The temporary Solidarity Tax of Great Fortunes will be paid between July 1 and 31, as provided in the Order published this Monday in the Official State Gazette approving the 718 declaration model for this new tax.

In this way, the last regulatory process is completed to implement a tax whose objective is to tax with an additional fee the assets of individuals of an amount greater than three million euros.

The Order contemplates that the tax accrued as of December 31, 2022 will be paid between July 1 and 31 of this same year. This tax is complementary to the Wealth Tax, which is paid in its entirety by the autonomous communities. In this way, the amount paid for the Wealth Tax is deducted from the quota to be paid for the Solidarity Tax of Great Fortunes. In this way, paying taxes twice for the same patrimony and concept is avoided and, at the same time, the new tax guarantees that all the great wealth contributes to the maintenance of the welfare state, according to the Ministry of Finance.

With this tax, which will temporarily tax the years 2022 and 2023 to collect in 2023 and 2024, the focus is placed on those assets greater than three million euros so that they cannot be exempted by the bonuses of the regional governments in the Wealth Tax, as happens, for example, in the Community of Madrid.

The Order, which includes the recommendations and observations made by the Council of State, also determines the place and manner of filing the tax, which will be electronically, as well as the conditions and procedure for filing. The tax rate will be 1.7 % for assets between 3 and 5 million euros; 2.1 % for assets between 5 million and 10 million; and 3.5 % for assets of more than 10 million euros.

The Order published this Monday in the BOE allows the implementation of a tax figure included in a package of fiscal measures approved by the Government last year to allow a “fairer” distribution of the economic effects derived from the war in Ukraine. Thus, this tax measure for high net worth is complemented by a reduction in personal income tax for income of up to 21,000 euros, an amount equivalent to the median salary in Spain, which means that this reduction in personal income tax is already benefiting half of the country workers.

“In this way, the coherence of the Government’s fiscal policy is maintained, based on a fairer and more progressive tax system in which those who have more contribute more and the middle and working classes are protected with a strengthening of the welfare state,” defends in a statement the Ministry of Finance.

Source: dpa

(Reference image source: Eduardo Parra, Europa Press / dpa)

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La entrada Spain will apply a new tax on large fortunes apareció primero en Bitfinance.

The Ministry of Finance has advanced to 2022 the entry into force of the ‘solidarity’ tax for large fortunes, with which the Government hopes to raise 3,000 million in two years, sources from the Department led by María Jesús Montero have confirmed to Europa Press. Until now, the Government had ensured that the tax would come into force in 2023 and would extend until 2024.

With this change, the new tax will be in force during the years 2022 and 2023 so that the collection takes effect in 2023 and 2024, coinciding with the liquidation of said tax. After these two years, the Government will evaluate whether to maintain it or not.

The Independent Authority for Fiscal Responsibility (AIReF) warned yesterday that the tax would have to come into force this year, given that the budget plan sent by the Government to Brussels a few weeks ago states that the collection of this new tax will already have in 2023. Specifically, AIReF forecasts a collection for next year of 1,270 million euros and 1,370 million for 2024.

The intention of the Treasury is to approve, therefore, the new tax on large fortunes before December 31 of this year so that it can come into force in 2022, and one of the options that it is considering is to introduce it as an amendment to the bill that Congress is currently processing to tax extraordinary income to energy companies and financial entities.

The new tax on large fortunes will tax net wealth over three million euros, with three brackets: 1.7 % on assets between 3 and 5 million; 2.1 % to assets of between 5 and 10 million, and 3.5 % from 10 million.

With this new tax, which will allow deducting 100 % of what is paid for the Wealth Tax managed by the Autonomous Communities, the Government expects to collect 3,000 million euros in 2023 and 2024. However, AIReF estimates that the collection will be somewhat lower, about 1.27 billion in 2023 and 1.37 billion in 2024.

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Source: dpa

La entrada Spain advances entry into force of the tax on large fortunes apareció primero en Bitfinance.