Reduce taxes. That was one of the conditions of Ciudadanos to give their support to the Government and it ended up materializing in the announcement that Income less than 14,000 euros will be exempt from paying in the income tax return. and? those that do not reach 17,500 euros you will see how the taxes they pay in personal income tax decrease. All this will not see the light of day until 2018, but what is the real scope of the measure?
Keys to the income reduction in 2018
He fiscal change announced by the Executive supposes raise the exempt minimum in income 2018. Currently this is at 12,000 euros and will rise to 14,000 euros in 2018. This measure will counteract the change in the reduction in income from work that had seriously harmed the lowest incomes.
To this measure are added additional discounts yet to be specified, for incomes of less than 17,500 euros, which at Gestha the Treasury technicians estimate at an average of 250 euros per year.
In addition, there will be a refund of 1,200 euros for taxpayers with spouses with disabilities, older dependents and large families.
Who will be able to take advantage of the personal income tax reduction in 2018?
If your immediate answer is: mileuristas, think twice. The amounts the Government talks about refer to salaries and gross income. In this sense, a mileurista with 12 payments would be left out because the personal income tax withholdings that have been made and the social security contributions will be added to those 1,000 euros per month. In the end, your gross salary will be around 16,000 euros.
And those who collect those 1,000 euros in 14 payments can say goodbye directly to any benefits, since their gross salary will be around 18,000 euros, depending on the case.
In order to benefit from the aid, your contribution base must be less than 1,166 euros according to the calculations of PymesyAutónomos. And within this group, the most beneficiaries will be single workers without dependent children, since they are the ones who pay the most taxes because they can only apply the personal and family minimum to their income, without including the discounts for dependent children.
Specifically, with an average withholding of 6% according to the Treasury withholding calculator, they will earn 840 euros more. This figure is in line with the 800 euros on average calculated by Gestha, which would leave a tax saving of 60 euros per month. personal income tax reform 2018.
Weren't incomes of less than 22,000 euros already exempt?
One of the most repeated criticisms on social networks towards this measure is that with the current regulations for this type of income they were already exempt from taxation. In this sense, andIt's true that right now those who earn 22,000 euros from a single payer are not required to declare, a figure that is outside those 14,000 euros and even the 17,000 euros of the second tranche of the 2018 tax reduction.
However, the reality is more complex, starting with how this exempt minimum is applied. And those 14,000 euros do not refer to the obligation to declare, but to the amount that will not be taken into account for tax purposes. and for which taxes will not be paid (the exempt minimum is not the same as being exempt from declaring). To understand it better, in 2017 income if you have earned less than 12,000 euros, not only do you not have to declare, but for tax purposes it will be as if you had not earned anything. The result is that the Treasury will return the amounts that it has withheld in excess. That is, you will be able to enjoy a refund of your income.
Now, with the change, that amount rises to 14,000 euros, hence it represents a positive impact of close to 800 euros on average per taxpayer. In total, it is estimated that the measure will cost the State 2,000 million.
As always, there are groups that will benefit more, such as people with two payers in 2018 income. In that case, the magic figure to be obliged to pay personal income tax is 12,000 euros as long as more than 1,500 euros have been entered from the second and subsequent ones. payers. With the legislative change, they will continue to be obliged to declare, but it is easier for them not to have to pay, especially considering that their retention in the second job is usually minimal.
Fountain: Bolsamania
