On October 15, 2021, the text of the General State Budget Bill for the year 2022 and the calendar for its parliamentary processing were published in the Official Gazette of the Parliament (BOCG. Congress of Deputies).
Said text contains various tax modifications, detailing below those that affect Personal Income Tax.
1 Reduction applicable in the tax base for contributions and contributions to social security systems.
With effect from January 1, 2022 and for an indefinite period, the general reduction limit applicable to the tax base for contributions and contributions to social security systems is reduced, going from 2,000 euros per year to 1,500 euros, although the amount is increased of the increase in this limit up to 8,500 euros (up to now 8,000 euros), not only by making company contributions, as is already the case, but also by worker contributions to the same social welfare instrument, provided that these contributions are of the same or less amount to the respective business contribution. With this, the shared effort between workers and companies is promoted, in order to promote the so-called "second pillar" of the pension model.
2. Extension of the exclusive limits of the objective estimation method in personal income tax for 2022
The limits on objective estimation (modules) of personal income tax and VAT are extended to 2022.
Thus, with effect from January 1, 2022 and indefinite validity, the magnitudes are set at:
- 250,000 euros, taking into account the volume of operations of all its economic activities, except agricultural, livestock and forestry.
- 125,000 euros, taking into account the volume of the full income of the immediately preceding year that corresponds to operations for which they are obliged to issue an invoice when the recipient is a businessman or professional acting as such.
- 250,000 euros, taking into account the volume of purchases of goods and services, excluding acquisitions of fixed assets.
3. Public aid volcanic eruption
With effect from January 1, 2022 and indefinite validity, the income derived from the receipt of public aid whose purpose is to repair the destruction caused by a volcanic eruption is included as positive income that is not included in the personal income tax base.