The first thing you should check before making the Income Statement (or personal income tax) is whether or not you are required to declare. It depends, in large part on whether your income exceeds 22,000 euros gross per year, but in any case, you can always consult it with experts to make sure of your specific case.
In most cases your answer will be yes, that you have to submit your income statement. Well, it is important that you consider deductions. With these you can reduce the amount you have to pay for the Treasury and therefore save you money. Investigating everything that deducts, both at the state and regional level, is the key to saving on your Declaration.
Take everything into account in personal income tax
There are many people who completely forget to look at regional deductions. However, it is precisely these that can apply more deductions. Taking both into account, you can save up to 3,000 euros in your Statement.
In Spain, personal income tax is a progressive tax. This means that the percentage we must pay to the Treasury increases as our income goes. With the last tax reform, those people who have the highest income and assets will be the ones who get the most tax advantages. According to the Technicians of the Ministry of Finance (Gestha), the 16,977 people in Madrid who hold almost 26% of the total assets declared in Spain, save 44.1% thanks to deductions and bonuses. This figure revolves around 796 million.
What deductions to receive according to the Community
The personal income tax is a tax that is composed of the state part (the State) and the autonomous part (regulated by the Autonomous Community). The tax rates are different depending on the community in which you live. Catalonia, for example, is the Community where low and medium incomes pay the most. It has the highest tax for workers with salaries below 32,000.
In the same way that happens with the types, depending on the Community you will find some different deductions from others. To these, in addition, we must add the state deductions. It is possible to consult the deductions that affect you. There are numerous pages that have this information. The Tax Agency page has a manual on the Income in which the deductions by Autonomous Community are.
Do I save if I check the box of the Church and social purposes?
Checking this box on your Statement, whether it is returned or not, has no effect on the taxpayer. However, many people are not aware of this box and the amounts that are allocated through it.
If box 105 is checked, 0.7% of the full IRPF quota is allocated to the Catholic Church and another 0.7% goes to the General State Budget. If box 106 is checked, the same amount will be allocated but to the NGO for Social Action and Development Cooperation to carry out social programs.
If both are marked, 0.7% will be allocated to the Church and another 0.7% for social purposes managed by NGOs. If, on the other hand, neither of the two is marked, that 1.4% will be allocated to the General State Budgets for social purposes.
Tax tips to save on the Income Statement
The Finance Technicians have made a Decalogue of Fiscal Councils that can help you reduce your expenses in the Income Statement. From Nick Carraway, we encourage you to follow them so you can save on your Statement. Invest in a Pension Plan. If you decide to invest in a pension plan, you should know that with the last tax reform, the limit reduction has decreased. Before it was necessary that you invest 10,000 euros to qualify for deductions.
However, this figure is currently at 8,000 euros as long as it does not exceed 30% of the work income. They also reduce the contributions made by the spouse as long as the income from work or economic activities does not exceed 8,000 euros. Now the limit is 2,500 euros. This advantage is usually used by those who have higher incomes. For those who enter more than 60,000 euros it represents a saving of 45% (depending on the Community).