Yesterday, October 27th, the 2021 Public Budget Statutes for 2021 was presented by the Government to the Parliament, which main tax proposals are the following:
- Corporate Income Tax: the participation exemption and revenues generated from the transmission of them are cut to a 95% bonification on the taxable base. The full participation exemption is still applicable during a period of three years for companies with a turnover inferior to 40 million euroson the Corporate Income Tax.
- Personal Income Tax:
- 2% increase on the taxable rate applicable to the general taxable base for incomes exceeding the 300.000 euros.
- 3% increase on the taxable rate applicable to the saving taxable base for incomes exceeding the 200.000 euros.
- The tax base reduction for the contributions made to a pension plan is cut to a 2.000 euros deduction.
- Wealth Tax:
- Indefinite application.
- 1% increase on the taxable rate for wealths exceeding 10 million euros .
- VAT: increase to the general tax rate on sodas and other sweetened drinks.
Consequently, those measures are to be debated in the Parliament for its approbation. So, to know for the final configuration of those measures requires to be waited until its final approbation.
From ETL GLOBAL LINKS will keep you informed about any new developments.