At the time of filing the income tax return (personal income tax), the owner of an apartment for rent can apply a reduction of 60% of the calculated net income (art. 23.2 of the Personal Income Tax Law) if the declaration of the rented apartment, intended for housing. Therefore, they only pay 40% of the income obtained by renting the apartment. Statement rented apartment
This article establishes:
“This reduction will only be applicable with respect to the returns declared by the taxpayer.”
But, what happens if I have NOT declared the rental of the apartment? What if I have declared less? Can I apply this 60% reduction?
Based on the previous quote, the Administration denied the possibility of applying such reduction in the resulting settlement. However, the recent judgment of the Supreme Court of October 15, 2020 (appeal no. 1439/2019) has clarified that:
“The income tax return is a self-assessment (not a return as it is commonly called).”
Therefore, according to the principle of full regularization, the Administration must apply the reduction of 60% on the calculated performance even in the case of not having been declared the rental income.
So, whether you do not declare the floor or declare less, in the resulting settlement, the Tax Agency is obliged to apply the reduction of 60% on the performance that has been calculated. Otherwise, the liquidation may be appealed.
