Bill would exempt maternity and paternity benefits and set other tax measures

Automatic summary, not yet reviewed

1. The bill would make public maternity and paternity benefits from Social Security exempt from personal income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings., and would extend the exemption to public employees who receive their pay during birth, adoption or paternity leave, and to self-employed professionals covered by mutual societies, capped at the maximum Social Security benefit. Taxpayers could request a refund of tax paid in earlier, non-prescribed years.
2. The bill would extend to 2019 the income limits for the simplified objective method under personal income tax and for the simplified and special agriculture regimes under VAT. It would also set a new one-month period to file waivers or revocations of those methods and regimes.
3. For corporate income tax, credit institutions would spread the tax impact of the accounting adjustments from the first application of Banco de España Circular 4/2017 equally over the first three tax periods starting on or after January 1, 2018. The valuation rules for equity investments would also be aligned with the new accounting rules.
4. The bill would keep the Wealth Tax for 2019 and, from 2020, remove the general 100 percent rebate on the tax liability, on an indefinite basis.
5. The bill would set the coefficients for updating the cadastral values of urban properties for 2019, to apply in 1,179 municipalities that request it, and would extend several deadlines to July 31, 2019 for city councils and the Cadastre.
6. The bill would create a special tax regime for the 2019 UEFA Champions League final and UEFA EURO 2020, with exemptions from corporate income tax, non-resident income tax and VAT, plus customs rules for imported goods. It would also renew the list of priority charitable activities for 2019, with deductions raised by five percentage points, and allow investment fund units to be reclassified with no tax cost for investors.

Who it affects

• People who received maternity or paternity benefits: They would no longer pay tax on them and could request a refund for earlier, non-prescribed years.
• Self-employed workers and public employees: Their maternity and paternity benefits or pay would be exempt up to the maximum Social Security benefit.
• Businesses and professionals using the objective method or simplified regimes: They could keep using those methods and regimes in 2019, with a new window to opt out.
• Credit institutions: They would spread the tax impact of the Circular 4/2017 accounting adjustments over three years.
• City councils and urban property owners: Cadastral values would be updated in 1,179 municipalities and deadlines for tax rates and value reports would be extended.

Words worth knowing

IRPF

Impuesto sobre la Renta de las Personas Físicas: Spain's personal income tax, paid on earnings such as wages.

Estimación objetiva (módulos)

A simplified way for certain small businesses to compute income using fixed indexes instead of actual income and expenses.

Valor catastral

The value the Cadastre assigns to a property, used as the base for taxes such as the local property tax (IBI).

Prestación por maternidad o paternidad

Money paid by Social Security during leave for the birth, adoption or care of a child.

Mecenazgo

Private, usually financial, support for activities of general interest, rewarded with tax deductions.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries