ERTE, aid, donations … Seven keys in the next income tax return

The end of the year is approaching and it is time to adjust the tax bill so that the next income statement does not weigh so much. The Technicians of the Ministry of Finance (Gestha) have launched this Wednesday a series of tips Y tricks to reduce the impact, in addition to warning what to watch out for.

From benefits by FOR HIM, which can lead to surprises as there are two payers, deductions for maternity, the helps received, the donations… Before reaching December there are several ways so that rent is not a problem.


ERTE’s collection

Workers who have been in ERTE and have received the benefit have to be aware of the limits in the obligation to declare. By having two payers, the obligation falls from 22,000 to 14,000 euros if the second payer, such as the SEPE, is charged more than 1,500 euros.



“Gestha calculates that in most cases the collection for ERTEs will not be a reason for withholding due to their low annual amount. And for those workers with few personal and family responsibilities, the declaration for personal income tax 2020 will probably result in entering them ”, point out the finance technicians.

What can be done to avoid bad drinking? Gestha suggests that “if they do not have the ability to save – in case they pay -, ask their companies for an increase in withholdings on the December payroll to avoid surprises in June 2021”.


Maternity deduction in ERTE

“Women with children under three years of age who are entitled to apply the minimum per descendant may lower the income tax differential by up to 100 euros per month for each child, provided that they carry out an activity on their own account or for which they are given registration in the corresponding scheme of Social Security or Mutuality ”, they recall from Gestha.

But if she has been in ERTE, “she would stop meeting the requirements to enjoy the maternity deduction.” The same situation applies to the self-employed in the months in which they closed their activity.

Mothers will have to pay attention to the deduction (Archive)


Real estate rentals during the state of alarm

The IRPF Law establishes the imputation of real estate income, excluding the habitual residence. As the Tax Agency considers that “it is not the effective use of the second home, but its availability, which generates the imputation of income.” Therefore, despite not having enjoyed the home, the imputation of income due to the confinement of the taxpayer is not altered.




Rental during alarm state

“The voluntary agreements reached between landlords and tenants to lower the rent due to the state of alarm and the subsequent crisis will have an impact on the 2020 Income statement, since the landlord will reflect the new amounts as income during those months,” the technicians explain.

In addition, if both parties had agreed to defer the payment of the rent, it would also have an impact on the 2020 declaration. Specifically, Gestha details that the landlord will allocate the income of these months based on the new agreed terms. In addition, you must take into account that the necessary expenses will continue to be deductible and that the imputation of real estate income will not proceed, even if the rental income is not received.


Grants to face the crisis

The aid that has been received must be declared, such as the provision of freelancers or the minimum living income. Also those of the Renove Plan or the State Housing Plan.

“In addition, these subsidies and public aid require filing the income statement if the imputed real estate income, yields from Treasury Bills and other public aid altogether exceed 1,000 euros per year,” they point out from Gestha.


Entrepreneurs in modules regime

The calculation of the performance for the entrepreneurs in the modular regime has been modified during the state of alarm, “the calendar days in which this exceptional situation has been declared are not counted as days of activity.



However, Gestha points out that there are activities, in the geographical areas that have suffered new restrictions in this second wave of Covid, “which could probably be authorized to reduce the indices or modules due to exceptional circumstances of those entrepreneurs who have not waived this regime of modules with the first installment payment of 2020 ”.

“This measure would not affect those who renounced the modules and are taxed in the direct estimation method in 2020, although it has been exceptionally established that they can return to tax in the objective estimation regime in 2021 if they continue to meet the requirements and They revoke this year’s resignation ”, it is warned.

A place closed due to the coronavirus crisis

A place closed due to the coronavirus crisis (Xavier Cervera)


Deduction for donations

Donations made during the coronavirus crisis to the Public Treasury deduct 80% in personal income tax on the first 150 euros donated, and 35% from there, percentages that are repeated for donations to NGOs and patronage entities .



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