Tax advice allows a safe anticipation before the tax increase
Following the economic and social impact of COVID-19 in Spain, the government is expected to approve an imminent tax increase. It should be remembered that the budgets have yet to be approved since 2018. In addition, the health crisis will bring about a drop in Spanish GDP of more than 9%.
From B Law & Tax we give certain keys so that the taxpayer can anticipate such a rise and avoid a precipitous erosion of their taxes. First of all, it must be taken into account that Income Tax can suffer a series of consequences:
- Increases in tax rates of two points are foreseen for incomes above 130,000 euros and 4 points for the part that exceeds 300,000 euros.
- The state rate on capital income can also be increased by 4 points for income above 140,000 euros.
- SOLUTION: bringing possible sales forward to 2020 could be recommended.
Regarding the Wealth Tax (IP) and the Inheritance and Gift Tax (ISD), some modifications are foreseen:
- Like Madrid and Catalonia, other territories could benefit practically from the total of these taxes.
- The Government analyzes the possibility of creating a Large Fortune Tax, which will replace the Wealth Tax.
Finally, changes in Corporation Tax (IS) may occur, such as the following:
- Limit the exemption from double taxation of dividends and capital gains from the sale of investees.
- Establishment of a minimum rate of 15% for companies with a turnover of more than 20 million euros.
- Creation of simplification and reorganization measures for groups and holding companies.
B Law & Tax
International Tax & Legal Advisors.