At the press conference held after the Council of Ministers, Montero explained the main lines of the measures taken. The purpose of the executive protect the most vulnerable incomesexpanding the personal income tax deduction to 50% of employees, and increase fundraising Thanks to the new taxes on large fortunes, it entered the state coffers.
Among the most notable measures is the increase in the personal income tax on more than 200,000 incomes and the new solidarity tax affecting this situation. 23,000 people with assets of more than three million eurosthe government intends Raising more than 1,500 million euros.
New tax measures
about a ‘solidarity tax‘ for 23,000 Spaniards holding a pwealth of more than three million euros. According to Montero, this new tax, which will be in effect in fiscal years 2023 and 2024, 1500 million euro collection.
tax three parts: a kind of 1.7 % for properties between 3 and 5 million; 2.1 % for properties between 5 and 10 million, and 3.5 % for assets of more than 10 million Euros.
At the same time, the government Increase taxation of capital income by up to 27% in personal income tax over 200,000 eurosand for capital gains above 300,000 euros, it will rise to 28%, two percentage points higher.
With this increase in high incomes, the Government will also approve Measures on personal income tax in favor of middle and low income earnersincreases the tax benefit currently valid for incomes up to 18,000 Euros, to 20,000 Euros. This measure will mean a savings of 1,881 million Euros.
In addition, income from work from 15,000 euros (over 1,000 Euros from now) is exempt from income tax.
Montero also announced a reduction in corporate tax 23% for SMEs with a turnover of less than one million Euros and temporary limitation of previous years’ loss reductions that can be applied by large business groups. This measure will benefit 407,000 companies and save them 292 million euros.
In its place, large consolidated groups will only be able to cut 50% of their losses in 2023 -they will be able to implement the rest in 2024- this will increase collections by 2,439 million euros in 2023 and 2024, affecting only 3,609 companies, 0.2% of the total.
“This isn’t about a tax increase, but about “postponing” compensation for negative tax bases, Montero said.
The fiscal measures package also provides for the reduction of VAT on feminine hygiene products from 10% to 4%, as previously announced.
Up to 3.144 million in two years
The Government’s tax package will achieve a “model of a fairer society”, reporting net tax revenues of 3,144 million euros over the next two years, the Finance Minister said at the press conference.