Tuesday, March 28, 2023, 00:25
This month’s payroll will have a pleasant surprise for nearly nine million wage earners who pay taxes in autonomous communities of the common system. Specifically, for those who have a gross income of up to 35,200 euros per year, who will earn more this year because the payroll withholdings applied by the Treasury will be lower. The change also affects pensioners, since for tax purposes the pension is considered work performance.
It is a measure that, however, could give more than half of these taxpayers a scare next year since, in reality, this reduction in withholdings on earned income is designed to benefit only those who earn up to 21,000 euros gross. The rest, the employees who are between this figure and 35,200, will see how in the declaration corresponding to this exercise the Treasury will claim what has not been collected now. That is to say, even if no other circumstance of your return has changed, the return of the Income will decrease to the same extent that your liquid perceptions now increase.
This is because they have been included in the reform of the personal income tax regulation necessary after the approval of the Budgets for a technical matter but not because they belong to the sector of the population that according to the Government is being “more punished by the current economic situation”. . Specifically, it is a matter of avoiding a large gap in the withholdings applied to a taxpayer who earns 22,000 euros and another who earns 21,000 euros and whose personal income tax has just been lowered.
The new reduction for work income is included among the measures announced in September to help families alleviate the consequences of inflation. Then, the Government announced the reduction in the tax burden for the nearly four million wage earners with gross income of between 15,000 and 21,000 euros, a figure equivalent to the median salary in Spain. Until now, this reduction was applied to those who earned between 14,000 and 18,000 euros gross, which, on the other hand, implies that the threshold from which it is mandatory to file an income statement goes from 14,000 euros gross to 15,000.
When announcing the measure, the Ministry of Finance and Public Function gave several examples to see how this reduction affects different taxpayer profiles. Thus, for example, whoever generates 15,000 euros will stop paying about 400 euros as they are no longer subject to taxation; a worker with a salary of 19,000 euros, married with two children who makes the joint return will save 331 euros; an employee without a partner and with two children who receives 18,500 euros would have a benefit of 516 euros; and a pensioner with a salary of 16,500 euros would save 689 euros.