On April 11, the period for submitting the Income Statement opened. Some people may think the Treasury rules do not apply to them because they do not plan to file this year, but that belief can be misleading. In the Community of Valencia, even individuals whose annual earnings stay below 22,000 euros can still submit the Income Statement, although the Ministry of Finance has indicated there is no strict obligation to do so in every case.
This year, several measures approved by eight autonomous communities, including the Valencian Community, aim to curb inflation in 2022. These steps influence income when withholding taxes exceed certain liabilities, creating potential scenarios where a declaration could be beneficial for the taxpayer.
Income 2023: Changes to housing-related reductions
Valencian residents who were exempt from filing the renta because their income in 2022 was under 22,000 euros might still consider filing this year. In some cases, they could qualify for a seventy-euro adjustment related to personal income tax tied to anti-inflation measures adopted by the Generalitat Valenciana. The General Council of Economists’ Registry of Financial Advisers (REAF) advises reviewing each situation to determine whether the tax payable is lower than the amount already withheld. If that is the case, submitting a declaration can result in a refund.
Be warned: This is the Treasury’s final notice about this year’s revenue draft.
Give back. Experts note that low-income Valencian taxpayers may face a higher withholding rate because the Treasury uses a general government rate for them. A later adjustment at the Valencia Community level can reduce or cancel the refund in some instances.
What if the income statement is negative?
In seven other autonomous communities, there can be little or no incentive to file a declaration if the income position does not require it. For a childless single person earning under 19,000 euros, it is possible that no filing is necessary in regions such as Catalonia, the Balearic Islands, Asturias, Extremadura, Castilla-La Mancha, Cantabria, and Aragon. In those places, a negative result or a zero tax liability may lead to no declaration being demanded.
How to obtain the 2023 income draft. The Council of Economists emphasizes the importance of checking the tax data with the Registry of Tax Advisors and reviewing the information provided by the Tax Office before the draft is processed. Submitting a declaration is a prudent step when the tax payable is close to or exceeds the amount withheld, as it can determine whether a return is due or a further adjustment is necessary.
Draft overview
For these reasons, the Council of Economists stresses the value of auditing one’s tax data before the draft proceeds. This self-check helps ensure that the final amount accurately reflects personal circumstances. The Finance Ministry also recommends careful review. Taxpayers who earn more than 22,000 euros gross from a single taxpayer or more than 14,000 euros if the payment comes from multiple taxpayers are generally obliged to file the income statement.