The changes introduced correspond to the 2024 Income Tax campaign and affect both the management of the tax as well as exemptions, deductions, and the regularisation of tax situations. Below, we outline the most notable updates, which could have implications for both taxpayers and legal professionals in the tax field.
Employment income: The maximum reduction amount for earned income has increased from €6,498 to €7,302 per year.
Income from real estate assets: New reduction percentages now apply to rental contracts for habitual residences at affordable prices signed from the 26th of May 2023 onwards.
Exemptions for economic activities: The exemption for aid related to repairing he damage of the 2024 DANA event remains in force for economic activities.
Changes to amortization of vehicles and infrastructure: Adjustments have been made to the amortization of certain vehicles and newly built infrastructure, affecting business assets.
The Autonomous Communities of the Canary Islands and Catalonia have established new amounts for the personal and family tax-free thresholds, exercising their regulatory powers.
The tax liability must be calculated in accordance with the tax scales established by each Autonomous Community.
Key deductions include:
Incentives for business investment in economic activities, particularly applicable in the Canary Islands and the Balearic Islands.
Deductions for charitable donations and other contributions to social causes.
Deductions for habitual residence in La Palma during the 2024 tax year.
Deductions for home improvements aimed at increasing energy efficiency.
Deductions for the purchase of electric plug-in vehicles, hydrogen fuel cell vehicles, and the installation of charging points.
If any errors or omissions are identified after filing the tax return, taxpayers may submit a corrective self-assessment as the sole mechanism for amending previous returns, regardless of whether the original result was payable or refundable. This replaces the former dual procedure of supplementary self-assessment and request for correction.
The legislative changes in tax law for 2024 affect various aspects of the income tax return, from new exemptions and deductions to the simplification of procedures for correcting previous declarations. It is essential that both taxpayers and tax law professionals remain on top of these modifications in order to optimise tax planning and ensure compliance with obligations.
As always, we are here to answer any questions or to offer personalised advice regarding your income tax return or any other tax-related matter.
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Tax and Accounting Specialist