this Treasure He plans to change the regulation. personal income tax lower than 2023 holdings Applied on 250,000 taxpayers have a job income of less than 35,200 Euros that meet a range of personal and family characteristics.
This change will affect a very special group It does not mean a reduction in the amounts to be paid, but a withholding arrangement according to the draft law to amend the regulation announced by the Treasury to the public.
In fact, tax experts explain to EFE: the measure will have a “very limited” effectSince a large portion of these taxpayers’ income statements often go to returns, the main effect of the regulatory change would be for them to have more liquidity during the year and less returns when presenting the liquidation the following year.
However, they can also There may be cases where withholding taxes are excessively reduced and taxpayers have to pay. tax authorities difference It will lead to a timely shift of the tax burden in the income tax return to be filed in the spring of 2024.
In any case, the taxpayer who wishes, ask your employer to apply withholding taxes that you think are more appropriate, because you’ll have to settle the difference later.
The draft royal decree adjusts personal income tax withholdings to adapt to two announced regulatory changes: increasing the threshold for paying taxes from €14,000 to €15,000 and extending income reductions to €21,000 (now €18,000).
The purpose, according to the explanatory memorandum itself, is to “transfer the economic impact from the increase in the discount to the lowest-income workers,” meaning that taxpayers do not have to wait to present their income statement to benefit from the tax. to break.
This setting takes place in two ways. Firstly, Thresholds under which no containment is applied are raised – for example, for a single person with a child, it rises from 15,947 to 17,270 euros – income that usually does not have to pay personal income tax and therefore does not have to wait for repayment from the Treasury.
Second, Income threshold entitlement to withholding limitation increased from 22.000 to 35.200 Euro Principles applied provided that certain personal and family needs are met – for example, in the case of a married taxpayer whose spouse earns less than EUR 1,500.
The purpose of this regulatory change is to avoid jumps or significant increases in grip above certain income levels
As an example, a married taxpayer with two children with an income of 22,001 euros will have an annual withholding of 1,186.57 euros with the new thresholds, compared to 2,303.22 euros with the old one.
Specifically, the regulation places this limitation on withholding as 43% of the amount resulting from income earned minus an amount that does not correspond to wages payable, which varies by personal and family situation.
Personal income tax is a complex tax that is affected by a wide variety of factors, from the taxpayer’s family situation to the place of residence or the deductions that may be applied, making it difficult to know the extent of the measure.