Home News Income 2023/2024: Does the Tax Agency penalize for having two or more payers?

Income 2023/2024: Does the Tax Agency penalize for having two or more payers?

Income 2023/2024: Does the Tax Agency penalize for having two or more payers?

The income campaign 2024which refers to the income for fiscal year 2023, officially starts on April 3although taxpayers, since March 12, can now request their reference number and, from March 19, access the draft tax data. Starting next Wednesday, natural persons residing in Spain will be able to access the draft declaration through the website or mobile application of the Tax Agency and present the document electronically from that date. The deadline to be able to declare the Personal Income Tax (IRPF) ends Monday, July 1. Check the calendar and news of the 2023-2024 income campaign.

Every year, when declaring the income obtained at work during the period, there are many doubts that arise for taxpayers who have the obligation to submit this annual procedure to regularize their accounts with the Public Treasury. Am I obliged to declare personal income tax? Will I get paid if there are several payers? They are some of the Frequently asked questions that are repeated by both self-employed workers and individuals when carrying out this procedure before the Tax Administration.

Who has the obligation to declare?

The Personal Income Tax Law, in its article 96, dictates that those taxpayers who obtain full income from work with a limit of 22,000 euros per year when they come from a payer. According to current regulations, the limit will be 15,000 euros for taxpayers who receive full income from work when they come from more than one payer. However, the limit is once again 22,000 euros per year when the sum of the amounts received from the second and the remaining payersin order of amount, does not altogether exceed the amount of 1,500 euros per year.

The limit of 22,000 euros will also be returned in these cases:

  • When it comes to pensioners with several pensions whose withholdings have not been made in accordance with those determined by the Tax Agencyupon request of the taxpayer for this purpose, through form 146.
  • When they are perceived spouse’s compensatory pensions or annuities for food not exempt.
  • When the payer of work income is not obliged to withhold.
  • When they are perceived Full income from work subject to a fixed withholding rate.

If I have more than one payer, do I pay more personal income tax to the Treasury?

The answer is negative as long as the payers retain the corresponding percentage. However, the second payer typically withholds less because it applies a lower withholding percentage, as if it were the only payer, that is, it does not take into account the returns that come from other payers. In the draft declaration it is possible to see the largest amount that should have been withheld. It is for this reason that The withholding difference must be paid through the personal income tax return.. An efficient solution to avoid unforeseen events in our financial health for the following income procedures consists of ask two or more payers to adjust the tax at the appropriate level.

Do you know what percentage your payers have to withhold from you?Calculate net salary.

Example of a taxpayer with one payer and another with two payers

  • Taxpayer A. He works for a single company for a gross annual salary of 35,000 euros and has paid personal income tax of 20%, which is the percentage that corresponds to him. Therefore, the income tax return is not payable or refundable.
  • Taxpayer B. He works for six months for two companies for a gross annual salary also of 35,000 euros. The first company retains 20% of those 17,500 euros, but the second retains 9% of the remaining 17,500 euros. Therefore, The tax return turns out that you have to pay the remaining 11% of the 17,500 euros (i.e. 1,925 euros).