August 1, 2021

No, the rise in the minimum wage will not make you pay more taxes | Economy

The rise in the minimum wage does not imply an increase in the income tax payment. During these days several messages have burned social networks pointing out that the increase of 5.5% of the minimum interprofessional salary (SMI) up to 950 euros that the Government has just approved It would lead to an increase in taxes that the worker has to pay, which would end up neutralizing the rise. The content of these messages is not true.

A particular tweet, published on January 31 and replicated more than 12,000 times, denounced that the rise to 950 euros per month (that is, 13,300 euros per year) would exceed the threshold of 12,643 euros from which it is mandatory to submit the statement for the taxpayer and apply withholding for the employer. The message denounced that in both cases the increase of the SMI would lead the worker to “a tax payment of 1,120” euros. Its author, Ismael Lopez Martín, responsible for social networks of the Popular Party, deleted the message on February 2 and apologized for spread “a story about the SMI that is false”.

No, the rise in the minimum wage will not make you pay more taxes

Since the Tax Agency (AEAT) They point out that there has been a confusion between the obligation to declare and the withholdings and that they do not understand what calculation has been made to be able to speak of a tax of 1,120 euros. “Under current regulations, taxpayers whose taxpayers’ total income does not exceed 22,000 euros per year, in general, are not obliged to file,” they explain. And they add that this limit drops to 14,000 in three cases: when the returns come from more than one payer – although the threshold of 22,000 euros will be maintained if the sum of the amounts paid from the second employer is less than 1,500 euros per year. -, when the employer is not obliged to withhold or if the returns are subject to a fixed withholding rate.

So, “the rise of the minimum wage from 900 to 950 euros It implies, in 14 payments, total total returns of 13,300 euros, which do not make the recipient obliged to declare, or when there is only one payer (because in this case the limit is 22,000 euros) or when this amount is paid for two or more payers (because then the limit is 14,000 euros), “explains the Tax Agency by email.

Change in threshold

Indeed, the limit of 12,634 euros per year was in force. But until 2018. From last year – when there was also the previous rise in the minimum wage, up to 900 euros – the threshold became 14,000 euros, but the AEAT has not yet updated the information on its page Who has to declare, since this year’s income campaign has not yet been opened.

This means that for the IRPF campaign last year the limit of 12,634 euros was used, but referred to the income of 2018 — since the statement is made about what was entered during the previous year-. But by 2020 the declaration is based on what is perceived in 2019 the new threshold of 14,000 euros is applied, as reflected in the General State Budget of 2018, which are still in force.

I have spread a bad news about the SMI that is false. Fakenew Based on data from the AEAT website that are not updated and in some info that came to me and that I did not verify 100% I assume my mistake, I will erase the tweet and apologize, “said López Martín hours before deleting the tweet of discord.


Source link