The reduction of personal income tax for low incomes and the higher taxation of savings, main tax novelties

In the Corporation Tax, the rate for SMEs is reduced to 23%

MADRID, 6 Oct. (EUROPA PRESS) -

The General State Budgets for 2023 contemplate, among its main fiscal innovations, the reduction of personal income tax for income up to 21,000 euros, the increase in the minimum exempt from tax up to 15,000 euros and the increase in the tax on income from savings from €200,000.

Specifically, from January 1 of next year, the taxation of capital income in personal income tax of more than 200,000 euros will be raised one point, to 27%, and for capital gains of more than 300,000 euros, it will be raised to 28 %, two points more. With this measure, the Government expects to collect 204 million euros and will affect 17,814 taxpayers.

Along with this increase in high incomes, the Government will also approve personal income tax measures to favor medium and low incomes, raising the tax benefit that currently applies to incomes of up to 18,000 euros to 21,000 euros. This measure will mean a saving of 1,881 million euros and will benefit 50% of the taxpayers of this tax. Likewise, income from work from 15,000 euros (1,000 euros more than now) will be exempt from the payment of personal income tax.

Also in this tax, the net yield of modules for the self-employed will be increased by 5% and the reduction for deductible expenses that are difficult to justify in taxation under the simplified direct estimation regime will be increased from 5% to 7%. It will benefit more than 577,000 self-employed employees, who will save 184 million euros.

Next year's accounts also include changes to corporate income tax. Specifically, the nominal rate is permanently lowered from 25% to 23% for small companies with a turnover of less than 1 million euros. The economic impact is 292 million euros and more than 400,000 companies will benefit.

In VAT, the rate will be lowered from 10% to 4% for feminine hygiene products, as contemplated by the law of comprehensive guarantee of sexual freedom, known as the law of 'only yes is yes', promoted by the Government and approved by the Cortes Generales. The reduction also extends to condoms and non-medicinal contraceptives.

The new temporary tax on large fortunes, which will tax wealth on net assets of more than 3 million euros from 2023, is not included in the public accounts, since it will be processed in a different bill.

Nor has it been included in the Budgets, because it will be processed in another law, the limitation to 50% of the possibility of compensating the losses of the subsidiaries in the consolidated groups, which will affect 3,609 large companies and will apply only for two years. With this measure, the Treasury expects to collect 2,439 million between 2023 and 2024.