Law 31/2022, of December 23, 2022, on the General State Budget for the year 2023 (hereinafter, LPGE 2023) was published in the Official State Gazette of December 24, 2022, effective January 1, 2023. In the tax area, most of the rules are contained in its Title VI -arts. 59 to 91, both inclusive-, and many of the measures it incorporates are those usually included in this regulation: scale for transfers and rehabilitations of greatness and noble titles in the ITP and AJD; determination of the legal interest of money and of the interest for late payment, determination of the public indicator of multiple effects income (IPREM); establishment of the priority activities of patronage and of the tax benefits applicable to various events that are qualified as of exceptional public interest or regulation of certain rates of state scope.
However, it also introduces changes, but not of great importance, which affect some of the different figures of the Spanish tax system, highlighting mainly those related to Personal Income Tax (increase of the reduction for obtaining income for workers and pensioners, increase of the reduction for obtaining income from the activity and of the percentage of expenses of difficult justification in the simplified direct estimation regime, general reduction of the net income calculated by the objective estimation method and extension of the excluding limits of the method, increase of the savings tax rates, extension of the deduction for maternity, reduction of the withholding percentages on income from intellectual property, new reduction for habitual and effective residence on the island of La Palma during the tax periods 2022 and 2023); to CIT (reduction of the tax rate for very small entities -net turnover of less than 1 million euros-, accelerated depreciation of certain vehicles); VAT (modification of the taxable base in the case of bad debts and bankruptcy proceedings, rule of effective use or exploitation in the territory of application of the tax (place of realization), harmonization of the reverse charge and of the rules of taxation of electronic commerce, reduction of the tax rate of certain goods, extension of the limits for the application of the simplified regime and the special regime for agriculture, livestock and fishing) and the regulation of deferrals and instalments of debts and state tax penalties in pre-insolvency situations by the AEAT.
The main tax measures included in the Law are grouped below, classified by subject matter.
PERSONAL INCOME TAX
I. Increase in the reduction for obtaining income for workers and pensioners.
With effect from January 1, 2023 and indefinite validity, the following modifications are introduced:
- Reduction for obtaining income from work.
The reduction for taxpayers with earned income is increased from 16,825 to 19,747.5 euros. Likewise, the amounts that reduce the net income are increased. Thus
- For taxpayers with net earned income equal to or less than 14,047.5 euros (previously, 13,115): the amount is 6,498 euros per year (previously, 5,565).
- For taxpayers with net earned income between 14,047.5 and 19,747.5 euros (previously between 13,115 and 16,825): the amount is 6,498 euros (previously 5,565 euros) minus the result of multiplying by 1.14 (previously 1.5) the difference between the earned income and 14,047.5 euros per year (previously 13,115 euros).
- Obligation to file a tax return: Increase in the amount of gross income from which it is compulsory to file a tax return.
15,000 is increased from 14,000 to 15,000 euros the limit of the amount of total earned income from which it is compulsory to declare the tax for taxpayers who receive total earned income in the cases in which they come from more than one payer, or when they receive compensatory pensions from the spouse or annuities for alimony, or when the payer of the earned income is not obliged to withhold or when they receive total earned income subject to a fixed withholding rate.
- Regulation of the withholdings and payments on account to be made on the earned income paid or credited during the month of January 2023, corresponding to said month and to which the general withholding procedure is applicable.
It is indicated that they must be made in accordance with the regulations in force as of December 31, 2022. For the case of income paid as from February 1, 2023 (unless it is not income for the month of January), the payer must calculate the withholding rate taking into account the regulations in force as from January 1, 2023 and, if applicable, must regularize it in the first income from work paid.
II. Simplified direct estimation: Increase in the reduction for obtaining income from the activity and in the percentage of expenses that are difficult to justify.
With effect from January 1, 2023 and indefinitely, the following modifications are introduced:
- Increase in the reduction for obtaining income from economic activities.
As in the reduction for obtaining income from work, the reduction for taxpayers with income from economic activities is increased from 14,450 to 19,747.5 euros. Likewise, the amounts that reduce the net income are increased. Thus
- For taxpayers with net income from economic activities equal to or less than 14,047.5 euros (previously 11,250 euros): 6,498 euros per year (previously 3,700 euros).
- Taxpayers with net income from economic activities between 14,047.5 and 19,747.5 euros (previously between 11,250 and 14,450 euros): 6,498 euros (previously 3,700 euros) minus the result of multiplying by 1.14 (previously 1.15625) the difference between the income from economic activities and 14,047.5 euros per year (previously 11,250 euros per year).
- Increase in the percentage of expenses that are difficult to justify during the 2023 tax period.
During the 2023 tax period, the deduction percentage for all deductible provisions and expenses that are difficult to justify (art. 30 of the Personal Income Tax Regulation) is fixed at 7% (5% previously). However, the limit of 2,000 is maintained as the maximum amount of this expense.
III. Objective assessment: regulation of the reduction of net income and extension of the limits excluding the method.
With effect from January 1, 2023 and indefinite validity, the following amendments are introduced:
- Reduction in 2023 of the net income calculated by the objective estimation method.
It is allowed to reduce the net return of modules obtained in 2023 by 10% for those taxpayers who determine the net return of their economic activities by the objective estimation method.
- Extension of the limits excluding the objective estimation method for 2023.
With effect from January 1, 2023, the limits established by Law 48/2015, of October 29, on the General State Budget for 2016, for fiscal years 2016 and 2017 and extended for fiscal year 2018 by Royal Decree-Law 20/2017, of December 29, are extended for 2023; for fiscal year 2019 by Royal Decree-Law 27/2018, of December 28; for fiscal year 2020 by Royal Decree-Law 18/2019, of December 27; for fiscal year 2021 by Law 11/2020, of December 30 and for fiscal year 2022 by Law 22/2021, of December 28.
In the aforementioned fiscal years, the magnitude that determined the exclusion from the objective estimation method, related to the full income obtained in all economic activities, except agricultural, livestock and forestry activities, and the limit related to the operations for which there is an obligation to issue an invoice when the recipient is a businessman or professional acting as such in application of the Regulation regulating the invoicing obligations, are set at 250. 000 and 125,000 euros, respectively, compared to the magnitudes initially established as from 2016 by Law 26/2014 of 150,000 euros and 75,000 euros.
Likewise, and with the same temporal scope of application, the magnitude referring to the volume of purchases, initially set as from 2016 at €150,000, has been set at €250,000 for the years 2016, 2017, 2018, 2019, 2020, 2021, 2022 and 2023.
IV. Technical modifications in the limits of reduction in the taxable base for contributions to social welfare systems.
With effect from January 1, 2023 and valid indefinitely, technical improvements are introduced in the regulation of the reduction limit in the taxable base for contributions to social welfare systems.
On the one hand, to guarantee that the maximum contributions that an employee may make to the same social welfare instrument to which contributions have been made by the employer do not experience any drop due to the increase in employer contributions, replacing this paragraph “for an amount equal to or less than the result of applying to the respective employer contribution the coefficient resulting from the following table:” by the following: “for an amount equal to or less than the amounts resulting from the following table depending on the annual amount of the employer contribution:”
On the other hand, to correct a reference contained in the previous regulation, referring only to simplified employment plans for self-employed or self-employed workers, differentiating now the sectorial plans and the aforementioned simplified employment plans.
V. Increase in savings tax rates
With effect from January 1, 2023 and indefinitely, the savings tax rates regulated in articles 66, 76 and 93.2. e). 2º of the LIRPF are modified to increase by one percentage point the part of the savings taxable income exceeding 200,000 euros and set it at a rate of 27% (previously 26%). In addition, a new bracket is created for amounts exceeding 300,000 euros, setting the tax rate at 28% (previously 26%), thus increasing it by two percentage points.
Tax scale applicable until December 31, 2022
|NET SAVINGS TAX BASE
UP TO EUROS
|REST OF THE SAVINGS TAX BASE
UP TO EUROS
|From then on
Tax scale applicable as of January 1, 2023
|NET SAVINGS TAX BASE
UP TO EUROS
|REST OF THE SAVINGS TAX BASE
UP TO EUROS
|From then on
VI. Extension of the maternity deduction
With effect from January 1, 2023, the following new features are introduced in the maternity deduction
This deduction will not only be applicable to those women with children under 3 years of age who are entitled to the application of the minimum deduction for descendants who are self-employed or employed and registered with the Social Security or mutual insurance company, but it will also be extended to those women who:
- at the time of the birth of the child are receiving contributory or welfare benefits from the unemployment protection system, or
- who at that moment or at any time thereafter are registered in the corresponding Social Security or mutual benefit system with a minimum period, in the latter case, of 30 days of contributions.
VII. Reduction of withholding percentages on income from intellectual property.
With effect from January 1, 2023 and indefinitely, the withholding percentages of this income are established in the following percentages:
- Income from work derived from the elaboration of literary, artistic or scientific works in which the right to exploit them is assigned.
The withholding percentage is reduced from 15% to 7%.
- That the volume of such full income corresponding to the immediately preceding fiscal year is less than 15,000 euros, and.
- It represents more than 75% of the sum of the total income from economic activities and work obtained by the taxpayer in that year.
- Necessity to communicate to the payer the concurrence of these circumstances.
- Income from intellectual property, whatever its classification.
The withholding percentage is reduced from 19% to 15%.
VIII. Imputation of real estate income
Effective as of January 1, 2023 and valid indefinitely, it is specified that, during the 2023 tax period, the 1.1% income quantification percentage is applicable to properties in municipalities whose cadastral values have been revised, modified or determined by means of a general collective valuation procedure effective as of January 1, 2012.
IX. New deduction for habitual and effective residence on the island of La Palma during the tax periods 2022 and 2023.
With effect from January 1, 2023 and indefinite validity, a new deduction is created for taxpayers with habitual and effective residence on the island of La Palma. The deduction is applicable, in the tax periods 2022 and 2023, under the same terms and conditions as the deduction for income obtained in Ceuta or Melilla for taxpayers resident in Ceuta or Melilla provided for in article 68.4.1 of the LIRPF.
CORPORATE INCOME TAX
I. Reduced tax rate
Effective for tax periods beginning on or after January 1, 2023 and valid indefinitely, a reduced tax rate of 23% is created for those entities that meet the following requirements:
They have a net turnover for the immediately preceding tax period of less than 1 million euros. For these purposes, the net turnover will be determined in accordance with the rules set forth in paragraphs 2 and 3 of Article 101 of the LIS.
They do not have the consideration of patrimonial entities in the terms established in the IS regulations.
II. Accelerated depreciation of certain vehicles for corporate income tax purposes.
Depreciation is allowed on the basis of the coefficient resulting from multiplying by 2 the maximum straight-line depreciation coefficient provided for in the officially approved depreciation tables for investments in new FCV, FCHV, BEV, REEV or PHEV vehicles (as defined in Annex II of the General Vehicle Regulations), provided that they are
They are used for economic activities.
They enter into operation in the tax periods beginning in the years 2023, 2024 and 2025.
I. Tax on Economic Activities
Effective for tax periods beginning on or after January 1, 2023 and valid indefinitely, several changes have been introduced in the first, second and third sections of the Rates of the tax approved by Royal Legislative Decree 1175/1990, of September 28, 1990. Thus,
In the first section, group 761 “Telephone services” of group 76 is modified to adapt it to the content of the Supreme Court ruling of July 14, 2022 (rec. no. 7503/2020) which considered unjustified the higher taxation of mobile telephony in relation to fixed telephony and in group 84 group 848 “Flexible office services, coworking and business centers” is created.
In the second section, several modifications are introduced in grouping 86 (the title is modified to be renamed “Liberal, artistic, literary and cultural professions”; group 861 “Painters, Sculptors, Ceramists, Craftsmen, Engravers, Fallas Artists and similar artists” is modified and groups “864. Writers and scriptwriters” and 869 “Other professionals related to artistic and cultural activities not classified in the third section”) and Group 889 “Mountain guides” is created.
In the third section, in group 03, group 034 is created, under the heading “Composers, lyricists, arrangers and musical adapters” to group them in a specific manner.
II. Tax on the Increase in the Value of Urban Land
- New coefficients for the calculation of the objective method for calculating the taxable base.
With effect from January 1, 2023, the maximum amounts of the coefficients to be applied to the value of the land at the time of accrual are determined, according to the period of generation of the increase in value referred to in article 107.4 of the revised text of the Ley Reguladora de las Haciendas Locales.
Below is a table with the coefficients applicable until December 31, 2022 and those approved by the LPGE 2023, applicable as from January 1, 2023.
|Legislative Royal Decree 2/2004
(as from 1/1/2023)
|Less tan 1 year
|Equal to or more than 20 years
VALUE ADDED TAX
I. Adaptation of the VAT Law to Directive (EU) 2019/2235 of 16 December 2019 on defense in the framework of the Union.
The LPGE 2023 transposes into domestic law the provisions of the aforementioned Directive amending the VAT Directive in relation to the treatment of supplies of goods in the framework of the defense of the Union, establishing a regime of exemptions analogous to that which was foreseen for the armed forces of any State party to NATO. To this end, as of January 1, 2023:
- The concept of assimilated intra-Community acquisition of goods of Article 16.3º of the LIVA is extended, by considering that the allocation made -in addition to those made by the forces of a NATO State party- by the armed forces of any Member State for the use of such forces or civilian personnel in their service, provided that such forces are affected to a defense effort carried out to carry out an activity of the Union in the field of the common security and defense policy will also be so.
- In the same sense, the supply of goods and services carried out for such forces by businessmen or professionals when the goods supplied are located in the territory of application of the Spanish tax will imply the execution of supplies linked to operations assimilated to exports of article 22 of the VAT Law.
- As it could not be otherwise, the exemption of imports of goods destined to the indicated armed forces is also included (art. 62 LIVA).
In short, although the objective framework of the intra-community acquisitions of goods is extended, by reference from article 26 to article 62 of the VAT Law, from the set of the indicated precepts, it is concluded that the deliveries, imports and intra-community acquisitions of goods carried out by the mentioned armed forces, for their use or that of the civil personnel in their service, as well as for the supply of the canteens or canteens of the same, are declared exempt.
II. Place of realization. Rule of effective use or exploitation in the territory of application of the Spanish tax.
Article 70.Two of the VAT Law contains a localization rule or connection point by which certain services are taxed in the territory of application of the Spanish tax when, in accordance with the rules of localization of the provision of services, they are located outside the territory of the Union, when the effective use or exploitation takes place in the territory of application of the Spanish tax.
The LPGE 2023 modifies the objective scope of this rule, so that it is extended with respect to recipients who do not have the status of entrepreneurs or professionals and restricted when they have this status. The legislator intends to guarantee the neutrality of VAT, eliminating the application of the rule when the transactions are carried out between businessmen or professionals in certain sectors and activities that generate the right to deduct, maintaining some sectors that do not generate this right -such as the financial and insurance sectors- as well as in certain activities in which it is convenient to prevent fraud or tax evasion such as the leasing of means of transport. However, the objective scope is broadened in relation to recipients who do not have the status of businessmen or professionals, although some specific transactions are eliminated from this framework.
Thus, this point of connection will be applicable:
- If the recipients do not have the status of entrepreneurs or professionals: the services provided for in Article 69.Two of the VAT Law (which were not previously included in the special localization rule) and the leasing of means of transport. Therefore, services rendered electronically, telecommunications and radio and television broadcasting services are eliminated.
- Recipients with the status of businessmen or professionals (it must be understood that they also act as such): the services provided for in letter g) of Article 69 of the VAT Law (insurance, reinsurance and capitalization, as well as the financial services of Articles 20.1.16 and 18 of the VAT Law, including those that are not exempt, with the exception of the rental of safe deposit boxes) and those of leasing of means of transport. Therefore, the rest of the services provided for in Article 69.Two [letters a) to f) and h) to j)] of the VAT Law, those of mediation in the name of and on behalf of others, and those provided by electronic means, telecommunication, radio and television broadcasting) are eliminated. All these services now excluded from the special localization rule of Article 70.2 of the VAT Law, will be taxed in accordance with the general rules of localization, so that in most cases, if the recipient is not established in the territory of application of the Spanish tax, the transaction will not be subject to tax, by application of the general rule of Article 69.1.1 of the VAT Law, which determines the taxation at the place of the recipient when he is a businessman or professional.
III. Harmonization and adaptation to customs regulations
Since the entry into force of the CAU, there were some misalignments with the LIVA, which needed to be corrected. The LPGE 2023 corrects them, without prejudice of some other technical modification. For this reason, a number of provisions of the VAT Law, all of them referring to imports and exemptions on exports, have been redrafted.
Thus, in the LIVA new wording is given to articles 18.Two and a paragraph Three is added, 19.5º, 21.3º and the number 7º is added (to include the exemption when the exporter is different from the transferor or the acquirer is not established in the territory of application of the Spanish tax), 22. 7º (provides that in order to apply the exemption the services must be rendered to the holders of the operation of ships or companies using the aircraft), 23 (refers exclusively to temporary storage and other situations), 24 (adapts to the customs and tax regimes in force).
A new rule for determining the taxable base is also included (art. 83.Dos.3º LIVA) in relation to imports under articles 18.Dos and Tres of the LIVA when the goods are the object of supplies or services that have been exempted by application of the provisions of articles 23 and 24 of the LIVA.
Article 167.Two of the LIVA is adapted to include the case in which the customs declaration is filed in another Member State in accordance with the provisions of Article 179 of Regulation (EU) 952/2013, in which the tax will be settled based on the information received from the customs office of the Member State where the declaration has been filed.
Finally, the sixth section of the Annex to the LIVA on VAT liquidation in the cases included in article 19.5º, second paragraph, referring to the cessation of the situations referred to in article 23 and discharge of the regimes of article 24 with respect to the goods indicated (tin, copper and others) is modified.
IV. Harmonization of the reverse charge system
In relation to the cases in which a reverse charge occurs, two new provisions are established:
- Three new exceptions are included to the general rule of reversal of the taxpayer in Article 84.1.2. a) – in the case of transactions exempted under Article 20 bis (exemptions related to distance sales of imported goods); b) – in the case of the provision of real estate leasing services that are subject to tax and not exempted and are carried out by persons or entities not established in the territory where the Spanish tax applies; and c) – in the case of the provision of intermediation services in the aforementioned services related to the leasing of real estate.
- In relation to the case foreseen for waste materials, it is now included that this inversion rule will also apply to the supply of waste, scrap or cuttings of plastic and textile materials; modifying also the seventh paragraph of the Annex of the VAT Law related to the consideration of waste or scrap of cast iron, iron or steel and other materials.
V. Harmonization of taxation rules for electronic commerce
With effect from July 1, 2021, a new taxation regime was established for the so-called intra-Community distance sales of goods, which has required two eminently technical legislative adjustments to specify the rules relating to the place of performance, as well as the calculation of the threshold that allows taxation in the Member State of origin when the entrepreneur exceptionally carries out e-commerce transactions:
- Article 68.Four of the VAT Law is reworded to consider as not localized in the territory of application of the Spanish tax the supply of goods whose dispatch or transport begins in this territory with destination to another Member State, when they are intra-Community distance sales other than those provided for in letter b) of paragraph Three. In accordance with this last provision, sales made by a trader or professional established exclusively in this territory because he has his place of business or his only permanent establishment there (failing this, his permanent address or habitual residence) and the territory of application of the Spanish tax is the place where the dispatch or transport begins, are considered to be located in the territory of application of the Spanish tax, and the threshold of 10,000 euros provided for in Article 73 is not exceeded.
- In relation to the above limit, it is specified that it will not apply when the intra-Community distance sales of goods are carried out, in whole or in part, from a Member State other than that of establishment. Thus, when a trader or professional established in the territory of application of the Spanish tax dispatches goods located in another Member State to a final consumer in our territory or in a third Member State, the previous threshold will not apply, being taxed on all his sales in the territory of arrival of the goods as the limit of 10,000 euros does not apply.
VI. Modification of the taxable base in the event of uncollectible credits and insolvency proceedings.
This is the most important regulatory change, both from the subjective point of view (businessmen and professionals affected) and from the objective point of view, due to the modifications that are approved in relation to these cases of essentially uncollectible credits.
- The case law of the Court of Justice of the European Union and the administrative doctrine that allows the modification of the taxable base in the case of uncollectible credits (art. 80.Tres LIVA) as a consequence of an insolvency process declared by a court of another Member State is incorporated. Insolvency proceedings to which Regulation (EU) 2015/848 of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings is applicable are required.
- When the debtor of the taxpayer does not have the status of a businessman or professional, the modification of the taxable base for uncollectible credit is allowed when the amount exceeds €300. As from January 1, 2023 this amount is reduced, so that the taxable amount may be modified when the credit exceeds 50 euros (excluding VAT).
- Until now, the taxpayer is required to request the collection of the debt by means of a judicial claim to the debtor or by means of a notarial summons to the debtor, even in the case of credits guaranteed by public entities. The means by which the collection can be requested are extended, making the required procedure more flexible, by incorporating the possibility of collection by any other of the aforementioned means, provided that through this means the collection claim to the debtor or recipient of the transaction subject to the tax is reliably accredited.
- Until now, the term to exercise the modification of the taxable base was 3 months from the date on which the credit has the condition of uncollectible. This period is now extended to 6 months, so that the taxpayer must proceed to comply with the requirements of the rule within 6 months following the expiration of the 6-month period or one year from the accrual of the tax (period to be computed in the manner established in the case of forward or deferred payment transactions).
VII. Tax rates
Certain goods that until now have been taxed at a reduced rate of 10% are now taxed at a reduced rate of 4%. These are tampons, sanitary towels and panty liners, essential products inherent to the female condition, as well as condoms and other non-medicinal contraceptives.
VIII. Limits for the application of the simplified regime and the special regime for agriculture, livestock farming and fishing in the fiscal year 2023
With effect from January 1, 2023 and in line with the transitional regime referring to the limits for the application of the objective estimation method in Personal Income Tax in the fiscal years 2016 to 2023 that we have just referred to, there is also an extension for 2023 of the transitional regime established for the fiscal years 2016, 2017, 2018, 2019, 2020, 2021 and 2022 relating to the limits that determine the exclusion from the simplified regime and the special regime for agriculture, livestock farming and fishing of VAT, where the magnitude was raised from 150. 000 euros to 250,000 euros.
CANARY GENERAL INDIRECT TAX
In the area of the Canary Islands General Indirect Tax, several of the modifications just described are introduced in relation to VAT. In particular, those referring to the adaptation to Community customs regulations, to the place of performance of certain services and to the general system of deductions, in order to align the regulation of both taxes.
TAX ON PROPERTY TRANSFERS AND DOCUMENTED LEGAL ACTS
Scale for transfers and rehabilitations of greatness and noble titles.
With effect from January 1, 2023, the aforementioned scale for transfers and rehabilitations of greatness and noble titles is updated by 2 percent, with respect to the current scale, being fixed at:
recognition of foreign
|1.º For each title with greatness.
|2.º For each greatness without title.
|3.º For each title without
As in VAT, with effect from July 1, 2022, the Excise Tax Law is amended to transpose Council Directive (EU) 2019/2235 of December 16, 2019, regarding the defense effort within the framework of the Union, declaring exempt:
- The manufacture and importation of products subject to special manufacturing taxes that are intended for the armed forces of any Member State other than Spain, for the use of such forces or of the civilian personnel in their service, or for supplying their canteens or canteens, provided that such forces are affected to a defense effort undertaken to carry out an activity of the Union in the field of the common security and defense policy.
- From the Special Tax on Electricity, electricity supplied to the armed forces of any Member State other than Spain, for the use of such forces or of the civilian personnel in their service, or for the supply of their canteens or canteens, provided that such forces are engaged in a defense effort undertaken for the purpose of carrying out an activity of the Union within the scope of the common security and defense policy.
As regards fees, in the area of railway fees, railway fees are updated and approved for an indefinite period of time. However, a temporary modification of the unit amounts of the aforementioned railway fees is approved for this fiscal year, in order to continue mitigating the effects of the crisis caused by COVID-19 in railway transport. The fees for the provision of services and activities related to railway safety are also updated.
The basic amounts of port fees are also maintained. The bonuses and corrective coefficients applicable in ports of general interest to the occupancy, vessel, passenger and merchandise rates are established, as well as the corrective coefficients applicable to the fixed rate for the reception of waste generated by vessels, in accordance with the provisions of the revised text of the Law on State Ports and the Merchant Marine. Likewise, the exemptions from port fees and tariffs applicable to the celebration of the “XXXVII America’s Cup Barcelona” are regulated.
As in previous years, the fee for the reservation of the public radio-electric domain and the exemption of its payment for the reservations of private use of such domain to cover the needs derived from the celebration of the “XXXVII America’s Cup Barcelona” are regulated.
Official announcements are declared exempt from payment of the fee for publication of announcements in the BOE, regardless of the applicant of the insertion, when the same is compulsory, in accordance with a legal or regulatory rule, the holding of auctions carried out by the AEAT through the Auction Portal of the State Agency Official State Gazette, as well as the edicts and announcements of Courts and Tribunals when the insertion is ordered ex officio.
GENERAL TAX LAW
I. Social collaboration in the application of taxes: Confidentiality of data with tax implications.
With effect from January 1, 2023 and indefinite validity and, in relation to the data, reports or background information obtained by the Administration that may be transferred for the purpose of collaboration with the Public Administrations in the fight against tax crime and against fraud in obtaining or receiving aid or subsidies from public funds or from the European Union, it is clarified with the amendment introduced by the LPGE 2023 that the appropriate measures to prevent, detect and correct fraud, corruption and conflicts of interest that affect the financial interests of the European Union are also included.
II. Deferrals and instalments of debts and state tax penalties in pre-bankruptcy situations by the AEAT.
With effect from January 1, 2023 and indefinite validity, the deferrals and installments of tax debts by the AEAT contained in the eleventh additional provision of Law 16/2022, of September 5, on the reform of the revised text of the Insolvency Law, to include penalties together with the debts that may be subject to these specific deferrals or installments and to delimit their application to preinsolvency situations, are re-regulated (without having entered into force in their previous wording).
- Debts and penalties that can be deferred or paid in instalments
In accordance with article 65 of the LGT and upon request of the taxpayer, it is now established that state tax debts and penalties that are in the voluntary or enforcement period and for whose collection management the AEAT is competent, may be deferred or paid in installments, provided that the debtor:
- Has an economic-financial situation that temporarily prevents him/her from making the payment within the established deadlines.
- Has communicated to the competent court the opening of negotiations with its creditors (arts. 585 or 690 TR of the Insolvency Law), and provided that the restructuring plan has not been formalized in a public instrument, nor the continuation plan approved, nor the insolvency proceedings declared, nor the special procedure for micro-enterprises opened.
- Deadlines for the concession agreements
The concession agreements that are issued will have terms with equal installments and monthly maturity, but in no case may they exceed those regulated below:
A) Maximum term of 6 months, for those cases in which the circumstances foreseen in article 82.2.a) of the LGT are given, that is to say:
- That it is not possible to obtain a joint and several guarantee from a credit institution or mutual guarantee company or a surety insurance certificate or that its provision seriously compromises the viability of the economic activity.
- That the guarantee offered is sufficient
And in the case of inheritances, community property and other entities that, lacking legal personality, constitute an economic unit or a separate estate susceptible to taxation (art. 35.4 LGT).
B) Maximum period of 12 months, for those cases in which the circumstances foreseen in article 82.2.b) of the LGT occur, that is to say:
- Lacks sufficient assets to guarantee the debt.
- The execution of its assets could substantially affect the maintenance of the productive capacity and the level of employment of the respective economic activity, or could produce serious losses for the interests of the Public Treasury.
Or when they are individuals and the circumstances foreseen in article 82.2.a) of the LGT concur, that is to say, the circumstances that have been described in what has been foreseen for the period of 6 months.
C) Maximum term of 24 months, for those cases in which the deferrals and installments are guaranteed by mortgage, pledge, personal and joint and several guarantee. Other guarantees are also admitted provided that they are considered sufficient (art. 82.1, second and third paragraphs of the LGT).
D) Maximum period of 36 months for cases in which the deferrals and instalments are guaranteed by a joint and several guarantee of a credit institution or mutual guarantee company or a surety insurance certificate (art. 82.1, first paragraph of the LGT).
The rest of the content of the eleventh additional provision (the exemption from the obligation to provide guarantees in certain deferrals and installments, which until now was regulated in Order HAP/2178/2015, of October 9, raising the limit exempt from the obligation to provide a guarantee in requests for deferral or installment to 30. 000 euros and it is established that the provisions of the LGT and its development regulations are applicable in everything not expressly regulated in this provision) does not undergo any change in the text of the PGE Law 2023 with respect to its original wording but referring of course to deferrals and installments of debts and state tax penalties in pre-bankruptcy situations by the AEAT.
SPECIAL TAX REGIME FOR THE BALEARIC ISLANDS
A special tax regime is introduced for the Balearic Islands, effective for tax periods beginning between January 1, 2023 and December 31, 2028, which will be applied within the territorial scope of the Autonomous Community of the Balearic Islands and whose purpose is to regulate this special regime, in recognition of the specific and differential fact of its insularity, through the establishment of tax measures, with special attention to certain sectors.
- Reserve for investments in the Balearic Islands
Right to a reduction in the taxable base of the IS and IRNR of the amounts that, in relation to their establishments located in the Balearic Islands, they allocate from their profits to the reserve for investments. The content is very similar to that of the Reserve for Investments in the Canary Islands.
The reduction will be applied to the allocations made in each tax period to the investment reserve up to the limit of 90% of the part of the profit obtained in the same period, which is not distributed, insofar as it comes from establishments located in the Balearic Islands.
In no case can the application of the reduction determine that the taxable base is negative.
The amounts allocated to the reserve for investments in the Balearic Islands must be realized within a maximum period of 3 years, counted from the date of accrual of the tax corresponding to the financial year in which the reserve has been allocated.
- Special regime for industrial, agricultural, livestock and fishing companies.
The taxpayers of the IS, IRNR and IRPF (with determination of their income by means of the direct estimation method) will apply a rebate of 10 percent of the total tax liability corresponding to the income derived from the sale of tangible goods produced in the Balearic Islands by themselves, proper of agricultural, livestock, industrial and fishing activities, in this last case in relation to the catches carried out in their fishing and aquaculture area. Persons or entities domiciled in the Balearic Islands or in other territories that are engaged in the production of such goods in the archipelago, by means of a branch or permanent establishment, may benefit from this rebate.
The application of the allowance in each tax period will require that the average workforce of the entity in said period is not less than the average workforce corresponding to the 12 months prior to the beginning of the first tax period in which this regime takes effect.
The tax credit will be increased to 25% in those tax periods in which, in addition to meeting the requirement of maintaining the previous average workforce, there has been an increase in the average workforce of not less than one unit with respect to the average workforce of the previous tax period and such increase is maintained for at least three years from the date of the end of the tax period in which this increased tax credit is applied.
The regulation and application of the tax benefits provided for in this regime (reserve for investments and the special regime for industrial, agricultural, livestock and fishing companies) must comply with the provisions of European Union Law. The tax benefits will only be applicable to taxpayers who carry out their activity in the areas regulated in the following Regulations (EU):
- 360/2012 of the Commission, of April 25, 2012, on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid granted to companies providing services of general economic interest;
- 1407/2013 of the Commission of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid;
- 1408/2013 of the Commission of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid in the agricultural sector; and
- Commission Regulation 717/2014 of 27 June 2014 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid in the fisheries and aquaculture sector,
- As well as the Regulations that succeed them; Regulations that will have to be observed in all their terms.
These tax benefits, together with any other aid received under the applicable regulations, may not exceed the amounts established in the aforementioned Regulations for their respective areas of application over a period of three years, and will be subject to a monitoring and control system. For this purpose, the beneficiaries must submit an informative declaration relating to the different measures or aid schemes received. This declaration will include detailed information on the aforementioned incentives, which will be subject to verification.
- Interest on tax arrears and legal interest on money
For 2023 the legal interest of the money and the interest for late payment are fixed at 3.25% and 4.0625%.
- Public multiple effects income indicator (IPREM):
Its amounts are fixed for 2023 which are as follows: a) daily, €20, b) monthly, €600, c) annual, €7,200, and d) in the cases in which the reference to the minimum interprofessional salary (SMI) has been replaced by the reference to the IPREM it will be €8,400 when the rules refer to SMI in annual computation, unless they expressly exclude extraordinary payments; in this case, the amount will be €7,200.
- Priority patronage activities and public interest tax benefits:
For the year 2023, the LPGE lists 20 activities and programs that will be considered as priority patronage activities [e.g., those carried out by the Instituto Cervantes for the promotion and dissemination of the Spanish language and culture through telematic networks, new technology and other media; programs aimed at eradicating gender-based violence that have been subsidized by the Public Administrations or are carried out in collaboration with them; those carried out by the Soledad Cazorla Scholarship Fund for Orphans of Gender-Based Violence (Fundación Mujeres). Those carried out by the Soledad Cazorla Scholarship Fund for Orphans of gender violence (Fundación Mujeres), those carried out by the Public Universities in compliance with the purposes and functions of an educational, scientific, technological, cultural and knowledge transfer nature, etc.] and establishes the following tax benefits applicable to various events that qualify as being of exceptional public interest:
- Tax benefits applicable to the celebration of the “Plan de Fomento de la ópera en la Calle del Teatro Real”.
- Tax benefits applicable to the inauguration of the Royal Collections Gallery.
- Tax benefits applicable to the “Hockey Centenary 1923-2023”.
- Tax benefits applicable to the “60th Anniversary of the Blendio Princesa de Asturias Rally in the City of Oviedo”.
- Tax benefits applicable to the event “60th Anniversary of the Porta Ferrada Festival”.
- Tax benefits applicable to the “EN PLAN BIEN” Program for the promotion of healthy lifestyles for children and adolescents.
- Tax benefits applicable to the “125th anniversary of Athletic Club 1898-2023” program.
- Tax benefits applicable to the “Ryder Cup 2031” event.
- Tax benefits applicable to the events “Open Barcelona – Trofeo Conde de Godó” and the “125th anniversary of the Real Club de Tenis Barcelona”.
- Tax benefits applicable to the “750th anniversary of the Consolat del Mar”.
- Tax benefits applicable to the event “Congress of the International Union of Architects”.
- Tax benefits applicable to the “Sónar International Festival of Music, Creativity and Technology”.
- Event “XXXVII America’s Cup Barcelona”. The duration of the support program for the “XXXVII America’s Cup Barcelona”, declared an event of exceptional public interest for the purposes of the provisions of Article 27 of Law 49/2002, of December 23, 2002, will last from the entry into force of this Law until December 31, 2025. Furthermore, the tax regime of the Event is regulated (that of the organizing entity of the “XXXVII America’s Cup” and of the participating teams and the customs and tax regime applicable to the goods that are imported to be used for the development and celebration of the Event.