Taxation Attracting investment and competing with Portugal: This is how Andalusia wants to leave behind "tax hell" with a massive tax cut
The president of the Board, Juanma Moreno, announced this Thursday that, as of 2022, Andalusia will offer the most beneficial tax regime for the heirs of all the autonomous communities.
It refers to a new tweak in the
Inheritance and Gift Tax (ISD)
, which will benefit brothers, uncles and nephews who until now could pay a rate of 70% and who, from next year, will pay a
maximum 45%
, when they inherit a property from a deceased relative.
Andalusia thus takes a further step in the dismantling of a tax that has become the banner of the battle between the PP communities to offer a
lower tax burden
.
The inheritance tax is once again the star of the package of rebates that the Government of Juanma Moreno intends to
approve in Parliament next week
, in accordance with the emphasis that the President of the Board puts in its defense, although its real impact on the Average income (where the majority of taxpayers are located) is relative, taking into account that the tax was already practically eliminated for direct heirs (parents, children and spouses) and with assets not exceeding one million euros.
This twist to the controversial tax therefore broadens the target population of the bonuses and eliminates requirements linked
to the volume of pre
-
existing assets
of the beneficiaries.
The government of change, recalled the president of the Board, started the legislature by approving a
99% bonus from
the Inheritance and Gift Tax for first and second degree relatives.
And he committed to successive reductions in the autonomous section of personal income tax until 2023.
Moreno emphasizes that, so far in the legislature,
the number of taxpayers has increased by 119,000
and the collection by
600 million euros per year
.
In any case, the effects of a tax reduction never have a direct impact on the collection of the year in which it occurs, due to the lag inherent in the tax system, as the experts emphasize.
However, the fall from grace and the continuous
thinning plan
to which the Inheritance and Donations Tax has been subjected did not begin with the Government of PP and Cs, but it was Susana Díaz who was forced to introduce a substantial cut in income. tax on
the 2018 budgets
at the initiative of Ciudadanos, which was then the preferred parliamentary partner of the minority socialist government.
After months of an intense campaign with the repeated message that it was a confiscatory tribute, the PSOE was unable to convince public opinion that the incidence of ISD was minimal in middle and low incomes.
At that time, the inheritances exempt from taxation were all less than 250,000 euros.
In a previous year, that ceiling had already been raised, starting from an initial limit of 175,000 euros.
The Ministry of Finance, then in the hands of María Jesús Montero (
now
Pedro Sánchez's
minister
), had to acknowledge that it had lost the battle.
And he gave in to Citizens to carry out
the 2018 budgets
, raising to one million euros (per person) the value of the inheritance received to have to pay taxes.
With the government of the PP and Cs, the limits for direct relatives (children, parents, spouses and grandchildren) were eliminated.
And now, again, the tax is filed again, this time
for the benefit of brothers, uncles and nephews
.
This reduction is probably not the one that will have the most impact on average incomes, but it is still the one that best reaches the citizen, even
the one who will receive a relevant inheritance in his life
.
In fact, the package of tax cuts that will be approved next week has other elements, such as an increase in deductions for housing rent, for extracurricular expenses or for children.
But they do not have the symbolic force of the inheritance tax.
According to the criteria of The Trust Project
Know more
Citizens
PP
Pedro Sanchez
Maria Jesus Montero
PSOE
Susana diaz
Personal income tax
Andalusia
Taxes
Juan Manuel Moreno Bonilla
Juan Marin
Politics The PP-Cs Government raises its foot in the race for the 2022 budgets
Politics Juanma Moreno and Ximo Puig demand from the Government of Pedro Sánchez more capacity to decide the tax portfolio
Politics Pedro Sánchez to Juanma Moreno: "You have everything you need for Andalusia to lead the change in the production model in the country"
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