Personal income tax campaign begins with more regional differences in the taxation of wages

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The 2022 revenue campaign, in which the revenues from last year will be declared, will start on Tuesday, the 11th of this month. Internet with greater difference in the taxation of wages in different autonomies. As a result of the rise in the consumer price index (CPI), some regional governments have taken measures to mitigate these effects, i.e. to avoid paying more taxes as much as possible, not because wages and other incomes have risen. .but because of the effect of inflation. No such regulation has been made in the state part of the personal income tax, although some communities have done so at different rates. The average increase in the general level of prices last year increased by 8.4%, while contracted wages increased by only 2.78%. The Finance Ministry admitted it collected 10,000 million more than expected last year.

In some cases they apply deflations (changes to personal income tax brackets to offset the effects of inflation) in the regional bracket of the rate. These measures, agreed at the end of last year, retroactiveThus, it will be noticed by taxpayers. Community of Madrid (deflation 4.1%), Galicia, Andalusia (4.3% deflation) and Murciaat the same time Valencian Community Aitor Fernández of Taxdown online consultancy explains that there are less than €60,000 winners in this campaign. In the case of Madrid, this change is expected to affect 3 million taxpayers and save around 200 million euros. With the measure approved by Ximo Puig, Valencians will be able to save, on average, around 111 euros.

i know too Replaced the first slice in the Catalonia IRPFAlthough it cannot be defined as an adjustment for inflation, as in the case of a single taxpayer with an income of 35,000 euros, other higher income brackets that will actually pay more are left untouched. Save between 93.55 euros in Andalusia and 262.48 euros in Galicia; According to Taxdown’s calculation, he will pay 16 euros more than last spring 2021 campaign in Catalonia.

This measure in Catalonia was accompanied by an increase in the number of departments from seven to nine to “neutralize” some of the impact of this reduction on the upper reaches. that means a slight increase in the tax burden for some of the high-income taxpayers. And in terms of deflation, the current ‘council’ of the Economy, Morehe said that in some cases this measure has a small individual impact, but is greater as income increases, and the impact is significant in terms of collections.

In any case, the measure adopted by the Government reduces taxes for taxpayers with incomes of up to 35,000 Euros per year, representing 80% of the total income. According to the estimates of the Catalan Executive himself, “almost all incomes will benefit from the reduction, but those under 12,000 Euros will be more, which will increase the personal income tax rate from 12% to 10.5%”. tax”. According to the assumptions known to the government, taxpayers will save between 52 and 104 euros on their annual income statements.

Differences in taxation between regions have already been demonstrated by recent work on regional taxation. Register of Financial Advisory Economists (REAF) Announcing that 8 communities have chosen to reduce the tax burden of the regional income tax division, either by lowering or lowering the rate or retouching the personal and family minimums, to reduce the tax bill that has increased under the influence of price index consumption (CPI). Andalusia, the Canary Islands, Castile and León, Galicia, Madrid, Murcia and the Commonwealth of Valencia specifically took measures at rates or personal minimums linked to wage growth rather than inflation, and also included: AragonAll cases that lowered the minimum rate and increased the maximum rate for this campaign, which started on April 11, are still valid now.

According to the same research,Taxpayers with an annual income of 30,000 euros pay more in Catalonia than any other communityAlthough it is among the most taxed between 16,000 and 20,000 euros. On the other hand, the region where the tax bill is cheaper, at over 110,000 Euros per year, is the Community of Madrid.

This appeal is between 2019 and 2022, the last fraud prevention plan period of Agència Tributària de Catalunya (ATC), fictitious relocation to other communities, especially Madrid. In any case, those responsible for the organization confirm that fictitious displacements will be reduced by the new state tax on wealth in excess of three million euros. Last year, simulations of residence in other communities identified by ATC yielded only half (10) of the settlements, but a much higher amount of 4.5 million compared to 1.289 million in 2021.

In contrast, at the regional level,26 new cuts included this year, some to mitigate the effects of inflation in communities without personal income tax deflation. this is the situation Canary Islands, Cantabria or Castilla-La ManchaA statement that includes new cuts this year to dampen the rise in prices Tax deduction.

In the case of Catalonia, the habitual abode rent deduction is replaced by a maximum exemption of 600 euros if it is owned by a large or single-parent family, and the deduction is extended for the birth or adoption of children. . This tax benefit is EUR 300 if the parent of a single-parent family is.

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