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Check if You Are Required to Make the Annual Tax Return Statement

Obliged to make tax return

We have reached the halfway point of the 2018 Annual Tax Return Statement presentation. Remember that you have until July 1, and only until June 26, if the result is to pay and you want to pay with direct debit.

But the question is … Do you know if you are obliged to make the 2018 Annual Tax Return Statement? In our post today we are going to see the cases in which you are not obliged to make this statement.

As indicated by the Tax Agency on its website, all individuals taxpayers resident in Spain during the year 2018 are required to declare, exceptions to this rule being the following situations:

1) Individuals with a single payer

Individuals who have received income from work below 22,000 euros from a single payer during 2018 are not required to declare. They can do it if they want and in most of these cases, the result is to return.

2) Individuals with more than one payer

It is not necessary to make the Annual Tax Return statement when there are two or more payers and income from work below 22,000 euros when the sum of the amounts received from the second and subsequent payers (in order of amount) does not exceed the total 1,500 euros per year.

3) Individuals who receive passive benefits

When the income received consists of passive benefits (Social Security pensions, benefits from pension plans, collective insurance, etc.) provided the applicable withholding rate has been determined in accordance with the special procedure established by regulation, it is not necessary to make the statement. This procedure is requested through 146 form.

4) The limit is set at 12,643 euros per year

The limit is set at 12,643 euros per year, except for taxpayers deceased before 5 July 2018, in which case the limit remains at 12,000 euros, in the following cases:

  • When earned income comes from more than one payer and the sum of the amounts received from the second and subsequent payers in order of quantity does not exceed the sum of 1,500 euros a year.
  • When the income has been received for compensatory pensions of the spouse or annuities for food (unless the latter come from the parents by judicial decision).
  • When the payer of the earned income is not obliged to make withholdings.
  • When untaxed earned income is received subject to a fixed withholding rate.

5) Other circumstances

If the taxpayer is in any of these situations, neither will he be required to make the Annual Tax Return statement:

  • Taxpayers who have obtained full income from investment income and capital gains subject to withholdings or payment on account, as long as they do not exceed the amount of 1,600 euros per year.
  • Those taxpayers who have obtained attributed income from property, income from treasury bills and grants for purchasing officially protected or valued price housing, and other capital gains deriving from public aid, with a joint limit of 1,000 euros per year.
  • Those taxpayers who have obtained exclusively full income from work, capital or economic activities, or capital gains, when the sum of all of them does not exceed 1,000 euros per year.
  • Those who have had, exclusively, capital losses under 500 euros.

If you are in any of these circumstances in which you are exempt from submitting the Annual Tax Return (Renta), we advise you to make it if the result is to return, as this way you can benefit from the deductions.

 


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