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New regulations for 2023

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Main tax changes introduced by Royal Decree 31/2023, of January 24, which modifies the Personal Income Tax Regulations, approved by Royal Decree 439/2007, of March 30, to comply with the measures contained in the Artist's Statute regarding withholdings

Real Decreto 31/2023, de 24 de enero,

por el que se modifica el Reglamento del Impuesto sobre la Renta de las Personas Físicas, aprobado por el Real Decreto 439/2007, de 30 de marzo, para dar cumplimiento a las medidas contenidas en el Estatuto del Artista en materia de retenciones.

PERSONAL INCOME TAX (IRPF)

With effect from January 26 2023 the following changes are introduced to the Personal Income Tax Regulations (RIRPF).

  • Type Minimum withholding applicable to certain work performance.

    Section 2 of article 86 of RIRPF is modified by the single article of Royal Decree 31/2023 so that,

    The minimum withholding rate applicable to employment income derived from a special employment relationship of artists who carry out activity in the performing, audiovisual and musical arts, as well as of persons who carry out technical or auxiliary activities necessary for the development of said activity is reduced from ##1## 15% to ##1## 2%.

    The percentage will be 0.8% when work income benefits from the deduction provided for in article 68.4 of the Personal Income Tax Law (deduction for income obtained in Ceuta and Melilla) and for fiscal year 2023, also in the case of income obtained on the island of La Palma by taxpayers with habitual and effective residence on that island ( DA 57 LIRPF introduced by LPGE by 2023).

  • Type of withholding applicable to certain economic activities

    Section 1 of article 95 of RIRPF is modified by the single article of Royal Decree 31/2023 so that,

    The withholding rate is reduced from 15% to 7% in the following cases:

    • Taxpayers who carry out activities included in groups 851, 852, 853, 861, 862, 864 and 869 of the second section of Rates of IAE .

    • Taxpayers who carry out activities in groups 01, 02, 03 and 05 of the third section of the IAE Rates.

    • When the consideration derives from a provision of services that, due to its nature, if performed on behalf of others, would be included in the scope of application of the special employment relationship of artists.

    In any of these cases, it is necessary that the volume of gross income from all such activities corresponding to the immediately preceding year be less than 15,000 euros and represent more than 75% of the sum of the gross income from economic activities and work obtained by the taxpayer in said year.

    The percentage will be reduced by 60% when the income benefits from the deduction provided for in article 68.4 of the Personal Income Tax Law (deduction for income obtained in Ceuta and Melilla) and for the year 2023, also in the case of income obtained on the island of La Palma by taxpayers with habitual and effective residence on that island ( DA  57 LIRPF introduced by LPGE by 2023).