The new year of 203 will be accompanied by changes in the Income Statement for the year 2022 and, as it could not be otherwise, it will also fully affect the self-employed. One of the groups that should pay the most attention to these modifications in view of the next Tax Agency campaign are the self-employed, who will be able to enjoy an additional reduction in personal income tax of five percentage points in the net income of the module, which will mean a saving of 68 million euros for some 577,688 self-employed employees, as explained on the website of the Government of Spain.
The tax reforms presented by the Minister of Finance and Public Function, María Jesús Montero, a few weeks ago reveal that 2022 will be the Income Statement with the most innovations in recent years. Among the expected changes is the modification of tax rates in personal income tax, the limits on contributions to social security systems, new to large fortunes, or the tax benefits included in the Law of Emerging Companies, known as the Law of Startups. To this is added the aid of 100 euros per month for each three-year-old child that extends from 2023 to all mothers, whether they work or are unemployed. And the reduction for work income on gross salaries between 15,000 and 21,000 euros, for which taxpayers will not be obliged to file the 2022 Income Statement if they obtained gross income that does not exceed 15,000 euros.
Although the AEAT has not yet indicated when the deadline for filing the 2022 Income Statement opens, based on previous years, it is expected to start in the first week of April and conclude at the end of June. The self-employed will have to present the draft of the declaration with the fiscal data, the DNI, the authorization of the spouse -if it is done jointly- and the rental contract or the cadastral reference of the house. There are three ways to do this: online, by phone or in person.
The additional reduction in personal income tax for the self-employed
With the aim of alleviating the situation of self-employed professionals, a group that the Government of Spain qualifies as a “priority”, the General State Budget Law for 2023 contemplates an additional reduction in personal income tax of 5% in net income of modules. In this way, it is calculated that 577,688 self-employed workers could save 68 million.
In addition, Montero announced that the current exclusion limits in the module system will be extended for another year. This brings with it a saving of 124 million and implies that more taxpayers will be able to continue paying taxes through this system.
Automatic reduction of 5% for those who are taxed by direct estimate
The 2023 Income Statement contemplates important developments for self-employed workers. To the reduction of five percentage points in personal income tax for those who are in objective estimation, there is also an increase of 2% in the deduction for expenses that are difficult to justify, which goes from 5 to 7%.
Currently, an automatic reduction of 5% of net income is applied, with a maximum annual import of 2,000 euros, for self-employed workers who are taxed by simplified direct estimation. In these so-called deductible expenses that are difficult to justify, the reduction percentage of which will rise in the next General State Budget to 7%, reducing the tax bill by 116 million euros for almost one million self-employed workers.