From EIP we make a analysis of the 8 new tax measures for 2021, and thus know the situation that we will find next year.
In EIP you can study the master's degree that prepares you to work as a Financial Director in large companies. To them These Government measures have also affected them.. Keep reading to find out how.
1. Personal income tax
As expected, the Government has decided to increase collection for income that exceeds €300,000. Thus, we go from 45% to 47% general contribution base for the highest incomes. The basis for saving income exceeding €200,000 has also been increased by 3 percentage points.
These new measures will affect around 35,000 taxpayers and it is intended to raise nearly 150 million euros more than in the previous year.
2. Wealth Tax
The Wealth Tax for those who have more than 10 million euros in assets, that is, the last of the groups, also will be increased by 1%. We went from 2'5% the previous year to 3'5%.
The general bonus for the full equity share, which was scheduled to come into force on January 1, 2021, is also repealed.
3. Corporate tax
The exemption from the payment of dividends and capital gains, which was previously located at 100%, that is, there was no obligation to pay, is now reduced to 95%. So, Large companies that previously did not pay taxes on the dividends they received from their subsidiary will now do so in a 5%. This measure will not affect SMEs with less than 40 million euros in business volume. They will continue to be exempt from this payment even if they have subsidiaries abroad.
The Government plans to receive 1,500 million euros with this new measure within a period of two years, although it will only affect a small percentage of all companies.
On the other hand also The minimum 15% has been established for the tax on SOCIMIs. These are the Listed Real Estate Investment Companies that have a minimum capital of 5 million euros.
4. VAT
The changes in VAT are very striking. We find ourselves with an increase in the tax on soft drinks and sugary/sweetened drinks that go from 10% to 21%. However, this measure does not apply to the purchase of this drink by hoteliers since this would be a hardship for them at a very difficult time.
The Government has stated that this measure has not been taken with the aim of increasing revenue but rather to promote healthy habits in the population.
Later We will be able to see how some products that are now taxed with reduced VAT (10%) and super-reduced VAT (4%) are reclassified. since the Government is still thinking about taking this measure.
Special taxes such as that on diesel, which also rises and is equal to that on gasoline. The Ministry of Finance has estimated that this measure will mean an increase in expenses of €3.45 per month for the diesel driver.
5. Pensions
Pensions will be revalued at the level of CPI growth, that is, a 0,9%. For the same reason, the salaries of public employees also increased by 0.9%.
The most notable measure is to increase non-contributory pensions by 1.8%. A measure from which those who receive the lowest pension will benefit.
Both measures have made the budget item allocated to pensions is the largest (163 billion euros).
6. IPREM and unemployment
The budget allocation allocated to unemployment increases in 20% cover the expense of ERTEs and the increase in unemployment. The total figure is 4 billion euros.
Besides, the IPREM suffers an increase in 5%. This affects all kinds of aid, subsidies and subsidies from the State.
7. Housing, Health and Education
To promote affordable rental, construction and rehabilitation of housing, a budget item of 2 billion euros has been created.
Regarding Education, the aim is to create a FP Modernization Plan to help young people enter the labor market. For this, 1,500 million euros will be allocated.
Nevertheless, The largest increase is found in the budget item for Health with 75'3% (3,149 million euros). This is something that could be expected due to the nature of this crisis and the Government plans to reserve a large part of this budget for the purchase of vaccines and the reinforcement of primary care.
8. Insurance premiums
In this section, that of insurance premiums, the tax rate is increased from a 6% to an 8%.
The new measure has confronted the insurance employers' association (Unespa), which assures that this will affect insurance contracts and therefore, that there is less protection against risk, while on the other hand the Government argues that this tax had not varied for more than 20 years and which even now continues to be lower than in other large European countries such as Germany, Italy or the United Kingdom.
As financial and accounting experts, being up to date with the tax measures proposed for next year are essential, since they will mean changes in our work. At EIP International Business School we encourage and encourage our students to satisfy their curiosity through the creation of routines that include reading economic news and active participation in social networks where they can find updated information. You can know the opinions and discover the students of the Master of Financial Management on our website and on Linkedin.
