The Ministry of Finance and Public Services has announced a series of tax measures for 2024, including a 5% net performance reduction from the current 10% modules. This change, published this Thursday in the Official State Gazette, supports the objective method used to forecast personal income tax and maintains the simplified regime for value added tax that many self-employed workers and small and medium enterprises rely on for tax calculation.
María Jesús Montero’s department explains that the 5% decrease in net performance will apply to all taxpayers who determine their net performance from economic activity using the objective estimation method. In other words, businesses and individuals who fall under the simplified or objective regime will see a lower measure of taxable performance for 2024.
With regard to VAT, the Treasury proposes to freeze the applicable modules and the instructions for the simplified regime that were in force in the previous year, maintaining the status quo for 2024 rather than introducing new adjustments to these parameters.
Measures for farmers and ranchers
To offset the rising cost of some inputs used in agricultural and livestock activities, the 2024 periods will allow a 35% discount on diesel purchases and a 15% discount on the price of agricultural inputs, with both discounts applying to eligible expenditure necessary for the development of these activities. The Ministry notes that these reductions have already been implemented in 2022 and 2023 and are retained to support rural producers during the new fiscal year.
Additionally, in light of the volcanic eruptions on the island of La Palma, the Treasury continues a special discount for 2024 to cover economic activities carried out there. A parallel special discount has also been applied to the Lorca municipality in response to the earthquakes that affected the area in prior years, illustrating ongoing targeted relief measures for regions facing natural events.
These policies reflect a broader aim to ease the tax burden on sectors facing cost pressures while preserving a stable framework for compliance and revenue collection. The measures are designed to be predictable, straightforward, and easy to apply, helping small businesses, farms, and local communities manage their budgets more effectively during 2024. The ministry reiterates that the established discounts and the simplified regime are intended to promote economic activity and safeguard livelihoods in both urban and rural settings, especially where environmental and regional challenges have a pronounced impact.
Observing the overall tax strategy for the year, the government emphasizes consistency between personal income tax forecasts and the simplified VAT regime, ensuring that taxpayers can anticipate their obligations with clarity. It is noted that the reductions and freezes aim to provide relief without undermining the integrity of the tax system, maintaining prudent revenue collection while supporting productive activity across the economy. These measures are expected to contribute to steady growth and financial stability as the year unfolds, with ongoing monitoring to adjust policies if required and to respond to evolving circumstances in the fiscal landscape.
All program details and eligibility criteria are published by the ministry through official channels and are subject to annual review. Taxpayers and advisers are advised to consult the official guidance for the 2024 period to confirm how the rules affect their specific situation and to ensure timely compliance with filing and reporting requirements. The government remains committed to transparent communication about tax policy changes and their practical implications for households, businesses, and communities across the country. de Hacienda y Función Pública