The State Budget Law for the year 2016, published in the BOE on October 30, establishes a series of variations at the tax level in personal income tax, IS and VAT.
News in the Personal Income Tax
In the work performance, the exempt limit for remuneration in kind is raised from 500 to 1,500 in the case of premiums paid to insured entities for illness coverage, for people with disabilities who qualify for application of the exemption, (worker, spouse or descendants ).
As for the income from economic activities, in direct estimation, the amount of the deductible expense for the health insurance premiums paid by the taxpayer in the part corresponding to his own coverage and that of his spouse and children under twenty-five years of age who live with him is raised from 500 to 1,500 euros, for each one of them with a disability.
In the returns from economic activities in objective estimation, for the years 2016 and 2017 the limits of application of the method are modified:
- The volume of full income in the immediately preceding year, for all economic activities, except agricultural, livestock and forestry, increases to 250,000 euros, and must include for this calculation all operations, whether or not there is an obligation to issue an invoice for them. .
- Without prejudice to the above, the limit will be 125,000 euros for all operations for which there is an obligation to issue an invoice because the recipient is a businessman or professional acting as such.
- The limit is modified by the volume of purchases of goods and services, excluding acquisitions of fixed assets, in the previous year, going to 250,000 euros per year.
As for the General deductions, those made by donations destined to carry out priority patronage operations.
- Establishes the priority patronage activities for the 2016 financial year.
- It raises by five percentage points the deduction percentages and the limits established in Law 49/2002 for the deduction of these donations in personal income tax.
Modifications to Corporate Tax
I. Reduction of income from certain intangible assets
As of July 1, 2016, the method of calculation is modified, establishing that they will be entitled to a reduction in the tax base in the percentage resulting from multiplying the result of the following coefficient by 60 percent:
-Numerator: direct expenses directly related to the creation of the asset, excluding those derived from subcontracting with related third parties, increased by 30 percent, without the numerator being able to exceed the amount of the denominator.
-Denominator: direct expenses directly related to the creation of the asset, and, where applicable, the acquisition of the asset.
In no case will financial expenses, amortizations or other expenses not directly related to the creation of the asset be included.
II. Obligation to submit a corporate tax return
For tax periods beginning on or after January 1, 2015, the taxpayers referred to in section 3 of article 9 of the Law will not be required to submit a declaration when they meet the following requirements:
- That their total income does not exceed 75,000 euros per year.
- That the income corresponding to non-exempt income does not exceed 2,000 euros per year.
- That all non-exempt income obtained be subject to withholding.
III. Transitional regime for the reduction of income from certain intangible assets.
As of July 1, 2016, transfers of the right to use or exploit intangible assets made before September 29, 2013 allow the option to apply the regime of article 23 regulated in RDL 4/2004. in the wording given by 16/2007.
IV. Conversion of deferred tax assets into credit payable to the Tax Administration.
The regime applicable to provisions for impairment not deducted by application of articles 13.1.a) and sections 1 and 2 of article 14 is established.
Article 130 establishes as a limit to the conversion into a credit payable before the Tax Administration, the amount equal to the positive liquid quota corresponding to the tax period of generation of the deferred tax assets.
The thirteenth DA establishes a capital benefit for the conversion of deferred tax assets into credit payable to the Tax Administration consisting of 1.5 percent of the total amount of said assets existing on the last day of the tax period corresponding to the Corporate Tax.
The thirty-third DT establishes the regime applicable to the conversion of deferred tax assets generated in periods beginning prior to January 1, 2016 into credit payable to the Tax Administration.
Modifications in VAT
The following modifications are introduced into Law 37/1992, of December 28, on Value Added Tax (LIVA):
I. Exemptions in foreign operations:
Technical modifications are incorporated to achieve better adaptation of the internal regulation to community regulations:
With effect from January 1, 2015 and valid indefinitely, the exemption provided for services related to exports is extended to those provided to freight forwarders and consignees.
With effect from January 1, 2016 and indefinitely, the import of goods destined for duty-free stores linked to the warehouse regime other than customs is included as exempt import.
II. Limits for the application of the simplified regime and the special regime for agriculture, livestock and fishing:
On a temporary basis for the years 2016 and 2017, as is done in the objective estimate in personal income tax, the limits that determine the exclusion of the special simplified regimes and agriculture, livestock and fishing are raised with respect to those initially provided for in the Law. 28/2014, November 27.
Specific:
In the case of the simplified regime, the volume of income in the immediately preceding year for all activities, except agricultural, forestry and livestock, is increased to 250,000 euros. Starting in 2018, this limit will be 150,000 euros.
In both regimes, the volume of acquisitions and imports of goods and services in the immediately preceding year, excluding those related to fixed assets, is increased to 250,000 euros. Starting in 2018, this limit will be 150,000 euros.
III. Cessation of the special regime of the equivalence surcharge for civil companies:
In accordance with the third transitional provision, civil companies that, with effect from January 1, 2016, become taxpayers in Corporate Tax and, therefore, cease to be subject to the special regime of the equivalence surcharge may deduct the self-assessment corresponding to the period in which said cessation occurs, the fee resulting from applying to the acquisition value of its stocks inventoried on the date of cessation, VAT and equivalence surcharge excluded, the rates of said tax and surcharge in force on the same date (articles 155 LIVA and 60 RIVA).
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