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2020 Income Tax Return: everything you need to know

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The 2020 tax return campaign is just around the corner, and the doubts about the income are starting to arrive to Lawyers & Accountants.

Due to this, as a specialised tax office for tax returns, we will now try to solve all doubts about the 2020 Income, to help you do it and avoid errors.

Still, if do not know how to do the Income Tax Return, the tax advisors in Lawyers & Accountants offer you the best advice on income tax deductions. Contact us without commitment and let your personal income tac return in the best hands.  

Common questions about the 2020 Income Tax Return

Which are the deadlines for submitting the 2020 Income Tax Return?

The deadline for submitting the 2020 Income will start the 7th of April of 2021 online and will end the 31st of June. Moreover, as it is stablished by the Tax Agenda calendar, it will be possible to submit it by phone from 6th of May, and in person from 2nd of June. On the other hand, from 1st of July the Tax Return will be out of time, so its submission from this date will carry a list of penalties and surcharges.

Which are the dates for the payments?

If the tax return is payable, the payments must be done the 25th of June if domiciled, or the 30th of June if it is paid in the bank in person or in instalments. In the case of instalments, the 60% must be abandoned when submitting the income, the remaining 40% the 5th of November.

Penalties for late filing of income tax returns

If the tax return is submitted late, the surcharge will depend on the time elapsed between the deadline and the date of the submission:

  • Up to 3 months: 5% of surcharge.
  • Between 3 and 6 months: 10% of surcharge.
  • Between 6 and 12 months: 15% of surcharge.
  • More than 12 months: 20% of surcharge + interest on late payment.

In case you submit the income more than 12 month late, you should pay 20% of surcharge, plus interests on late payment of 3.75%.

Who is obligated to submit the 2020 income tax return?

All natural persons who are taxpayers and live in Spain are obliged. That is, all persons who are registered in company and professional activities.

Excluded are incomes from personal income equal to or less than 22.000 euros per year, provided that the income comes from a single payer.

Likewise, those persons who obtain income from real estate capital are also obliged to do so. This is in reference to the yield obtained from the rental od a dwelling, commercial premises, warehouse, etc.

The same applies if you have obtained income from capital over 1600 euros or more. These incomes are obtained from trading on stock exchanges, funds, futures, etc.

What is earned income?

Earned income is what you receive in exchange for a job. These incomes are not just a payroll, but also an unemployment benefit, a pension, remuneration for representation expenses, etc.

What happens if you 2 payers?

AS we said before, if you have two payers, you are obliged to file personal income tax returns, even if the total amount received is less than 22.000 euros per year.

However, for this to happen, the second payer must be over 1.500 euros per year. If not, you will not be obliged.

How does it affect people on Record of Temporary Employment Regulation?

In the case of people who have been on Record of Temporary Employment Regulation at some point of 2020 and have had two payers (the company and Social Security), they are not obliged to file personal income tax returns if the sum of both is not over 22.000, or if the quantity received from the Social Security is not over 1.500 euros per year.

If you need to clarify your doubts about the Income Tax Return make an appointment now, in Lawyers & Accountants we offer you advice about the Income Tax Return we try to solve your doubts in the clearest way, we will accompany you during the whole process and we worry about doing the tax return and submit it so that you obtained the best deductions.

Contact out consultancy for the Tax Income Return in Madrid without commitment. Our tax advisors will be happy to help you.

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