The Income 2020 campaign It started on April 7 and will run until July 1, 2021, deadline so that taxpayers who are obliged to do so (those who exceed 22,000 euros of income from a single payer or those who have not received income from a second or more payers higher than 1,500 euros), present the draft of their return of the income corresponding to the past 2020.
How the ERTE charge affects and what are the new sections of personal income tax
The health crisis of COVID-19 has brought with it the implementation of a series of changes for citizens. For this reason, this year special care will have to be taken when determining whether there has been one or more payers, since some of the benefits may be considered as such.
This is the case of those people who have seen affected by a ERTE and that, therefore, they have collected from the State Public Employment Service (SEPE), which is considered a different payer than the company itself. If this occurs and, as an exceptional measure due to COVID-19, there will only be the obligation to present the income statement in these two cases:
If the amount received by the second or the rest of payers is less than 1,500 euros, It is not necessary to declare for Personal Income Tax (IRPF) if the total sum for work income does not exceed 22,000 euros per year.
If the amount received yes that exceeds 1,500 euros, there will be no obligation to present the income statement if the returns do not exceed 14,000 euros.
Mothers entitled to deduction
In addition, mothers entitled to the deduction for maternity who have entered an ERTE and, with it, the employment contract has been suspended, will lose the right to receive this deduction for the duration of the file itself. However, if the ERTE is for a reduction in working hours, the right would not be lost. That is to say, the difference to be able to have access to this income lies in the need to carry out an activity on their own or someone else’s account for which they are registered in the corresponding Social Security regime. However, those workers who are large family and they are in an ERTE, they can continue to benefit from the specific tax deduction for these families and that can be applied in the return, since in this case the income also applies to those taxpayers who are unemployed.
Minimum vital income
Regarding the 460,000 IMV recipients, of which more than 226,000 are minors, the Tax agency reminds them that they must file income tax return, regardless of the amount of their income.
What must be declared, as work income, are the amounts that exceed 11,279.39 euros (1.5 times the Public Indicator of Multiple Effects Income, Iprem) in the event that, together with the IMV, other aid is received to groups at risk of social exclusion, such as the minimum insertion income, guaranteed income and similar aid from the Autonomous Communities and city councils. You only have to declare, and pay, for that excess, the Treasury needs.
For the cases of beneficiary families of the IMV with minor children, the Treasury recommends the presentation of a joint declaration of all the members in case the parents are married. In the absence of marriage, one of the two parents may file a joint return with the children, and the other, an individual return.
New tranche of IPRF
Another of the great novelties that are introduced in the next income statement is a change in the applicable scale to determine the withholding percentage that has to be applied on work income. In this sense, with effect from January 1, 2021, a new section in personal income tax and that is used to calculate the type of withholding. Specifically, those people who obtain an income of more than 300,000 euros per year will be subject to a withholding rate of 47%. This represents an increase of two percentage points in the rate applicable in the previous tranche, which is between 60,000 and 300,000 euros and which corresponds to a 45% withholding.