The Consell general meeting approved the draft Law amending Law 13/1997 regulating the territorial division of Personal Income Tax and other taxes. Inheritance tax and donationsIncreasing and strengthening existing incentives for taxed transactions within the family nucleus.
In this way, bonuses of 99% of the tax quota are approved for death-related purchases and perceptions of the amounts obtained by life insurance beneficiaries are added. hereditary property I and II of the Inheritance and Donation Tax Law No. 29/1987. It is made by the relatives of the deceased who belong to the groups (grandchildren and adopted children, spouses, descendants and adopters).
In addition, a similar benefit is granted for acquisitions made in favor of spouse, parents, adopters, sons and daughters, or acquired through donations or other lucrative acts by the donor, grandchildren or great-grandchildren and grandparents adopted or adopted for this purpose. is provided. simplification of existing regulation on related reductions relationship and the inclusion of the donor’s spouses as beneficiaries.
They will also benefit from the same bonus acquisitions By persons with physical or sensory disabilities with a disability greater than or equal to 65%, or by persons with intellectual disabilities with a disability of greater than or equal to 33%.
This measure will benefit taxable events that have occurred since 28 May 2023 and does not violate the constitutional principles of non-backward or non-backward action, as it is an advantageous norm for the majority of taxpayers. legal security.
However, he recommends that this bill continue to be processed urgently. taxpayers Take advantage of tax benefits as soon as possible without an increase in tax management costs.
discounts
Various discounts will be applied in the calculation of the Inheritance and Donation Tax tax base, in interpersonal transfers, due to special circumstances in the tax base. Valencian Community.
In particular, where purchases are made by sons or daughters or adopted persons under 21 years oldA rebate of EUR 100,000 plus EUR 8,000 for each year of less than 21 years owned by the beneficiary, the rebate may not exceed EUR 156,000.
If the acquisitions are made by sons or daughters or adopted persons aged 21 and over, spouse, father or mother or adopters, a discount of 100,000 Euros will be applied; For purchases made by grandchildren or granddaughters, a discount of 100,000 Euros will be applied if the grandchild or grandchild is 21 years of age or older, and 100,000 Euros plus 8,000 Euros for each year the grandchild or granddaughter has not had it in this last year, but is less than 21 years old. Discounts for purchases made by the company may exceed 156,000 euros. grandparents or grandparentsThe discounts will be 100,000 Euros.
In purchases made by people with physical or sensory disabilities, DISTANCE degree For those with a mental disability of 65% or more and a disability of 33% or more, a deduction of 240,000 Euros from the tax base will be applied.
When win 120,000 deductible for persons with physical or sensory disabilities, 33% or more disability, who are the donor’s spouse, father or mother, adopters, sons or daughters, or adoptees. euros will apply. The same discount will apply to grandchildren or great-grandchildren and grandparents or grandparents with the same disability.
Application for many years inheritance tax In the Community of Valencia, this practice had minimal impact on citizens, with quota cuts of 99% for the deceased’s descendants, descendants and spouses.
Economic crisis
In the most difficult years of the economic crisis, this premium rate had to be reduced to 75 percent, and recently, since 2017, the collection purpose of the tax has been further reduced and the tax collection purpose has been tried to be maximized. applicable deductions.
So right now bonus In the Community of Valencia, the tax quota is generally 50%; however, there are boys and girls under the age of 21 or persons with a certain degree of physical, sensory or mental disability; In these cases, the bonus reaches 75 percent. %.
Similarly, the economic efficiency of the Inheritance Tax has been questioned; because it stipulates or limits the behavior of taxpayers in matters such as saving or investing in certain inheritance movements; It should be added that this is a tax. taxes transfer of assets and income Those who have paid taxes before, according to their qualifications. In addition, in painful cases due to the loss of a loved one, taxes must be collected and other taxes, fees and protocol costs are added to this.
Likewise, the imposition of Inheritance Tax in many cases causes very serious economic damage to many families who are faced with the payment of this tribute without inheritance. economic benefit nor a real increase in the heir’s assets, or even the inability to pay the economic amount of the tax, causes many people to give up the inheritance.
Finally, the impact on total public income is low compared to the inheritance tax, which is heavy for families; this represents only 1% of the revenue allocated in the Generalitat budget. The same is true for donation tax; this tax only accounts for 0.1% of donations. public revenue and there is no type of bonus in the tax quota that Valencians have to pay.