B Law & Tax
13 June 2023

Tax advisor: Alava makes changes to its Personal Income Tax regulations

Foral Decree 22/2023, published in the Official Gazette of the Historical Territory of Alava on June 7, 2023, has approved the modification of Foral Decree 40/2014, which regulates Personal Income Tax, and Foral Decree 4/2023, which establishes the rules for the special simplified Value Added Tax regime for the year 2023.

This regulation introduces into the Personal Income Tax regulations of Alava the modifications that were made at the state level by Law 31/2022, of December 23, of the General State Budget for the year 2023. These modifications were carried out in order to comply with the measures established in the Statute of the Artist, and affect the withholding and payment rates on account of economic activities and movable capital in the IRPF.

Consequently, the purpose of this Foral Decree is to amend the Personal Income Tax regulations to incorporate the new withholding and payment on account rates applicable in the common regime territory in said tax. The withholding percentage on income from intellectual property will be 15%. However, this percentage will be reduced to 7% in the case of advances on account derived from the assignment of the exploitation of copyrights that will accrue over several years.

In addition, as an extraordinary measure, the deadline for waiving the simplified VAT regime in 2023 is extended to April 25. Finally, Foral Decree 20/2005, which approves form 620 used for the self-assessment of transfers of used vehicles subject to ITPAJD, as well as its content, is eliminated.

B Law & Tax International Tax & Legal Advisors.


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