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HomeLatest NewsPensioners obliged to present the Income statement in 2023

Pensioners obliged to present the Income statement in 2023

Date: March 20, 2023 Time: 18:37:44

The Personal Income Tax (IRPF) is of a personal and direct nature and taxes the income of individuals according to their personal and family circumstances, according to the law. This affects all the income that a taxpayer receives, whether they are income from work, economic activities, real estate capital or movable capital.

The Tax Agency includes pensions – benefits received by Social Security – as income from work. Specifically, the legislation includes “pensions and passive assets received from public Social Security agencies and other public benefits for situations of disability, retirement, accident, illness, widowhood, or similar.”

All these beneficiaries must take into account the limits to present the Income statement. Specifically, from the Ministry of Finance, the obligation to present the Income statement is established according to the income obtained in the tax year. For the 2022 declaration, which is made this year, the limit that determines this obligation is 22,000 euros, if they were received by a single payer.

more than one payer

However, if the taxpayer had more than one payer, they will have to submit the declaration if they obtained at least 15,000 euros in total. In this case, provided that the money received from the second payer does not exceed 1,500 euros per year.

This situation will affect, among others, those taxpayers who received a pension during the year and previously had other income. For example, if a worker requests his retirement and starts to receive the contributory benefit. During that year he will have the income from his salary and from the pension paid by Social Security. For this reason, he must add all of them and he will have to present the declaration if it exceeds 15,000 euros.

In a similar way it will happen for those who opt for active retirement –maintaining some professional activity while receiving retirement-; who also receive, simultaneously with the Social Security benefit, a pension from abroad; or that they carry out a rescue of their pension plans.

Pensions exempt from filing the Income Statement 2022

Despite the general rule, the IRPF law, in its article 7, includes a series of pensions exempt from filing the Income statement.

Extraordinary public benefits for acts of terrorism or pensions derived from medals and decorations awarded for acts of terrorism. by Social Security or by the entities that replace it as a consequence of absolute permanent disability or severe disability. profession or trade the passive assets of orphans and in favor of grandchildren and siblings, under twenty-two years of age or disabled for all work

Other income to consider

When presenting the Income, other income must also be taken into account, not only income from work, a statement that can also determine an obligation for the taxpayer.

The Tax Agency establishes the annual limit of 1,600 euros for income from movable capital -income obtained from dividends, interest on deposits or accounts- and capital gains -derived from redemptions of shares in investment funds or prizes for Participation in contests or games. In addition, the Treasury indicates that this limit will be used whenever these returns “have been subject to withholding or payment on account.”

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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