And for that, To prevent this measure from creating a financial vacuum For those earning a little over this amount, the Government has introduced another regulation that is expected to affect 250,000 taxpayers. A change that will make these people they receive an extra amount in their net salary, which can reach 1,000 euros per year.
This change will affect a very specific group and It does not mean a reduction in the amounts payable, only withholding regulationAs can be understood from the draft of the bill, it was opened to the public for the Treasury to change the regulation.
With this arrangement, Treasure changed 2023 income withholding table. First, the non-withholding thresholds are raised – for example, from 15,947 to 17,270 euros for a single person with children – income that usually does not have to pay personal income tax and therefore does not pay income tax. They have to wait for the tax return.
Secondly, the income threshold has been increased from 22,000 to 35,200 Euros, which entitles the entitlement to a limitation on the maximum withholding tax, provided that certain personal and family needs are met, eg in the case of a married person. Taxpayer whose spouse earns less than 1,500 Euros-.
For example, a married taxpayer with two children with an income of 22,001 euros would have a withholding of 1,186.57 euros per year, compared to the old with the new thresholds of 2,303.22 euros. Thus, it appears that the purpose of this regulatory change is to prevent spikes or significant increases in withholding if certain income levels are exceeded.
The regulation is particularly Limitation on withholding at the rate of 43% of the amount to be deducted from the income, an amount that does not correspond to the installment payable, which varies according to the personal and family situation.
this personal income tax It is a complex tax, which is affected by a wide variety of factors, from the taxpayer’s family situation to the place of residence or the deductions that can be made, making it difficult to know the scope of the measure.
However, there may be situations where withholding taxes are reduced excessively and taxpayers have to pay the income statement difference to the Treasury in the spring of 2024, causing the tax burden to shift on time.
In any case, the taxpayer who wishes can ask his employer to apply the withholding tax he deems most appropriate, since he will have to close the difference later.
Draft royal decree Adjusts personal income tax withholdings to adapt to two announced regulatory changes: threshold rise start paying taxes from 14,000 to 15,000 euros, and expansion of discounts For rents up to 21,000 Euros (now 18,000 Euros).
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.
Despite this, some tax experts have argued that the measure will have a “very limited” impact, as the majority of these taxpayers’ income statements are usually returned, so that the main impact of the regulatory change will be on taxpayers. it will have more liquidity during the year and less returns when offering the settlement the next year.