The coronavirus pandemic has caused the 2020-2021 Income Campaign to focus on the obligations that entail receiving the Minimum Vital Income or staying in an Erte, but on the other side of the scale are people in a situation Opposite: those that, due to their conditions, are not obliged to present the return.
The this year’s Income manual provided by the Tax Agency contemplates those cases that include taxpayers who, if they do not wish to, do not have to make the declaration both due to their income level and the nature of their income.
First, the agency designates taxpayers whose income comes exclusively from earned income. In this field it brings together, in addition to salaries, pensions and other passive assets, as well as income from abroad or non-exempt food annuities.
Thus, all the people who are in this case and who have had a single payer with income of less than 22,000 euros per year they will not have to do the obligation. Neither do pensioners “whose only income from work consists of the passive benefits referred to in article 17.2.a) of the Personal Income Tax Law from two or more payers.”
Neither do those people who, having two or more payers and not adding more than 1,500 euros per year from the second, do not reach those 22,000 euros. This is the opposite case to that of the majority of taxpayers who have been in an Erte during 2020, since the State (SEPE) counts as a second payer and makes it practically mandatory to file the return.
Taxpayers who have two or more payers of which from the second they have received more than 1,500 euros, they will not have to file the return if they have income below 14,000 euros. This limit is also applicable for people who receive annuities for non-exempt food, taxpayers whose payer is not obliged to withhold or does so for a fixed type of withholding.
As for the people who perceive exclusively income from movable capital and capital gains subject to withholding or deposit, they should not declare as long as they do not exceed the 1,600 euros per year. This is where the prizes in sweepstakes or contests, stock dividends, interest on accounts and deposits or fixed income securities enter.
Taxpayers whose income comes from exclusively from imputed movable income do not have the obligation to declare if these are not higher than 1.000 euros yearly. This section includes the full returns on movable capital not subject to withholding derived from Treasury Bills, subsidies for the acquisition of officially protected or priced-priced dwellings and capital gains derived from public aid.
Finally, within the category of not required to declare are taxpayers with full income from work, movable capital, real estate capital, economic activities and capital gains that, whether or not subject to withholding, do not exceed annual income of 1,000 euros and capital losses of less than 500 euros. The Tax Agency explains that to calculate this figure “income that is exempt from personal income tax will not be taken into consideration.”
Why is box 107 of the Income so important and when should you fill it in?