Tax changes in VAT, income tax and corporate taxation

Recently, it has been announced that certain measures to address the economic and social consequences of the conflicts in Ukraine and the Middle East are being extended and that urgent fiscal, energy and social measures are being adopted.

The main measures taken in the tax area are as follows:

• Extension of VAT rate reductions. The 0 % and 5 % rates for basic foodstuffs already reduced are extended until 30 September. From 1 October to 31 December they will be 2 % and 7.5 % respectively. Olive oil will move from being in the reduced VAT group together with pasta to the super reduced VAT group together with bread.
• Super-reduced VAT of 4% for olive oil will be applied from 1 January 2025.
• It regulates the personal income tax exemption for recipients of the minimum interprofessional wage: the amount of the reduction for obtaining earned income is increased and the threshold for the obligation to declare is raised in 2024.
• Accelerated depreciation for certain vehicles and new recharging infrastructures is to be converted into free depreciation for corporate income tax purposes and is also expected to be applied to income tax in 2024.
• Promotion of the capitalisation reserve: increase in the reduction and reduction of deadlines in 2024.
• Extension of the IRPF deduction for habitual residence in La Palma for 2024 and of the tax benefits applicable in La Palma in IAE and IBI.

If you have any doubts about this subject, please do not hesitate to contact us, by telephone to Carles Monfort Codina or by e-mail to cmc@btsasociados.com, we will be delighted to help you.