New tax measures that come into force this 2024

This year starts with new developments in tax matters that affect companies, self-employed workers and individuals. Below we list the most notable changes:

• The quantitative limits excluding the application of the objective estimation method of personal income tax are extended for the 2024 tax period, with the exception of agricultural, livestock and forestry activities, which have their own quantitative limit by volume of income. The limits for the application of the simplified regime and the special regime for agriculture, livestock and fishing, in VAT, are also extended for the 2024 tax period. The period for renunciations and revocations of the method will extend until January 31, 2024.

• The temporal scope of application of the deduction for works to improve the energy efficiency of homes in personal income tax is extended for another year, with effect from January 1, 2024.

• It is legally established that the obligation to submit the personal income tax return by electronic means may be established as long as the Tax Administration ensures personalized attention to taxpayers who require assistance in completing the return by such means. Once the first campaign for filing the declaration has ended since the entry into force of this modification (12/29/2023), the State Tax Administration Agency will carry out the assessment of the sufficiency of the assistance measures.

• The application of the temporary solidarity tax on large fortunes approved by Law 38/2022 is extended, while the review of property taxation does not take place in the context of the reform of the regional financing system. In addition, the exempt minimum of 700,000 euros is extended to all taxpayers of the tax, regardless of whether or not they are residents in Spain, with effect from the entry into force of Law 38/2022. The mandatory presentation of the declaration by electronic means is also established.

• It is legally established that the obligation to submit the Wealth Tax declaration by electronic means may be established.

• Corporate Tax. Freedom of amortization in investments that use energy from renewable sources. The measure initially planned for investments made in 2023 is extended for another year, by which taxpayers could freely amortize investments made in installations intended for self-consumption of electrical energy, as well as those installations for thermal use of own consumption, as long as they used energy from renewable sources and replace facilities that use energy from non-renewable fossil sources and whose entry into operation would have occurred in the year 2023, all conditional on compliance with a staff maintenance requirement. With this modification, the freedom of amortization provided for in the aforementioned additional provision is extended for another year, so that the entry into operation of the aforementioned investments can be carried out in 2024.

• The amounts of the maximum coefficients to be applied to determine the tax base of the Tax on the Increase in the Value of Urban Land are updated, with effect from January 1, 2024.

• The application of the 0% VAT rate on basic food products is extended, as well as the 5% rate on olive and seed oils and pasta, to contribute to the reduction in the final price of these foods, during the first half of 2024.

Until June 30, 2024, the 5% VAT rate will be applied to intra-community deliveries, imports and acquisitions of the following products:

• Olive and seed oils.
• Pasta.

The rate of the equivalence surcharge applicable to these operations will be 0.62 percent.

Until June 30, 2024, the 0% VAT rate will be applied to intra-community deliveries, imports and acquisitions of the following products:

• Common bread, as well as frozen common bread dough and frozen common bread intended exclusively for the production of common bread.
• Bread flours.
• The following types of milk produced by any animal species: natural, certified, pasteurized, concentrated, skimmed, sterilized, UHT, evaporated and powder.
• Cheeses.
• The eggs.
• Fruits, vegetables, legumes, tubers and cereals, which have the status of natural products in accordance with the Food Code and the provisions issued for their development.

The equivalence surcharge rate applicable to these operations will be 0%.

• The reduced rate of 10% VAT that falls on intra-community deliveries, imports and acquisitions of electrical energy in favor of low-power supply contracts or that are recipients of the VAT will apply from January 1 to December 31, 2024. social electricity bonus and are driven by vulnerable consumers, instead of the 5% rate applicable until December 31, 2023. The reduced rate of 10% VAT will also apply to natural gas deliveries from January 1 until March 31, 2024. The extension in the tax reduction will also apply to briquettes and pellets from biomass and wood for firewood, which will be taxed at the reduced rate of 10% from January 1 to on June 30, 2024.

• The tax rate of the Special Tax on Electricity is set at 2.5% during the first quarter of 2024, and at 3.8% during the second quarter.

• The suspension of the Tax on the value of the production of electrical energy has been extended until December 31, 2023. It is considered necessary to mitigate this exceptional measure that was adopted by Royal Decree-Law 12/2021, modifying the tax base and the amount of installment payments during fiscal year 2024.

• The application of temporary taxes on energy and credit entities and financial credit establishments approved by Law 38/2022 is extended to 2024, without prejudice to the establishment in the General State Budget Law for the year 2024 of an incentive that It will be applicable in the energy sector for strategic investments made since January 1, 2024 and from the review of the configuration of both taxes for their integration into the tax system in the fiscal year 2024 itself and will be concluded or reached an agreement, respectively. , with the Autonomous Community of the Basque Country and the Foral Community of Navarra.

For more information, do not hesitate to contact our Tax Department.