New rules applicable in 2015 IRPF returns
The tax season is upon us once again.
What are the main changes to be taken into account when filling out our 2015 personal income tax (IRPF) returns?
Firstly, certain cuts have been made to both the scale of rates applicable to the general tax base and that applicable to the savings tax base. The number of brackets in the scale for the general base has gone from 7 to 5, whereas the marginal rate applicable in Catalunya has gone from 56%, in 2014, to 49%.
There continue to be three brackets in the scale applicable to the savings base although the rates applicable have dropped from 21%, 25% and 27% in 2014 to 19.5%, 21.5% and 23.5% in 2015.
On the other hand, all capital gains and losses, irrespective of the period over which they have been generated (in 2013 and 2014, those generated over less than 1 year were to be included in the general tax base) are once again to be included in the savings tax base.
In addition, the possibility is envisaged of offsetting negative returns on investment capital against capital gains and positive returns on investment capital against capital losses, up to a limit equal to 10% of the gain/positive return (the limits for 2016, 2017 and 2018 are to be 15%, 20% and 25% respectively).
Also in relation to capital gains and losses, it should be mentioned that the coefficients for the adjustment of the acquisition cost of real property have been done away with, and that the application of abatement coefficients has been restricted to cases in which the transfer value of the property is no higher than 400,000 euros.
It is also important to remember that persons aged over sixty-five are entitled to an exemption of up to 240,000 euros provided they reinvest the sale price obtained on the transfer of an asset in annuity insurance.
As a general rule, the reductions for multi-year income or income generated over more than two years have been reduced from 40% to 30%.
Finally, mention should be made of the elimination of the deductions for business start-up savings accounts and for the rental of a main residence (although there is a transitional regime applicable for rental contracts entered into before January 1, 2015), of the new deductions for large families or those with disabled persons in their care, and of the improved deduction for donations.
In short, there are several major changes in the IRPF rules for 2015 which we will need to take into consideration when preparing our tax returns.
Garrigues’ Tax Department