The tax measures of the Government for 2023, respond to a great extent to the fiscal debate opened with the tax reductions in different Autonomous Communities. Being these of different political sign. And above all as a reaction to the 100% bonus of the Wealth Tax recently announced in Andalusia. The Government recently announced a battery of fiscal measures whose approval is intended to come into force in 2023 in a whole series of taxes.
Thus, Personal Income Tax and Corporate Tax will be affected in a very relevant way, but also Wealth Tax. With the plans for the introduction of the so-called “Solidarity tax on large fortunes”. Which in practice means a reintroduction of the Wealth Tax in those Autonomous Communities that had it suppressed in practice by means of a 100% rebate. Such is the case of the Community of Madrid and more recently Andalusia.
Tax measures of the Government for 2023. Personal Income Tax, Wealth Tax and Corporate Tax
We will now analyze the main changes announced for 2023 in the three taxes mentioned above, according to the information available to date.
Tax measures of the Government for 2023. Personal Income Tax (IRPF)
Different measures are introduced aimed at increasing the taxation of income considered high, and at reducing the taxation of lower incomes.
In the first place, the income included in the savings tax base. Such as income from movable capital and capital gains, will be taxed at 27% when they are in the €200,000 to €300,000 bracket. From €300,000, the rate will rise to 28%. It should be remembered that both brackets are currently taxed at a rate of 26%, having been taxed at 23% until 2020.
Secondly, the application of the reduction for income from work to incomes of less than €21,000, compared to the current €18,000. This is a reduction of taxable earned income for salaries below this figure. The amount of the applicable reduction decreases the closer the salary is to €21,000.
In addition, the minimum exemption to declare increases from €14,000 to €15,000.
Another measure, referred to self-employed workers in modules. They will benefit from an additional 5% reduction in the net return of modules.
Finally, for self-employed workers in the simplified direct estimation regime, the deductible amount for expenses that are difficult to justify is increased from 5% to 7%. However, it will be necessary to wait for the final text to confirm whether the maximum limit of €2,000 for this concept is maintained or increased.
Tax measures of the Government for 2023. Corporate Income Tax
At the IS level, it is established that those companies with a turnover of less than 1,000,000 will be taxed at a rate of 23%, instead of the 25% currently in force. We assume that, as in other areas of the tax, in the case of groups of companies, the figure to be considered will be the total of the group. In order to avoid the fictitious splitting of the turnover in different companies that do not exceed the limit figure.
Regarding the groups of companies taxed under the consolidated regime, a temporary measure is established, applicable exclusively to the fiscal year 2023. Consisting in that only 50% of the losses generated by the subsidiaries integrated in the consolidation group will be deductible when calculating the taxable income of the group. This will mean, therefore, an increase in taxation for the groups that are affected by this limitation, as they will not be able to deduct in full the losses generated by any of the subsidiaries of the group. However, the measure is temporary and will be reversed in 2024, when the consolidation groups will be able to take advantage of the losses that they have not been able to deduct in 2023.
Wealth tax
This new tax, called “solidarity tax on large fortunes”, will be levied on those assets exceeding €3,000,000. It is established on a temporary basis for the years 2023 and 2024, although it is foreseen that at the end of this period its future extension will be evaluated. A rate of 1.7% will be applied to assets between 3 and 5 million euros, with a rate of 2.1% for assets between 5 and 10 million euros. Above 10 million, a tax rate of 3.5% will be applied.
Although it is formally configured as a new tax, it is actually a copy of the Wealth Tax for practical purposes. It is foreseen that the rules for the valuation of assets will be the same, and that the same benefits will also be applied. Among which it is worth mentioning the possibility of deducting debts:
- highlight the possibility of deducting debts
- the exemption of the habitual residence up to 300,000 euros
- and the exemption of the so-called “family businesses”. The only difference with Patrimonio is that the minimum exemption is higher, the aforementioned €3,000,000.
For practical purposes, it will only be paid in those Autonomous Communities where the Wealth Tax is subsidized. Such as Madrid and Andalusia. The Wealth Tax paid in those Autonomous Communities that do not have it subsidized will be deductible in this new tax.
Dispute
Undoubtedly, this tax figure is the one that has caused the greatest commotion. It means a drastic change in the tax situation of many taxpayers potentially affected and who did not count with this charge in their forecasts. This could generate financially complicated situations to face the payment of the tax in the case of those patrimonies that, although they are high, lack sufficient liquidity to face this costly tax.
As we have pointed out, the entry into force of this tax will take effect in 2023. For this reason, those taxpayers who could be affected should plan their situation as soon as possible. Evaluating the amount to be paid in their case and possible defensive actions against this tax. Such as the evaluation of actions to be carried out in order to take advantage of the benefits of the family business regime, or to evaluate the possibility of transferring their tax residence to more favorable jurisdictions.
