The Royal Decree-Law 4/2024 (RDL), of June 26, was published in the Official State Gazette (BOE) on June 27, 2024, extending various measures to mitigate the economic and social consequences of the conflicts in Ukraine and the Middle East, in addition to adopting urgent measures in fiscal, energy and social matters.
Among the new tax measures, the following stand out: Regarding VAT , a schedule for applying reduced rates to basic necessities is established. With respect to Personal Income IRPF), the new amounts for the reduction in working hours and the obligation to file a tax return are now legally binding. Furthermore, taxpayers who determine their income using the objective estimation method will be able to apply accelerated depreciation for the purchase of electric vehicles.
With regard to Corporation Tax, on the one hand, accelerated depreciation for electric vehicles and charging points is replaced by freedom of depreciation and, on the other hand, with respect to the capitalization reserve, the reduction increases from 10 to 15% of the amount of the increase in equity and the maintenance period of the increase in equity is reduced from 5 to 3 years.
Below, we outline the main changes introduced in the aforementioned taxes.
- VAT
1.1 Reduction of VAT on food
Seed oils and pasta:
- Extension of the 5% tax rate: From July 1, 2024, to September 30, 2024, the 5% tax rate will remain in effect for deliveries, imports, and intra-Community acquisitions of seed oils and pasta. The equivalence surcharge applicable to these transactions will remain at 0.62%.
- New tax rate of 7.5%: From October 1, 2024 to December 31, 2024, the tax rate is raised to 7.5% and the equivalence surcharge to 1%.
Plain bread, eggs, cheeses, fruits, vegetables, legumes, tubers and cereals:
- Extension of the 0% tax rate: From July 1, 2024, to September 30, 2024, the 0% tax rate is extended for deliveries, imports, and intra-Community acquisitions of these products, as well as for olive oil, whose rate is reduced from 5% to 0%. The equivalence surcharge also remains at 0%.
- New tax rate of 2%: From October 1, 2024 to December 31, 2024, the tax rate is raised to 2% and the equivalence surcharge to 0.26%.
Olive oils:
- Super reduced rate of 4%: From 1 January 2025, olive oils are consolidated as essential foods under the super reduced rate of 4%.
- Corporate tax
2.1 Depreciation freedom for certain vehicles (FCV, FCHV, BEV, REEV or PHEV) and for new charging infrastructure
The current accelerated depreciation (consisting of applying double the maximum linear depreciation coefficient according to officially approved tables) is replaced by free depreciation, provided that it concerns new investments that become operational in the tax periods beginning in 2024 and 2025.
- 2 Capitalization reserve
- Increase in the reduction percentage: With effect for tax periods beginning on or after January 1, 2024, the reduction percentage is increased from 10% to 15% and the maintenance period for the increase in own funds and the unavailability of the capitalization reserve is reduced from 5 to 3 years.
- Transitional regime: A transitional regime is established with respect to the maintenance period of the increase in own funds and the unavailability of the capitalization reserve pending expiration: this 3-year period will also apply with respect to the increase in own funds and the capitalization reserves provided whose maintenance and unavailability period, respectively, had not expired at the beginning of the first tax period that begins on or after 1 January 2024.
- Personal Income Tax (IRPF)
The provisions of Law 35/2006 on Personal Income Tax (IRPF) are transposed into Law 35/2006, through Royal Decree 142/2024, which introduced the modification introduced in the IRPF Regulations, effective January 1, 2024, regarding the increase in the amount of the reduction for obtaining income from work and the obligation to declare.
3.1 Reduction for obtaining income from work
The amount of the reduction for income from employment is increased
- For taxpayers with net employment income equal to or less than 14,852 euros: the amount is 7,302 euros per year.
- For taxpayers with net employment income greater than 14,852 euros, but equal to or less than 17,673.52 euros: the amount is 7,302 euros less the result of multiplying by 1.75 the difference between employment income and 14,852 euros per year.
- For taxpayers with net employment income between 17,673.52 and 19,747.5 euros: the amount is 2,364.34 euros less the result of multiplying by 1.14 the difference between employment income and 17,673.52 euros per year.
- 2. Obligation to declare
As a result of the increase in the amount of the minimum interprofessional wage (SMI) to €15,876 per year, the amount of gross annual salary from which IRPF begins to be paid goes from €15,000 to €15,876.
3.3 Deduction for habitual and effective residence on the island of La Palma during the tax periods 2022, 2023 and 2024
As a consequence of the extension of the deduction for income obtained in Ceuta and Melilla to that obtained also on the island of La Palma carried out by the General State Budget Law for the year 2023, Royal Decree 1008/2023 clarified that the references contained therein to Ceuta and Melilla shall also be understood to refer to the island of La Palma.
This rule extends the deduction for the year 2024, specifying that it will only be applicable to determine the withholding tax rate and advance payment to be made on income to which the aforementioned deduction applies, which was paid after the entry into force of Royal Decree-Law 4/2024, of June 26, which extends certain measures to address the economic and social consequences of the conflicts in Ukraine and the Middle East and adopts urgent measures in fiscal, energy and social matters, or to determine the rate of the installment payment corresponding to economic activities entitled to it whose filing period had not yet begun at the time of the entry into force of said Royal Decree-Law.
3.4 Depreciation freedom for certain vehicles and new charging infrastructure
Taxpayers who determine their income using the objective estimation method may apply a freedom of amortization for investments in new FCV, FCHV, BEV, REEV or PHEV vehicles and for charging points.
For the calculation of capital gain or loss, in the event of transfer of vehicles or charging installations that have enjoyed freedom of depreciation, it is established that the acquisition value will not be reduced by the amount of the tax-deducted depreciation that exceeds that which would have been tax-deductible had it not been applied, the aforementioned excess having, for the transferor, the consideration of the full income of the economic activity in the tax period in which the transfer is made, whatever the method of determination of the latter.
- Property Tax (IBI) and Economic Activities Tax (IAE) on the Island of La Palma
The tax benefits established in the IBI and IAE by article 25 of Royal Decree-Law 20/2021 are extended for the year 2024, in support of the economic and social reconstruction of the island after the volcanic eruptions.
You can contact this professional office for any questions or clarifications you may have.
Warm regards,
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A Àmbit Assessor, SL has 40 years dedicated to the tax, comptable and labor consultancy of the Pime.
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