Income tax return 2021 in Andalusia

Every year, at about this time, the Tax Agency makes public the calendar for filing the Income Tax Return 2021. The campaign, which is about to start with important new features, has some key dates and some essential points to be aware of.

In this context, doubts always arise in relation to the obligation to file a tax return and what are the limits for reporting to the tax authorities.

That's why, in this article, we'll explain everything you need to know when preparing and presenting the draft of the Income Tax Return for the financial year 2021.

Calendar and key dates for the Income Tax Return 2021

The 2022 Income Tax Return Campaign starts on 6 April and ends on 30 June for those who make the online declaration. However, taxpayers who opt for the telephone form will have to wait until 5 May, and those who choose the face-to-face form will have to wait until 1 June.

Let's take a look at a summary of the key dates of this 2022 income tax campaign:

• Online declaration: from 6 April to 30 June.
• Statement via telephoneFrom 5 May to 30 June. However, taxpayers must make an appointment from 3 May to 29 June.
• Face-to-face declarationFrom 1 to 30 June. However, taxpayers must make an appointment from 26 May to 29 June.

Is it necessary to file a tax return?

There are people who are not obliged to file their income tax return, even if they have received certain income. It is therefore essential to know when we are or are not obliged to file our Income Tax Return 2021.

The taxpayers exempt from personal income tax are those employed persons who have received income during the year 2021 not exceeding 22,000 euros from a single payer. However, where there are several payers, this limit is reduced to 14,000 euros.

However, it is always preferable to review the 2021 draft income tax return and get information sufficiently in advance. In this way, there will be people who, although they are not obliged to file the return, will be able to benefit from filing it, as the result of the return will be a refund.

What is the withholding certificate for?

The personal income tax withholding certificate is a a document showing, in the form of personal income tax withholdings, a summary of the money that the taxpayer has advanced to the tax authorities. These deductions are made by the company, deducting a certain percentage of the worker's salary from their paycheck, or from the invoices that self-employed workers issue to their clients.

Thus, each time the worker receives his or her salary, the company pays a part of the salary to the tax authorities as an advance on what will have to be paid for personal income tax (IRPF). These deductions are also included in the invoices issued by the self-employed. However, it may happen that more money has been advanced than the bill, in which case the Tax Agency will return the difference to the taxpayer. If there is not enough money advanced, the taxpayer will have to pay the corresponding amount to the tax authorities after having filed the tax return..

Is it compulsory to submit the withholding tax certificate?

Companies are obliged to issue the withholding certificate to their employees. In the same way, they must do the same for self-employed workers who have provided services to them.

In addition, this report must be submitted before the deadline for filing the tax return. Therefore, companies should provide their employees with the withholding tax certificate before April.

What's new for the 2021 / 2022 tax return campaign in Andalusia?

The 2021 income tax return campaign in Andalusia brings with it some new features that must be taken into account when it comes to paying personal income tax and filing the income tax return:

• Income exceeding 200,000 and 300,000 euros will suffer an increase of three and two points respectively in their personal income tax bracket.. This means that taxpayers who declare more than 200,000 or 300,000 euros will have to pay more to the tax authorities.
• Tax relief for private pension plans is reduced to a maximum contribution of 2,000 euros.. Moreover, this reduction will be further accentuated in the year 2023 (corresponding to the financial year 2022), with the limit being set at 1,500 euros per year of maximum contribution.
• There will be an increase in the 1% Wealth Tax which will apply only to those assets exceeding 10 million euros.. In any case, the maximum rate shall be 3,5%.
• Cryptocurrencies will be monitored more closely. In fact, it is compulsory to report such transactions to the Tax Agency from July 2021.
• The aid that has been earmarked for the eruption of the volcano on La Palma will be exempt and will not be subject to personal income tax. 

Fiscal and Tax Law in Malaga - Tax Return Preparation Service Malaga

With this information, you will be able to make your 2021 tax return in the best possible way: taking advantage of the tax benefits that correspond to you and taking into account the new features that have been introduced this year in Andalusia. However, at Ódice Abogados, law firm in Malaga, we recommend that you carry out a detailed analysis of each economic item with a professional in the field. Fiscal and Tax Law. In this way, you will be able to file your tax return correctly without the possibility of making mistakes.