The Tax and Customs Administration has made an ‘online’ service available for taxpayers to see whether the tax reduction has been applied
The Income Campaign will start in April and depending on whether you are going to do the process in person, ‘online’ or by phone, the date for your presentation will be different. This 2023, you must also take into account the novelties introduced by the government that have already entered into force. The approved tax credit reduced the amount that the Treasury requires taxpayers to report on the income statement. A change that has a direct impact on the personal income tax withholding applied to employees’ payroll.
Taxpayers with an income of less than 15,000 euros are now exempt from making an income statement. Previously, this threshold was 14,000 euros, so since January 2023 no income tax withholding is applied to these employees. This part that is deducted from the salary each month is the advance that is paid to the Tax and Customs Administration of what you ultimately have to pay on the income statement. In addition, the deductions for salaries below 35,200 euros are falling. This tax cut will benefit 9 million workers who will see their wages rise.
With all of these changes happening this year, many will have questions about these deductions. You use a tool from the Tax and Customs Administration to calculate the income tax withholding in 2023. With this ‘online’ service you know approximately how much discount will be deducted from your salary. To use the tool, you need to go to the official website of the Tax and Customs Administration and follow the following route: Home / All How To / Help / Download Tools / Deductions. In this last section, you have already enabled the deduction calculation service (as of February 1).
You do not need to have an electronic certificate or Cl@ve. Once you click on the link, you will need to fill in the form with your personal, economic and regularization data, as well as the required information about your ancestors and descendants. Once you’ve filled out the different pages, click on the last results section to see how much personal income tax you’d have to pay.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
