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All high and all low in 2023


For a government that has made tax increases one of its banners, 2023, the year of elections, seems like a one-of-a-kind exercise. The parties that make up the left’s coalition government have managed to implement some of their more symbolic fiscal proposals, such as a tax on the rich or special taxes on electricity and banks, that have been hovering around budget negotiations since 2018. But they haven’t finished delivering on them until this year, but their impact on additional income dwindles before The enormous cost of tax cuts To contain electricity, gas and now food prices. A government that boasted of raising taxes would finish its mandate by lowering them across the board, even though the historic stream of revenue provided by inflation has given it unprecedented room for maneuver in recent Spanish history.

More taxes on the “rich”

Unidas Podemos pressure has Illuminate the tax on great wealth, which will affect the community of Madrid and Andalusia. Large estates in these and four other regions with rates lower than the state—the government has left open the Basque Country and Navarre to avoid taxes—will have to pay a rate of 1.7%, if their inheritance is between three and five million; 2.1% if you reach ten million; And 3.5% if it exceeds ten million euros.

Experts predict that the formula chosen to apply it will lead to unprecedented conflict. the The government expects to collect 1,500 million from about 23,000 taxpayers. However, many experts warn that the remaining balance of approval of this tax will be paid to the state.

The government’s attack on the rich has another side. The profits that they will receive from their investments in markets, assets and savings tools in 2023 exceeding 200,000 euros will pay more taxes. The personal income tax rate will rise to 27% for earnings between 200,000 and 300,000 euros, and will rise to 28% above this limit.

On the contrary, the government The personal income tax has been reduced for all taxpayers with an income of less than €21,000who will pay less tax on their income for 2023. And so will another 250,000 taxpayers with incomes of up to €35,200 who will benefit from the change in withholding schedules and who will see their net earnings increase by up to €1,000 this year, although later they should They have to reconcile the accounts on their income statement.

tax burden on investment

Critics of the new solidarity tax with great wealth warn that it will be an obstacle to investing in Spain, since then It will redirect large foreign private investors to other regions With a similar climate but better financial conditions, like Italy and especially Portugal.

They also warn of the burden on investment that will be posed by new taxes on banks and major energy companies, through which the government aspires to collect an additional 3,500 million to bear the bill of spending measures arranged to protect companies and individuals from inflation and will impose a tax on the total income of energy companies at a rate of 1.2% and on Commission and interest income for large financial entities operating in Spain increased by 4.8%. What would have been temporary taxes on the extraordinary profits of these entities now refers to permanent taxes on their bills. Sectoral and opposition organizations have already warned of Risks that may involve investing in renewable energy sources Or on the financial conditions set by banks to finance companies and individuals with a complete escalation of interest rates.

The decision to halve the accumulated losses that large companies can deduct on their corporate tax return will increase the tax burden for large business groups at a time when uncertainty is already dampening their investments.

The government is again looking at bricks for income

Selling a home in 2023 could be more taxing. The government has quietly slipped into its draft 2023 budget an update (in most cases upward) of the transactions that municipalities take as reference for applying the tax on urban land appreciation, as well as what is known as Urban Plusvalía. It is not a tax increase in the strict sense, since it is the municipalities that must decide whether or not to use the margins provided by the government, but doing so will greatly increase the tax cost of moving the house.

In terms of tax improvements, the government has extended the tax credit for another year for doing business at home which translates into a reduction in energy expenditure, allowing savings of up to 60% of the investment made, depending on the case.

It will be more expensive to create or maintain a job

In 2023, the Mechanism for Intergenerational Equity (MEI) will come into force, a tool devised by the government to balance the accounts of the public pension system which mainly takes the form of an increase in social contributions paid for contracts of employment.

the Contracts from this year will pay an additional contribution of 0.6%Which companies will be charged 83% and employees 17%. For a gross monthly salary of 2,000 euros, the extra cost will be 12 euros per month, of which 10 will be paid by the company and two by the worker. In the case of the self-employed, they will bear all additional costs.

Next year, the new contribution system for self-employed people to their real income will also come into force, which will arrange the installments to be paid in 15 installments over the next three years in installments of a minimum of 230 euros per month and a maximum of 500 euros per month, and this will lead to an increase Shares of thousands of self-employed.

Reduce taxes on the shopping cart

Shopping cart price increase by 15% this year so far according to INE Pushing the government to reduce value-added tax on dozens of basic foods In some cases lower your tax burden from 10% to 5% and in others leave it straight at 0%. According to companies in the sector, the measure will affect 7,000 price references, representing a cost of 611m a year – despite the government’s advances that it will be withdrawn once core inflation, now at 6.9%, drops from 5.5% – although the savings will be limited , about five euros per month per family in the standard shopping basket.

The sector warned that part of this savings may be diminished by applying the new tax on non-reusable plastic materials, which imposes a tax of 0.45% on each kilogram of plastic, and its impact is estimated at about 300 million euros. Partially driven by the distribution sector.

High rates of road toll payments

The increase in the amount you have to pay on motorways in Spain comes into effect. However, the increase will not follow the evolution of the Consumer Price Index (CPI). The increase would be 8.4% according to inflation but the government decided Limiting the rise to 4% in 2023.

This limitation of the fee increase was included in the latest decree to help deal with the impact of the war in Ukraine, which was approved last Tuesday. In this way, the increase in the rates of AP-51, AP-61, AP-53, AP-66, AP-7 Alicante-Cartagena, AP-7 Málaga-Guadiaro, AP-68, AP-71, AP-9, AP -6 and AP-46. A total of 11 tracks, to which it should be added that they were also selected Freeze tolls on state-run highways. The cost of supporting all this will be 23.3 million euros for the state administration.

Regulated gas tariff increased by 11%

The regulated gas tariff (TUR), which includes two million customers, increased by 11% on January 1, according to the decision approved by the Ministry of Environmental Transition.

The variable term for TUR 1, which is primarily covered for customers who use gas to supply hot water, is up 10.75%. That of TUR 2, where domestic customers who also have gas heating are covered, will increase by 11.26%, while that of TUR 3 (annual consumption between 15,000 kWh and 50,000 kWh) will increase by 11, 68%

These increases are higher than those announced by the Ministry of Environmental Transition, which indicates increases of between 7.54% and 9.21%, but it refers to the cost of the final bill, a measure used only by the division run by Theresa Riverbank.

Euribor puts the mortgage through the roof

In one year, the Euribor, and An indicator indicated by 70% of mortgagesfrom the negative region (-0.5%) to skyrocketing above 3% in an unprecedented development that will have an impact on local economies.

For a typical mortgage of €150,000, at 25 years old and with an Euribor plus 1% spread, the monthly surcharge for this step-up would be calculated on a monthly basis at around €260.

Filling the tank is already more expensive than it will be in 2022

The withdrawal of the 20-cent bonus on the price of a liter of gasoline, in effect since April 1, will make filling the tank a little more expensive at the beginning of the year than it was a few days ago.

The government has decided to maintain this measure for transporters, farmers and the fishing sector.

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