Income and Heritage Campaign 2019

In spite of the health crisis in which we are immersed, on 1 April the Personal Income Tax and Wealth Tax campaign begins with few new developments with respect to the previous campaign.

The period for filing personal income tax (IRPF) and wealth tax (IP) returns will be extended until 30 June.

However, in the event that the amount is to be paid, the period for direct debiting ends on 25 June. In other cases of returns to be returned, with waiver of return or payment without direct debit -i.e. with a charge to the account-, the filing may be made until 30 June. In any case, we will keep you informed of possible changes in the filing deadlines.

It is necessary to remember that, with the suppression of the possibility of filing the return on paper, it is now obligatory to file it electronically.

On the other hand, the present Personal Income Tax and Wealth Tax 2019 campaign presents some tax novelties of limited impact and direct application, such as

1. Obligation to declare
   The limit excluding the obligation to declare for taxpayers who receive full income from work is set at 14,000 euros in the following cases
   1. When they come from more than one payer, in general.
   2. When they receive compensatory spouse’s pensions or annuities for non-exempt maintenance.
   3. When the payer of the income from work is not obliged to withhold.
   4. When they receive full income from work subject to a fixed rate of deduction.
      For the remaining taxpayers who obtain income from work, the limit for declaring the receipt of this income is maintained at 22,000 euros per year.
2. Reduction for obtaining income from personal work
   For 2019, the amount of the reduction for obtaining income from work has been increased to 5,565 euros per year and the threshold of net income from work that allows this reduction to be applied has been raised to 16,825 euros.
3. Accounting and registration obligations for economic activitiesAs of
   January 1, 2019, the non-obligatory nature of keeping records for entrepreneurs who keep their accounts in accordance with the Commercial Code disappears except for taxpayers who carry out business activities whose performance is determined in the normal modality of the direct estimation method.
   Thus, the rest of the taxpayers who carry out economic activities are obliged to keep the record books that in each case are determined by the Personal Income Tax regulations, even if they keep accounts in accordance with the provisions of the Commercial Code.
4. Exemption of capital gains in cases of reinvestment in annuitiesTo
   ensure that the exemption of capital gains for reinvestment in annuities by taxpayers over 65 years of age is applied, the requirements to be met by insurance annuities are specified in the case of contracts entered into after 1 April 2019, which establish reversion mechanisms, certain benefit periods or counter-insurance formulas in the event of death
   .
5. The above does not apply to life insurance contracts concluded prior to 1 April 2019.
6. Special tax on the prizes of certain lotteries and betsThe
   exempt amount of the prizes for the 2019 fiscal year is 20,000 euros
   .

The complexity of the declarations – due to the reforms approved in recent years – makes it necessary to speed up the collection of all data in order to carry out an exhaustive analysis of the casuistry of each declaration.