March 25, 2023

In less than a month – from April to June – taxpayers must submit the 2022 Income Statement The former are the most common income included in personal income tax and are salaries, but also, for example, pensions or other benefits .

It is possible that throughout the year you receive different work performances. This is the case of taxpayers with two jobs, who have been unemployed and working during the year or have changed jobs. This matters with regard to the Income statement because it implies that there are already two or more payers.

Declaration obligation

The main difference between having one or more payers is the obligation to submit the Income Statement. The Tax Agency establishes that taxpayers with work income of more than 22,000 euros per year have to declare. But that limit is lowered to 14,000 euros per year, when the taxpayer has collected more than 1,500 euros from the second and the rest of the payers.

Despite this difference, the number of payers does not determine the taxpayer’s tax treatment. In other words, having one or more payers does not oblige you to pay more taxes, specifically personal income tax. For all, and without difference, tax rates between 19% and 47% are applied depending on the income brackets, once deductions and reductions have been applied, depending on personal circumstances.

Attention to retention

However, it is possible that the declaration will be paid to the Treasury if the payers are not applying the correct personal income tax withholding. It is an advance of what corresponds to each worker to pay for the Personal Income Tax (IRPF) and it is applied by the payers themselves on the salary and according to the personal circumstances of each taxpayer.

It must be taken into account that the payers calculate the withholding based on the income obtained by the worker from that company, but the sum of all the income –from various payers- may entail an obligation. This implies that, throughout the year, the taxpayer has paid less personal income tax than what corresponds to him and the Income statement serves to adjust the difference.

In the payroll each worker can know what is the withholding that is being applied to him. From the gross salary, money is withheld as an advance payment of Personal Income Tax (IRPF). In the case of beneficiaries of public benefits, Social Security makes available a Certificate of withholdings and income on account of personal income tax to find out the applied imports.

Request an increase in withholding

The taxpayer can request an increase in withholding if he calculates that, because he obtains more income from other payers, he will receive a higher tax rate. For example, Social Security offers the possibility of requesting a voluntary increase in personal income tax withholding, while workers can also do the same with their companies.

The objective is to avoid that the Income does not have the result of paying the treasury, that is, that the declarations applied as an advance of the IRPF are correct. However, when contributing you may also be interested in paying the difference in a single payment when presenting the Income statement. The important thing is to know that the number of payers does not imply more or less taxes and that each taxpayer can assess when to pay the Personal Income Tax, whether throughout the year or with the declaration to pay.

Of course, withholding is mandatory and the request for a reduction of the personal income tax applied will not always be accepted. Payers must apply a minimum and can only be further reduced in certain exceptional cases provided by law.

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