The last Council of Ministers of the year celebrated this Friday was one of those denominated broom by the numerous measures approved through several Royal Decrees-Laws that on different matters ranging from issues affecting Social Security, the self-employed, the taxation of the culture sector, or subsidies to the unemployed among many other issues.
Along with what was approved this Friday, the year 2019 is loaded with other news that will also affect the pockets of citizens and companies. Taxpayers with less income will see how the income-exempt minimum rises, below which it is not necessary to pay IRPF on the income statement. In addition, maternity and paternity benefits have been exempted from paying income tax for everyone, including public employees.
Some 2.5 million workers will benefit directly or indirectly from a sharp rise in the Interprofessional Minimum Wage (SMI) that goes from 735.90 to 900 euros per month in 14 payments. This is 22.3% more than one year for another, the largest increase in the history of this minimum income.
Officials will see their salaries rise 2.5% expandable to another 0.25%, while contributory pensions will be revalued by 1.6% and minimum and welfare will be increased by 3%.
The increase in pensions will affect 10.3 million contributory and welfare benefits and will cost 2,591.65 million euros, according to the Ministry of Labor.
To cover this higher expense, the department headed by Magdalena Valerio has decided to carry out a strong increase in the contribution bases paid by employers for the most part and, to a lesser extent, the workers. Specifically, the minimum contribution bases are raised by 22.3%, in the same amount as the minimum wage, up to 1,050 euros per month (in 12 payments). While the maximum bases, which earn more, will rise by 7% to 4,070.10 euros. With both increases the Social Security plans to enter an extra 2,000 million, which would not be enough to pay for the rise in pensions.
Also the collective of the self-employed will pay more to the Social Security. Its minimum monthly fee rises five euros to 283 euros per month, and will get several improvements in benefits.
In exchange for this increase, the self-employed will contribute for all the contingencies and obtain improvements in benefits such as the payment during the double time of the benefit for cessation of activity, among others. The flat rate paid by the new self-employed and those who have not been in the RETA for one year goes from 50 to 60 euros per month. This rate extends to the agricultural self-employed.
In housing, the new rental contracts that are signed will have a duration of five years, expandable to seven. And the tariff of last resort (TUR) of natural gas will fall by 4.6% on average. Also in terms of housing, the owners will notice an average decrease of the real estate tax (IBI) of 1.92% as of January 1, 2019. Although this will be an average result of the application of values update coefficients cadastral to 1,179 municipalities, which will apply increases of up to 5% and decreases of up to 2%.
The Government will also maintain the extraordinary subsidy for unemployment until they elaborate a new model of assistance to the unemployed. In addition to all these measures, these others will also affect the pocket of the Spanish:
The regulations approved today legally collect the agreement reached between the Ministry of Labor and associations of self-employed workers. This pact includes an increase in the minimum contribution bases to the Social Security of the collective of 1.25% for 2019 and an increase in the rate of contribution to 30%. This raises the minimum monthly payment paid by eight out of ten self-employed workers in five euros, from 278 euros to 283 euros.
In exchange for this increase, the self-employed will be obliged to pay contributions for all contingencies (common and professional illness, cessation of activity, and training) and will obtain benefits improvements such as the payment during the double time of the benefit for cessation of activity, or the exemption from paying the monthly fee from day 61 of medical leave.
The flat rate paid by the new self-employed and those who have not been in the RETA for one year goes from 50 to 60 euros per month. This reduced rate is extended to self-employed workers in the agrarian system and self-employed women who have been mothers, who will be able to apply for it for 12 months within 24 months of the maternity leave.
In addition, in tax matters, the limits of billing defined in the taxation by modules in the IRPF have been extended for 2019. The legislation provided for this year to reduce the thresholds from which a self-employed can not be taxed by the estimation method. objective The Royal Decree-Law modifies this situation and maintains the exclusion limits unchanged. Thus, self-employed workers can not be taxed by the objective estimation method when the total of their activities exceeds 250,000 euros or when the turnover to other entrepreneurs or professionals exceeds 125,000 euros.
Salary of public employees
The salary of more than 2.5 million employees will be revalued by 2.25% in 2019 with the possibility of an increase of 0.25% in addition to GDP – if it grows more than 2.5% in 2019 – and another 0.25% that will depend on each administration. It is a measure that was already agreed by the Government of Mariano Rajoy with the unions and that Pedro Sanchez has given the green light by decree law to avoid uncertainty before a possible budget extension. In addition, officials of the General State Administration (AGE) will have at their disposal a bag with up to 5% of their annual workday freely available and cumulative with each other for the care and attention of their children, seniors and people with a disability in the first degree of consanguinity or affinity.
The Government has wanted to increase the penalty in over-tipping Social Security for temporary contracts of very short duration. For that the Ministry of Labor has decided that "in contracts of a temporary nature whose effective duration is equal to or less than five days, the employer's share of Social Security for common contingencies will increase by 40%." In this way, the higher cost paid by employers goes from the current 36% with which contracts less than seven days are currently penalized to 4% in the case of contracts of five days or less in duration. This increase will not apply, however, to the contracts included in the Special System for Agrarian Workers, this text requires.
In addition, the Social Security Law will be modified to apply to the days actually worked and quoted a "temporality coefficient", which will allow the worker to gather a greater number of days in discharge for access to the benefits of the Social Security system. Thus, "for the purposes of proving the contribution periods necessary to cause entitlement to retirement benefits, permanent disability, death and survival, temporary disability, maternity and paternity" in contracts of equal or less than five days each working day Cash will be considered as 1.4 days of quotation.
As for the premium rate of contributions for professional contingencies, the minimum rate goes from 0.9% to 1.5%, which will mean an increase in the collection of 6%. On the side of savings for companies, the Government has enabled collective agreements to include forced retirement once the worker is entitled to 100% of the pension, which allows them to be forced to retire without paying compensation.
Fines for false self-employed
The Ministry of Labor wants to avoid that, because for the first time the minimum contribution base of employees is greater than that of the self-employed, there is a transfer of the General Scheme to that of Workers on their own, turning employees into false self-employed workers . To deter this possible fraudulent business maneuver a new "very serious" infraction is created with its corresponding sanction in the Law on Infractions and Sanctions in the social order for the businessman who leaves a worker in the General Scheme of employees and maintains to that same worker in the same activity but registered in the self-employed regime. This infraction will entail a fine for the employer, for each worker affected, between 3,126 and 10,000 euros, depending on the seriousness of the infraction.
The year will also bring novelties for the Special Scheme for Domestic Employees, for which contribution bases are established based on 10 sections of remuneration, the last one is left so that the base is the salary received. In addition, the maximum hours that may be carried out in each section are fixed, according to the minimum interprofessional salary. While the reduction of 20% in contributions for people working in the household service, as well as the bonus of up to 45% if the employer is a large family is maintained. Finally, the Ministry of Labor has decided to reduce the transitional period for the complete equalization of these workers – nine out of ten are women – with the rest of the workers of the General Scheme and to quote for the real salary, which will be effective on January 1. 2021
Taxation of artists
The Council of Ministers approved on Friday a royal decree law that includes measures to support artistic creation, including the reduction of VAT to services provided by authors, creators and producers from 21 to 10%. In this way, with effect from January 1, 2019, the application of the reduced VAT rate to these essential services of the cultural industry is recovered.
Transportation and Post Office
Renfe will keep the prices of the Cercanías tickets frozen but will raise the prices of regional -mediate distance- and Avant prices by 3.5% and 7% respectively. Long Distance and AVE trains will not change their rates either. There will also be changes in the price of tolls on some motorways. From January 15 tolls on the highways rescued by the State (R2, R3, R4 and R5, the AP-41 Madrid-Toledo, the M-12 motorway, the AP-36 highway Ocaña-La Roda, the AP highway -7 Cartagena-Vera and the Circunvalación de Alicante) will lower on average by 30%. On the other hand, Correos will also raise the postage of the ordinary national chart with a weight of up to 20 stretches, the most used product, will cost 5 cents more from January 1, with a fee of 0.60 euros.
Since December 18, the new rental agreements signed thereafter will last five years instead of three, and seven, in case the owner is a company. The extensions are also extended from one to three years. All this will allow, according to the Government, to provide the tenants with greater stability. In addition to the monthly payment of the deposit, the landlord can not request additional guarantees that exceed the equivalent of another two months of rent. If the owner is a company, it will be this and not the tenant who must be responsible for the costs of real estate management and formalization. Reduced rent contracts (those that can benefit from rent assistance) can only be updated according to the CPI.
Low natural gas
The tariff of last recuso (TUR) of the natural gas, to which the domestic ones are received, will lower an average of 4.3% during the first quarter of 2019. This fall breaks with the increases recorded in the last two quarters and is produced by a slight decrease (0.1%) in access tolls to the networks (which account for approximately half of the invoice) and the modification of the base gas calculation formula of said tariff approved on December 20. The cost of raw material (CMP) is reduced by 10.8% thanks to the change in methodology and the decreases in Brent and NPBB. TUR 1 (annual consumption of less than 5,000 kWh or users without heating) drops by 3.8% in October, and TUR2 (for consumption of 5,000 kWh and 50,000 kWh per year, with heating) drops by 4.8%.
The Tax Agency aims to start the next campaign to present the rent in March 2019, instead of the usual start as of April, allowing citizens to access their tax data a month before to make the corresponding declaration to the tax authorities. 2018 exercise before June 30. One of the main novelties is that the minimum exempt of income below which it is not necessary to pay IRPF is raised from 12,000 to 14,000 euros. In addition, the tax on rents of between 14,000 and 18,000 euros has been lowered. Another major change in the campaign is that for the first time they will stop paying maternity and paternity benefits after the Supreme Court clarified that they are exempt. Those who have received this aid during the financial year 2018 will not have to do anything to benefit from the fiscal change. In parallel, the Government has articulated a form (on the website of the Tax Agency) that allows claiming the IRPF improperly paid since 2014. Those who received the benefit in 2014 or 2015 have the month of December to request the return while those that the received in 2016 and 2017 must claim it in January. Finally, the Government has extended the property tax for one more year.
The tax scenario of 2019 starts with maximum uncertainty given that the Government has announced a broad fiscal reform, with special effect on high incomes, whose implementation is in doubt in the absence of seeing if the team of Pedro Sánchez is able to add support for your budget plan. And even if it does, the initial text could undergo important modifications during the parliamentary process. A priori, in any case, the approach is to create two new sections of income tax to raise two points the tax on income above 130,000 euros and four points of those that exceed 300,000 euros. The property tax is also increased up to 3.5% for fortunes of more than 10 million. In addition, the Government seeks to reduce the VAT on women's hygiene products from 10% to the super-reduced rate of 4%. In parallel, although the Budget is nothing, the Executive has already promoted several fiscal measures as preliminary bills. This is the case of the financial transaction tax of 0.2% (which entities could end up transferring to investors in the stock market), the Google rate of 3% on digital business and a package of anti-fraud measures that, among them, would avoid tax avoidance. in the buying and selling of homes, inheritances in life.