• Taxes Montero presents a tax increase of 3,144 million, with a reduction in personal income tax on income of up to 21,000 euros and a temporary tax on 23,000 rich

The Government has published this Thursday an ambitious fiscal plan with the aim of softening the burden on the lowest incomes and increasing the contribution of the wealthiest pockets.

Among other measures, are the creation of a temporary tax for wealth over three million euros or the increase in the minimum taxation from 14,000 euros to 15,000 euros.

How will the reduction in work income affect your pocket?

According to government data, the reduction in income will benefit 50% of workers.

For example:

  • A married worker with descendants who has a salary of 19,000 euros and pays taxes through a joint declaration.

    In this case,

    he would stop paying personal income tax and save 331 euros

    .

  • A pensioner over 65 years of age with a pension of 16,500 euros, who

    would benefit from savings of 47%, specifically, 689 euros

    .

  • A single-parent worker with two descendants and a salary of 18,500 euros.

    He would benefit from

    a saving of 516 euros in tax

    .

Also in personal income tax,

the minimum tax is increased

from 14,000 euros to 15,000 euros.

I am autonomous.

Does it benefit me?

Yes. The Government has presented an

additional reduction of 5% in the net performance of modules

for the self-employed.

In addition,

the reduction of deductible expenses that are difficult to justify

in taxation under the simplified direct estimation system for the self-employed is raised from 5% to 7%.

A total of 577,688 self-employed workers will benefit from the module reduction and 956,452 from the simplified direct estimation system.

What about the energy?

Within the document, a series of measures related to the

reduction of VAT on combustion products

, such as natural gas, firewood and pellets, are put forward.

Similarly, a

reduction in VAT on electricity

and other taxes on electricity is collected.

There is also a transitory tax on banks and large energy companies.

And the great fortunes?

Within the section: measures for those who have the most to contribute, a series of measures are included to increase the tax burden on large fortunes.

A temporary tax will be created,

for the years 2023 and 2024, on assets greater than 3 million euros

.

Between 3 and 5 million, the tax will be 1.7%, between 5 and 10 million, 2.1%, from 10 million, 3.5%

.

Double taxation is avoided since the fee paid for the wealth tax will be deductible within this new tax.

Also companies?

Yes too.

For small businesses, the nominal rate of the tax is reduced from 25% to 23%; nearly 400,000 businesses will benefit from this measure.

Moncloa intends to limit by 50% the possibility of compensating the losses of the subsidiaries of the consolidated groups, a rule that will affect large companies, it will only affect 3,609 companies in Spain.

The estimated impact is 2,439 million.

Is there a discount on feminine hygiene products?

The Government agreement includes a reduction from 10% to 4% in VAT on feminine hygiene products.

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