The last months of the year are arriving and, as usual, we must look for loopholes in the tax regulations that allow us to reduce the payment in the next personal income tax and corporate tax returns. The Registry of Tax Advisory Economists (REAF) of the Council of Economists proposes up to fifty tax saving proposals.
These are the most notable in IRPF:
Housing and rental
If you have a rental property in a stressed area, consider lowering the rent or renting the home to a young person to apply greater reductions, which can reach up to 90%.
And if you have to make expenses on the rented property, such as painting or undertaking some improvement, do it this year to reduce the net return and pay less taxes.
Making additional mortgage payments before the end of the year allows you to deduct up to 9,040 euros. Furthermore, according to a new criterion of the Central Economic-Administrative Court, if you did not apply the deduction before 2013 because you were not required to submit the declaration or due to lack of quota, this does not prevent you from applying it in subsequent years. And in the case of the acquisition of a habitual residence before 2013, the deduction can continue to be applied.
If you install battery charging systems for electric vehicles not used in economic activities in your home before the end of the year. 15% can be deducted with a maximum annual base of 4,000.
Also, it is time to carry out works in the habitual residence or in one that is rented to improve its energy efficiency, such as changing windows. It is mandatory to complete them before December 31 to be able to apply the deductions of 20% to 40%, depending on energy savings. There are works in the habitual residence that give the right to deduct 60%, such as the installation of solar panels in communities of owners or chalets.
Entrepreneurs and professionals
Entrepreneurs or professionals with income pending collection should carefully plan the temporary imputation, since it may be more beneficial to defer collection to 2025 depending on the progressivity of their income. In addition, investments made before December 31 in new or recently created companies can deduct 50% of the amounts paid for the subscription of these shares or participations, on a maximum annual basis of 100,000 euros. The application of the deduction is made in the tax period in which the amounts are disbursed, even if the registration of the deed in the Commercial Registry is made in a later year.
Also, if you purchase an electric vehicle, it is advisable to do so now, since the acquisitions of these vehicles in 2024 allow free depreciation, which reduces the net return on economic activities. But be careful, zero kilometer vehicles do not qualify for tax relief.
Entrepreneurs and professionals also have tax benefits, since they can reduce up to 4,250 euros in their tax base for contributions to simplified employment plans (apart from the reduction of 1,500 euros for contributions to individual plans).
And if in previous years you have been taxed for a premium distribution operation or capital reduction of an entity you control, you could distribute dividends, because the amount thereof is not taxed up to what was previously distributed, reducing the value of the portfolio.
It is preferable to delay the sale of cryptocurrencies until January 1 to defer taxation for a year and a half, until the 2026 declaration.
Other benefits
Some work income in kind negotiated with the company is exempt from tax, such as the childcare check, health insurance or food vouchers. In the case of medical insurance, the policyholder is the company that provides such compensation to the worker.
Those who have worked outside of Spain have the exemption for work income obtained abroad, which allows them to exempt up to 60,100 euros if the requirements are met. Reaf recommends that the company be notified that it does not withhold those amounts to avoid future verifications by the Treasury. For the purposes of calculating the amount of exempt salary, the number of days during which the employee has worked in the company will be taken as the denominator, instead of 365 days a year, as the Treasury understood until now.
Those who retired in 2022 can redeem all or part of the pension plan as capital this year and have the right to a 40% reduction on the amount of the benefit for contributions made before 2007. In addition, if they have retired in 2024 It can be redeemed by applying the reduction until December 31, 2026.
Pension funds
If you make contributions to a social security system, you save for each euro allocated up to the lower of the following limits: an annual maximum of 1,500 euros or 30% of income from work and economic activities. This limit of 1,500 euros is increased by 8,500 whenever it comes from business contributions or contributions from the worker. If the salary exceeds 60,000 euros they can contribute more than the company, with some coefficients.
In the case of a taxpayer whose spouse has earned income from work or economic activities that will not exceed €8,000 in 2024, they may also reduce their base by making contributions to the spouse’s plan, before the end of the year, with a maximum of 1,000 euros.
If the spouse or there is a relative with a disability, a protected asset can be established in their favor and the tax base can be reduced with contributions to it, up to an annual amount of 10,000 euros, with a joint maximum reduction limit of 24,250 if several family members contribute. The reduction is compatible with that of the pension plan.
Compensatory pension
If in 2024 a compensatory pension is paid to the ex-spouse and other annuities for alimony, other than those paid to the children, these amounts reduce your tax base. The Supreme Court has established that the reduction of these amounts is applicable from the date on which the regulatory agreement is signed between the parties, provided that the subsequent court ruling that ratifies it does not modify what was agreed in said agreement.
Corporate tax
For Corporate Tax, the REAF remembers that the capitalization reserves provided in 2019, 2020 and 2021 are already available at the end of this year. If the law that will regulate the complementary tax of multinationals is approved, the reduction will increase progressively if staff increases.
Also, it points out that this year freedom of amortization can be applied for investments in new electric vehicles and plug-in hybrids acquired in 2024. And if electric vehicle charging points have been installed, freedom of amortization for the investment can also be applied.
And if you want to reduce the fee to pay, dowry the capitalization reserve, remember that by 2024 it has increased to 15% of own funds and this increase will only have to be maintained for three years. The net amount of the turnover must be checked to determine the maximum deductible amount of the expense of customer and supplier services, which is 1% of this figure. If this limit is going to be exceeded, it would be advisable to postpone these types of expenses.
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