ATT ASSESSORS Insurance and services Balaguer Lleida

Tax Reform in 2015




The Government has embarked on a comprehensive reform of our tax system through a set of bills, among which significantly a Draft Act Amending the Income Tax of Individuals and income tax not residents. Draft entering phase public hearing and affecting important social issues.

We highlight the most relevant:

1) The most important point is to establish a new limit for exemption from severance pay or dismissal of the worker, hitherto exempt to the extent provided in the compulsory Workers' Statute and now going to be limited to the amount of 2,000 euros per year of service to be computed in order to determine that amount.

This development does not apply to severance or separations produced before June 20, 2014, or layoffs occurring after this date when they are on a record of employment regulation adopted or collective redundancies notified the labor authority before that date.

So far, severance pay taxed only if they exceeded the maximum set by law (45 days per year worked before labor reform and the 33 days after the reform) and always to be agreed in conciliation court or established; latter condition will continue to require, it seems, and only this exemption limit is included.

After the force inputs of tax reform, all severance payments are taxable, but will benefit from a free allowance of 2,000 euros per year worked, which allow taxpayers with salaries of € 20,000 or less should not pay the IRS when are dismissed.

Specifically, taxpayers with salaries of € 20,000 per year will receive a severance payment of 1,833 euros per year will be exempt from taxation. Similarly, all taxpayers who have had lower salaries to 20,000 euros will continue to enjoy the exemption of 100% of your compensation if dismissed.

However, those who have received a salary of 30,000 euros per year and are entitled to compensation of 2,750 euros per year worked will enjoy an exemption from 72.72% of the total after applying the free allowance.

Elsque have claimed 40,000 euros per year and are entitled to an award of 3,666 euros per year will benefit from an exemption of 54.55%, while those who have received a salary of 50,000 euros and receive compensation of 4,583 euros the year after of being fired, they will enjoy an exemption of 43.64%.

Meanwhile, taxpayers who have claimed a salary of 100,000 euros a year and, after being laid off are entitled to an allowance of 9,166 euros per year worked, shall be entitled to an exemption from 21.82% in compensation once exemption applied.

Finally, you have enjoyed a salary of 150,000 euros per year and are set to receive a compensation of 13,750 euros per year will have a final exemption from 14.54%.

2) the overall reduction for income from work is reviewed and integrated into the same deduction in the current quota, while the amount for workers rises less resources. Thus, workers may lessen the performance of work in a fixed amount of 2,000 euros in other expenses.

3) the reduction applicable to certain employees is increased self-employed or self-employed, while an overall reduction for the rest of autonomous fewer resources, thereby absorbing the perception deduction for earned income is created.

4) Taxpayers who work outside the home and have parents or children with disabilities in their care, or are part of a large family, may deduct in the differential fee of up to 1,200 per year for each of the situations, deduction it is also perfectly compatible with the current deduction for motherhood.

5) The withholding rates to low-income professionals are stoop.

6) The tax allocation of the portion of the premiums paid which corresponds to the sum insured for death or disability insurance contracts that collectively cover the contingencies of retirement and death or incapacity becomes obligatory.

7) Several concepts that were not deemed to be return in kind to have it happen, even if they are exempt (employees deliver products at discounted prices carried out in cantinas or commissaries or canteens social, use of goods for social and cultural services of personnel employed, or premiums paid to insurance companies to cover illness, provision of education to children of employees and paid to the agencies responsible for providing public service passenger transport) fees and amounts others cease to be (stock or shares of the company or other group companies who give workers).

8) the valuation of some income in kind is amended: the use of a home owned by the payer and the use or delivery of motor vehicles, noting that, in the case of transfer of use of vehicles considered energy efficient, the resulting valuation may be reduced up to 30 percent.

9) reductions are amended.

10) The limit of the premiums paid to private insurance that covers only the risk of severe dependence or big reducible dependency of the tax base goes from 10,000 to 8,000 per year, remaining at 5,000 per year in the case of collective insurance agency . And it reduces the maximum limit set of reductions.

11) the deduction is eliminated by obtaining income from employment or economic activities, adding a deduction for large family or disabled dependents.

12) the special tax treatment is simplified to displaced workers to Spanish territory, including the displaced before January 1, 2105, so you may opt to pay tax on the income of non-residents, not just those who moving to Spanish territory for a contract of employment, but also acquire the status of an entity manager does not participate in the share capital or the interest therein determined not considered a related entity. 13) The extent to which they will not declare that obtain income exclusively from gross salary income is increased from 11,200 to 12,000 per year.

14) retention rates, which become 19 to 45% according to five income brackets are reduced.

15) An annual amount of contributions and set up employer contributions to social security systems of 8,000 per year is established. And for collective dependency hired by insurance companies to cover pension obligations 5,000 per year.

In short, the Government hapresentat a tax reform which includes the reduction of lengths and types on the income tax of natural persons (PIT) for all taxpayers and reducing the maximum rate of corporation tax to 25% in 2016. Moreover, it has not advanced the VAT rise.

The Council of Ministers has prepared a report on tax reform, to be published on the website of the Ministry of Finance and Public Administration, the autonomous communities and the different social partners will be referred for final approval and entry into force in January 2015.

Main points of the report:

The Draft Law on tax reform will boost economic growth, job creation and improving the competitiveness of enterprises. Modernizing the tax system to encourage savings and investment.

There will be a gradual tax cuts for all taxpayers, especially for low and medium incomes. The average reduction in income tax will be 12.5 per 100, averaging 23.5 per 100 for lower income to 24,000 euros. 1.6 million taxpayers will no longer pay taxes.

The nombrede sections in income tax is reduced from seven to five; the minimum rate drops from 24.75 to 20 per 100 100 in 2015 and to 19 100 in 2016.

Soaring family reductions of up to 32 100. Negative three new taxes' for families and persons with disabilities are created

The standard rate of corporation tax is reduced from 30 100 to 25 100 and deductions are simplified. SMEs hold the special scheme at a rate of 25 per 100, which may be reduced to 20.25 per 100 with new tax incentives.

Reduced average tax of 12.5% ​​for taxpayers

The Council of Ministers, in turn, received a report of the Minister of Finance and Public Administration on the Draft Law on tax reform. Its objectives include promoting economic growth and job creation; a tax cut for all, especially for middle and low incomes; raise equity, especially benefiting families and individuals with disabilities; encouraging savings in the medium and long term; improving the competitiveness of enterprises and boost the fight against fraud.

The text includes a comprehensive reform of the Spanish tax system, through the main taxes and defined by the Tax Act, to design simpler and more fair taxes. The effect on the economy will be significant: the tax reform will mean an increase in GDP of 0.55 per 100 by 2015-2016. As a result of lower withholdings, twenty million taxpayers will have each month from January 2015, with more disposable income.

Income Tax

Elnou income tax will be more simple, modern and equitable. The number of sections is reduced from seven to five and a reduction of taxation occurs at all. The minimum tax rate will increase from 24.75 to 20 per 100 100 in 2015 and to 19 100 in 2016, five points less than in 2011. Maximum tax rate will rise from 52 100 to 47 100 in 2015 and to 45 100 in 2016 (the same type as in 2011).

With the new income tax, taxpayers earning less than twelve thousand euros a year will have their full salary from coming, and they will stop taxing year. In total, 1.6 million taxpayers will no longer pay taxes. Of these, 750,000 or even refund application must submit because they do not practice restraint.

The new income tax rebate will average 12.50 per 100 for taxpayers. The reduction will be even greater for those with lower incomes. Thus, 72 of 100 respondents, with less than twenty thousand per year income, have an average reduction of 23.5 per 100 rebate reaches 31.06 per 100 on average for those who are below eighteen thousand euros per year.

The income tax reform also implies a strong increase in household minimum for children, parents and disabled dependents. Most of these have a higher minimum 25 per 100 increase.

New categories of social benefits

As an instrument of family support are also created three new deductions shall be considered negative taxes'. They operate to families with dependent children with disabilities, families with dependent parents and large families (three or more children, or with 2 children, one of them disabled). In each case, they may receive 1,200 euros per year, which may be received in advance at the rate of one hundred euros per month. These negative taxes' are cumulative to each other and present, of the same amount (one hundred euros per month), they perceive working mothers with children under three years. The sum of all benefits could reach six thousand euros.

Incentives to save

Taxation of savings is also reduced, but introducing progressivity in the upper section. The new tariff consists of three sections: the first six thousand euros, lower your taxation 21 100 to 20 100 in 2015 and to 19 100 in 2016; from six thousand to fifty thousand euros euros, the drop to 22 100 in 2015 and to 21 100 in 2016; from fifty thousand euros, the tax rate will stand at 24 per 100 in 2015 and to 23 100 in 2016.

The reform also includes new tools to improve fuel economy in the medium and long term. Thinking small and medium savers, the Government created a new instrument that will give them tax benefits and be an alternative or even a complement, pension plans or other forms of savings. Thus, the new plans "Save 5" may take the form of a bank or insurance to ensure the return of at least 85 100 investment. The returns generated will enjoy exemption if investing a minimum of five years remains.


Corporate tax

The new corporation tax incorporates a drop in taxation and measures to promote business competitiveness, and simplification of deductions. The goal of tax reform is precisely to improve the competitiveness of Spanish companies to facilitate their growth and creating new jobs.

To consolidate the approach of the Spanish taxation to those of neighboring countries enterprises, the general tax rate will be reduced from 30 100 to 28 100 in 2015 and to 25 100 in 2016.

In the case of SMEs, the special regime of small size entities with rate of 25 100 and other benefits such as accelerated depreciation is maintained. In addition, a reserve of leveling why SMEs will enjoy a reduction of 10 per 100 of the tax base with a limit of one million euros is created. The amount is offset against tax losses within five years. The tax rate for SMEs be reduced to 22.5 per 100 if booking leveling applies.

In addition, a reserve of business capitalization (decrease of another 10 100 of the tax base by increasing equity), by which the tax rate of SMEs can reduce further to 20.25 by creating 100.


The tax reform maintains the reduced rate of 15 per 100 for start-ups, including the Law on Entrepreneurs. The first year with a positive tax base and the following: The rate applies to the first three hundred thousand euros of taxable income and will be 20 100 excess of this amount for two years.

Fight against fraud

The tax reform package includes a new anti-fraud measures to complete law passed in late 2012. Among the novelties is a modification of Article 95 of the Tax Law for the publication of lists of defaulters with the Treasury.

The Tax Code includes other changes that will enhance the anti-fraud and improvements in the inspection process. This procedure will have new deadlines and suspension thereof in cases assessed.