this tax on Income paid for capital income (IRPF) could be higher in 2023. Among the tax proposals that the government has on income to allow for higher taxation of income and higher taxation of assets to finance countermeasures to the energy crisis, a possible increase in personal income tax is on the table for incomes earned. checking accounts, mutual funds, stock dividends, insurance or capital gains In general, sources from the Executive, as confirmed by EL PERIÓDICO, a newspaper of the Prensa Ibérica group to which this newspaper also belongs.
already Coalition agreement between PSOE and United We Can For the formation of the government included a commitment to increase the rate at which capital income of more than 140,000 euros is taxed in personal income tax from 23% to 27%. A first step has been taken in the 2021 Budgets, increasing the taxation of capital income from 23% to 26% at €200,000. Now it’s on the table to move in that direction with a higher tax rate from a lower income level. Compliance with the coalition agreement would mean raising the taxation of capital income from 23% to 27% over 140,000, resulting in higher taxation for taxpayers ranging from savings to €200,000, from €5,600 to €8,000. . Since a 26% rate is already applied from fiscal year 2021, the jump from this last amount will be less. In particular, going from 26% to 27% from 200,000 euros would mean a higher taxation of 2,000 euros from the lowest taxation. cases.
Expert advice
These calculations serve as a reference if applied in the strict terms of the coalition agreement, but the final result may lead to other different combinations. In any case, this initiative could be part of a series of tax measures drawn up by the Government after Finance Minister María Jesús Montero announced a temporary and payable “new tax on great wealth” in 2023.
Income tax includes: double charge. On the one hand, salaries, pensions and professional income or self-employed businesses are generally taxed at a rate ranging from 19% (for lowest incomes) to 49% (for incomes starting at €300,000 per year) and can reach a maximum rate of 54%. in the Community of Valencia. On the other hand, capital income They are taxed at a less burdensome rate and are taxed at rates ranging from 19% to 26% (starting from 200,000 euros) for annual incomes up to 6,000 euros.
The White Paper on Tax Reform, published in March by the government-created commission of experts, justified the existence of the better double rate for capital income, but suggested a smaller difference to that applied to the income of the business: “The greater the elasticity of capital income, the lower for that income While justifying the establishment of general income rates, incentives to convert general income into capital income bring these ratios closer to those applicable to general income.
Partial fulfillment of the coalition commitment
According to the governing coalition agreement, what will now be on the coalition government’s table is to increase the rate applied for the chapter from 140,000 euros to at least 27%. Including the coalition agreement raise the general income tax base by two points for rentals 130.000 € and four points for a stretch 300.000 €. The first step was taken in the 2021 Budgets, with a two-point increase in revenue of 300,000 euros.
The introduction of double scaling in personal income tax was adopted by the Government, with the tax reform of 2006. Jose Luis Rodriguez Zapatero, with the argument of applying softer taxation to avoid financial displacement of capital. Subsequent reforms introduced a single rate of 18%, which was applied until a scale of four rates (19%, 21%, 23% and 26%) was established for the different tranches of capital income.