In the BOE of December 29, 2022, the Royal Decree 1039/2022, of December 27, that modify he Regulation of the Income Tax of Physical Persons, approved by Royal Decree 439/2007, of March 30 (IRPF Regulation), and the General Regulations for the actions and procedures for tax management and inspection and for the development of common standards for tax application procedures, approved by Royal Decree 1065/2007, of July 27 (General Regulations for management and inspection).
He Royal Decree 1039/2022, of December 27 published in the BOE of December 29, 2022, among other aspects modify he Regulation of the Income Tax of Physical Persons.
These are the most important news.
Modifications regarding excess contributions to social security systems
On the one hand, the limits of contributions to employment social welfare systems have been modified, so that the maximum contributions that the worker can reduce in his tax base depend on the amount of the company contribution in favor of the worker.
This new configuration has added some complexity in cases where there are numbers of previous exercises that could not be subject to reduction due to insufficient tax base or for exceeding the percentage limit established in article 52.1 of the Personal Income Tax Law. To mitigate this complexity and facilitate the application of excesses pending reduction Modifying, with effect from December 30, 2022, article 51 of the Personal Income Tax Regulation.
This modification eliminates the proportional application of excesses between contributions or contributions and allows the application of an increased maximum limit regardless of the origin of the amounts contributed, understanding that in the year in which they had been paid, the amounts provided for in the sixteenth additional provision of the Personal Income Tax Law, relating to the financial limit of contributions and contributions to social security systems, would have been respected.
This same regime will be applied to excesses pending reduction as of December 30, 2022., as indicated in the Nineteenth transitory provision of the Personal Income Tax Regulation, which is also subject to modification by Royal Decree 1039/2022, of December 27, with effect from December 30, 2022.
On the other hand, the excesses corresponding to group dependency insurance premiums, to contributions to social security systems constituted in favor of people with disabilities and to mutual social security societies for professional athletes will be allocated respecting their own limits, as established in the Personal Income Tax Law.
Modifications regarding withholdings and payments on account
The General State Budget Law for the year 2023 has increased, with effect from January 1, 2023, the amount of the reduction for obtaining earned income in the following amounts:
- For taxpayers with net income from work equal to or less than 14,047.5 euros (previously 13,115): the amount is 6,498 euros per year (previously 5,565).
- For taxpayers with net income from work between 14,047.5 and 19,747.5 euros (previously between 13,115 and 16,825): the amount is 6,498 euros (previously 5,565 euros) minus the result of multiplying by 1.14 (previously 1, 5) the difference between work performance and 14,047.5 euros per year (previously 13,115 euros).
It has also increased the amount of full income from work from which it is mandatory to declare the tax: it increases from 14,000 to 15,000 euros the limit of the amount of full income from work from which it is mandatory to declare the tax for taxpayers who receive full income from work in cases in which they come from more than one payer, or compensatory pensions of the spouse or annuities for food are received, or when the payer of the income from work is not obliged to withhold or when full income from work is received subject to a fixed rate of withholding.
The new amounts of work income from which withholding and payment on account are made, depending on the number of children and other descendants and the taxpayer's situation.
With effect from January 1, 2023, these are the new amounts:
Until December 31, 2022 the amounts were:
Other situations include the following:
- a) The married taxpayer, and not legally separated, whose spouse obtains income of more than 1,500 euros, excluding exempt income.
- b) The single, widowed, divorced or legally separated taxpayer, without descendants or with dependent descendants, when, in the latter case, they are not entitled to the reduction established in article 84.2.4 of the Tax Law for given the circumstance of coexistence referred to in the second paragraph of said section.
- c) Taxpayers who do not claim to be in any of the 1st and 2nd situations above.
Additionally, in a complementary way, the lengthening of the thresholds for the application of the reduction for obtaining work income obliges to extend the threshold of income to which the limit of the withholding quota established in section 3 of article 85 is applicable. , which goes from 22,000 to 35,200 euros.
To resolve any questions regarding tax news for this year 2023, do not hesitate to contact us, either by phone 968 45 46 24, or by filling out the form HERE