Tax reform - Personal income tax drops an average of 12.5% ​​for workers

These days I have armed myself with a lot of patience and I will prepare a series of six articles with the new guide to the tax reform. I warn you, it is a complete royazo only for very personal income tax interested in tax issues, at the end I will edit an ebook so that you can download free and the pain is less painful.

Tax reform - Personal income tax drops an average of 12.5%

IRPF LOWS AN AVERAGE OF 12.5% ​​FOR WORKERS

The most important measure of the tax reform is the reduction in personal income tax , once the public Treasury has delayed until 2016, the reform of the autonomous taxation, twenty million taxpayers will notice in January 2015, a slight relief in their portfolios thanks in large part to the upcoming election year .

The effect will be most noticeable in very low and very high incomes. Income Tax will have an average global reduction of 12.5%, the equivalent of 6,091 million euros distributed, 3,420 in 2015 and 2,671 in 2016.

However, the increase in activity generated by the regulatory measures adopted previously, will generate more income, leaving a net cost of 4,520 million euros.

These provisions remain to be fulfilled, if the autonomies implement the reduction in their regional rate.

A state tariff is set as of 2016, which ranges between 19% and 45%. It is assumed that in 2016 taxpayers will have a better economic situation, even in 2015 and of course, if we analyze it with 2011, before the Popular Party imposed the largest increase in personal income tax in history upon its arrival in government.

There will be some taxpayers who will suffer an exception: those who earn more than 100,000 euros, who will contribute a little more than with the previous government of Rodríguez Zapatero.

The personal income tax reduction will reach 23.5% for incomes below € 24,000, since 1.6 million taxpayers would stop paying taxes.

People who have full work income of 12,000 euros, will have a profit of the average rate of 100% since in 2016 they will be exempt from paying taxes, and those who had income of 11,140 euros would no longer have the obligation to declare them.

The number of sections in personal income tax is reduced from 7 to 5, the minimum rate goes from 24.75% to 20% in 2015, and to 19% in 2016 and the family minimums increase to 32%.

As income increases, the percentage of difference in favor of the taxpayer between 2011 and 2016 is reduced, remaining at a simple 2.47% for income of € 40,000 and 1.7% for income of € 50,000.

In relation to high incomes, those that exceed 100,000 euros will reach an average rate of 0.47%, higher in 2016 than in 2011, and for those who obtain € 150,000 a 1.67% higher.

This effect is due to the fact that the maximum marginal will be 47% in 2015 and 45% in 2016 from income of € 60,000, with which it begins to operate for lower income, since in 2011 those who had that level of income were taxed at a marginal rate of 43%.

The reduction in rates is partially offset by the new taxation on dismissal and the elimination of deductions such as that of income from work for incomes above 14,000 euros, which are replaced by a new deduction of linear expense with a ceiling of 2000 euros.

As a result of this change, the affected taxpayers will lose 600 euros, since the reduction of this incentive amounts to 2,600 euros per year and represents income to the state of 6,000 million.

The increased reduction of 100% is eliminated for leases for rent to young people under 30 years of age.

Another measure that affects housing is the removal of the abatement coefficients. At present, those who carry out an equity transfer (shares, funds, real estate …….) Acquired before December 31, 1994 benefit from a reduction through the abatement coefficient. With this reform, it will penalize whoever sells old homes.

TABLE OF HOW WAGES ARE WITH THE NEW IRPF

Annual gross salary

Quota to be paid in 2011 (maximum marginal rate of 45%)

Quota to be paid in 2014 (maximum marginal rate of 52%)

Quota to be paid in 2015 (maximum marginal rate of 47%)

Quota to pay in 2016 (maximum marginal rate of 45%)

€ 12,000.00

€ 255.00

€ 275.00

€ 0.00

€ 0.00

€ 15,000.00

€ 1,438.00

€ 1,485.00

€ 1,206.00

€ 1,146.00

€ 20,000.00

€ 2,622.00

€ 1,704.00

€ 2,450.00

€ 2,388.00

€ 25,000.00

€ 3,868.00

€ 4,024.00

€ 3,693.00

€ 3,535.00

€ 30,000.00

€ 5,180.00

€ 5,428.00

€ 5,145.00

€ 4,940.00

€ 35,000.00

€ 6,490.00

€ 6,833.00

€ 6,597.00

€ 6,344.00

€ 40,000.00

€ 7,964.00

€ 8,418.00

€ 8,165.00

€ 7,767.00

€ 50,000.00

€ 11,589.00

€ 12,338.00

€ 11,987.00

€ 11,393.00

€ 60,000.00

€ 15,360.00

€ 16,442.00

€ 15,887.00

€ 15,093.00

€ 70,000.00

€ 19,660.00

€ 21,322.00

€ 20,207.00

€ 19,214.00

€ 80,000.00

€ 23,960.00

€ 25,822.00

€ 24,907.00

€ 23,714.00

€ 90,000.00

€ 28,260.00

€ 30,522.00

€ 29,607.00

€ 28,214.00

€ 100,000.00

€ 32,560.00

€ 35,222.00

€ 34,307.00

€ 32,714.00

€ 120,000.00

€ 41,160.00

€ 44,622.00

€ 43,707.00

€ 41,714.00

€ 150,000.00

€ 54,308.00

€ 59,214.00

€ 57,807.00

€ 55,204.00

€ 200,000.00

€ 76,504.00

€ 84,106.00

€ 81,307.00

€ 77,714.00

€ 250,000.00

€ 99,000.00

€ 109,606.00

€ 104,807.00

€ 100,214.00

€ 300,000.00

€ 121,504.00

€ 135,106.00

€ 128,307.00

€ 122,714.00

€ 500,000.00

€ 221,504.00

€ 239,052.00

€ 222,307.00

€ 212,714.00

€ 1,000,000.00

€ 436,504.00

€ 499,052.00

€ 457,307.00

€ 437,714.00

THE DISMISSAL WILL TAX FROM € 180,000

They have had no choice but to rectify one of the most controversial measures: the taxation of severance pay. In its first draft law, the minimum threshold exempt from taxation per year worked was established at 2,000 euros as of June 20, 2014, one of the most criticized measures.

Considering the clubs received, the Minister of Cristóbal Montoro announces a radical change in mid-June and this threshold rises to € 180,000, a slightly more logical limit than the one established in the preliminary draft copying the Basque and Navarrese regional models that go for free.

In addition, this measure takes effect on August 1. The Treasury ensures that 99.9% of those affected will no longer have to pay taxes, according to the data on severance pay, declaring them in 2012.

The 383,589 dismissed that year represent 10% of those affected by this measure, exactly 383 affected, with slightly more current data in 2013 there are 304 affected, according to sources from the Treasury, the reason is the decrease in dismissal in Spain.

All these data mean that the collection forecasts stipulated around 130 million will be reduced to much less than half, (it is curious that forecasts are made of how many are going to fire and what they can be charged for).

Compensation over 180,000 euros will be taxed for the excess, although, as they are income obtained irregularly, (more than two years), the subject income is reduced by 30%.

With this new measure, workers with a high average salary and a lot of seniority are covered. The new proposal safeguards compensation with a salary of up to 67,000 euros and 25 years with the company.

The compensation is considered an irregular income. But the tax treatment of irregular income is tightened in the reform and the exception of the first 300,000 euros is reduced from 40% to 30%. This measure promoted by the unions allows the deferred collection of compensation to benefit from the 30% reduction for irregular income.

GENERAL INQUIRIES

[dropcap style = ”book”] C [/ dropcap] How many expenses can be deducted as taxpayer

The reduction in rates is partially offset by the elimination of deductions, such as for example that of income from work for incomes above 14,400 euros, which is replaced by a new deduction for linear expenses with a ceiling of € 2,000 per year.

With this change, the taxpayers affected will lose 600 euros, since the reduction in this incentive amounts to 2,600 euros per year. The modification includes an increase in the reduction for work income for incomes below 14,400 euros.

[dropcap style = ”book”] Q [/ dropcap] what tax reduction have labor income

The tax reform modifies the treatment of irregular work income (bonuses, stock options, etc.), since they reduce the reduction that they enjoy from 40% to 30% for the first 300,000 euros. Until 2012, a 40% reduction was applied to the first 300,000 euros and the remainder was taxed at the maximum marginal rate.

Since 2013, if the compensation is less than 700,000 euros, there is no variation. If it is between 700,000 euros and one million, the reduction affects the difference between compensation and 700,000 euros. The rest is taxed at a marginal rate.

[dropcap style = ”book”] Q [/ dropcap] What changes are the rental incentives

The current personal income tax law has a reduction of 60% and this will be maintained for the rental of the habitual residence and its application can only be carried out in the cases of positive net returns. The bill continues with the 100% reduction for leases to young people under 30 years of age.

(Source: Expansión newspaper)

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