The adequacy of personal income tax to the characteristics of the taxpayer and his family is specified in the personal and family minimum whose function is to quantify that part of the income that, because it is used to satisfy the basic personal and family needs of the taxpayer, is not subject to income tax taxation.
To ensure the same reduction in the tax burden for all taxpayers with the same family situation, regardless of their income level, the amount corresponding to the personal and family minimum no longer reduces the income obtained in 2018 to determine the tax base, but becomes part of the taxable base to be taxed at zero rate. Thus, taxpayers with the same personal and family circumstances achieve the same tax savings, whatever their income level.
General rules
The personal and family minimum is the result of adding the amounts corresponding to the taxpayer, descendants, ascendants and disability minimums of the taxpayer, his ascendants or descendants.
The regulations that regulate the financing system of the autonomous communities under the common regime grant them normative powers over the amount of this minimum applicable for the calculation of the regional tax, with a maximum limit of 10%. This regulatory capacity has been developed in the Balearic Islands, the Community of Madrid and the Autonomous Community of La Rioja.
Minimum per taxpayer
The taxpayer’s minimum is, in general, 5,550 euros per year, with an increase of 1,150 euros per year in the case of taxpayers over 65 years of age and 1,400 euros per year for those over 75 years of age.
In the event of death of the taxpayer, the amount of the taxpayer’s minimum is applied in its entirety without the need to make any proration based on the number of days that the tax period governs.
In the event that a joint declaration is made, the children do not give the right to apply the taxpayer’s minimum, without prejudice to the fact that they grant the right to the family minimum for descendants and for disability, provided that they meet the requirements for this purpose. Neither does the other spouse entitle the other spouse to apply the minimum, without prejudice to the fact that the aforementioned increase in the taxpayer’s minimum is computable, if his age is greater than 65 years and 75 years, as the case may be.
The personal and family minimum is applied to reduce the general part of the income for the period, up to the maximum amount that this magnitude allows, without this being negative as a result of this operation. The excess, if any, will be applied to reduce the taxable savings base, which may not be negative as a result of the reduction.
Minimum per descendants
For the purposes of applying the minimum by descendants, children, grandchildren, great-grandchildren, etc., who descend from the taxpayer and who are linked to the latter by a direct line of kinship, both by consanguinity and by adoption, are considered as such, without being understood to include persons linked to the taxpayer by kinship in a collateral line (nephews) or by affinity (stepchildren).
Also assimilated to the descendants, for these purposes, are the people linked to the taxpayer by reason of guardianship or foster care or those who have been assigned guardianship and custody by judicial resolution.
The determination of the family circumstances that must be taken into account for the application of this minimum will be carried out taking into account the situation existing on the date of accrual of the tax (normally, December 31 or, where appropriate, the date of death of the taxpayer ).
If, for example, both parents are entitled to the application of the family minimum for the same descendant (with the same degree of kinship), its amount is apportioned between them in equal parts.
Different is the case of taxpayers with a different degree of kinship with the descendant that gives the right to apply the family minimum (for example, parents and grandparents), its amount, in this case, corresponds entirely to those of the closest degree (parents) , unless they do not have annual income, excluding exempt income, of more than 8,000 euros per year, in which case it will correspond to the grandparents.
To be entitled to the minimum for descendants, they must be under 25 years of age on the date of accrual of the Tax. In the case of descendants with a degree of disability equal to or greater than 33%, the minimum can be applied regardless of their age, provided that the remaining established requirements are met.
Another requirement for receiving the minimum is that the descendant lives with the taxpayer, although in cases of legal marital separation, if custody is shared, the family minimum for descendants is apportioned between both parents, regardless of the one with whom are living together on the date of accrual of the tax.
In the event that the regulatory agreement, judicially approved, has assigned the guardianship and custody of the children on the date of accrual of the tax, it will be the one who applies the minimum, as it is the person with whom the descendants, but nevertheless, in that case It must be taken into account that economic dependence is assimilated to coexistence, unless annuities are paid for food in favor of said children that are taken into account for the calculation of the full quota.
With regard to the limitations for the income of the descendants, the regulations limit the application to the fact that the descendant has not obtained income in excess of 8,000 euros per year in the 2018 financial year, excluding income exempt from tax and, on the other hand, that the descendant does not present Income tax return with income over 1,800 euros.
It is important to bear in mind that among the modalities that appear as family units, the one formed by the guardian and the person under guardianship is not contemplated, nor the case of foster care or, outside these cases, of those who have been assigned by judicial resolution their guardianship and custody, which prevents any possibility of jointly paying income tax in such cases.
Applicable amounts
The applicable amounts are 2,400 euros per year for the first; 2,700 euros for the second; 4,000 euros per year for the third party; and 4,500 euros per year for the fourth and following. In the event of the death of a descendant who generates the right to the minimum for this concept, the applicable amount is 2,400 euros.
The order number of the descendants, including the persons linked to the taxpayer by reason of guardianship and foster care in the terms provided for in civil legislation or to those who have been assigned guardianship and custody by judicial resolution, will be assigned based on the age of those who give the right to apply this minimum for descendants, beginning with the oldest and without computing for these purposes those descendants who, if applicable, had died in the year prior to the date of accrual of the tax.
Under three years
In cases where the descendant is under three years of age, the corresponding minimum of those indicated above will be increased by 2,800 euros per year.
In the cases of adoption or foster care, both pre-adoptive and permanent, said increase, regardless of the age of the minor, will be applied in the tax period in which it is registered in the Civil Registry and in the following two.
When the registration is not necessary, the increase may be practiced in the tax period in which the corresponding judicial or administrative resolution is produced and in the following two.
If the adoption of a minor who had been in foster care takes place, or there is a change in the foster care situation, the increase in the amount of the minimum for descendants will be carried out during the remaining tax periods until the maximum period of three years.
The increase for descendants under three years of age is applicable in cases in which the descendant has died during the tax period.
Minimum per ascendant
Parents, grandparents, great-grandparents, etc. are considered ascendants. from whom the taxpayer descends and who are linked to him by kinship in a straight line by blood or by adoption, without including persons linked by kinship in a collateral line (uncles, or great-uncles) or by affinity ( inlaws).
To be included in the family minimum, they must be over 65 years of age or, whatever their age, be a person with a degree of disability equal to or greater than 33%; live with the taxpayer for at least half of the tax period; not having obtained in the 2018 financial year income of more than 8,000 euros per year, excluding exempt income; and not submit a personal income tax return with income greater than 1,800 euros.
The amounts of the minimum for ascendants is 1,150 euros per year for each one and an additional 1,400 euros per year for each ascendant over 75 years of age. In the event of the death of an ascendant who generates the right to the minimum for this concept, the applicable amount is 1,150 euros, without proration over the year.
When two or more taxpayers are entitled to the application of the minimum with respect to the same ascendants, its amount will be apportioned between them in equal parts.
Minimum for disability
The minimum for disability is the sum of the minimums that correspond to the minimums for disability of the taxpayer and for disability of ascendants or descendants. Depending on the degree of disability of the taxpayer, the minimum may be 3,000 euros per year if it is a person with a degree of disability equal to or greater than 33% and less than 65%. And it will be 9,000 euros per year when it is a person with a degree of disability equal to or greater than 65%.
The taxpayer’s disability minimum will be increased, in terms of assistance expenses, by 3,000 euros per year when he proves that he needs help from third parties or reduced mobility, or a degree of disability equal to or greater than 65%. The minimum for disability of ascendants or descendants is endowed with the same amounts that correspond to the minimum for disability of the taxpayer.
Degree accreditation
The degree of disability must be accredited by means of a certificate or resolution issued by the Institute of Migration and Social Services (Imserso) or the competent body of the autonomous communities. Royal Decree 1971/1999, of December 23, regulates the procedure for the recognition, declaration and qualification of the degree of disability.
The need for help from third parties to get to their place of work or perform the same, or reduced mobility to use collective means of transport, must be accredited by means of a certificate or resolution from Imserso or the competent body of the autonomous communities. The application of the minimum due to disability of ascendants or descendants is conditioned to the fact that each one of them generates the right to the application of the respective minimum. If they depend on two taxpayers, it will be prorated. And they should not declare more than 1,800 euros…
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