Tax Quotas, Deductions, and Filing Requirements Explained

Tax Quotas, Deductions, and Filing Requirements

How are state and regional liquid quotas calculated?

The liquid state share is derived from the full state share, after applying a percentage of total deductions (e.g., 67% of general deductions in 2009) and deducting for rent of residence. The result cannot be negative. The liquid regional share is calculated by subtracting from the regional share a percentage of state deductions (33%), the regional portion of the deduction for primary residence investment, and the amount of autonomous deductions.

How is the differential fee calculated?

The differential fee is obtained by adding the liquid state and regional assessments, and then subtracting deductions for double taxation of dividends, international double taxation, withholdings, income, and installment payments already made.

Who is not required to file tax statements?

• Taxpayers whose income comes from earned income up to €22,000 per year, unless it comes from more than €11,200 from a single payer.
• Investment income and capital gains subject to retention, up to €1,600 per year.
• Imputed income from real estate, income from movable capital not subject to taxation, and subsidies for housing purchases, up to €1,000 per year.
• Taxpayers with a single source of income up to €1,000 per year and losses up to €500.

Deduction of personal and family minimum.

The personal and family minimum is the base for meeting basic personal and family needs of the taxpayer and is not subject to taxation. It is calculated by adding the taxpayer's minimum (usually €5,151) + minimum for descendants + minimum for disability. This amount is deducted from the general tax base, and if there is a remaining amount, it decreases the savings base. It cannot be negative.

Who is subject to objective estimation and what are the obligations?

This applies to companies carrying out activities listed in tables published by the Ministry of Economy and Finance, provided they do not exceed the limits set for each activity. The overall limit for all activities is €450,000 per year, or €300,000 for agricultural or farming businesses. Additionally, the volume of purchases of goods and services, excluding fixed assets, must not exceed €300,000. The calculation is as follows: Prior Net Performance - Performance incentives = Net mining indices x = net yield correction modules - statutory reductions = Net Performance of activity.

What forms the general tax base and the taxable amount of savings?

The general tax base is formed by the amount of earned income, real estate capital gains, rent charges, and gains and losses not caused by the transfer of assets. The savings taxable base is formed by the sum of income from real estate capital gains and losses caused by the transfer of assets and liabilities.

How is the liquid base obtained?

The liquid base is obtained by applying a series of reductions to the general tax base, such as:

• Contributions to social security systems (pension plans).
• Funding for protected heritage for people with disabilities.
• Compensatory pensions and annuities for support in favor of the spouse.

The result is obtained by reducing the tax base of the remaining savings, if any, by the compensatory reduction in pension and annuities for food that has not been implemented in the general tax base.