In the year of the pandemic, saving has become an essential action and more so in cases such as those of many workers autonomous or of employees who have been left in a situation of ERTE. Therefore, these tips when making the income statement can help you to give a joy to your pocket and face the entry of 2021 in a more optimistic way.
Attention if you are in ERTE
As explained by the Spanish Association of Tax Workers (AEDAF), workers affected by a Temporary Employment Regulation File (ERTE) may be affected in the following ways your income tax return for fiscal year 2020:
On the one hand, they can go from having no obligation to declare to having to do so. Remember that, according to the Tax regulations, those taxpayers who receive work income equal to or less than 22,000 euros per year are not required to file the return, as long as said income comes from a single payer. When there are two or more payers, and the sum of the amounts received from the second and the remaining ones exceeds 1,500 euros, said limit is lowered to 14,000 euros per year. The benefit received as a result of an ERTE is paid by the SEPE, so there will be two payers. Therefore, to the extent that said benefits exceed 1,500 euros, if the total of work performance I exceed 14,000 euros per year, there will be an obligation to present a declaration.
Withholding applied to the benefit received by ERTE. The withholding percentage that is applied to the benefits paid by the SEPE it is lower than the one generally applied by the company to the worker, therefore, unless the taxpayer requests a higher withholding, in most cases in which the withholding is not adjusted, the income statement will be entered.
In case of con taxpayers who were entitled to the application of certain deductions, such as the deduction for maternity, for large families or for dependent persons with disabilities, they may lose the deduction during the months that they have been in ERTE, since they are conditioned to the taxpayer carrying out an activity on their own or someone else’s account. In ERTEs in which the employment contract is suspended, the worker is unemployed, so the requirement is not met.
Benefit for cessation of activity received by the self-employed
As the tax advisers, “The extraordinary benefits that the self-employed may have received due to the COVID 19 crisis, such as the extraordinary benefit for cessation of activity, are taxed in income tax as work performance and not as income from the activity.” Therefore, they assure that these benefits should not be included as income for the quarter in model 130 of fractioned payment of personal income tax.
Contribute up to 8,000 euros to the pension plan or rescue it
This year will be the last in which the tax base of the IRPF up to 8,000 euros, provided that these contributions do not exceed 30% of income from work and economic activities, because the Draft Law on General State Budgets for 2021 plans to reduce this limit to 2,000 euros, maintaining the percentage limit of 30 %.
Therefore, from Union of Technicians of the Ministry of Finance (Gestha) recommend that if you plan to make this type of contributions, it is preferable not to delay them until 2021, since if they are contributed from January the limit will already be 2,000 euros.
Apply the home purchase deduction
Also from Gestha they assure that those who bought their usual home or made a payment for the construction of their home before January 1, 2013 will continue to enjoy their right to relief, as long as they had deductions for said home in 2012 or prior years.
In this way, these contributors can be deducted up to 15% of the amounts invested, with an investment limit of 9,040 euros. Taking into account this ceiling, it may be interesting to make an additional payment – of 4,806 euros on average – to pay off the mortgage before the end of the year to reduce the tax invoice in 721 euros.
Neutralize the taxation of profits from the sale of a habitual residence
For the purposes of taxation of capital gains, Gestha stresses that the General Budget Bill establishes a new rate for the case of taxable bases of savings greater than 200,000 euros and that it will amount to 26%.
For those who sold their house this year, the profits obtained will be taxed in the next statement of income, depending on the amount, between 19% and 23%, in the Basque Country Councils between 20% and 25%, and in Navarra between 20% and 26%. However, if the total or partial amount is reinvested in another regular home, it will be possible to neutralize this payment.
Plan the sale of shares
According to finance technicians, taxpayers who foresee that their net income from work will be less than 16,825 euros should monitor, as far as possible, that there is no other type of income, such as capital gains from the sale of shares or income from real estate rentals, higher than 6,500 euros, since in that case they would lose a reduction in income from work that can reach up to 5,565 euros.
Also the sales of shares may force many taxpayers to declare that they would not have the obligation to declare with income of less than 14,000 euros with more than one payer (in Navarra 12,600 euros, in the Basque Country is 12,000 euros), or if there is only one payer up to 22,000 euros to workers residing in the Autonomous Communities of the common regime (or more payers for less than 1,500 euros in total), in the Basque Country it rises to 20,000 euros.