Main tax breaks for the year 2018 established in the recent Law on State Budgets
25/07/2018
Below we inform you of the main FISCAL NEWS included in the Law 6/2018 of the General State Budget for the year 2018:
MODIFICATIONS IN THE LAW OF IRPF with effects from 05-07-2018:
· Increase the reduction to obtain work yields, and increase the amount below which can be applied. The reduction can be applied to taxpayers with net work returns of less than 16,825 euros provided they do not have income, excluding exemptions, other than those of work exceeding 6,500 euros.
The law establishes the rules to calculate the reduction and to determine the type of withholding or income to be accounted for on income that is paid or paid as of July 5, 2018. The regularization of the type of withholding or deposit, if In this case, it will be done, at the payer's option, in the first yields of the work that are satisfied or paid after 05-07-2018, or in the first yields of the work that are satisfied or paid after the month of August. · The taxpayer may apply deduction of up to € 1,200 per year for the non-legally separated spouse with disabilities who do not have annual income, excluding those exempt, exceeding € 8,000. The monthly amount of the early deduction will be € 100.
· The amount of the deduction to be an ascendant, or an orphan's brother of father and mother, who is part of a large family, will increase by € 600 per year for each of the children that are part of the large family that exceeds the minimum number of children required because this family has acquired the condition of large family of general or special category, as appropriate. The payment of this increase can be anticipated.
· Raise the excluding limit of the obligation to declare established for the recipients of work returns when they process more than one payer except for the established exceptions, or when it is compensatory pensions of the spouse or non-exempt food annuities, or when the payer is not obliged to withhold, or work returns without subject to a fixed retention rate. The current limit of € 12,000 becomes € 14,000. But for the year 2018, when the tax would have earned from 05-07-2018 the limit will be € 12,643.
· The amount exempts from the special levy on the prizes of certain lotteries and bets is increased. For prizes derived from games held before 05-07-2018, the free amount will be € 2,500. The free amount is up to € 10,000 for the awards derived from games held in the 2018 tax period as from 05-07-2018. The free amount is € 20,000 for those celebrated in 2019. And € 40,000 from 2020.
MODIFICATIONS IN THE LAW OF IRPF with effects from 01-01-2018:
· The maternity deduction can be increased up to € 1,000 additional, when the taxpayer who is entitled to it would have paid custody of the child under three years of age in kindergartens or authorized childhood centers, They establish certain limitations in this amount. The advance payment of this increase can not be requested.
· Within the set limit excluding the obligation to declare annual € 1,000 foreseen for accrued property rents, the total income of the capital stock is not subject to withholding derived from Treasury bills and subsidies for the acquisition of protection homes official or of price appraised, include "the other gains patrimoniales derived from public aid".
· Increase the percentage of deduction for investment in new or newly created companies, which goes from 20% to 30%. Increase maximum deduction base, establishing it at € 60,000 per year.
MODIFICATIONS IN THE LAW OF THE TAX ON COMPANIES:
· It modifies the increase in income from certain intangible assets and its transitional regime, in order to adapt its regulation to the agreements adopted in the EU and the OECD with regard to the regimes known as "patent box", with effects for the tax periods that are " start as of 01-01-2018
· It establishes the obligations that must be met by producers that are eligible for investment for foreign production of feature films or audiovisual works carried out in Spanish territory, with effect from 05-07-2018.
MODIFICATIONS IN THE LAW OF VAT with effect from 05-07-2018:
· Establish the tax rate reduced by 10% when entering cinemas.
· Modifies the requirement to apply the reduced tax rate of 4% of the telecare services, home help, day and night center and residential care as a consequence of an economic benefit linked to these services. The economic benefit must cover more than 10% of the price.
MODIFICATIONS IN THE VAT LAW with effects from 01-01-2019:
· Modify the exemption for services rendered directly to its members by unions, groups or autonomous entities, including IEAs, to adjust their regulation to EU Law. The exemption will only apply to AIES that its members develop activities of general interest that are exempt from VAT (healthcare, social assistance or education, among others).
· It modifies the internal regulations with regard to the rules that determine the location in the territory of application of the Tax on services provided by electronic, telecommunications and broadcasting or television and the regulation of the special regime applicable to telecommunications services, of broadcasting or of television and to provided by electronic way by industralists or professionals not established in the Community.
OTHER TAX MODIFICATIONS:
· The validity of the Heritage Expense is extended during 2018.
· Integrates the autonomous tax rate of the Hydrocarbons Tax on the special state rate, with effect from 01-01-2019. If you have any questions or to complete the content, you can contact our office on the phone number 973443505 and email [email protected]
Yours faithfully,
MODIFICATIONS IN THE LAW OF IRPF with effects from 05-07-2018:
· Increase the reduction to obtain work yields, and increase the amount below which can be applied. The reduction can be applied to taxpayers with net work returns of less than 16,825 euros provided they do not have income, excluding exemptions, other than those of work exceeding 6,500 euros.
The law establishes the rules to calculate the reduction and to determine the type of withholding or income to be accounted for on income that is paid or paid as of July 5, 2018. The regularization of the type of withholding or deposit, if In this case, it will be done, at the payer's option, in the first yields of the work that are satisfied or paid after 05-07-2018, or in the first yields of the work that are satisfied or paid after the month of August. · The taxpayer may apply deduction of up to € 1,200 per year for the non-legally separated spouse with disabilities who do not have annual income, excluding those exempt, exceeding € 8,000. The monthly amount of the early deduction will be € 100.
· The amount of the deduction to be an ascendant, or an orphan's brother of father and mother, who is part of a large family, will increase by € 600 per year for each of the children that are part of the large family that exceeds the minimum number of children required because this family has acquired the condition of large family of general or special category, as appropriate. The payment of this increase can be anticipated.
· Raise the excluding limit of the obligation to declare established for the recipients of work returns when they process more than one payer except for the established exceptions, or when it is compensatory pensions of the spouse or non-exempt food annuities, or when the payer is not obliged to withhold, or work returns without subject to a fixed retention rate. The current limit of € 12,000 becomes € 14,000. But for the year 2018, when the tax would have earned from 05-07-2018 the limit will be € 12,643.
· The amount exempts from the special levy on the prizes of certain lotteries and bets is increased. For prizes derived from games held before 05-07-2018, the free amount will be € 2,500. The free amount is up to € 10,000 for the awards derived from games held in the 2018 tax period as from 05-07-2018. The free amount is € 20,000 for those celebrated in 2019. And € 40,000 from 2020.
MODIFICATIONS IN THE LAW OF IRPF with effects from 01-01-2018:
· The maternity deduction can be increased up to € 1,000 additional, when the taxpayer who is entitled to it would have paid custody of the child under three years of age in kindergartens or authorized childhood centers, They establish certain limitations in this amount. The advance payment of this increase can not be requested.
· Within the set limit excluding the obligation to declare annual € 1,000 foreseen for accrued property rents, the total income of the capital stock is not subject to withholding derived from Treasury bills and subsidies for the acquisition of protection homes official or of price appraised, include "the other gains patrimoniales derived from public aid".
· Increase the percentage of deduction for investment in new or newly created companies, which goes from 20% to 30%. Increase maximum deduction base, establishing it at € 60,000 per year.
MODIFICATIONS IN THE LAW OF THE TAX ON COMPANIES:
· It modifies the increase in income from certain intangible assets and its transitional regime, in order to adapt its regulation to the agreements adopted in the EU and the OECD with regard to the regimes known as "patent box", with effects for the tax periods that are " start as of 01-01-2018
· It establishes the obligations that must be met by producers that are eligible for investment for foreign production of feature films or audiovisual works carried out in Spanish territory, with effect from 05-07-2018.
MODIFICATIONS IN THE LAW OF VAT with effect from 05-07-2018:
· Establish the tax rate reduced by 10% when entering cinemas.
· Modifies the requirement to apply the reduced tax rate of 4% of the telecare services, home help, day and night center and residential care as a consequence of an economic benefit linked to these services. The economic benefit must cover more than 10% of the price.
MODIFICATIONS IN THE VAT LAW with effects from 01-01-2019:
· Modify the exemption for services rendered directly to its members by unions, groups or autonomous entities, including IEAs, to adjust their regulation to EU Law. The exemption will only apply to AIES that its members develop activities of general interest that are exempt from VAT (healthcare, social assistance or education, among others).
· It modifies the internal regulations with regard to the rules that determine the location in the territory of application of the Tax on services provided by electronic, telecommunications and broadcasting or television and the regulation of the special regime applicable to telecommunications services, of broadcasting or of television and to provided by electronic way by industralists or professionals not established in the Community.
OTHER TAX MODIFICATIONS:
· The validity of the Heritage Expense is extended during 2018.
· Integrates the autonomous tax rate of the Hydrocarbons Tax on the special state rate, with effect from 01-01-2019. If you have any questions or to complete the content, you can contact our office on the phone number 973443505 and email [email protected]
Yours faithfully,