Valencian Government gives the green light tax reform This is amending a number of taxes with the aim of advancing fiscal progress in a time of rising inflation and the energy crisis. In this context, taxes were reduced. Income up to 60.000 EuroVariations are included from January 1, 2022 retrospectively and, on the other hand, from 2023 to increase pressure on higher revenues and large assets.
Practically a month of negotiations required a trio of EU members. PSPV, Compromise and the Unides Podem, to balance the numbers and sign a definitive agreement. In this way, the decrease in the income forecast for this year due to tax cuts is encrypted andn 149 million eurosAlthough this figure may rise 180 million. Meanwhile, revenue growth for the next fiscal year is currently calculated. 40 million euros, from the increase in Will and Transmission taxes; however, we must add the increase in income tax brackets for incomes from 60,000 Euros. This collection estimate data is not currently available.
The agreement took place at Consell’s extraordinary plenary meeting this morning, and the union between the president, Ximo Puigand vice presidents, Aitana Mas and Hector Illueca. Negotiation teams closed the definitive deal this Sunday afternoon. For practical purposes, it will be formalized in two procedures. Tax deductions will be reflected through tax decree law Effective from the beginning of this year, approved at the general meeting this morning, so that the benefited income will experience less tax pressure on the income statement they will present next spring. On the other hand, tax increases will be approved through the 2023 budget project, which is currently facing the final stage of its negotiations.
Aitana Mas, Consell’s vice president and spokesperson, and Arcadi España, Minister of Finance, were responsible for announcing the white smoke, which would have made some sense, as they emphasized. Lower tax bill for 97% of Valencians. In total, 1.3 million middle- and low-income taxpayers will be taxed and reported global savings of at least 149 million euros for families. Rents under 30,000 euros take most of the investment at 101 million. The average savings per taxpayer will be 11 Euros.
The reform that brought tax cuts is shaped around three axes. First, a 10% increase in minimum exemption amounts taxation. In this way, the overall rate rises from 5,550 euros to 6,105 euros; For taxpayers over the age of 65, from 6,700 Euros to 7,370 Euros. For taxpayers over the age of 75, the minimum exemption amount increases from 6,950 Euros to 7,645 Euros. For taxpayers with disabilities, brackets range from 3,000 to 9,000 euros. The minimum amount for grandchildren also increases by 10% (from 2,400 to 2,640 euros for the first child; from 4,000 to 4,400 euros for the third child); From 1,150 Euros to 1,265 Euros for over 65s; and between 1,400 and 1,454 Euros for those over 75.
Second, a new fee regional division of personal income tax An income of 19.000 Euro will save 97.95 Euro on rent; Someone with an income of 48,000 euros will pay 57, and someone who earns more than 65 thousand will pay 0.1 euros more.
will increase Minimum exemption from maximum 10% tax and Generalitat’s cuts have been raised to the minimum income: “The cap on quantity and income has been raised,” Spain said. He also highlighted the increase in Valencians who will have zero quotas as these minimums increase.
The third axis consists of: increased cuts 10%: for example, the maternity fee ranges from 270 to 300 euros, and increases the rent limit of the habitual dwelling up to 800 euros, while the income limit to benefit from the deductions for the current 700. Person increased from 25,000 to 30,000; and 40,000 to 47,000 sets. Two new cuts are also included: 100 Euro for the mortgage loan interest increase, which taxpayers can deduct 50% of the difference between the interest paid in 2022 and the previous year’s interest, with a limit of 100 Euro. There will also be cuts for women. fertility treatments not within the scope of public health, but also for an amount of 100 euros.
tax increase
Looking ahead to 2023, adjustments to three special taxes targeting high incomes and large assets will be approved, such as personal income tax, Wealth tax and Transmission tax, as this newspaper reports.
in dedication wealth tax, an increase of 0.25% was agreed for the last installments, ie rents above 1.3 million euros. This measure will allow for an additional 40 million entries.
Open Patrimonial Transmissions, an increase of 11% from the current 10% for residential transactions over one million euros. It is estimated that 15 million euros will be collected with this decision.
Spain downplayed the fact that a reduction in collections of up to 180m euros is currently expected with the planned changes, and details about the additional collection for personal income tax are unknown. It is unknown whether full compensation will occur. After all, the Secretary of the Treasury said, “We need to talk revenues from a global perspective,” and if this decline in revenue is finally recorded, doesn’t mean it will turn into cuts. He also advocated the existing autonomy for the Valencian Government to make such a decision and exercise its powers.
Mas stressed that the three groups that make up the government are “satisfied” with the agreement.
The Consular General Assembly also approved the Act on Tax Measures, Administrative and Financial Management and Organization of the Generalitat, known as the Companionship Act 2023, which includes a new profile of Valencia Participation Income beneficiaries for their refunds. The Youth Card will be guaranteed to be “completely free”, which will cost one million euros.