Did you know that gifts for direct depositing your payroll are taxable?

Contents:

Many banks offer attractive gifts or incentives in exchange for direct depositing your payroll with them. These can include everything from cash, appliances, redeemable points, to exclusive discounts. But what many don't know is that these "gifts" aren't tax-free, and the Treasury considers them as capital gains, subject to tax.

Why are these gifts taxed?

From the moment the bank offers you an incentive for direct depositing your payroll, that benefit is classified as income from personal capital. According to Spanish tax law, any income from a financial relationship must be included in your tax return.

For example:

• If you receive a €100 bonus for direct depositing your paycheck, the Treasury will consider it taxable income.
• If the gift is a physical item, such as a television or coffee maker, the market value of the item will be calculated to determine its tax impact.

How is the tax calculated?

Gifts or incentives are subject to personal income tax withholding. Typically, the bank withholds 19% of the incentive's value, advancing part of the tax to the Treasury. However, this doesn't mean you don't have to declare it, as the entire income must be included in your annual tax return.

Practical example:

1. You direct deposit your payroll and receive a 200 euro bonus.
2. The bank applies a 19% withholding (38 euros) and gives you the remaining 162 euros.
3. When filing your tax return, you must include the 200 euros as income from capital gains, and the Treasury will adjust whether the tax already withheld is sufficient or if you need to pay more.

Tips for managing these incentives

1. Be well informed before accepting a gift. Ask the bank if it includes income tax withholding and what the tax impact will be.
2. Keep the documentation. Keep any contracts or receipts related to the gift to facilitate its declaration.
3. Evaluate whether it's really right for you. While the gift may seem attractive, it's important to consider whether the taxes payable make it less valuable compared to other banking options.

Conclusion

Although bank incentives are an attractive strategy for attracting customers, it's essential to understand their tax implications. Remember that any gift, bonus, or financial benefit must be declared as income from personal capital. Stay informed and avoid surprises on your next tax return.

Do you have questions about how to declare this income? Leave us your comments, and we'll help you!