The Puigverd Assessors team breaks down the fiscal news of the General State Budget for 2023

The Spanish Government has approved the new General State Budget (PGE) for the next year 2023.

These budgets have been authorized, within the established regulatory period, by Congress and include the largest item of social spending in history to reinforce the welfare state.

The Executive has predicted that the economy will have upward growth compared to the year 2022 and that it will remain at levels above the average for the euro zone.

The PGE arrive with somewhat scant economic forecasts. It has been calculated that this next 2023 there will be a growth of 2.1%. These are budgets prepared at a time when the labor market is beginning to show signs of slowing down the recovery and with inflation levels still very high.

Tax News 2023

The Ministry of Finance, during the presentation of the PGE project, has reported that a series of tax measures have been implemented, which will act on large estates, large companies and on taxes as relevant as personal income tax or corporate tax. .

All these new tax measures will enter into force on January 1, 2023. Among the measures, the following stand out:

• In the value added tax (VAT) , a modification in the closing clause on the location of the provision of services and the relaxation of the requirements that must be met in order to recover VAT in case of bad debts.
• In the personal income tax (IRPF) , an increase in the taxation of the taxable base of savings. Among the expected increase is an increase to 27% (previously 26%), the tax for capital income between 200,000 and 300,000 euros. Likewise, the tax for capital income greater than 300,000 euros rises to 28% (previously 26%). The minimum wage threshold is increased from what is mandatory to declare with a payer in one month, going from 14,000 to 15,000 euros and the reduction in income from work and economic activities of the TRADE self-employed is also increased. The reductions in the yields in objective estimation (modules) and the percentage of expenses difficult to justify the yields in simplified direct estimation are increased.
• In corporate tax (IS) , a reduction in the tax rate for very small entities. Changes in corporate tax are also included, specifically, the reduction in the rate from 25% to 23% for small companies with a turnover of less than 1 million euros and that are not assets.
• The government has announced other tax measures, such as the approval of a new temporary solidarity tax for large fortunes with assets of more than 3 million euros. It is a complementary tax to the homogeneous Equity Tax throughout the state. The amount paid in Equity is deducted.

Bearing in mind that the PGE 2023 is subject to parliamentary processing, it is necessary to note that the exposed tax novelties may be subject to changes.

The Puigverd Assessors tax team explains that " it will be necessary to see, as of January 1, 2023, how the new tax measures begin to be applied and in what way ". In addition, he adds that " it will be necessary to study the new regulations in order to understand and apply them appropriately on a case-by-case basis ".