Deductions and news in the 2018 Income Tax Return

Citizens must contribute to properly developing public expenses. This contribution is made fundamentally through two taxes: the Personal Income Tax (IRPF) and the Corporate Tax (IS). Today, we will talk about deductions and news related to the income tax return.

In Article 1 of said law, personal income tax is defined as a personal and direct tax that taxes, based on the principles of equality, generality and progressivity, the income of natural persons, taking into account personal and family circumstances. .

One of the aspects that most concern taxpayers when the time to declare income approaches is the amount to pay each year. For this reason, it is necessary to be especially attentive to the news in the 2018-2019 income tax return.

Deductions for maternity and paternity

Income from maternity and paternity benefits collected during 2018 will be exempt from paying personal income tax.

In addition, this year, an additional benefit was introduced to the existing ones: the childcare check. The daycare check includes the daycare and early childhood education centre expenses deduction.

Working mothers with children under 3 years of age can benefit from this benefit. This benefit is a maximum of 1,000 euros per year if all the requirements are met.

Deduction for investment in newly created companies

Until this year, the deduction for investment in newly created companies consisted of 20% of the amount with a maximum base of 50,000 euros. For 2018 income, the deduction may reach 30% with a maximum base of 60,000 euros.

Deduction for large families

The deduction for large families is increased. The increase consists of 600 euros per year for each additional child from the fourth in the general category and the sixth in the particular category. However, for the 2018 financial year, it can only be applied from August, leaving the increase at 250 euros.

Deduction for disabled dependent spouse

From August 2018, a substantial benefit of 1,200 euros per year per disabled dependent spouse can be applied. For the 2018 income, only the proportional part will be used, that is, a maximum of 500 euros.

Deductions for having the rest of the family unit in another EU or EEA State

With this deduction, the benefit of having the entire family unit in another State of the European Union or the European Economic Area will be equated with that which exists if the whole family unit resides in Spain strong.

Reduction in incomes of less than 16,825 euros per year

Taxpayers with incomes below 16,825 euros may benefit from a reduced contribution.

• Lower Income 13,115 euros: deduction of 5,565 euros annually, counting from July 5, 2018.
• Income between 16,825 euros and 13,115 euros: proportional deduction, counting from July 5, 2018.

Obligation to declare

Taxpayers with income from the work of two payers less than 14,000 euros per year will not be required to declare. However, this measure is only effective from July 5. Therefore, the amount must be less than 12,643 euros.

In the case of only having one payer, the 22,000 euros per year are maintained.

Income obtained in Ceuta and Melilla

Until now, income obtained in Ceuta and Melilla had a 50% deduction. Starting with the 2018 income tax return, the deduction will be 60%.

Disappearance of the paper pre-declaration

The pre-declaration of income on paper can no longer be requested. You can download the PDF version of the draft if you want to check it before submitting it.