Tuesday, June 6

How the Letters are taxed in the Income statement

The latest issue of Treasury bills held on Tuesday once again demonstrated the strong appetite of investors, especially individuals, for this asset class, which in recent months has become the great alternative to bank deposits, on which Large entities are still reluctant to pass on the rise in rates from the European Central Bank (ECB).

With interests that in some references already exceed 3%, there is no doubt that public debt will continue to be a fundamental pillar in investors’ portfolios during the coming months. But beware. It must be taken into account that the possible yields are not free of tax charges, so they will have to go through the Treasury in the Income statement.

TaxDown’s tax experts recall that the benefit obtained with bills and government bonds implies a return on movable capital, so its amortization will be taxed at the taxable base that goes from 19% to 28% (in 2022 the highest tranche had a rate of 26%).

«It must also be taken into account that Treasury bills (with a term of between 3 and 12 months) are not subject to withholding while bonds (with a term of between 2 and 5 years) are. This means that in the case of the bills they will not withhold anything from us, but with the bonds they will”, indicate the experts.

To include it in the 2022 Income statement -to be carried out this 2023- the sale or expiration of the Bill must have occurred last year. That is to say, for all those who have bought Letters this year they must wait to declare it when they obtain the yields.

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Likewise, the acquisitions made in 2023 will have to be presented in the income statement campaign that will take place in 2024, so they will not affect this year’s campaign that will begin on April 11, according to reports from TaxDown. .

Within the Income statement, the yields of the Treasury Bills must be included in box number 30 corresponding to the yields from the transmission or amortization of Treasury Bills. The amortizations of bonds and obligations or issues with longer terms must be included in the following boxes.

“Although there are many investment assets that have great returns, taxpayers have to know that these are not free of tax burdens,” says Enrique García, CEO of TaxDown.

An example. The average rate of the bills issued on Tuesday was 3.11% for a six-month term. If an individual has invested 3,000 euros, the return/benefit would be 93.3 euros in September. The amount would not be subject to withholding, so it would be received in full, but it will have to be included in the statement for the following year.

“Although the tax percentage can reach up to 28%, the logical thing is that small savers are always in the first tranche of the savings income tax, which reaches up to 6,000 euros and there the percentage is 19%”, indicate from TaxDown.


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