We review the main updates affecting the Personal Income Tax (IRPF) declaration for the 2023 fiscal year.
- Obligation to file the declaration.
All individuals who have been registered as self-employed workers, in the Special Regime for Self-Employed Workers (RETA) or in the Special Regime for Sea Workers will be required to file with effect from January 1, 2023.
Other exempt incomes different from those provided for in article 7 of the Personal Income Tax Law (LIRPF).
Subsidies and public aids related to the community’s agricultural, and fisheries policy are declared exempt, as well as 50% of the salaries earned by administrators, managers, or employees of venture capital entities when certain requirements are met (carried interest).
- Employment income.
The exemption related to the delivery of shares or participations to employees, whether from the employing company or from other group companies, is expanded from 12,000 to 50,000 euros, as long as it is an emerging company.
Additionally, the amount exempted from tax for reimbursing travel expenses when the employee has to work outside the usual workplace is increased to 0.26 euros per kilometer.
The deduction for obtaining employment income increases from 5,565 to 6,498 euros annually, with the threshold of net employment income to apply this reduction also increasing to 19,747.5 euros.
- Income from economic activities.
For 2023, the maximum contribution for common contingencies is set. This acts as a limit for deductible expenses in terms of alternative mutuality to the special Social Security regime for self-employed workers.
The deduction percentage for the set of deductible provisions and hard-to-justify expenses increases.
- Imputed income from real estate.
During the 2023 fiscal year, the imputation rate of 1.1% is maintained in those municipalities where the cadastral values have been revised since January 1, 2012, to avoid an increase in taxation regarding imputation of real estate income.
- Deduction for investment in new or growing companies.
The maximum deduction base increases from 60,000 to 100,000 euros, and the deduction percentage rises to 50%. Additionally, some of the required conditions are eliminated or expanded.
- Deduction for the acquisition of “plug-in” electric, fuel cell vehicles and charging points.
Until December 31, 2024, two new temporary deductions will be applicable to the state total quota related to the acquisition of such vehicles and the installation of charging points.
- Maternity deduction:
The requirement to engage in self-employed or employed activities is eliminated, allowing all women with children under three years old who, at the time of the child´s birth, receive contributory or assistance unemployment benefits or are registered with Social Security or mutual insurance will be entitled to the deduction.
For further details on these updates, as well as any other queries or clarifications you may need, please do not hesitate to contact us.
