FAQs

ILT benefits will be reflected in the section “PERCEPTIONS (distinguishing between CASH OR IN-KIND) DERIVED FROM WORK DISABILITY”:

• Those paid directly by the employer (under the respective collaboration agreement with Social Security), in key A.

• those paid directly to the worker by one of the public Social Security or Passive Class regimes or, where applicable, by the respective Mutual Collaborator with Social Security, in key B subkey 01. It is not possible to reflect in this subkey B.01 benefits in kind resulting from work incapacity.

If the benefits are monetary, the field “CASH PERCEPTIONS DERIVED FROM WORK DISABILITY” of key A, of form 190, will be completed when the company pays benefits for temporary work disability by virtue of collaboration in management with Social Security, whether this collaboration mandatory or voluntary in nature.

Likewise, when, exceptionally, the employer pays benefits for work incapacity in the form of benefits in kind , these will be recorded in the field "PERCEPTIONS IN KIND DERIVED FROM WORK DISABILITY", the sum of the valuations corresponding to said benefits in kind derived from work incapacity actually paid in the fiscal year to the recipient in question will be recorded, determined in accordance with the provisions of article 43 of the Tax Law and with the corresponding breakdown (see the example following question).

That is, the amounts paid by the company by virtue of voluntary collaboration with Social Security regulated in sections a) and b) of art. 102.1 of the Revised Text of the General Law on Social Security approved by Royal Legislative Decree 8/2015, as well as the amounts paid in the cases of compulsory collaboration referred to in section c) of said article, must be included in these fields of key A.

In these cases, the total annual amounts considered by the paying entity for the purposes of calculating the withholding rate will be entered in the fields corresponding to the “Additional data” section.

Example:

Self-employed with the following data as of 31/12/2023:

Personal : Born in 1975, with a permanent contract, married and with a dependent child under three years of age and with the right to the deduction for geographical mobility beginning in 2023.

Economic : Monetary perceptions: €21,000 (reductions for irregularities, 2,000 ); benefits in kind (not derived from work incapacity), 1,000 euros. A retention percentage of 2.62 % (21,000 x 0.0262 = €550.20, and 1,000 x 0.0262 = €26.20) and deductible expenses of €1,250 . The payment on account is not passed on to the worker.

On the other hand, due to being on sick leave (ILT), he received earnings of 1,300 euros (paid by the employer) and deductible expenses of 100 €. Of these, 1,050 has been paid to him in cash, with a deduction of €27.51 (1,050 x 0.0262), and the remainder (€250) in the form of compensation in kind derived from said incapacity, with the corresponding advance payment of €6.55 (250 x 0.0262), an advance payment that has been fully passed on to him.

In addition, he must pay his ex-spouse 2,300 euros annually in alimony.

All of these data will be reflected in model 190, by the employer, in the same recipient record, Key A, by completing the following fields:

Additional data:

No. If during the year, the employer pays the employee employment income in the form of “CASH PERCEPTIONS (and/or, where applicable, PERCEPTIONS IN KIND) NOT DERIVED FROM WORK DISABILITY” as well as “CASH PERCEPTIONS DERIVED FROM WORK DISABILITY” or “PERCEPTIONS IN KIND DERIVED FROM WORK DISABILITY”, all of them will be reflected in key A, in its different fields, in a single recipient record, with the corresponding breakdown (see example previous question), provided that all of them correspond to the same accrual year.

The payment of the disability benefit resulting from a common illness or non-work-related accident that the company must pay to the worker between days 4 and 15 (both inclusive) following the leave will be recorded in key A, in the field “ Cash benefits resulting from disability ” (or, where appropriate, in the field “In-kind benefits resulting from disability”, also in key A), given its nature as a disability benefit paid by the company.

These voluntary benefit supplements, like other types of salary supplements that the employer may pay to its workers, constitute a remuneration concept distinct from the disability benefit, which must be reflected within key A, in field Monetary (or, where appropriate, in kind) benefits not derived from disability .

In key B, subkey 01, within the field “Perceptions derived from work incapacity” of form 190 corresponding to 2016, the benefits for temporary work incapacity paid by the INSS or the mutual collaborator with the SS will be included, when they are responsible for direct payment, that is, when:

• This concerns entities and organisations excluded from delegated payment.

• For failure to comply with the employer's obligation to delegate payment.

• Companies with fewer than 10 employees and more than 180 consecutive days of subsidy payment upon request.

• Termination or suspension of the employment relationship when the worker is in a situation of ILT.

• Medical discharge based on a report proposed by unemployment benefit recipients.

• Continuation of the ITL situation, unemployment period having ended.

• In the event of exhaustion of the ITL after the maximum period of 545 days has elapsed, during the extension of the economic effects of the benefit until the qualification of permanent disability.

• When it comes to trade representatives, bullfighting professionals and artists. In the latter cases, when the duration of the contract does not exceed 30 days.

• For extending the benefit after 365 days of ITL, following the INSS resolution.

Direct payment benefits paid by Social Security or, where applicable, collaborating mutual insurance companies of Social Security for maternity, paternity or risk during pregnancy are not considered benefits for work incapacity, and must be recorded by the paying entity in the corresponding code; specifically:

• Maternity or paternity benefits , given their exempt nature, in Key L, Subkey 27 ⁽¹⁾

• The pregnancy risk benefit (regulated in article 186 of chapter VIII, Title II of Royal Legislative Decree 8/2015, which approves the Revised Text of the General Social Security Law), not exempt from taxation because it is not within any of the assumptions provided for in letters h) oz) of Law 35/2006, of Personal Income Tax , in Key B, Subkey 03 (this benefit is also different from the temporary disability benefit).

⁽¹⁾ If the maternity benefit or subsidy is paid by the paying entity itself, this subkey L.27 must also be entered to reflect the amounts paid for these concepts (with the limits established in paragraphs 2 and 3 of art. 7.h) of the Tax Law).^(Back)

In the field “Withholdings made on benefits derived from work incapacity” the amount of the withholdings on account of personal income tax resulting from applying the general withholding rate determined in accordance with the provisions of articles 80 and following of the Personal Income Tax Regulations to the amount of the monetary benefit for temporary work incapacity will be recorded.

When exceptionally the employer pays benefits for work incapacity in the form of benefits in kind , these will be recorded in the field “Perceptions in kind derived from work incapacity”, entering in the subfield “Valuation of the perception in kind derived from work incapacity; the sum of the valuations corresponding to said payments in kind arising from work incapacity actually paid in the year to the recipient in question, determined in accordance with the provisions of article 43 of the Tax Law and with the corresponding breakdown.

Likewise, the subfield “Payments on account made for benefits in kind arising from work incapacity” shall record the annual amount actually paid on account by the payer in relation to payments in kind arising from work incapacity, resulting from applying to the amount of the benefit in kind for temporary work incapacity the general withholding rate determined in accordance with the provisions of articles 80; and following of the Personal Income Tax Regulations.

Finally, if part or all of the aforementioned payment on account made by the payer on the amount of the benefit in kind paid resulting from work incapacity has been passed on to the worker, such passed on amounts must be recorded in the subfield “INCOME ON ACCOUNT PASSED ON FOR BENEFITS IN KIND DERIVED FROM WORK INABILITY”.

(See example for the third question).

Regardless of the fact that the recipient is exempt from income tax, it is important to remember that the entities that pay these benefits, grants, or scholarships, and other exempt amounts, are required to record in Form 190 the amounts paid to each of the recipients, regardless of their amount, identifying the type of benefit paid in the key (L) and corresponding subkey (01 to 31 and 99). Thus, by way of example only, the following benefits must be declared within Key L:

• Public benefits for foster care and other aid exempt from article 7.i) of the Personal Income Tax Law, in subkey L.09
• Exempt scholarships, regardless of their amount, in subkey L10
• Public economic benefits paid under the Dependency Law, exempt by article 7.x) of the Personal Income Tax Law, in subkey L.19
• Aid established by Autonomous Communities or by local entities to attend, in accordance with their regulations, to groups at risk of social exclusion , situations of social emergency, housing needs of people without resources or food needs, schooling and other basic needs of minors or people with disabilities when they and the people in their care lack sufficient financial means, which are exempt by virtue of the provisions of the first paragraph of letter y) of article 7 of the Tax Law, (without including in this sub-key the economic benefits established by the Autonomous Communities in the form of minimum insertion income that must be recorded in sub-key 28). They must be declared in subkey L.22.

  It is recalled that the excess over 1.5 of the IPREM ⁽¹⁾( €11,279.39 in 2020, €11,862.90 in 2021, €12,159.42 in 2022 and €12,600.00 in 2023) is income subject to tax. The excess is considered work performance (V1978-17), monetary or in kind; Therefore, when a declarant of one of these exempt incomes exceeds, based on the remuneration he/she receives individually, this limit, he/she must report this excess in form 190 with code B.03.

• Public maternity or paternity benefits exempt from personal income tax.They must be entered in subkey L.27.

  The amount exempt from the remuneration or benefits referred to in this sub-key will be limited to the amount of the maximum benefit recognized by Social Security for the corresponding concept. Any excess will be taxed as work income with code A.

• Economic benefits established by the Autonomous Communities in the form of minimum insertion income to guarantee economic subsistence resources to people who lack them and who are exempt by virtue of the provisions of the first paragraph of letter y) of article 7 of the Tax Law, (without including in this sub-key the rest of the exempt aid established in this first paragraph of letter y) that must be recorded in sub-key 22 above). They must be entered in subkey L.28.

  It is recalled that the excess over 1.5 of the IPREM ⁽²⁾(€11,279.39 in 2020, € in 2021, €12,159.42 in 2022 and €12,600.00 in ) is income subject to tax. This excess is considered work income (V1978-17), therefore, when a declarant of one of these exempt incomes exceeds, based on the remuneration that he/she pays individually, this limit, he/she must report this excess in form 190 with code B.03.

• Economic benefit from Social Security corresponding to the Minimum Vital Income, which must be recorded in subkey L.29.

  It is recalled that the excess over 1.5 of the IPREM ⁽³⁾(€11,279.39 in 2020, € in 2021, €12,159.42 in 2022 and €12,600.00 in ) is income subject to tax. This excess is considered work income (V1978-17), therefore, when a declarant of one of these exempt incomes exceeds, based on the remuneration he/she pays individually, this limit, he/she must report this excess in form 190 with code B.03.

⁽¹⁾ Annual IPREM 2020: €7,519.59 / annual IPREM 2021: €7,908.60 / annual IPREM 2022: €8,106.28 / annual IPREM 2023: 8,400.00 €. This limit, 1.5 times the IPREM, is common to all the amounts reflected in subkeys L.22, L.28 and L.29.^(Back)

⁽²⁾ Annual IPREM 2020: €7,519.59 / annual IPREM 2021: €7,908.60 / annual IPREM 2022: €8,106.28 / annual IPREM 2023: 8,400.00 €. This limit, 1.5 times the IPREM, is common to all the amounts reflected in subkeys L.22, L.28 and L.29.^(Back)

⁽³⁾ Annual IPREM 2020: €7,519.59 / annual IPREM 2021: €7,908.60 / annual IPREM 2022: €8,106.28 / annual IPREM 2023: 8,400.00 €. This limit, 1.5 times the IPREM, is common to all the amounts reflected in subkeys L.22, L.28 and L.29.^(Back)

Only maternity or paternity benefits/payments paid throughout the entire 2018 financial year (currently, childbirth or child care benefits) paid by the following paying entities will be included in this subkey L.27:

• Social Security.
• Social Security Mutual Societies that act as alternatives to the special Social Security regime for self-employed workers, recognized to professionals not integrated into the aforementioned special Social Security regime, provided that the benefits are in situations identical to those provided by Social Security for professionals integrated into said special regime, and with the limit of the maximum benefit amount recognized by Social Security for such concepts (the excess, if applicable, will be taxed as work income, subject to withholding, which must be recorded in key A of form 190, together with the rest of the non-exempt remuneration paid to the same recipient).

• In the case of public employees not integrated into the Social Security, the remuneration received from their paying entity during the leave for childbirth, adoption, guardianship and paternity referred to in letters a), b) and c) of article 49 of the consolidated text of the Basic Statute of the Public Employee, approved by Royal Legislative Decree 5/2015, of October 30, or that recognized by the specific legislation that is applicable to them for situations identical to those provided for above, will be exempt and with the limit of the amount of the maximum benefit recognized by Social Security for such concepts (the excess, if applicable, will be taxed as employment income, subject to withholding, which must be recorded in key A of form 190, together with the rest of the non-exempt remuneration paid to the same recipient).

• Public maternity benefits received from the Autonomous Communities or local entities.

It should be noted that in this subkey L.27 only maternity or paternity benefits must be reflected in the terms indicated above. The rest of the exempt benefits included in letter h) of article 7 of the Personal Income Tax Law must be recorded in subkey L.08.

The child aid supplement provided for in article 11.6 of Law 19/2021, of December 20, which establishes the Minimum Vital Income, came into force on January 1, 2022.

This supplement, may be granted to the beneficiary as an integral part of the IMV itself or, in certain cases , in a differentiated manner.

In both cases it is considered as a benefit paid in the form of Minimum Vital Income, to be recorded in subkey L.29 , subject to the exempt limit established in article 7.y) of Law 35/2006 on Income Tax (€12,159.42 in 2022 and €12,600.00 in 2023 ; which is equivalent to 1.5 times the Public Indicator of Multiple Effects Income -IPREM - which amounts to €8,106.28 in 2022 and €8,400.00 in 2023).

Any excess over this limit will be included in form 190, with code B.03 , as these are similar benefits and aid provided for in article 17.2.a). 1 of the Income Tax Law, other than pensions and passive assets.

It is important to remember that this limit is the same for the amounts reflected by the paying entity in keys L.22, L.28 and L.29 (that is, when, in addition to the minimum vital income, other aid is received for groups at risk of social exclusion, such as the minimum insertion income, guaranteed income and similar aid from Autonomous Communities and City Councils).

When the minimum vital income is met, it must be indicated whether or not said benefit includes a supplement for child support in any of the monthly payments paid in the year, by completing the “Supplement for child support” field.

Royal Decree-Law 6/2019, of March 1, modifies, with effect from March 8, 2019, Royal Legislative Decree 8/2015 approving the Revised Text of the General Social Security Law, merging the previously named "Maternity Benefit" and "Paternity Benefit" into this new "Benefit for birth and care of a minor" without distinction of sex as to the recipient of the benefit.

The aforementioned benefit must be recorded in form 190 of the paying entity with key L, and subkey 27 (Public maternity or paternity benefits exempt from personal income tax), since it is simply a formal change in the name of the aforementioned maternity/paternity benefits, which are now called "Benefit for birth and care of a minor".

A protected situation is considered to be a reduction in the working day by half an hour, which in accordance with the provisions of article 37.4 of the Revised Text of the Workers' Statute Law, is carried out with the same duration and regime by both parents, adoptive parents, guardians for adoption purposes or permanent foster parents, when both work , for the care of the infant from the age of nine months to twelve months.

This is a new benefit, regulated in articles 183 to 185 of the Revised Text of the General Law of Social Security  

The aforementioned public benefit is exempt from taxation under letter z) of article 7 of the LIRPF. Therefore, must be entered in form 190, with code L.20.

In accordance with Royal Decree 1148/2011, of July 29, for the application and development, in the Social Security system, of the economic benefit for the care of minors affected by cancer or other serious illness, the aforementioned benefit, in the nature of a subsidy, is intended to compensate for the loss of income suffered by the interested parties when having to reduce their working hours, with the consequent decrease in wages, caused by the need to directly, continuously and permanently care for the children or minors in their care, during the time of hospitalization and continued treatment of the illness. The subsidy is therefore predetermined by the actual reduction in working hours and the circumstances in which this is carried out by the workers.

The DGT has issued its opinion on this matter in binding consultations (among others, V2599-16, V0196-17 or V1628-18), confirming that said benefit is exempt from taxation in the Personal Income Tax pursuant to the provisions of letter z) of article 7 of the Personal Income Tax. Therefore, must be entered in form 190, with code L.20.

The regulation that approved this regularization was Order PCM/1353/2021, of December 2, which establishes an update of the contribution bases as of 09/01/2021, with the contribution differences derived from the update of the contribution bases having to be entered with a deadline until 06/30/2022 .

Regarding the tax charge, in accordance with query V2625-21 of the DG of Taxes, if the adjustments are made from January 2022, it must be understood, in line with the aforementioned binding consultation of the DGT, that they must be deducted from the worker's payroll in 2022, constituting higher deductible expenses for the latter in the year 2022, year in which they become payable and not before. They will therefore be included in Form 190 for the 2022 financial year to be submitted in January 2023.

The aforementioned provision states that, "in the area of autonomous communities and local entities, payment must be made before December 31, 2022 and, in any case, before March 31, 2023."

As a general rule, remuneration must be attributed to the moment in which it is payable by the recipient, in accordance with the provisions of art. 14.1.a) of the Personal Income Tax Law, without prejudice to its consideration as arrears if it is paid after the year in which it becomes payable, for reasons not attributable to the recipient (art. 14.2.b Personal Income Tax Law).

However, in those cases in which the Autonomous Community or Local Corporation adopted the agreement on the salary increase in the first quarter of 2023, the enforceability and, therefore, the imputation will occur in the year 2023 (in this sense, the consultation of the General Directorate of Taxes V1175-17 ).

The remuneration to be reported with code E (directors, managers and similar) must be completed differently in the case of the corresponding self-assessments (form 111), compared to the way in which they must be declared in form 190. 

MODEL 111: When the withholding entity must pay the withholdings in proportion to the State and to one or more of the Provincial Treasuries, and pays benefits of key E, in the state model 111 only the withholdings are self-assessed in proportion to the percentage of the volume of operations that corresponds to the common territory (Corporate Tax); In the corresponding self-assessment models for withholdings to the regional treasury, the withholdings are self-assessed in the proportion that corresponds to each regional treasury.

MODEL 190: However, and provided that the withholding entity pays corporate tax ⁽*⁾ in proportion to the volume of transactions with the State Treasury and with one or more of the regional treasuries, when including these benefits with key E (only these) in Form 190, must be reflected in all of the benefits paid to the counselor (in field 12 “Full earnings”, positions 82-94) and in all of the withholding made (in field 13, “Withholdings made”, positions 95-107) on that remuneration, regardless of the State or regional Treasury where the withholdings had to be paid.

This difference in the way of declaring in model 111 and in model 190 derives from the provisions of articles 46.1, third paragraph, of both the Economic Agreement with the Basque Country (Law 12/2002), and the Economic Agreement with the Foral Community of Navarra (Law 28/1990):

Entities that are subject to the Corporate Tax required by the State and the Provincial Councils must submit annual summaries of withholdings and payments on account corresponding to these incomes, in accordance with the rules on place, form and deadline for filing declarations established by each of the competent Administrations for their collection, including the total of the incomes and the withholdings corresponding to them in the declaration submitted to each of them.

That is, for this type of benefits with key E, there was no match between the amounts reflected in the self-assessment models of the withholdings (when there are partial payments to the State Treasury and to the Provincial/ies) and the information that must be reflected in the annual summary model of withholdings. It is due to this discrepancy that, starting in the 2023 financial year, in the State model 190, it will also be required to individually record the withholdings paid to each Treasury, whether it is the state one or one or more of the regional ones .

⁽*⁾ For further clarification on the percentage of taxation to be applied, the following criterion can be consulted :

Declaration of certain withholdings by entities that form part of a tax group (agenciatributaria.gob.es)

How should all this data be entered in Form 190?

In the State model 190, in a Recipient Record (Key E, subkey 01):

That is, in the fields corresponding to “Integrated Perception” (pos. 82-94) and “Assessment” (pos. 109-121), the entire benefit paid to the director for this concept must be reflected, regardless of where the corresponding withholdings have been entered. The same will occur with the “Withholdings made” fields (pos. 95-107) and “Income on account made” (pos. 122-134).

In addition, the sum of the “Withholdings made” field (pos. 95-107) and the “Income on account made” field (pos. 122-134) must match the sum of the withholdings and payments on account recorded in the fields corresponding to State Withholding, Hª.F. Withholding. Navarra, Retention Hª.F. Álava, Retention Hª.F. Guipúzcoa and Retention Hª.F. Bizkaia.

If there had been no partial payment of withholdings in any of the Provincial Treasuries, because the paying entity does not pay taxes proportionally, but in full to the State, then the amount reflected in positions (95-107) must be identical to that reflected in positions (323-335).

For example, let us consider a director of an entity who receives the following remuneration derived from said status in 2023, with a 35% withholding tax. The entity pays taxes exclusively to the State Treasury in the Corporate Tax and does not belong to any tax group:

How to declare these remunerations and withholdings in form 190:

Record of recipient (Key E, subkey 01):