2020 Tax Return and the Impact of Temporary Layoff Procedure (ERTE)

FILE YOUR ANNUAL TAX RETURN NOW:

Find out here how we can get started on your annual tax return right away

Article written by

Eva Serra Ontiveros

Eva Serra Ontiveros is the Chief Financial Officer of Conesa Legal and head of the firm's tax and accounting practice. Her work encompasses corporate and self-employed tax management, internal accounting controls and payroll cost supervision, with a strategic approach focused on sound financial and fiscal decision-making.

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As taxpayers, we are required to file a tax return if:

• We are an individual with habitual residence in Spain
• We receive income subject to Personal Income Tax (IRPF) that is not exempt
• Depending on the type and amount of income received

Annual tax return, where income consists solely of employment income:

Employment income includes wages and salaries, per diems, contributions made by employers to their employees' pension plans, and unemployment benefits, as well as all income listed under Article 17.2 of the Personal Income Tax Act (LIRPF), such as:

• retirement pensions,
• widowhood pensions,
• orphan's pensions,
• income from delivering courses,
• lectures and conferences
• …

NOT required to file a 2020 annual tax return:

• If income comes from a single payer and gross employment income does not exceed €22,000 per year
• If income comes from more than one payer and gross employment income does not exceed €14,000 per year. However, the €22,000 threshold still applies provided that the combined amounts received from the second and any additional payers do not exceed €1,500 per year in total. Example of this second scenario:

• • 1st payer = €20,500/year
  • 2nd payer = €1,500/year

Required to file a 2020 annual tax return:

• If total employment income exceeds €22,000 per year.
• If total employment income exceeds €14,000 per year from two payers, as a general rule, in accordance with the above.

2020 ANNUAL TAX RETURN WITH TWO PAYERS DUE TO Temporary Layoff Procedure (ERTE) AND UNEMPLOYMENT

Until the Government introduces different regulations, the fact that an employee has two payers as a result of having been unemployed during a Temporary Layoff Procedure (ERTE) will, in all likelihood, trigger the obligation to file a 2020 annual tax return, provided their income exceeded €14,000 per year.

Paying your tax bill in instalments

The Government has approved the option to split your tax payment into six monthly instalments.

TAX RETURN ADVISOR FOR 2020–2021:

Get in touch and we will prepare your tax return for you.

We need the following documents to prepare your tax return:

ESSENTIAL INFORMATION:

• Details you can submit via the following link: https://www.conesalegal.com/es/presupuestos
• If the property is rented:
  • Address
  • Name and Tax Identification Number (NIF) of the landlord
• Personal and family circumstances:
  • • Single / Married / Divorced (date of divorce)
    • Children:
      • Verify details from previous tax return
      • Confirm current details
      • Custody arrangements
    • Cohabitation with dependant relatives

TO DOWNLOAD YOUR TAX DATA:

• Tax Identification Number (NIF) or national identity document (DNI) number
• DNI expiry date
• Box 505 from your 2019 tax return
  
  

INFORMATION NOT HELD BY Spanish Tax Authority THAT WE REQUIRE:

• Rental properties:
  • Tenants (contract date and Tax Identification Number (NIF) of the tenant)
  • Income
    • Full list of all deductible expenses (preferably sent to us by email). Expenses:
    • Please provide details, especially for professional fees or purchases:
      • Invoice number
      • Date
      • Tax Identification Number (NIF)
      • Amount
    • For rental properties not declared in 2019:
      • Acquisition date