RIRPF : Personal Income Tax Regulation . RIS : Non-Resident Income Tax Regulation
The Royal Decree 1008/2023, in effect since December 7, 2023, introduces changes to the Personal Income Tax Regulations and Corporate Income Tax Regulations. The modifications cover aspects such as fringe benefits, maternity deduction, declaration requirements, advance payments, and the special regime applicable to workers, professionals, entrepreneurs, and investors relocated to Spain.
Below, we outline the various alterations implemented in each of the mentioned regulations:
Changes in the Personal Income Tax Regulations (RIRPF)
- Exemption for Income from the Delivery of Shares or Participations to Workers (Article 43.2.1 RIRPF):The content is adjusted to reflect changes in the Personal Income Tax Law (LIRPF) introduced by the State General Budget Law for 2023 and the Law on the Promotion of the Ecosystem of Start-up Companies. The requirement that the offer be made under the same conditions for all workers of the same company is removed.
- Maternity Deduction (Article 80 RIRPF):The regulation is adapted to new legal provisions, expanding the beneficiary group to mothers who, at the time of childbirth, are receiving unemployment benefits or are registered with Social Security under certain conditions. The limitation on contributions in the tax period is eliminated, and its application in cases of adoption, permanent foster care, or guardianship delegation is clarified.
- Declaration Obligation (Article 61.2 and 3 RIRPF): The legal obligation to declare is introduced for individuals who have been registered as self-employed workers in certain Social Security regimes, and the lower threshold for the obligation to declare for employment income from more than one payer is raised from €14,000 to €15,000 annually.
- Withholding Rate on Income from Literary, Artistic, or Scientific Works (Article 80.1.4 RIRPF): A withholding rate of 7% is established for income derived from the creation of literary, artistic, or scientific works under certain conditions.
- Intellectual Property Withholding Rate (Article 101.2 RIRPF): It is clarified that the withholding rate for intellectual property is 15%, except when the 7% rate is applied.
6.Special Regime for Workers, Professionals, Entrepreneurs, and Investors Relocated to Spain (Articles 113 to 119 RIRPF): The content of the special regime is adjusted to the new cases introduced by the Law on the Promotion of the Ecosystem of Start-up Companies, including telecommuting, innovative entrepreneurs, qualified professionals, among others. Criteria for entrepreneurial and innovative activities are defined, limitations on economic activities during the regime’s application period are established, and deadlines and conditions for the relocation of family members are clarified.
- Transitional Regime: A transitional provision is introduced to establish a six-month period to exercise the option for the special regime for taxpayers acquiring tax residence in Spain due to relocation in 2022 or 2023 before the new ministerial order comes into effect.
- Reduction of Advance Payments for Income Obtained on the Island of La Palma (Tenth Additional Provision):The regulation is adapted regarding advance payments for deductions for income obtained on the island of La Palma in the 2023 tax period for residents on that island.
Changes in the Corporate Income Tax Regulations (RIS)
As of December 7, 2023, modifications are made to the Corporate Income Tax Regulations (RIS) to align it with changes in the regulation of post-trading infrastructures and the guarantee contribution regime in financial operations. These alterations include technical adjustments to exceptions to the withholding obligation, replacing references to specific regulations with current articles. Interests on guarantees under the Securities Markets and Investment Services Law, the European Union Regulation on Over-the-Counter Derivatives, and the Law on Securities Payment and Settlement Systems are excluded from the withholding obligation.
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