Changes in personal taxation by 2020
The year closes with some proposals to modify the taxation from 2020 onwards, which should be implemented in the coming months.
The negotiations to form a government held between PSOE and United Nations Podemos were presented in the framework of some modifications that would affect the State’s tax revenues. In this sense, different measures were announced such as the increase of personal income tax rates, including the savings rate that affects capital gains and capital income (dividends, interest, etc.).
For its part, the Government of the Generalitat has agreed with the Commons on a series of measures that will also increase tax revenue. The tax reform focuses on the following points:
Personal Incom
e Tax The main novelty is the increase in the regional income tax bracket for taxpayers with taxable bases:
- More than 90,000 euros: it becomes 23.5% (now 21.5%). Thus the joint state plus autonomous rate would be 46% up to 120,000 euros.
- More than 120,000 euros becomes 24.5% (now 21.5%), so the total rate would be 47% up to 175,000 euros.
It should be remembered that in Catalonia there is also an additional rate of 25.50% for rentals over 175,000 euros, which are taxed at a total rate of 48%.
On the other hand, for taxpayers with taxable bases below 12,450 euros the personal minimum is increased, so that their tax liability is reduced by about 60 euros.
Inheritance Tax
The reform will affect more heirs whose assets are over 500,000 euros. However, it seems that, except for spouses who will continue to enjoy a 99% bonus, it will also affect the rest of the beneficiaries since the reductions in the quota are significantly reduced to a maximum of 60% and eliminated from 3 million Euros.
Environmental taxes
A variety of measures on polluting activities are foreseen such as the creation of a tax on installations that have an impact on the environment such as production, storage and transformation of electrical energy and transport of electrical energy, telephony and telematics carried out on fixed elements of electrical supply and telecommunications networks.
In addition, two new taxes are being considered: on economic activities that generate carbon dioxide and on port emissions from large ships.
Finally, in 2020 the tax on CO2 emissions from mechanical traction vehicles will be settled for the first time.
Tourist tax
The rates of the Tax on Tourist Stays are increased and a specific surcharge for Barcelona is included.
Sugared beverages
The tax rates for sweetened packaged drinks are increased.
Tax on empty housing
The rebate applicable in this tax to owners of empty properties who allocate a part of it to housing with affordable rent, is also reduced.
Property transfers
The rate applicable to the purchase of the home by single-parent families with incomes below 30,000 euros is reduced to 5% (currently 10%).
In any case, given the relevance of the issue, it will be necessary to follow the forthcoming negotiations and processing of these measures, as well as their entry into force.
