Urgent measures to reduce the tax burden of taxpayers -Jul 2015-

Royal Decree Law 9/2015, of July 10, on urgent measures to reduce the tax burden borne by taxpayers of Income Tax for Individuals and other economic measures.

Among the measures contained in this Royal Decree Law (which begins its validity on July 12, 2015), it is worth noting the following:

A new general state scale, applicable from January 1, 2015, is approved, in which the marginal ones corresponding to each of the sections are reduced in half. This reduction supposes an advance of the reduction of the IRPF approved for 2016.
To calculate the new type of withholding, the new scale and the remuneration obtained from January 1, 2015, should be taken into account, which will determine that the new type of withholding is lower to correct the excess of withholding supported in The payroll corresponding to the previous months.
The following scale will be taken into account to calculate the type of withholding or deferred income applicable to work income that is paid as of August 1. However, the payers may apply the new scale from July 12:

The percentage of withholding and income on account of the income from work derived from providing courses, conferences, seminars, and the like, or derived from the elaboration of literary, artistic or scientific works, provided that the right is granted To its exploitation, it will go from 19 to 15%. This percentage is reduced to half when it comes to work yields obtained in Ceuta and Melilla. For the professionals of economic activities, the type of retention becomes 15% and for professionals of new beginning it goes from 9 to 7% during the 3 first years of beginning of the professional activity (in the year of The beginning and the next two).

Nevertheless, the retention of 15% for those professionals that the volume of full returns of the professional activities corresponding to the immediately preceding year is less than € 15,000 and represents more than 75% of the sum of the full activities returns Economic and labor obtained, it is suppressed.

For directors and administrators, when the yields come from entities with a net turnover of more than € 100,000, the retention rate of 37% is maintained. When the yields are of less than € 100,000, the percentage of withholding and payment on account will be from 20 to 19.5%.

From a purely tax prescriptive:

The first article introduces several modifications to the Income Tax Law of Physical Persons.
It approves a new general state scale and of the saving, applicable from January 1, 2015 to which the marginal ones corresponding to each one of the sections of the aforementioned scales are reduced in half.
For workers employed by another person and self-employed, a new retention scale is approved for the first of them, which will be taken into account to calculate the type of withholding or income on account applicable to the job returns that are satisfied Or pay as of August 1, which, of course, must determine a generalized reduction of the mentioned type of withholding. However, the payers may apply the new scale from the date of entry into force of this Royal Decree Law.

Regarding autonomous workers, the retention rate, which is fixed, regardless of the level of their income, is reduced in a generalized manner, by 15 percent from the entry into force of this Royal Decree-Law. At the same time, from that date, the type of withholding or deductible applicable to the first three years of professional activity is reduced to 7 percent.
The previous discount obliges to reduce the amount of the fixed retention rate applicable to work returns derived from teaching courses, conferences or the like, as well as the elaboration of literary, artistic or scientific works, as long as they are Grant the right to operate.

In relation to the income of savings and other income subject to withholding, the type of withholding or applicable deferred income is reduced, which will be set at 19.5 percent compared to today's 20 percent.

The type of withholding or deposit, of Corporate Tax goes from 20 to 19.5 percent, as of the entry into force of this Royal Decree Law.
For non-resident income tax, the estimated rate of tax is lowered to 19.5 percent.

The public aids granted by the autonomous communities or local entities are declared exempt to attend to groups at risk of social exclusion, situations of social emergency, housing needs of people without resources or needs of feeding, schooling and other basic needs Of minors or people with disabilities when they do not have sufficient economic means, up to a maximum annual annual amount of 1.5 times the public indicator of multiple-effect revenues, as well as assistance and assistance to victims of violent crimes and against Sexual freedom and, in particular, victims of gender violence.

Royal Decree 633/2015, of July 10, which modifies the Regulation of Income Tax of Physical Persons, approved by Royal Decree 439/2007, of March 30, and the Regulation of the Tax on Persons Nonresident Income, approved by Royal Decree 1776/2004, of July 30.

Among the measures contained in this Royal Decree (which also begins its validity on July 12, 2015), it is worth mentioning those set out in the following points:

For the yields of the work the changes are introduced for the application of the new deduction in concept of general expenses, at the same time that the requirements are established to be able to apply the reduction of 30% to the compensations by dismissal when perceived of form Fractional In the field of capital returns, the regulation of irregular income is modified as a consequence of the abolition of the application of the reduction when they are received in a fractional manner.

The exemption for compensation for dismissal or cessation of the worker that is due to economic, technical, organizational, production or force majeure causes that are provided in article 7.i) of Law 35/2006, of November 28, of The Income Tax of Individuals will be conditioned by the separation of the worker from the company. It is presumed, unless proven against, that this disengagement is not given when in the 3 years following dismissal or termination the worker returns to provide services to the same company or to another related company.

In relation to work income from compensation for termination of the employment relationship with a period of generations over 2 years that are received in a fractional manner, the reduction of 30% is applicable only if the resulting quotient of dividing the name Of years of generation, computed from date to date, between the number of tax periods of fractionation, is greater than 2.

Unemployed and enrolled taxpayers in the employment office who accept a place of work located in a municipality other than that of habitual residence, provided that the new place of work requires the change of residence, the amount of € 2,000 can be deducted Additional annuals

The percentage of withholding and income on account of the income from work derived from providing courses, conferences, seminars, and the like, or derived from the elaboration of literary, artistic or scientific works, provided that the right is granted To its exploitation, it will go from 19 to 15%.

When regularization of the type of withholding occurs before July 12, the new type of withholding tax applicable may not exceed 47%. As of this date, the maximum retention rate resulting from regularization will be 46%. When all the yields were obtained in Ceuta and Melilla, the percentages will be 24 or 23%.

From a purely tax perspective:

The additional requirements are laid down for the application of the new reinvestment exemption in life annuities of the capital gains of taxpayers over 65 years of age, as well as the consequences in case of partial reinvestment or to exceed the limit of 240,000 euros.

Likewise, the requirements for the application of the exemption to the yields of the work in kind derived from the delivery of shares or participations to the active workers are established, clarifying when it is understood that the supply of delivery of these actions The same applies to all workers in the company, or, as the case may be, from the group or sub-group of companies.

They specify which vehicles are considered energy-efficient in order to quantify the amount of compensation in kind in the event of their transfer to workers for private use.

For the application of the income tax deduction obtained in Ceuta and Melilla, the rules for the identification of reserves from rents to which the bonus established in the Corporate Income Tax would have been applicable.

It also develops the content of the new informative declarations that must be demanded by the insurers or credit entities that commercialize long-term Savings Plans, to insurers that commercialize life annuities in which, for the purposes of the exemption mentioned above, Reinvesting the amount obtained in the transmission of any patrimonial item by a person over 65 years of age and entities that carry out capital reduction operations with return of contributions or distribution of emission premium corresponding to securities not admitted To negotiate in some regulated securities markets, while excluding certain labor income in kind from the annual reporting.

In relation to the yields of the work, the necessary changes are introduced for the application of the new deduction in terms of general expenses referred to in article 19.2 f) of the Law of the tax, They establish the requirements to be able to apply the reduction of 30 percent to compensation for dismissal when they are received in a fractional manner.

In the field of capital returns, the regulation of irregular income is modified as a consequence of the abolition of the application of the reduction when they are received in a fractional manner.
The same modification is carried out in the field of returns on economic activities, at the same time as the requirements and application of certain reductions are detailed and the new exclusive limits are incorporated to be able to apply the objective estimate method from From January 1, 2016.

The legal limits determining the obligation to present a declaration are incorporated, and in relation to withholdings and income on account of this tax, it is clarified how to apply the new legal requirement of not having obtained another performance of the work With a period of generating more than two years in the five previous tax periods and the application of the provisions transitory provision fourth and ninth of the Law of the Tax when a deferred capital of an insurance contract is received or transmitted Shares or holdings in collective investment institutions, while adjusting the types of withholding or payment on account of the changes introduced in this matter by Royal Decree Law 9/2015, of July 10.

The Regulation of the income tax of nonresidents is modified in order to develop the provisions incorporated in the revised text of the Law on Income Tax of non-residents by the aforementioned Law 26/2014. The new assumption is made through which resident taxpayers in other Member States of the European Union with low incomes are allowed to choose to be taxpayers as income tax payers of natural persons and regulate the conditions for applying for The return in the case that the exemption for reinvestment in the usual home referred to in the additional provision set forth is set forth in the consolidated text of the Non-resident Income Tax Law.