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These are the yields to which personal income tax withholdings are not applied

Date: May 20, 2024 Time: 08:21:37

The Personal Income Tax (IRPF) takes center stage during the Income Campaign each year. The one for the year 2022 is still active, it began in April and taxpayers have until June 30 to submit their returns to the Tax Agency. However, it is important to attend to the IRPF whenever we obtain returns subject to this tax because withholdings are applied.

Specifically, the Income Statement is a procedure through which taxpayers are accountable to the Treasury. Compare the withholdings already applied throughout the year with the final amount that each taxpayer must pay as personal income tax. That figure arose from income level and also from personal circumstances. Thus, the return can go out to return, to pay or to zero, when the withholdings coincide with the tax.

Obligation to withhold

Personal income tax taxes income from work, movable capital, real estate capital, economic activities and capital gains and, on them, withholdings must be applied. In the case of income from economic activities, the personal income tax law specifies that there will be an obligation to withhold when they are professional, agricultural and livestock, forestry or business activities.

In addition, in capital gains, those obtained as a result of contributions or reimbursements of shares and representative participations in the capital or patrimony of collective investment institutions, those derived from the forest exploitation of neighbors in public mountains and the derived from the transfer of subscription rights.

For its part, the law also establishes the obligation to withhold income from urban leasing or subleasing of real estate, income from intellectual and industrial property, the provision of technical assistance, the leasing of movable property, businesses or mines. , OF THE Subletting On The Previous Assets And Those Arriving From The Assignment Of The Right To Exploitation Of Image Right And, Finally, When Obtaining Qume Sectre Guen Awards As A Consequence Of Participation In Games, Contests, Raffles Or Random Combinations.

Exceptions on which withholdings are not applied by personal income tax

However, the rule also establishes exceptions for which there will be no obligation to withhold or deposit on account. In the first place, it talks about exempt income and diets and travel expenses exempt from tax and the prizes that are delivered as a result of organized games.

For their part, the income from securities issued by the Bank of Spain, the conversion premiums of debentures into shares and the income from accounts abroad satisfied or paid by permanent establishments abroad of entities are also excluded from the withholdings. of credit and financial establishments resident in Spain.

Other exceptions are income derived from the transfer or redemption of financial assets with explicit return, under certain conditions, income derived from rental if the company rents the home to its employees or when the rent is less than 900 euros per year or income from the return of the share or participation premium and from the capital reduction with return of contributions.

Regarding capital gains, those derived from the redemption or transfer of shares or shares in collective investment institutions or those derived from the redemption or transfer of shares or shares issued by listed funds or collective investment institutions abroad will not be subject to withholding.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

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