Main tax measures contained in Royal Decree-Law 18/2019 of 27 December adopting certain measures in the field of taxation, land registry and social security.

PERSONAL INCOME TAX

Quantitative limits determining the scope of the flat-rate method for economic activities included in the scope of the method are extended for the 2020 tax period, with the exception of agriculture, farming, and forestry activities, which have their own quantitative according to turnover.

General excluding parameters:

  • Turnover earned in the year prior to this exceeding 250,000 euros for the set of economic activities, excluding those relating to agricultural, livestock and forestry activities.All the operations shall be taken into account, irrespective of whether there is a duty to issue an invoice.Operations in which there is a duty to issue an invoice when the recipient is a business owner shall not exceed 125,000 euros.
  • Combined turnover for agricultural, forestry, and livestock activities exceeding 250,000 euros.
  • Volume of purchases in goods and services in the previous year, excluding fixed-asset purchases, exceeding 250,000 euros.

(Amending DT 32 Personal Income Tax Act)

In addition, a new term is established for waiving or revoking the objective estimation method for personal income tax for the year 2020.This term will be one month from the day after the date of publication in the Official State Gazette of Royal Decree-law 18/2019, i.e. until 29 January 2020.

VALUE ADDED TAX

The quantitative limits for the application of the simplified regime and the special regime for agriculture, livestock, and fishing are also extended for the 2020 tax period.

General excluding parameters:

  • Turnover earned in the year prior to this exceeding 250,000 euros for the set of economic activities, excluding those relating to agricultural, livestock and forestry activities.
  • Combined turnover for agricultural, forestry, and livestock activities exceeding 250,000 euros.
  • Volume of purchases and imports of goods and services in the previous year, excluding fixed-asset purchases, exceeding 250,000 euros.

(Amending DT 13 Value Added Tax Act)

In addition, a new term for waiving or revoking the simplified scheme and the special VAT scheme for agriculture, livestock farming and fisheries has been set for 2020. This term will be one month from the day after the date of publication in the Official State Gazette of Royal Decree-law 18/2019, i.e. until 29 January 2020.

NET WEALTH TAX

Modification to Royal Decree-Law 13/2011 of 16 September, extending for 2020 the maintenance of the wealth tax levy for the 2020 financial year.

Priority patronage activities

Article 5 of Royal Decree Law 18/2019 of 27 December indicates that priority sponsorship activities will be considered those listed in additional provision seventy-one of Law 6/2018 on the General State Budget for 2018.

The incorporation of this list of activities via a decree-law is justified on the grounds of the principle of legal certainty, given that any other way of it being applied in the said financial year would not be able to be done until being approved by a legal standard, since the ruling governing it for 2019 could not be regarded as automatically extended, which would have a negative impact on the promotion and development of these activities.

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