Although in Spain the 2021/2022 income tax declaration campaign ended at the end of June, Since this Monday, November 7, the Treasury has already been claiming the second payment from those taxpayers who decided to split the amount, which represents 40% of the total debt.
According to the calculations made by the TaxDown tax experts, there are a total of 4,819,013 Spaniards who will have to face this second installment. The number of citizens who have opted for this installment payment mechanism has increased by 10% compared to last year’s campaign, where only 62% chose the two installment option.
Also, with this second round, the Tax Agency intends to reach the estimated figure at the beginning of July, about 15,464,281 Euros collected in the declarations with the result of paying. In this way, the State coffers would collect 100,132 million euros, 6.7% more than in 2021, thanks only to personal income tax. “This is 6,300 million euros more than in the previous campaign”confirmed the tax experts of the TaxDown platform.
“The rise in the CPI, which closed 2021 at 6.5%, is one of the main reasons for this higher collection by the Tax Agency. As personal income tax is not adjusted for this indicator, it is estimated that each taxpayer has paid an average of €100 more, that is, a total of €2 billion. But this is not the only reason. The creation of a new section, the sixth, which affected annual income from 300,000 euros with a tax rate of 47%, also helped to increase the State’s profits. This new tax affected 36,200 taxpayers, 0.17% of the total, according to sources from the Government of Spain”they clarified.
In this sense, Dresden TaxDown highlighted that those taxpayers who cannot face this second payment of 40% from this Monday, will have to pay a fine by the Tax Agency. “This sanction affects the amount to be paid as a surcharge and ranges from 5% to 15%, sometimes reaching up to 20% depending on the months it takes to pay”they explained.
In this way, as they explained, the Spaniards who hurry and enter the second period required by the Treasury, before receiving any requirement, will only have to face a 5% surcharge on the amount. This percentage is doubled, up to 10%, if the notice is received by letter from the Tax Agency and the payment is made within the established period. “If even so it is not entered, the sanction increases 20% on the debt. In addition, in this last case, another additional amount to be paid called default interest is generated, which is 3.75% of the total, “they added.
For its part, Enrique Garcia, CEO and co-founder of TaxDownmentioned that it is important that citizens pay this amount on time to avoid facing penalties of up to 20% on the debt.
“The Spaniards still have time to achieve greater savings in their income statement for next year. The last two months of the year are key to trying to reduce as much as possible the amount that we will have to pay to the Treasury in our declaration or even get it to return to us”Garcia mentioned.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
It may interest you:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.