Sunday, December 3, 2023

Madrid to lower personal income tax in 2024 for second year to help families

The Community of Madrid has announced that they will deflate the Personal Income Tax (IRPF) in 2024 for the second year in a row to help families cope with rising prices. The regional government indicated in a statement that the move would save 153 million euros for Madrid’s 3.5 million taxpayers.

On this occasion, the 2023 deflation on a regional scale will occur by applying 3.1% to all sections, the personal and family minimum, the current deductions and their income limit. This percentage corresponds to the average increase in the CPI in the first eight months of 2023.

With this new tax reduction, the Government of Isabel Díaz Ayuso wants to give families in Madrid more economic resources and thus prevent a possible increase in wages this year that will result in higher tax payments .

Madrid has begun its processing so that it can be implemented in the next Income Tax Declaration, which corresponds to the fiscal year 2023, “thus fulfilling the commitment included in the electoral program and which will continue to benefit taxpayers as long as inflation remains in below the above. 2%” read the statement.

When will it be implemented?

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

Last year Ayuso announced a similar measure, which includes the deflation of the personal income tax of 4.1% also applies to the regional scale and the personal and family minimum. In this way, Madrid emphasized that it was the first Community to approve deflation for two consecutive years and thus benefited the lowest incomes. The global savings for taxpayers in these two years amounts to more than 350 million euros.

World Nation News Desk
World Nation News Desk
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