The 150,000 recipients who, at the end of 2020, had recognized the Minimum Vital Income (IMV) must present the income statement despite the fact that this aid is exempt from taxation. The regulations of the IMV so collect it, and so recalls the General Council of Associations of Administrative Managers that alerts that this circumstance “complicates life” in administrative terms of the beneficiaries.
“It does not seem acceptable that having the right to receive an income intended to cover basic, vital needs, generate such a bunch of nonsense; first, by forcing families with difficulties to file the income tax return, even though the normal thing is that it does not involve them having to pay the tax and, secondly, by preventing their beneficiaries from applying other deductions that, until that moment, could come obtaining “, denounces Fernando Santiago, president of the General Council of Associations of Administrative Managers.
And it is that, in addition to the “administrative obligation to present the declaration to a disadvantaged group, who until now were not presenting it”, the Managers point out that “in the event that in the coexistence unit any of its members receives more than 1,800 euros per year, the amounts established by descendants or ascendants with or without disabilities may not be deducted “.
Additionally, they add, “and as is the case with mothers in ERTE, since the IMV is considered a non-contributory benefit, the mothers receiving the IMV as the only source of income, cannot benefit from deductions for maternity or for daycare expenses for these perceptions “.
For their part, Social Security confirms that yes, “the beneficiaries of the IMV will fully enter the Public Treasury system” and “the applicants and holders as well as the beneficiaries will make the income tax declaration”. The reason the help was designed this way is that, in this way, it is “disincentives the informal economy”and allows the Treasury to have greater control of taxpayers’ income.
In addition, they remember that both the Minimum Living Income and other basic aids “remain exempt up to a maximum joint annual amount of 1.5 times the public indicator of multiple effects income (IPREM) “, which represents 11,279 euros per year.
The Administrative Managers, however, insist that the obligation to pay taxes “shows that legislating at full speed without thinking about the effects that the rule may have on the citizen converts a populist move into unpopular”.
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