The changes produced by the benefits of the increase in the rate of deductions and the deduction per child can be viewed.
Within the framework of the public good campaign launched by the government, El Ministry of Economy and Finance (MEF) enabled a calculation simulator so that taxpayers can see how their tax commitments will be after the reduction of the Personal Income Tax (IRPF).
The so-called “monthly withholding simulator” available in the “Personal income tax drop” from the official site of the General Tax Directorate (DGI)for dependent workers, allows us to visualize how the benefits linked to the increase in the rate of deductions and the child deduction.
Instead, “the benefits introduced in mortgage loans and property leases will be reflected at the time of presenting the annual sworn statement,” they clarified from the MEF.
In addition, in the section of the reduction of the IRPF there is also the “bimonthly advance simulator” for non-dependent workers, which shows the calculation of the advance corresponding to the two-month period that includes March, where the reduction had not yet applied, and April, with the new benefits. “By showing the months separately, the effect of the tax reductions can be appreciated,” explains the DGI.
Finally, there is the “bimonthly advance simulator”, which shows the same, from May 2023.
What are the changes that will be reflected in the simulator?
According to the decree where the income tax reduction was made official, the modifications in the tribute are several. First, the increase in child deduction from 13 to 20 Bases of Benefits and Contributions (BPC), maintaining the duplication in the case of children with disabilities.
Afterwards, the increase in rate of deductions admitted from 10% to 14% for taxpayers with annual income of up to 180 BPC.
Likewise, the percentage of the amount of lease from 6% to 8% and the maximum cost of housing was increased for mortgage credit deduction from 794,000 to 1 million Indexed Units (UI), maintaining the annual deduction ceiling of 36 BPC.
Source: Ambito
