The Official Gazette of Bizkaia of July 10, 2023, published the FORAL DECREE 78/2023, of July 4, 2023, issued by the Provincial Council of Bizkaia. This decree introduces modifications in the Regulation of formal tax obligations, as well as in the regulations of Personal Income Tax, Corporate Income Tax and the Regulation of Tax Management… Continue reading Tax advisor: Bizkaia makes modifications to its Tax Regulations affecting Personal Income Tax, Corporate Income Tax and Tax Management Regulations
Tag: Personal Income Tax
Tax advisor: The time spent living with the children in shared custody does not affect the minimum for descendants in Personal Income Tax
In cases of shared custody after a nullity, separation or divorce sentence, both parents are entitled to apply the minimum for descendants in equal parts, as established by the Central Economic Administrative Court (TEAC) in its resolution of May 29, 2023. The ruling determines that there is no legal basis for attributing to only one… Continue reading Tax advisor: The time spent living with the children in shared custody does not affect the minimum for descendants in Personal Income Tax
Tax advisor: Income from movable capital in kind derived from a related entity
Income in kind from movable capital that an individual receives as compensation for a related party transaction must be assessed in accordance with corporate income tax rules. An entity in which two natural person partners have a 50% shareholding assumes several personal expenses of such partners, such as those related to boats, vehicles, real estate… Continue reading Tax advisor: Income from movable capital in kind derived from a related entity
Tax advisor: Effective annual interest rate corresponding to the third quarter of 2023, used for tax classification purposes of specific financial assets.
The Resolution of June 20, 2023, issued by the General Secretariat of the Treasury and International Finance, has been published in the BOE on June 26, 2023. This resolution discloses the effective annual interest rate for the third calendar quarter of the year 2023, used to tax classify as explicit yield to financial assets with… Continue reading Tax advisor: Effective annual interest rate corresponding to the third quarter of 2023, used for tax classification purposes of specific financial assets.
Tax advisor: It is possible to modify the choice between joint or individual taxation in Personal Income Tax when there is a change of circumstances not attributable to the taxpayer
By resolution no. 3890/2022, issued on March 28, 2023, the Central Economic Administrative Court (TEAC) has ruled on an extraordinary appeal for the unification of criteria. In this resolution, the TEAC establishes a criterion in relation to the irrevocability of the election between joint or individual taxation in Personal Income Tax (IRPF). In general terms,… Continue reading Tax advisor: It is possible to modify the choice between joint or individual taxation in Personal Income Tax when there is a change of circumstances not attributable to the taxpayer
Tax advisor: Termination of a senior management contract due to significant changes in working conditions
In situations where a special senior management employment relationship is terminated, case law has established that it is possible to apply the personal income tax (IRPF) exemption to the severance payment received by the senior manager. Therefore, the exemption has been recognized both in cases of termination of the senior management contract due to the… Continue reading Tax advisor: Termination of a senior management contract due to significant changes in working conditions
Tax advisor: Compensation awarded to a senior executive due to an unfair dismissal
In relation to the possible application of the personal income tax (IRPF) exemption to severance compensation received by senior executives, the Supreme Court established in a ruling of November 5, 2019 a new interpretative criterion. In cases of termination of the senior management contract due to the employer’s retirement, the labor legislation recognized the right… Continue reading Tax advisor: Compensation awarded to a senior executive due to an unfair dismissal
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… Continue reading Tax advisor: Alava makes changes to its Personal Income Tax regulations
Tax advisor: Rejected the consultation for inflation to be deducted from the real estate gain in the Personal Income Tax
The Constitutional Court has issued a ruling rejecting the deduction of inflation from real estate gains in the Personal Income Tax (IRPF). With this, it upholds the 2014 reform that eliminated the corrective coefficients that reduced the tax payable based on inflation. The ruling resolves the question of unconstitutionality raised by the High Court of… Continue reading Tax advisor: Rejected the consultation for inflation to be deducted from the real estate gain in the Personal Income Tax
Tax advisor: It is obligatory to declare when only a foreign pension is received
When the total income derived from work comes from a single payer, the limit for determining the obligation to file a tax return is set at 22,000 euros per year (according to article 96.2.a) and 3) of the IRPF Law). However, this limit does not apply in principle to taxpayers who receive earned income from… Continue reading Tax advisor: It is obligatory to declare when only a foreign pension is received