are not required to present a declaration with a result to be entered, are obliged to present it when requesting a tax refund.

To determine the amount of the refund that should be made to these taxpayers not required to declare, in addition to the payments on account made, the deduction for maternity and deductions for large families, dependent persons with disabilities or legally separated ascendant with two children or without a marriage relationship that, if applicable, correspond to each of them.

The maternity deduction is expanded

Until 2022, only working mothers could benefit from the deduction of 1,200 euro per year for each child under three years of age. Now, even if at the time of birth the mother was not working but collecting unemployment, or even if she subsequently contributed for 30 days or more, she will be able to benefit from this deduction and request an advance payment of 100 euro per month.

This extension between 2020 and 2023 of the beneficiary mothers also amounts to an additional 1,000 euro for custody expenses for a child under three years of age in daycare centres or early childhood education centres.

Deduction in personal income tax for daycares

It should be taken into account that a ruling from the Supreme Court of January 8, 2024 has extended the maternity deduction in the Personal Income Tax (IRPF) to the expenses of custody of children under three years of age in daycare, although the centre does not have the authorisation of an educational centre.

After the ruling, the Tax Agency urged all daycare centres that have authorisation to open and operate child custody activities – even if they do not have authorisation as an educational centre – to submit the informative declaration through Modelo 233, informing of the potential beneficiaries of the deduction in the Personal Income Tax (IRPF).

Capital gains of more than 200,000 euro will pay more

Furthermore, in 2023, the taxation of capital income in personal income tax exceeding 200,000 euro was raised by one point, to 27%, and for capital gains exceeding 300,000 euro, it will rise to 28%, two more points.

For their part, the self-employed will benefit from a reduction of an additional 5% in net income in taxation by modules and, in the simplified direct estimation, they will have an additional deduction of two points, up to 7%, on difficult expenses.

Mutualists in the 2023 income campaign

Pensioners who made contributions to labour mutual societies and overpaid in personal income tax will also have to pay attention to this Campaign. A ruling from the Supreme Court ruled in favour of a retiree from the banking sector who requested that part of his pension, linked to the contributions he made between 1969 and 1979 to the Banking Labour Mutual Fund, not be taxed in his Income Tax returns. Individuals (IRPF).

The union of technicians of the Ministry of Finance (Gestha) points out that if the concept of ‘Adjustment for Mutualities-DT2 LIRPF’ appears in the fiscal data of the next Income Campaign of 2023, the reduction will be applied automatically in the declaration.

Otherwise, Gestha points out that it is enough to complete the application form enabled by the Tax Agency for rectification.

Pension plans and electric vehicles

The maximum contribution to the individual pension plan with the right to deduction remains at 1,500 euro, although with the possibility of increasing contributions by up to 8,500 euro more for contributions to company pension plans.

For their part, taxpayers may deduct 15% if they make a minimum payment on account of 25% of the purchase value of a new electric vehicle (cars or motorcycles), or if they have made it since June 30, 2023.

In case of purchase, the deduction of 15% of the purchase value including expenses and taxes, and excluding the amounts of public aid received (for example, Moves III) is limited to a maximum base of 20,000 euro and is applied in the year in which you enrol.

The taxpayer can also deduct 15% of the investment for the installation of a charging point for electric vehicles in a property they own, also carried out between June 30, 2023 and December 31, 2024.

Startup investment

Starting in 2023, both the amount of said deduction and other aspects of it have been improved. Taxpayers may deduct from the tax rate 50% of the amounts paid in the period for the subscription of shares or participations in new or recently created companies, with the maximum deduction base being 100,000 euro per year, so the amount of the maximum deduction is 50,000 euro.

Consult an accountant

By far the safest and easiest option when it comes to the declaration period is to consult with a trusted accountant and let them handle everything on your behalf. Advice received in any unofficial capacity, including articles like this, or purely for information purposes only, and as each individual case differs, it cannot replace or represent official and qualified advice.

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