How does a deregistration affect the income tax return?

how does a deregistration affect the income tax return
how does a deregistration affect the income tax return

The income campaign begins next April 3. And, as is usual at this time every year, we may have some doubts about it. Especially if we have experienced an extraordinary situation, such as a period of sick leave. We will tell you, in this case, how it would affect you.

The beginning of the income campaign always gives rise to all kinds of questions. Furthermore, if during the period included for the regularization of personal income tax we have suffered some extraordinary situation that may generate certain discrepancies at the time of submitting the aforementioned declaration.

One of these scenarios occurs during periods of sick leave. When we work as an employee and cannot carry out our professional activity due to any aspect related to health, we will receive financial compensation for a certain time. This amount, without going into specific cases, is less than the monthly salary. Although if it is for a few days it will not have a great final impact, the reality is very different if it is a loss of several months or even the entire year.

Personal income tax withholding while on sick leave

The main change that we find regarding personal income tax in a period of withdrawal and in a period of activity has to do with the amount of withholdings . The type of withdrawal will determine the withholdings that we must assume. We mainly differentiate two types of withdrawal:

  • Leave due to work accident: In this case, the employee will receive 75% of the contribution base from the first day at least. Afterwards, the collective agreement would have to be analyzed to know whether or not this amount can be greater than the amount agreed upon as a base.
  • Leave due to temporary non-work disability: In the case of, for example, a common illness, income follows a system that varies depending on the extent of the leave. The first three days, the employee will not enter any amount. Between the 4th and the 20th, 60% of the contribution base is charged. Starting on the 21st, 75% of the contribution base will be charged.

The 190 model

In the event that we have faced any of the two situations described previously, we should request model 190 from our company. This model allows us to obtain the income and withholdings that we have suffered during the fiscal year that we must declare. Once we have all the information, we must include it in the income tax return, in case it does not appear directly in the draft.

As we have already mentioned, the financial amount we receive during sick leave is also subject to withholdings. Therefore, it is possible that the amount has already been declared by the company and the draft is updated.

Normally, the amount of time we have been sick will be the key to understanding the changes that this can cause in the result of the income tax return. If you have only been there for part of the year, it is possible that the relevant withholdings have not been applied and, therefore, we will have to pay these taxes. In the event that the withdrawal has lasted the entire year, depending on the withholding applied, we could suffer some subsequent regulation that could change the sign of the declaration.

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