From April 6 it is possible to present the Income tax return corresponding to the 2021 financial year, with a deadline of June 30. As usual, filers may previously consult their tax information through the Tax Agency’s website, using an electronic certificate or DNI, the Cl@ve system, where appropriate, or a reference number. All people who have received more than 22,000 euros during 2021, if their income comes from a single payer, or more than 14,000 euros per year if the sum comes from two or more payers, are obliged to file a declaration.
Among the dates to take into account, it should be remembered: June 6, start to file the return online; May 5, availability of the telephone line; June 1, start of face-to-face service at the Tax Agency offices; June 27, end of the term for declarations with results to be paid by direct debit; and June 30, end of the term to present the income tax return.
The personal income tax is levied precisely on the taxpayer’s income: that is, the total of their income, gains and capital losses regardless of where they occurred and whatever the residence of the payer. This is determined by article 2 of Law 35/2006, of November 28, regulating the tax.
It is a tax partially ceded to the autonomous communities, so they have a certain regulatory power. The tax is applied throughout the Spanish territory, but the communities of foral regime (Basque Country, in each of its three historical territories, and Navarra) have the power to maintain, establish and regulate their tax regime, so that the levy ( that is, the requirement of the tax), management, liquidation, collection and inspection of personal income tax corresponds to said territories. They themselves carry out the collection and, as compensation, contribute to finance the general charges of the State through an amount, called quota or contribution.
On the other hand, in the Canary Islands, Ceuta and Melilla, certain specialties are taken into account, provided for in their specific regulations and in the Personal Income Tax Law itself.
He knows in depth all the sides of the coin.
“The main novelty in the Income Statement for the 2021 financial year is given by the increase in taxation, both in the general base of personal income tax, with a new sixth tranche of 47% for income over 300,000 euros, and in the base of savings, with a new section starting at 200,000 euros, with a tax of 26%”, says Asunción Domínguez, head of the Special Service of the Tax Agency. Another great novelty, the expert points out, is the launch of the ‘Income Informator’ tool, which will guide citizens in any possible doubts that may arise about the tax, as well as the obligation to report on operations carried out in cryptocurrencies from July 2021.
As for the most notable benefits, Domínguez indicates, “we must take into account the new deductions for works to improve the energy efficiency of homes and the exemptions from aid for damage caused by natural disasters (Filomena and La Palma volcano) , without forgetting the reduction of the general limit of contributions to individual private pension plans, which become 2,000 euros per year compared to 8,000 euros in the previous campaign”.
To calculate the tax on income from work, it is necessary to divide the tax into two parts: one state and one regional. Added together, they determine the full fee to be paid for this item.
The state part is identical for all the territories (except Navarre and the Basque Country, which have transferred fiscal powers and their own scheme). It is calculated according to a table divided into successive sections. The first 12,450 euros of income are taxed at 19%; the remaining amount up to 20,200 euros does so at 24%; the next remainder up to 35,200 is taxed at 30%. Thus until completing six sections of the aforementioned state table.
The second part to be applied to the taxpayer’s income is regional. As an example, the first tranche of income up to 12,450 euros is taxed at 9% in the Community of Madrid or in La Rioja, at 9.5% in Galicia and in Castilla y León, at 9.7% in the Region of Murcia and 10% in the Valencian Community. This first section is different, also as an example, in Catalonia (where a rate of 12% is applied to the first 17,707.20 euros) or in Illes Balears (rate of 9.5% on the first 10,000 euros). In the Canary Islands there are seven sections; in Andalusia and the Principality of Asturias, eight; in Aragon, ten. Each region has its particularities. When adding both parts, there will be differences in the income tax depending on the place of residence.
On the other hand, and given that the autonomous communities have tax jurisdiction, many of them made modifications in 2021 that affect the tax in the form of deductions. All these specialties were introduced through budget laws or through other specific regulations.
How do I know in which region I should pay taxes? The key concept is that of residence. The general rule is that a taxpayer resides in the autonomy in which he/she stays the greatest number of days throughout the fiscal year. There is also a presumption: unless there is proof to the contrary, it is considered that a natural person remains in a certain autonomous community when they establish their habitual residence in said territory.
These are the main deductions that taxpayers can apply according to the autonomous community in which they reside:
The Andalusian community applies this year a new deduction for taxpayers who are part of a large family, which can reach 400 euros if the family is considered “special category” (with five or more children).
In Aragonese territory, it is worth highlighting the deductions for personal and family circumstances (birth or adoption of a third or successive children, or children with a disability equal to or greater than 33%) and for the acquisition or rehabilitation of a habitual residence in rural or similar areas, among others. .
Principality of Asturias
Residents in Asturias enjoy in this campaign a deduction for investment in primary residence considered protected up to 5,000 euros. They will also enjoy new deductions to encourage those who reside in rural areas at risk of depopulation. The most beneficial aid can reach 10,000 euros: it is reserved for members of large or single-parent families who acquire or rehabilitate their habitual residence.
As has been indicated, last year was marked by the eruption of the Cumbre Vieja volcano on the island of La Palma. The aid given to those affected enjoy an exemption from personal income taxation. This exception is not the result of regional regulations, but of the royal decree laws issued exceptionally by the Government during 2021.
In this community, the objective of the deductions is also focused on avoiding depopulation, and can reach 1,200 euros in some cases. However, other benefits have been suppressed, such as the deduction that encouraged self-employment of young people under 35 years of age who established their habitual residence in areas at risk of depopulation.
Castilla la Mancha
Among other extremes, in 2021 a new deduction was regulated for habitual residence in Castilian-Manchego municipalities considered “sparsely populated areas”. The most beneficial deductions are those related to “extremely depopulated areas”, that is, those with a population density of less than eight inhabitants per square kilometer.
Castile and Leon
In this community, it is worth highlighting the commitment to alternative energies. To benefit from a deduction for the promotion of sustainable mobility, it is necessary that the acquisition value of an electric or plug-in hybrid vehicle does not exceed 40,000 euros, taxes included.
In the Catalan community, the most noteworthy thing is the declaration of unconstitutionality and nullity of a Catalan rule that had raised the minimum personal income tax for Catalan taxpayers with low incomes. This personal minimum is, by definition, the part of the income not subject to taxation as it is used to satisfy the basic personal and family needs of the taxpayer. The nullity was agreed through Constitutional Court Judgment number 18/2021, of October 28, 2021.
The three provinces of this community are, possibly, the most affected by their own personal income tax regulations throughout 2021. Among these profuse regulations, the increase in the percentages and limits of deductions for renting the habitual residence of the declarant can be highlighted. In certain cases it can reach 1,000 euros.
The Valencian legislator has also regulated a series of deductions for investment in electrical energy self-consumption installations and in investments destined to the use of renewable energy sources. Also noteworthy are the deductions for donations made to the Valencian cultural heritage, as well as those established for the promotion of the Valencian language and for other non-professional cultural, scientific or sports purposes.
In this territory, it is worth mentioning the deductions for dependent work, for caring for relatives with disabilities, for fostering minors, for multiple births, etc.
Of all the novelties that affect the tax, it is worth mentioning the deduction for investment in agricultural companies, consisting of 20% (with a limit of 20,000 euros) of the amounts contributed to acquire social capital, or subscribe loans for this purpose. The objective is “the recovery of the agrarian land of Galicia”.
Among other examples, there are regional deductions for investments in environmental installations (solar panels, thermal installations, water saving devices…).
In the territory of La Rioja, last year new deductions were introduced in personal income tax for donations in the matter of patronage. Taxpayers can deduct between 15% and 25% of what they contributed. The highest percentage of deduction corresponds to contributions to Riojan foundations.
Among others, in the Community of Madrid tax benefits are articulated for renting the habitual residence, aimed at people under 35 years of age (up to a maximum of 1,000 euros per year).
Region of Murcia
Murcian taxpayers can apply deductions for renting their habitual residence and benefits for working women with minor children or dependent dependents, as the most significant examples.
Community of Navarre
Navarre, with its own regional regime, contemplates a series of deductions for children and other descendants, among other assumptions. When two or more taxpayers are entitled to the application of deductions for family minimums, their amount will be apportioned between them in equal parts. The same will be done with the descendants in case of joint custody.
Like other communities, Basque regulations provide for family and personal deductions, along with benefits for habitual residence, the promotion of economic activities and the payment of union dues and donations (patronage).
Aid associated with Covid-19
The health crisis has important effects on the personal income tax return. In this sense, it is common to several autonomies the possibility of deducting certain percentages of the aid received in 2021 to alleviate the effects of the pandemic.
Thus, by way of example, in the Valencian Community the benefits are extended to the subsidies received by those affected by Temporary Employment Regulation Files (ERTE) linked to Covid-19, for investigation of infections or, simply, to compensate expenses. health generated. In La Rioja there is a deduction for hiring people to care for ascendants or descendants affected by the disease, consisting of 15% of said expenses (with a maximum of 300 euros per taxpayer).