must present the income statement

The 2020 Income and Wealth Campaign begins this Wednesday, April 7 for all those who choose to file their return online. Those who prefer to make their declaration by phone or at the offices of the Tax Agency will have to wait until May 6 and June 2, respectively.

If this year’s exercise is going to be marked for something, it is for the new ERTE. The four million Spaniards who have had to take advantage of this measure in recent months will have to adjust to the particular conditions established for this type of regulation.

But not only the ERTE complicate the declarations of this year, also the Minimum Vital Income forces unprecedented procedures in the income declaration for hundreds of thousands of people.

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The recipients of the Minimum Living Income (IMV) who must present the income tax return. Photo: Getty Creative.

The Minimum Living Income (IMV)

In addition to the ERTE, the main novelty of the 2020 campaign is the irruption of the Minimum Vital Income (IMV). Through Royal Decree-Law 20/2020, of May 29, published in the BOE of June 1, a new benefit came into force aimed at preventing the risk of poverty and social exclusion of people who live alone or who are integrated in a coexistence unit and lack the financial resources to cover their basic needs. In Spain, more than 460,000 people benefit from the IMV, of which more than 226,000 are minors.

Many of these taxpayers will declare personal income tax for the first time. So that they can correctly carry out the appropriate procedures, both the Social Security and the Tax Agency have prepared an information campaign with all the necessary information, such as sending text messages, letters, posters, networks and video, in addition to requesting collaboration from the town halls and social organizations. The Tax Agency has also posted on its page web an information brochure for IMV recipients.

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The income statement will be “essential” to continue receiving the IMV

As reported by the Ministry of Inclusion, Social Security and Migration, “the Minimum Vital Income is a living resource that adapts and evolves. Therefore, all beneficiaries are obliged to keep it updated.”

Taxpayers who have received income from their work of less than 22,000 euros gross per year are not required to present the Income Declaration, but In the case of being holders or beneficiaries of the IMV, they must present the declaration. Furthermore, it is Do it “essential” to continue receiving this benefit, and must be done by all members of the coexistence unit, including minors.

What must be declared?

The Tax Agency explains in the information brochure that the IMV itself is an exempt income and the vast majority of beneficiaries will not have to include it in their return, but they will have to file a return.

The collecting body estimates the declaration will be “very simple” and that in most cases, income will not have to be included and therefore your fee will be zero. That is, they will not have to enter, nor will they have to return money.

In addition, although the recipients of the IMV must present the income statement, it should be remembered that the collection of this aid, as is the case with scholarships and other regional benefits, is exempt from taxation. Only amounts that exceed 11,279.39 euros must be declared and taxed, that is, 1.5 times the Public Indicator of Multiple Effects Income (IPREM).

No tax news

For the rest, the Ministry of Finance recalls that in the field of personal income tax there are not many regulatory developments in 2020. The main measures adopted to face the pandemic have been directed to other foci such as health, economic or social.

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