The Andalusian government, led by Juanma Moreno, announced new tax measures for those Residents in Andalucia. On 21 September 2022, Decree-Law 7/2022 of 20 September which was published in the Official Gazette of the Andalusian Regional Government, amending Law 5/2021 of 20 October on Taxes Assigned by the Autonomous Community of Andalusia, which comes into force on 22 September.
The most important measures included in the aforementioned law are as follows:
1. Wealth Tax
With effect from 2022, a 100% regional rebate is introduced, which will be applied to the positive tax liability resulting from the application of the deductions and rebates regulated by state legislation.
2. Personal Income Tax
With regard to the regional part and with effect from 1 January 2022:
Regional scale: The regional scale applicable to the general taxable base is deflated, raising the amounts of its first three brackets and remaining as follows:
Taxpayer and family minimums. The amounts of the personal and family minimums are increased:
The taxpayer's minimum will generally amount to 5,790 euros per year. However, when the taxpayer is over 65 years of age, the minimum will be increased by 1,200 euros per year; and if the taxpayer is over 75 years of age, the minimum will be increased by an additional 1,460 euros per year.
The minimum for descendants for each of said descendants who are under 25 years of age or disabled (whatever their age), provided that they live with the taxpayer and do not have an annual income (excluding exempt income) of over 8,000 euros, shall be:
2,510 euros per year, for the first descendant.
2,820 euros per year for the second descendant.
4,170 euros per year for the third descendant.
4,700 euros per year for the fourth and subsequent descendants.
When the descendant is under three years of age, the minimum will be increased by an additional 2,920 euros per year.
The minimum for ascendants will be 1,200 euros per year for each ascendant over 65 years of age or disabled (whatever the age), who lives with the taxpayer and does not have an annual income (excluding exemptions) of more than 8,000 euros. When the ascendant is over 75 years of age, this amount will be increased by 1,460 euros per year.
The minimum for disability will amount to the following amounts:
Disability of the taxpayer:
3,130 euros per year, in general.
9,390 euros per year, if the taxpayer proves a degree of disability equal to or greater than 65%.
The minimum will be increased by 3,130 euros per year for assistance expenses, when the taxpayer proves the need for assistance from third parties or reduced mobility, or a degree of disability equal to or greater than 65%.
Disability of ascendants or descendants:
3,130 euros per year, in general, for each of the disabled ascendants or descendants, whatever their age.
9,390 euros per year, for each of said ascendants or descendants who accredit a degree of disability equal to or greater than 65 per cent.
This minimum will also be increased by 3,130 euros per year for assistance expenses, for each ascendant or descendant who accredits needing help from third parties or reduced mobility, or a degree of disability equal to or greater than 65%.
3. Deferrals and instalments.
Various measures have been regulated to make the conditions for deferrals and instalments more flexible. Among these measures is the increase to twelve years of the maximum period for granting deferrals and instalments, provided that the resolution corresponds to the Tax Agency.
Exceptional measures are also regulated to exceed the twelve-year threshold, subject to authorisation by the Governing Council, in cases in which the Presidency of the Regional Government is responsible for the amount involved.
These measures will be applied to those requests for deferment and instalments that are being processed at the date of entry into force of Decree-Law 7/2022.
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