This may be the first question we ask ourselves when we are faced with filing our income tax return for the first time. The best way to resolve this doubt is to consult the table published each year by the Tax Agency, which indicates the circumstances in which you are not required to file an income tax return.

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As an example, we attach below the chart published for the 2019 Income Tax Return.

It should be noted that this chart is developed and explained by the Tax Agency on its website, but you will notice that a language is used that you may not be used to, and that can make its understanding difficult. Therefore, we provide a small glossary with the most important concepts of the chart, as well as examples of them, which we hope will help clear all your doubts.

 

1. EARNED INCOME (RENDIMIENTOS DEL TRABAJO): these are the compensations, monetary or in kind, derived from personal work. Therefore, it includes yields such as: salaries and wages, unemployment benefits, remuneration as representation expenses, contributions or contributions paid by the promoters of pension plans.

 

2. YIELD FROM MOVABLE CAPITAL (RENDIMIENTOS DE CAPITAL MOBILIARIO): these are the interest on bank accounts, bonds, debentures and, in general, fixed income securities, stock dividends and capital gains. In practice, yields from movable capital are made up of interest, dividends, capital gains, etc. (without discounting the retentions made) generated by our bank accounts.

 

3. CAPITAL GAINS/LOSSES (GANANCIAS/PÉRDIDAS PATRIMONIALES): these are the variations in the value of the taxpayer's assets. Among others, we have transfers (for example: inheritances), prizes, justified losses that are not due to consumption or gambling, etc…

 

4. YIELD FROM REAL ESTATE CAPITAL (RENDIMIENTOS DE CAPITAL INMOBILIARIO): these are the yields derived from the leasing of real estate, whose ownership corresponds to the taxpayer and which are not assigned to economic activities carried out by them.

 

5. INCOME FROM ECONOMIC ACTIVITIES (RENDIMIENTOS DE ACTIVIDADES ECONÓMICAS): these are those yields generated in our economic activity (as self-employed), coming from personal work and capital jointly, or from only one of these factors.

With all this information now in your hands, do you already know if you have to file the Income Tax Return? If you know the answer, we will be happy to know that the article has been helpful to you in the comments.