THE DECLARATION CAMPAIGN OF PERSONAL INCOME TAX AND WEALTH TAX FOR TAX YEAR 2014 HAS BEGUN ON APRIL, 7TH 2015

The campaign of Personal Income Tax (PIT) and Wealth Tax (WT) for tax year 2014 began on April 7th. From that day until June 30th (both inclusive) returns corresponding to those taxes must be filed.
 
This year, for the first time, taxpayers will be able to submit their PIT tax return using the aid program (PADRE program, according to the acronym in Spanish) from April 7th. On previous years the Spanish Tax Agency only allowed this option a few days after the start of the campaign. Therefore, those who file their tax return using the PADRE program may request the refund they are entitled to just from the beginning of the campaign. The tax returns must be submitted by June 25th if the payment is made through bank account or until June 30th in other cases.

The tax returns must be submitted by June 25th if the payment is domiciled or until June 30th in other cases

PIT legislation sets out the circumstances under which the filing of the tax return is compulsory. Those regulations are also included in the Ministerial Order HAP / 467/2015, of March 13th, by which the tax returns for PIT and WT for tax year 2014 are approved. Generally speaking, if a person receives income (from labor activities, returns on capital, returns on real estate, capital gains...) exceeding certain thresholds (which are relatively low) he will be required to file the PIT tax return.
 
Taxpayers will be obliged to file their WT return when, according to the Tax rules, they have to pay a tax quota or when their rights and assets exceed 2 million euros.
 
It is worth mentioning that Autonomous Communities may regulate certain aspects of the WT, such as the non-taxable minimum or the deductions and allowances in the quota. In this sense, the Autonomous Community of Madrid approved a 100% tax rebate of the WT’s quota, which in practice means that residents in this Community will only have to file the WT return if their rights and assets, valued according to the WT rules, exceed the aforementioned amount of 2 million euros. 
 
To sum up, a case-by-case analysis must be conducted in order to conclude if a taxpayer has to file the PIT and WT returns and, if so, carefully prepare and submit every document on time.