Income Tax 2018: News and Key Dates

2 April 2019

Deductions for maternity and paternity leave, new tax relief for self-employed individuals, and increased deductions for investments in new companies are some of the new features of the 2018 Income Tax campaign. Today marks the start of the 2018 Income Tax declaration campaign, which this year will run until June 26 if the declaration is favorable to the taxpayer, or July 1 if it is unfavorable. June 28 will be the last day to request an appointment for both in-person and telephone declarations. However, administrative agencies and experts recommend thoroughly analyzing and reviewing each case before submitting the declaration, notifying the current personal situation. One of the main novelties this year is that paper declarations are eliminated, and submissions will be made via the website, mobile application, or phone. Individuals wishing to submit in person must request an appointment by phone, internet, or mobile app starting May 9, and can submit their declaration from May 14. The Tax Agency expects more than 20 million declarations to be submitted during the campaign, 70 percent of which will be eligible for a refund.   These are the main new features of the 2018 income tax campaign:
Self-employed individuals can deduct rent, utilities, and maintenance expenses
Self-employed individuals working from home can deduct 30% of their home’s rent and utility expenses where they carry out their activity. Additionally, they can deduct €26.67 per day for food, or €48.08 if the activity was performed abroad. If an overnight stay is involved, the amount increases to €53.34 and €91.35 abroad. To be eligible for these deductions, payment must have been made electronically.  
Deductions for investments in entrepreneurial companies increase to 30%
Individuals who have invested in newly created companies can deduct 30% of the amount with a maximum base of €60,000. Until now, the maximum limit was €50,000, which was 20% of the investment amount.  
Income from two payers: the minimum income for not declaring increases
Taxpayers with two payers and income below €12,643 are not obliged to file an income tax return. Until now, the minimum income for not declaring in these cases was €12,000. If income comes from a single payer, taxpayers are obliged to declare from €22,000.  
Deduction of up to €1,000 for nursery school expenses
One of this year’s novelties affects families with young children. In addition to the exemption from paying personal income tax on maternity and paternity benefits, working mothers can deduct up to €1,000 – additional to the €1,200 annual amount already in force – for nursery school expenses.  
Increased bonus for large families
This year, the bonus for large families has been increased by an additional €600 for each child from the fourth onwards, an amount that is added to the €1,200 annual amount already received. However, for the 2018 tax year, only a proportional deduction from August to December 2018, approximately €250, will be applied.  
€500 bonus if spouse has a disability and low income
In cases where the spouse has a disability and an income below €8,000, a deduction of €1,200 annually will be applied between the months of August and December. This deduction, like that for large families, came into effect in August, so for the 2018 tax return, only €500 can be deducted.

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