There will be more pressure for the rich and large companies and the minimum income tax exemption will be increased to 15,000 euros
Higher taxes for the wealthy, an increase in capital income taxes, corporate news and relief, albeit moderate, for SMEs and low incomes. These are the main points of the fiscal package announced by the cabinet this Thursday, with which the college hopes to raise an extra 3,100 million euros in two years’ time, between ups and downs.
In order to reduce the tax gap between income from work and wealth, the government is increasing the tax on wealth income from over 200,000 euros from 26% to 27%. For those over 300,000 euros, it also rises two points, to 28%.
The measure affects a total of 17,814 taxpayers, with an expected increase in collection of 204 million euros in 2024.
In return for this greater effort for those who earn the most, the government is proposing changes that will affect lower-income citizens in terms of labor income.
The categories or the rates will not be affected, but the exempt minimum will increase from 14,000 euros per year to 15,000 euros. At the same time, the discount for income from work will be increased from 18,000 euros to 21,000 euros.
The measure, which will benefit 50% of the workers, will save them 1,881 million euros, according to calculations by the ministry.
There is also news for the self-employed in the field of income tax, with an additional 5 point reduction in the net performance of the modules. Likewise, the discount for hard-to-defend deductible expenses is increased from 5% to 7%.
The government calculates that 577,688 self-employed will benefit from the reduction in modules and 956,452 self-employed under the simplified direct estimation regime, with a combined impact estimated at 184 million euros.
On corporate income tax, the government is adding to the recently approved 15% minimum tax for large companies a reduction in the nominal rate from 25% to 23% of the tax for small businesses with a turnover of less than a million euros. The cabinet estimates that 407,300 companies will benefit from the measure, with a saving of 292 million euros for them.
Added to this measure is a regulatory change that will limit the ability to offset losses of subsidiaries in consolidated groups to 50%, from the current 75%. With this temporary measure, the State expects to collect around 2,439 million euros for around 3,600 companies between 2023 and 2024, 0.2% of corporate tax returns.
Montero also confirmed that the next Budget package will include a 10% to 4% reduction in feminine hygiene products. The reduction will affect products such as sanitary towels or tampons, but will also apply to condoms and non-medical contraceptives, with an estimated impact on collection of around 24 million euros.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
