Start of the 2020 Personal Income Tax Campaign

The income tax campaign for the 2020 tax year starts today, and Personal Income Tax (IRPF) taxpayers can now file their tax returns. The deadline for its presentation ends on June 30, although in the case of direct debit, the deadline ends on June 25.

In the same way as last year, and due to the current situation of Covid-19, the "We Call You" plan continues to be implemented, through which the AEAT, by appointment which can be requested from May 6, will call the taxpayer to assist him/her in filing the tax return.

New developments in management

One of the great novelties of this year can be found in the section on income from economic activities in direct estimation, where taxpayers will be allowed to incorporate the data recorded in the IRPF record books, thus advancing in the assistance to taxpayers who carry out economic activities.

On the other hand, following the modification introduced in the previous year's tax form, in relation to real estate capital yields, Renta Web will show the taxpayer the information filled in the previous year's return and will allow it to be transferred to the year 2020, if necessary modified, and will calculate the amount of the deductible depreciation.

As an additional measure, an extraordinary installment payment has been approved for the payment of the tax debt resulting from the Personal Income Tax return for beneficiaries of benefits linked to ERTE during the year 2020. This installment payment must be requested by the taxpayer and will allow the payment of the debt in six installments, due on the 20th of each month, starting on July 20, 2021, without accrual of late payment interest or provision of guarantee.

Regulation news

Among the main novelties we highlight the following:

- The minimum subsistence income is tax-exempt, subject to an annual common maximum of 1.5 times the IPREM.

-  Lottery and betting winnings not exceeding a total amount of € 40,000 are tax-exempt.

- The term for the amounts owed by tenants to be considered as irrecoverable debt and to be deducted from the total income from real estate capital has been reduced from six to three months.

- The deduction percentages foreseen for donations have been raised by 5 percentage points. Donations for Covid-19 support made to entities benefiting from patronage are included.

At Lozano Schindhelm we check if you are obliged to file your income tax and wealth tax return and, if necessary, we calculate, prepare and file the tax. 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.

Autor: Fernando Lozano
Autor: Claudia Cascant
Autor: Andrea Quiles