May 13, 2021

Hacienda uses an accounting trick to achieve record income | Economy

Hacienda uses an accounting trick to achieve record income | Economy



The tax revenues will increase by 20,000 million euros this year until reaching a record collection of more than 227,000 million, according to the projection that the Ministry of Finance includes in the Budgets. It is the largest increase in income since the years of boom real estate Despite this, the Minister of Finance, María Jesús Montero, yesterday described this forecast as "prudent and conservative." Much of the jump in the collection is in an accounting trick with VAT. The Government plans to register 13 months of payment of VAT instead of 12, which will add some 5,000 million additional revenue. This is because of the implementation of the Immediate Information Supply (SII), a digital system to present the tax that the previous minister, Cristóbal Montoro, launched two years ago. In 2017, only 11 months of VAT settlement were computed and Montero took advantage of it to regularize the situation.

The problem is that this change can be made for cash purposes, that is, to balance the expenses and income actually made. But it can not be computed for purposes of National Accounts, the method to register the budget items standardized with Europe and that Brussels uses to assess deficit compliance. That is to say, that the additional 5,000 million of VAT will not serve to reduce the red numbers of the State to the fiscal path included in the Budgets, 1.3% of GDP.

For this reason, the Treasury hopes to soften the deficit target in the coming months – to 1.8%, half a tenth more than now. Or what is the same, relax the adjustment in 5,000 million- to not have problems with Brussels.

The revenue forecast also includes an increase of some 9,000 million due to the improvement of the economic cycle and another 5,600 million due to the new fiscal measures. These include the new taxes: the one of financial transactions and the one that taxes the digital activitiesknown as Google rate, with which it expects to enter some 850 million and 1,200 million, respectively.

The tax package also includes tax increases. It will raise two points the maximum scale of the IRPF for taxpayers who earn more than 140,000 euros, and two additional points for those who declare more than 300,000. The maximum tax for savings income (dividends, interest …) will also rise. These measures will only affect 0.5% of taxpayers and will contribute around 328 million.

Hacienda focuses on the tax paid by companies. Those who bill more than 20 million will pay a minimum of 15% of their tax base and must pay 5% of dividends abroad. This decision will only affect some 10,000 companies, 0.7% of the total.

The tax package includes VAT reduction for feminine intimate hygiene products (stays at 4%), electronic books and digital press (4%) and veterinary services (10%).

All this adds an income of 227.356 million. And that the tax benefits (deductions, bonuses and exemptions in the main taxes) rise by 6% to 37,237 million.

Incentives for more female counselors in companies

In the extensive fiscal package of the 2019 Budgets, the Government has included a deduction in corporate tax so that there are more women on the boards of directors. Companies can deduct 10% of the annual salary of the new counselors.

The objective of this deduction is "to encourage the balanced presence of men and women in said decision-making bodies" and to incorporate "the gender perspective" to this tax, the main tax paid by companies, as explained yesterday by the Minister of Finance, María Jesus Montero.

"It is usual to see the image of the boards of directors held by men," he said. Article 67 of the legal text states: "Entities that increase the number of women on their board of directors until they comply with the Law for Effective Equality of Women and Men may deduct from the full quota corresponding to the tax period in which said increase 10% of the salaries paid to such counselors. "

.



Source link