Friday, December 8, 2023

Community of Madrid lowers personal income tax to help families cope

This decision of the regional Executive makes the Community of Madrid the first of the common regime CCAA to approve deflation for two consecutive years and thus particularly benefiting the lowest income. The global savings for taxpayers in these two years amounts to more than 350 million euros.

The 2023 deflation of the regional scale of Personal Income Tax will apply 3.1% in all sections, the personal and family minimum, the current deductions and their income limit. The regional government’s move once again gives families in Madrid more economic resources, preventing wage increases from delivering higher tax payments.

The Community of Madrid has already started processing this tax initiative in compliance with a commitment included in the electoral program and that will continue to benefit taxpayers as long as inflation is above 2%.

Calendar for its entry into force

Therefore, today the draft of the Deflation Law is published on the regional Transparency Portal for public hearing as an initial step before it is submitted for subsequent approval by the Government Council. Once this approval is received, the text will be sent to the Legislative Assembly for processing and entry into force.

The goal is that this year and for families to benefit from this tax reduction in the next income tax return in 2024.

The percentage at which deflation will be carried out will be 3.1%, which corresponds to the average increase in the CPI in the first eight months of 2023.

World Nation News Desk
World Nation News Desk
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