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How to reduce the tax bill on the Income statement

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MadridUpdated:07/12/2018 03:03h

The tax increases that are prepared by the Government of Pedro Sanchez shoots the options to save a chunk if you are ahead of certain operations. The rise that plans to Finance those who have earned income in excess of 130,000 euros and in the saving of 140,000, it assumes that it might be better to bring forward actions that are subject to personal income TAX this year.

Add to this that the exercise comes to an end and the face of the next Income tax return, there are options to lighten the bill on income TAX. Since advancing operations the past year will have a higher taxation to perform the actions typical year to year in order to get a juicy tax savings. The savings can benefit all taxpayers. The union of Technicians of Finance (Gestha) calculates that the average saving reached the 4,600 euros , and the tax consultants of the General Council of Economists REAF-Regaf have produced a guide full of tips to accommodate the next appointment with the Treasury.

Pension plans

Up to 12,500 euros

To contribute to the pension plan that lightens the tax base of the personal income TAX, so many take advantage of the last days of the year to transfer money, take advantage of this tax relief and the reduction of the tax base that goes with it. The tax reform reduced the maximum contribution of 10,000 –or 12,500 euros for those older than 50 years– 8,000 euros – provided that does not exceed 30% of the yield from work and economic activities–. You must take into account that the limit includes both the contributions to personal plans, individual and the company to perform on its behalf, in the event that you have an employee pension plan in their work. In any case, if you exhausted this limit, you can contribute up to 2,500 euros to the plan of your spouse. Gestha remember that to invest other 6.305 euros on average to reach the limit of these contributions guarantee a savings additional tax of about 1.513 euros on average, varying this extra savings depending on the income and the autonomous community of residence.

Expenditure on travel

It’s best to keep the tickets

The REAF alert that if your company is compensating for the travel expenses incurred when performing their work and all or part of the same should be excluded from the personal income TAX, it is advisable that you keep supporting documents for at least of stay, transport, public, parking and tolls, with a possible review by the Treasury, which is responsible to the worker and not the company..

Matrimoniadas tax

Distribute the goods and rights

The hack prosecutor can also be overcome according to the regime of their marriage. If you are married in regime of community property and separates, or if the dissolved community of property created by inheritance or by will of the commoners, it is advisable to make an equitable division of property and rights, so that one of the spouses or community members should not be taxed more than the rest. Also, if you are involved in a divorce or separation, you agree that the agreement you reach with your spouse is endorsed by the court.

Rescue capital at a discount

For those who retired in or before 2010

To rescue the contributions prior to December 31, if you retired in 2010 or before, you can apply for the last time –no you have not done before– the reduction of 40% in the form of capital.

Large families

Ask the title for the deduction

A novelty of the accounts of 2018 is that it extends the deductions for large families, with 50 euros a month more, compared to the 1,200 annually that had up to now still to 2,400 if it was starting in August for every child from the third onwards. While you could have already asked to collect this help in advance or charge to the statement of Income, it must borrow the title of numerous family, before the end of the year to be able to go to this last scenario, as it is a requirement that is required for the deduction.

The seed capital has a prize

Increasing the deduction from 20% to 30%

The Budgets of 2018 increase an advantage already existing: investment in companies of new creation adding to its shareholder, while maintaining the participation of between three and twelve years. In these cases, the deduction was 20% until now: this year grows to 30% on the personal income TAX. It also increases the base maximum deduction of € 50,000 a year to 60,000.

Deduction for housing

Up to 9.040 euros

In the event that bought your house before the year 2013, and will apply the deduction for habitual dwelling on the mortgage, you may want to drain the maximum amount of 9.040 euros per year with an amortization extraordinary reach that amount. Up to this threshold, can be deducted a 15% of the amounts contributed. The average savings is 672 euros.

Over 65 years of age

Life annuity

If you have more than 65 years and includes to sell or to convey a good that will hire benefits, should be evaluated form the gain from an annuity, to not pay tax on the amount received. Yes, this bonus has a maximum of 240,000 euros. If you have 64 years old, and you plan to sell any property, like a house, it may be better from the point of view of pocket waiting to meet the 65 years for which earnings are exempt.

Donations yes, but eye schools

The solidarity prize

Face to face with the last days of the year, the trade union of the Technicians of the Treasury recommends that taxpayers not to forget to preserve the supporting documents of the amounts donated to institutions of solidarity as NGOS or foundations, as well as union dues, professional associations (with a limit of 500 euros) and the costs of legal defence against the employer (always and when you ascend up to 300 euros). The taxpayer may desgravarse 75% of the first $ 150 donated and 30% of the rest of their contributions. This bonus percentage increases to 35% if the amount donated to the same NGO has not declined in each of the last three years. The average savings on the tax bill is 245 euros, according to calculations made by Gestha. In addition, they are exempt from the capital gains generated, if you donate the goods. In this sense, the REAF alert that the state Treasury has raised proceedings to parents who applied the deduction for donations to the fees paid to private schools for their children.

Another tip is to deduct 10% for donations to foundations and associations declared of public utility. In Basque Country the percentage is 20% and in Navarra, a 25%. Membership dues and contributions to political parties may report to the taxpayer any additional benefits, as they include a deduction of 20% of the fee –15% in Navarre and 20% in Basque Country, no– limit, limited to a maximum of 600 euros. provided.

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