2018 INCOME TAX CAMPAIGN

We have until July 1st to declare our Personal Income Tax (IRPF) to the Treasury!

Another year has passed by, but now in 2019, the Pérez Parras Economists & Lawyers Firm in Málaga and Nerja  are keen to inform you of the innovations and key dates of your 2018 Income Tax declaration.

Key dates:

From March 15th,  you can check your fiscal data and request the reference number.

You can do this from your mobile phone through the Tax Office app or online through the RENO service.

From April 1st, the requests for prior appointments are open to the public; the Treasury has baptised this setup “We Call YOU Plan”.

Therefore, you can request your appointment:

• through the Tax Office app,
• by Internet
• or by phone

and then, the Tax Office itself will contact you, the taxpayer, to agree on a date and time.

Changes in 2018 may affect your Personal income Tax

Innovations of the 2018 Income Tax campaign:

The main developments of the 2018 Income Tax campaign include several changes. We can find them in the rental manual that the Tax Office has published.

One of the newest, is the new exemption limit when filing the declaration:

For a single taxpayer, the limit remains at 22,000 euros per year. However, when there are 2 taxpayers, this year, the threshold is 12,643 euros per year.

Other changes to take into account:

• Income linked to maternity and paternity benefits received in 2018 is exempt from taxation.
• There is no longer the possibility to obtain the tax declaration and its corresponding documents of payment or return on paper.

Deductions:

• Without a doubt, one of the news that is generating the most interest among many of our Professional firm’s clients, is the increased  maternity leave deduction of 1,000 euros.

Therefore, the amount goes up to 2,200 euros for taxpayers who bear expenses:

• Of daycare nursery
• Or approved preschool centres for three-year-old infants.

For large families, the deductions increase by 600 euros per year for each child from:

• The fourth child for the general category
• The sixth child for the special category.

However, in this fiscal year, this applies only from August to December, which means that the maximum deduction will be 250 euros.

• A deduction of 1,200 euros per annum is provided for a dependent spouse with a disability, but as in the previous point, for the 2018 fiscal year, it only applies from August to December. Therefore, the maximum deduction for this year will be 500 euros.
• Newly created companies benefit from an increase in the deduction for investment. This deduction goes from 20% to 30%, with a limit of 60,000 euros.

These are only a few of the main changes, but there are many more that have been included in the 2018 Income Handbook.

Rental income of Tourist apartments must be included in the Income Tax statement.

Tourist apartments:

We specially want to mention properties used for tourism purposes.

As brought up in our 2017 Income Tax post, during some fiscal years, the Tax Authorities “warn” taxpayers with tourist apartments that they have proof of their activities.

Through the model 179, tourist rental platforms are required to report the cession of use of homes for tourism purposes.

Taxpayers whose income is derived from the rental of tourist apartments have the duty to report their income and expenses in their income tax statement.

Consult our office of Economists & Lawyers in Malaga and Nerja ,our large team of experts regularly handle rental income and taxation of tourist apartments.

We strongly advise you to count on our team when the time comes to submit your Personal Income Tax statement.