Start of the 2019 Personal Income Tax submission deadline

Start of the 2019 Personal Income Tax submission deadline

On April 1, the submission deadline for the 2019 fiscal year began, and taxpayers of Personal Income Tax can now file their tax returns. Despite the current state of alarm, the deadline for filing has not been modified, ending on 30 June 2020, although in the case of direct debit the deadline is 25 June.

The fact that the AEAT's offices are currently closed to the public is a significant change. However, the AEAT has implemented the plan "Le Llamamos", through which, by appointment that can be requested from May 5, the AEAT will call the taxpayer to assist in the preparation of the tax return.

Changes in the process

The main change this year is the simplification of the identification of the tax residence, which is done separately from the rest of the declaration. As a previous step to downloading the tax data, a screen appears on which the taxpayer must ratify or modify his or her habitual residence.

On the other hand, the information related to the properties owned by the taxpayer is consolidated in a single section, reflecting the use that each of them has had during the year. Likewise, a new Annex "D" has been created - in which the taxpayer may voluntarily enter the Tax Number of the suppliers and the amount of certain expenses related to rented properties.

Additionally, in relation to the income from economic activities in direct estimation, the relation of deductible income and expenses has been modified.

Regulatory changes

Among the main changes, we would like to highlight the following:

- From 1 January 2019, the limit excluding the obligation to declare provided for in Article 96.3 of the Personal Income Tax Act for taxpayers who receive full income from work is set at 14,000 € in certain cases, such as when they come from more than one payer or when the payer of the income from work is not obliged to withhold.

- The amount of the reduction for obtaining income from work is increased to 5,565 € and the threshold of net income from work that allows this reduction to be applied is increased to 16,825 €.

-The exemption on prizes from certain lotteries and bets is extended to 20,000 €.

-The rate of withholding and prepayment applicable to income from movable capital from intellectual property is reduced from 19 to 15 percent when the taxpayer is not the author.

-The requirements that must be met by insurance annuities for the application of the exemption of capital gains from reinvestment are specified in the case of contracts entered into after April 1, 2019.

At Lozano Schindhelm, our tax lawyers and tax advisors check whether you are required to file an income and wealth tax return and, if so, we calculate, prepare and file the tax returns. All this in your language and with high quality standards, guaranteed by more than 15 years of experience in tax advice for residents and non-residents.

Please find more information here.

Authors: Fernando Lozano, Claudia Cascant and Andrea Quiles