The 2017 Income tax campaign has already begun, so we want to tell you all the news in the Income and Heritage models.

Model declarations

The models of declaration of income or return of the IRPF approved by this BOE on March 8, are the following:

  • Model D-100: Personal Income Tax Return.
  • Model 100: Document of income or return of the personal income tax return.
  • Model 102: Income document of the second term for the declaration of personal income tax.

The models of declaration and document of income of the IP, to whose contents must conform the electronic files for the electronic presentation of the declarations of said tax and the electronic copies of the same, are:

  • Model D-714: Ip Declaration. Fiscal year 2017.
  • Model 714: IP 2017. Entry document.

Deadlines and form of presentation

With regard to the deadline for submitting the draft tax return and personal income tax returns, whatever their result, it will be as follows:

  • In general: the one between April 4 and July 2, 2018,both inclusive.
  • In the case of direct debit of the declarations: from April 4 to June 27, 2018,both inclusive.

The deadline for submitting IP declarations shall also be between the April 4 and July 2, 2018,both inclusive, except in the case of direct debit of the declarations that will be from the April 4 to June 27, 2018, both inclusive.

It is mandatory to file electronically for taxpayers of the IRPF obliged to present the Wealth Tax (the presentation of the declaration corresponding to this tax must be made through the Internet).

In case of splitting the payment of personal income tax in two installments, the second must be paid, at the latest, on November 5, 2018.

Presentation of personal income tax returns / IP 2017

IRPF

  • Through the Draft/Declaration Processing Service, the taxpayer can prepare their personal income tax return with the Renta Web product and proceed to its presentation.
  • The possibility of submitting declarations on printed paper obtained through the Draft/Declaration Processing Service continues.

IP

  • The presentation of the declaration corresponding to the IP it must be done electronically through the Internet through the use of a recognized electronic certificate or through the use Cl@ve PIN system or, finally, through the entry of the taxpayer’s NIF and the reference number or tax data provided by the Tax Agency.
  • Taxpayers who file a declaration for the Wealth Tax, in addition, will be obliged to use the electronic route for the presentation of the Personal Income Tax return or for the confirmation of the draft of the same, as appropriate.

Payment

  • It is maintained in the declarations with result to enter the possibility that the taxpayer can obtain the Complete Reference Number (NRC) of the collaborating entity directly (either in its offices or through the electronic banking services of the entity) or electronically using a recognized electronic certificate or the system Cl@ve PIN.
  • In the case of taxpayers who confirm and submit the draft declaration through the mobile application, the payment of the amount of the resulting tax debt must necessarily be made in two installments, by direct debit of both.
  • Fractionation of the payment: taxpayers who have not domiciled the payment of the first term may, however, direct debit the second term between June 27 and July 2, 2018. In the event that they have domiciled the first term, the second term may be domiciled until September 22, 2018. Finally, taxpayers who, when splitting the payment, do not wish to domicile the second term in a collaborating entity, must make the deposit of said term until November 5, 2018, inclusive, through form 102.

Draft income tax return 2017

  • As in the previous campaign, all taxpayers, whatever the nature of the income they have obtained during the year (work, movable or real estate capital, economic activities, capital gains and losses, as well as income imputations), may obtain the draft of the declaration through the Draft / Declaration Processing Service (RentaWEB), after providing, where appropriate, certain information that will be requested for this purpose, or other information that the taxpayer may incorporate.
  • The mechanism for obtaining the reference number to access the draft and / or tax data is maintained, through the Electronic Office of the Tax Agency, through the Processing Service of the draft / declaration, and must enter for this the Tax Identification Number (NIF) of the taxpayer or taxpayers, the amount of box 450 of the Personal Income Tax return corresponding to the year 2016, “General taxable base subject to taxation”,and as a novelty for this year, the expiration date of the DNI. In the event that the amount of box 450 of the Personal Income Tax return corresponding to the year 2016 was 0.00, if you have not filed a 2016 Personal Income Tax return, as well as when the National Identity Document is permanent (expiration date 01/01/999) or a Tax Identification Number (NIF) that begins with the letters K, L, M, X, Y or Z, an International Bank Account Code (IBAN) must be provided in which the taxpayer is listed as the holder. After entering these data, the Tax Agency will offer the reference number on the screen, disappearing the possibility of receiving it by SMS.
  • Also as in the past campaigns, the draft or tax data can be accessed through the Draft/Declaration Processing Service of the Tax Agency’s portal on the Internet, using recognized electronic certificates and the Cl@ve PIN system.
  • As a novelty for this campaign, taxpayers are offered the possibility of accessing their tax data and the summary of the draft declaration through an application for mobile devices (“app”) prior registration in it, using the system Cl@ve PIN or reference number. They will also be able to confirm and submit the draft declaration as long as they do not have to modify or include any additional data.

Am I required to file the 2017 Income or Wealth return?

Personal Income Tax: In general, all taxpayers residing in Spain, who have obtained income subject to the Tax, are obliged to declare (either by confirming a draft through Renta WEB or by filing a return). However, there is no obligation to declare when only the following income is received:

1. Income from work:

  • Limit of € 22,000 when the rent is perceived from a single payer or income is perceived from more than one payer and any of the following two situations occur:
    • That the sum of the income obtained by the second payer and subsequent ones does not exceed € 1,500.
    • When the only income from work consists of passive benefits (Social Security and passive class pensions, pension plan benefits, collective insurance, social security mutual societies, corporate social security plans, insured pension plans and dependency insurance benefits), provided that the determination of the applicable withholding rate has been made in accordance with the special procedure established by regulation (on request you of the taxpayer by filing form 146).
  • Limit of € 12,000 (before € 11,200) when any of the following situations occur:
    • That the yield comes from more than one payer and the sum of the income obtained by the second and remaining payers exceeds € 1,500.
    • That the yield corresponds to compensatory pensions.
    • That the payer has no obligation to withhold.
    • That income from work subject to a fixed rate of withholding is perceived.

NOTE: They are considered income from work subject to a fixed rate of withholding: the remuneration received by the condition of directors and members of the Boards of Directors, of the Boards that take their place and other members of other representative bodies (retention of 35% or 19% when the income comes from entities with a net amount of turnover less than 100,000 euros), as well as the income derived from teaching courses, conferences and the like, or derived from the elaboration of literary, artistic or scientific works, provided that the right to their exploitation is transferred (retention of 15%).

2. Income from movable capital or capital gains subject to withholding or income on account when the receipts are less than € 1,600.

NOTE: Excluded from the joint limit of 1,600 euros per year are capital gains from transfers or redemption of shares or participations of collective investment institutions in which the withholding base should not be determined by the amount to be integrated into the tax base. When the withholding base has not been determined according to the amount to be integrated into the tax base, the capital gain obtained from transfers or reimbursement of shares or participations of collective investment undertakings may not be computed as capital gain subject to withholding or deposit on account for the purposes of the limits excluding the obligation to declare.

3. Imputed real estate income, income from treasury bills and subsidies for the acquisition of social housing or an appraised price, with a joint limit of 1,000 euros per year.

4. There is also no obligation to declare:When full income from work, capital or economic activities as well as capital gains are obtained exclusively, with the joint limit of € 1,000 and capital losses of less than € 500, in individual or joint taxation.

Attention: For the purposes of determining the obligation to declare in the terms listed above, exempt income or income subject to the new special tax on certain lotteries and bets will not be taken into account.

However, even if they are not required to declare, all taxpayers who are entitled to receive a refund must confirm the draft or file the return to obtain their refund.

Wealth Tax 2017

Taxpayers whose tax share, determined in accordance with the rules governing the Tax and once the deductions or bonuses that proceed, results in income, or when, not giving this circumstance, the value of their assets or rights, will be obliged to file a declaration for this Tax, whether by personal obligation or by real obligation, determined in accordance with the rules governing the tax, is greater than 2,000,000 euros (for the purposes of applying this second limit, all assets and rights of the taxable person, whether or not exempt from tax, must be taken into account, computed without considering the charges and charges that reduce the value of the same, nor the personal debts or obligations for which the taxable person must be liable).

People who died in 2017 on any day prior to December 31, have no obligation to declare for this tax.

the residents in Spanish territory who happen to have their residence in another country may choose to continue taxing by personal obligation in Spain for all the assets and rights of economic content that they own on December 31, regardless of the place where the goods are located or the rights can be exercised. The option must be exercised by submitting the declaration in the first year in which you would have ceased to be resident in Spanish territory.

Attention: the option may also be exercised by those taxpayers who ceased to be residents in Spanish territory in the years in which the tax on wealth tax was eliminated (2008 to 2010, both inclusive) and opted at the time to continue taxing in Spain by personal obligation.

Likewise, the subjection to wealth tax by real obligation of Personal Income Tax taxpayers who choose to pay income tax for Non-Resident Income Tax must be taken into account, maintaining the status of taxpayers for Personal Income Tax, in accordance with the special regime for “workers posted to Spanish territory” established in article 93 of the LIRPF and the specialties in the taxation of non-resident taxpayers who are residents in a Member State of the European Union or of the European Economic Area in accordance with the provisions of the fourth additional provision of the Wealth Tax Law.

Novelties reflected in the 2017 Personal Income Tax model

  • A new Annex ‘C’ is created to collect all the relevant information in future years that until now was included in different sections of the model declaration (for example, new sections are included to collect information on the amounts pending application in future years in the case of contributions to social security systems, group dependency insurance, social security systems established in favour of people with disabilities, mutual societies for the social security of professional athletes or contributions to protected assets pending compensation in the following years. For the completion of these sections it will be necessary to contribute the amounts pending application from previous years, broken down by years).
  • Included in the section on capital gains and losses derived from the transfer of assets to be integrated into the savings tax base is a new subsection to record the gains and losses derived from the transfer of preferential subscription rights, since, from January 1, 2017, the amount obtained by the transfer of subscription rights from listed securities will be considered capital gain for the transferor in the tax period in which the aforementioned transfer takes place. All transactions relating to the transfer of subscription rights, listed securities and unlisted securities shall be declared in this section.
  • As for the regional deductions, in annexes B.1, B.2, B.3, B.4 and B.5, the necessary modifications have been made to the declaration model to include those in force for the year 2017.

Novelties reflected in the IP 2017 model

  • The IP model reproduces the same content structure of the 2016 tax return, maintaining the simplification of the formal elements aimed at facilitating their treatment in the computer processes related to the generation of electronic files for the electronic presentation of declarations and obtaining electronic copies of them.
  • It is also maintained that the presentation of the declaration corresponding to this tax must be made electronically through the Internet through the use of a recognized electronic certificate or through the use Cl@ve PIN system or, finally, through the entry of the taxpayer’s NIF and the reference number or tax data provided by the Tax Agency.
  • Taxpayers who file a declaration for the Wealth Tax, in addition, will be obliged to use the electronic route for the presentation of the Personal Income Tax return or for the confirmation of the draft of the same, as appropriate.

For any questions or clarification, you can contact our tax advisors at AYCE Laborytax.