Publicado: 31-01-2025
The world of taxation is constantly evolving, and with the recent publication of Order HAC/1432/2024 in the Official State Gazette (BOE), key modifications have been introduced to Form 190. This form, which companies must submit annually to declare withholdings and payments on account of the Personal Income Tax (IRPF), has been updated to improve the clarity of information and facilitate tax management.
If you’re interested in how these changes impact tax procedures, here’s a summary of the most relevant aspects.
Form 190 is an annual summary in which companies report to the Tax Agency the withholdings applied to employees, professionals, or businesses with whom they have collaborated. This form is essential to ensure the correct application of withholdings according to current regulations and to facilitate taxpayers` IRPF declarations.
With Order HAC/1432/2024, Form 190 incorporates new fields and technical adjustments to improve transparency in specific cases such as irregular income, in-kind remuneration, and unemployment benefits.
Until now, companies could not reflect the application of the 30% reduction for income generated over a period of more than two years or received irregularly (such as certain bonuses) in Form 190.
With this modification, it is now possible to include this reduction for irregular income of administrators and directors, even when they are taxed at fixed withholding rates (typically 35%). This will reduce discrepancies between withholdings and the final IRPF amount, minimizing requests from the Tax Agency.
A new breakdown has been introduced to differentiate between contributory and non-contributory benefits, facilitating the analysis of how these benefits impact other aid programs, such as the Minimum Vital Income.
This modification will apply to the Form 190 for the 2025 fiscal year, coming into effect in January 2026.
The Startup Law (Law 28/2022) established a tax-exempt limit of €50,000 for in-kind remuneration derived from the granting of shares in emerging companies to employees.
With the new order, Form 190 will include a specific field to detail amounts exceeding the exempt limit, which will be taxed as deferred employment income.
Several sections of the form have been adjusted, including:
These changes aim to enhance the accuracy of the reported information.
Companies will need to adapt their accounting and tax management systems to the new specifications of Form 190.
This may involve updates to the software used for generating these declarations and reviewing withholding criteria for certain types of income.
Although these changes do not directly affect the calculation of withholdings, they do improve the clarity of the data managed by the Tax Agency. Specifically:
Order HAC/1432/2024 represents a significant step forward in tax management, reducing doubts and discrepancies in irregular income, in-kind remuneration, and unemployment benefits.
While businesses will need to make adjustments to comply with the new requirements, the improved transparency will benefit both the Tax Agency and taxpayers.
If you want to learn more about these tax updates and their impact on your company or IRPF declaration, Gentile Law has a team of taxation experts ready to assist you.
Ana García Ginés
anagarcia@gentile.law
+34 604 51 05 77
