On April 5 the 2016 Income campaign began, which includes until next 30 June (June 26 if the amount of the same results to enter and you want to domicile it).
The main novelty is the final disappearance of the Father program and the definitive establishment of Web Income which was launched last year and this year is enabled for all types of income, including economic activities. This means that Renta 2016 is the first campaign without the PADRE program, since its creation.
Another of the novelties introduced is that the possibility of requesting the self-assessment rectification through the declaration itself when the taxpayer has made mistakes or omissions that determine a greater return or a lower income.
For its part, we will analyze some of the frequent issues raised by taxpayers related to the 2016 income statement:
- On inheritances:
Shares, bank deposits and real estate received in inheritance should they be taxed at the time of obtaining them?
The income that is subject to the Tax on Inheritance and Donations will not be to the IRPF, therefore, the assets and rights obtained in an inheritance would constitute the taxable event of the IRPF for obtaining capital gains valued at their real value, but they will not be subject to personal income tax when said inheritance is obtained subject to ISD.
- On loans to relatives
Does the money borrowed without interest to a family member have repercussions on the income tax return?
In principle yes, since the benefits of goods, rights or services that are likely to generate income from work or capital are presumed paid, in the case of loans, the consideration is estimated by applying the legal interest rate of the money that is in force on the last day of the tax period.
It is the opposite test, both for the presumption of performance and for its amount.
- On benefits for dismissal
Would you be exempt from compensation of 45 days of salary per year worked, without reaching 24 monthly payments, paid by the company for firing it, for having it so agreed in your contract?
No, only severance payments are exempt from the amount established on a mandatory basis in the workers' statute and not by virtue of an agreement, agreement or contract.
- On compensation for traffic accidents
How would you pay a perceived amount resulting from the car accident that cost the wife a life?
If it is a consequence of a life insurance contract, it would not be subject to personal income tax because it is subject to the Inheritance and Donations Tax.
If it is a consequence of compensation established legally or judicially, it would not be subject to Inheritance Tax as it did not have its cause in a free business for which it receives it, and therefore it would be a capital gain for the recipient, provided that it is a consequence of insurance civil liability
Compensation for personal damages arising from accident insurance contracts of the injured party (not for civil liability) is also exempt, except for those whose premiums could have reduced the tax base or be considered deductible expense (these already reduced the tax burden at the time ).
The amount of the exemption is the result of applying, for the damage suffered, the system for the assessment of damages caused to people in traffic accidents.
- On food pensions
Would compensatory pensions and annuities for food, by judicial decision, be exempt in favor of the spouse and their children?
Only the annuities for food in favor of the children, the spouse must pay for the compensatory pension that he receives in concept of full work performance, however the payer may reduce his general taxable amount by the amount paid for the compensatory pension.
- About work performance
How would you pay a voluntary bonus of € 60.000 to a worker paid by your company on the occasion of your retirement?
It must be presumed that the aforementioned gratification derives exclusively from the personal work of the taxable person for the years of service in the company and, therefore, constitutes a performance of this nature fully subject to the Tax. Therefore, having a generation period of more than 2 years, you will enjoy a 30% reduction (the reduction cannot exceed € 300.000 per year).
- On remuneration in kind
What tax consideration would have the payment of self-employed fees by a company to its administrator?
The fees of the Special Scheme of Autonomous Workers paid by the company to the partners will be considered as remuneration for work in kind, which means the obligation to make an income on account, income that will be added to the value of income in kind, except that its amount had been passed on to the income recipient.
On the other hand, if the payment is made by delivery of its monetary amount to the member, its qualification would be that of monetary remuneration, so the payment on account, that is, the withholding, would be deducted from that amount. Said fees of the RETA will in turn be considered a deductible expense for the determination of the net income of the work.
With regard to the percentage of retention and income on account of the work income that are perceived by the condition of administrators and members of the boards of directors, it will be 35 percent. However, when the returns come from entities with a net amount of the turnover of less than 100.000 euros, the percentage of withholding and deposit on account will be 19 percent.
- About pension plans
What would be the tax treatment for a long-term unemployed taxpayer who withdraws a part of his pension plan and the rest after retirement?
For the benefits derived from contingencies from January 1, 2007, for the part corresponding to contributions made until December 31, 2006, the beneficiaries may apply the financial system and, where appropriate, apply the reduction.
The planned transitional regime may be applicable, where appropriate, to the benefits received in the year in which the corresponding contingency occurs, or in the following two years.
However, in the case of contingencies in the years 2011 to 2014, the transitional regime may only be applicable, if applicable, to the benefits received until the end of the eighth year following that in which the corresponding contingency occurred. In the case of contingencies that occurred in 2010 or earlier, the transitional regime may only be applicable, where appropriate, to the benefits received until December 31, 2018.
The benefits of pension plans are considered, in any case, income from work, and should be subject to integration into the general taxable income of the recipient's personal income tax.
In addition, if the benefit is received in the form of capital, the 40% reduction may be applied to the part of the benefit that corresponds to contributions made until December 100, 31, provided that more than two years have elapsed between the first contribution to pension plans and the contingency date.
If the benefit is received in mixed form, combining income of any kind with a payment in the form of capital, the said reduction may be applied to the part of the benefit that is charged in the form of capital.
Source: CISS Fiscal