The health and economic crisis caused by the coronavirus is going to have a very relevant impact on the income tax return for this year, and which must be submitted between April and July next year. And one of the most obvious aspects of this impact is the temporary employment regulation files (ERTE).
The Register of Tax Advisory Economists (REAF) of the Council of Economists warns at this point that “the payments of the State Public Employment Service have not been subject to withholding, or this has been minimal”, so “If you earn more than 14,000 euros from work throughout the year, you will have to declare and prepare in case you have to pay for the part of the income that has not been withheld. ”
And it is that “if you charge more than 1,500 euros from the SEPE”, the advisers indicate, “the limit that requires you to declare for work income is 14,000 euros”. This is: “Workers who normally do not have the obligation to declare may have to present the next Income Tax return due to having entered an ERTE “.
For this reason, this body that presented its recommendations for the planning of Income 2020 this Thursday, points out that taxpayers “are in time to request their company to withhold a higher amount, to cushion the result of the declaration” and that “the SEPE can also be requested to increase withholding.”
Pension plans
The pension plans will also be a very relevant point in the next statement, due to the impact of the crisis itself but also due to the fiscal measures that the Government wants to implement next year. On the one hand, the Executive gave facilities to rescue the savings in these products to workers affected by an ERTE or to entrepreneurs who had to cease their activity, and that will have to be reflected in the statement. “Know that the reimbursement of the consolidated rights is subject to the tax regime established for the benefits of pension plans, that is, they are taxed as work income, being imputed to the year in which they are received”say the advisers.
And on the other, the REAF recalls that the Executive of Sánchez has reduced the maximum deduction for contributions to pension plans from 8,000 to 2,000 euros. Therefore, they point out that “it is a good time to contribute as much as possible to pension plans”That is, whoever is in a position to contribute up to 8,000 euros to obtain the greatest possible tax advantage, take advantage of that limit.
Deduction for maternity and payments
Technicians from the Ministry of Finance (Gestha) point out that ERTE should also be taken into account in deductions for maternity. “Women with children under three years of age entitled to the application of the minimum per descendant may lower the differential tax rate of up to 100 euros per month for each child”, but “in the case of ERTE, the worker would no longer meet the requirements to enjoy the maternity deduction”. In the case of ERTE of reduced working hours, the advisers clarify,” the right is not lost because the mother continues to carry out an activity as an employee. ”
And although to a lesser extent thanks precisely to the ERTEs, the crisis has also caused layoffs of workers and with their respective compensation. And at this point, the REAF recalls that “the compulsory compensation received is not taxed up to 180,000 euros.”
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