Both the financial penalty and the revocation of the authorization to operate a tax warehouse were applied due to a serious infringement of the excise duty regime committed by the company in question, as considered by national law. The revocation of the authorization was taken after the pecuniary penalty, based on an assessment of the… Continue reading Tax advisor: The CJEU considers that the sanction and revocation of authorization for tax warehouse do not violate proportionality principle in case of serious excise duty infringements
Tag: Personal Income Tax
Tax Advisor: Extremadura reduces the Personal Income Tax in the first two brackets and eliminates Wealth Tax
The Governing Council of the Regional Government of Extremadura approved a decree law with urgent measures that include the reduction of the first two income tax brackets, mainly affecting incomes below 22,200 euros, as well as the total elimination of the Wealth Tax. The autonomic Administration highlighted that these measures will have retroactive effect as… Continue reading Tax Advisor: Extremadura reduces the Personal Income Tax in the first two brackets and eliminates Wealth Tax
Tax Advisor: The Supreme Court allows the deduction in the Personal Income Tax of the severance pay of senior managers who are administrators
The Supreme Court, in its ruling number 1092/2023, dated July 25, ECLI:ES:TS:2023:3589, has established as case law the following: 1) It is feasible to apply the reduction for irregular income as established in article 18.2 of the Personal Income Tax Law (LIRPF) to compensation received by senior executives who also hold the position of corporate… Continue reading Tax Advisor: The Supreme Court allows the deduction in the Personal Income Tax of the severance pay of senior managers who are administrators
Tax advisor: Tributes analyzes the Personal Income Tax taxation of the sale of a client portfolio
During 2023, the Directorate General of Taxes has issued several opinions on how the sale of a client portfolio is taxed in the IRPF and the rules for allocating the deferred payments received in exchange. For example, through binding consultations such as V1871-23 (June 28, 2023), V1674-23 (June 13, 2023), V0716-23 (March 24, 2023) and… Continue reading Tax advisor: Tributes analyzes the Personal Income Tax taxation of the sale of a client portfolio
Tax advisor: In Personal Income Tax, if a taxpayer carries out an economic activity, late payment interest is a deductible expense
The issue of appeal focuses on determining whether, in the context of Personal Income Tax (IRPF), late payment interest, whether resulting from a liquidation in a process of verification of income related to the economic activity of an individual or those generated by the suspension of the execution of a contested administrative act, can be… Continue reading Tax advisor: In Personal Income Tax, if a taxpayer carries out an economic activity, late payment interest is a deductible expense
Tax advisor: The Personal Income Tax for retirees according to the Tax Authorities
The increase in pensions, for the most part, is highly beneficial for retirees. However, this implies a proportional increase in the tax burden. Retirement pensions are not tax exempt and the Tax Agency will require a higher percentage of IRPF due to the increase in Social Security benefits. This year, pensions based on contributions have… Continue reading Tax advisor: The Personal Income Tax for retirees according to the Tax Authorities
Tax Advisor: The Supreme Court reduces fines from the Tax Authorities for using intermediate companies and paying less taxes
Citizens penalized for using intermediary companies in order to reduce their income tax (IRPF) can now subtract the amounts paid for corporate income tax when calculating the basis of the fine, according to a Supreme Court ruling issued on June 8, 2023. The reporting judge argues that in these cases the economic damage to public… Continue reading Tax Advisor: The Supreme Court reduces fines from the Tax Authorities for using intermediate companies and paying less taxes
Tax advisor: Parents who transfer the family business with assets not linked to the activity will have to pay taxes for capital gains in the Personal Income Tax
In gifts of family businesses from parents to children, in which assets not linked to the activity are included, the donor will be subject to income tax (IRPF) on a capital gain based on the proportion that these assets represent in the assets of the company. This approach is reflected in a decision of the… Continue reading Tax advisor: Parents who transfer the family business with assets not linked to the activity will have to pay taxes for capital gains in the Personal Income Tax
Tax advisor: The Supreme Court allows the self-employed to deduct late payment interest paid to the Treasury in their personal income tax return.
The recent Supreme Court ruling no. 1091/2023, dated July 24, establishes that, in the field of Personal Income Tax (IRPF), late payment interest related to the taxpayer’s economic activities, whether derived from income verification settlements or suspensions of contested administrative acts, are considered tax-deductible expenses. This interest, classified as financial expenses, is subject to the… Continue reading Tax advisor: The Supreme Court allows the self-employed to deduct late payment interest paid to the Treasury in their personal income tax return.
Tax advisor: Who can apply to the objective valuation regime for the self-employed?
When a self-employed person must comply with Personal Income Tax (IRPF), there are three methods available: the standard direct valuation, the simplified direct valuation and the objective valuation, also known as the module system. We will focus on the latter option. Although it has faced debates and proposals for elimination, the module system is still… Continue reading Tax advisor: Who can apply to the objective valuation regime for the self-employed?