About to start March, the February payroll brings with it a surprise that can help alleviate the January cost, which for many has begun to extend for several months. This will be especially noticeable by those earning lower salaries, as they will see more money coming into their account .
This increase will affect those who earn less than 35,200 euros and is due to changes in the rules that determine the type of personal income tax withholding, that is, the calculations. This amount that does not reach the account each month is what each citizen is considered to have to pay in the following year’s income statement, at least as adjusted as possible. Now, the modification is due to an attempt to further assimilate these guys to the effective ones (real).
This translates into a reduction in withholdings from work , which previously applied to amounts of up to 22,000 euros and has now been extended to 35,200. However, it does not mean that there is a tax reduction for these people, but that it is a “technical question”, as explained by the Tax Agency itself.
Therefore, in the long run, this does not imply either a benefit or a loss , since this increase in the monthly payroll will end up resulting in a lower return in the rent campaign. A clear advantage of these new rules is that workers can have their money sooner, since they will not have to wait for the Treasury to return it. However, it is not a positive measure for everyone: whoever was going to pay will now have to pay a greater amount.
“The purpose of this limit is to prevent excessive withholdings from personal income tax that could harm personal finances. In some cases, the application of the tax scale and the minimum exemptions from withholding can give rise to high withholdings that are not correspond to the real obligation to contribute”, as indicated by REAF Asesores Fiscales (a body of the General Council of Economists of Spain) and collected by Bankinter.
What happens to those who earn less than 21,000 euros?
In the case of those who earn less than 21,000 euros, there is a tax reduction: they will pay less in the income statement, because the Government has extended the current reduction on earned income . Until now it was applied to gross income of up to 18,000 and now it has been raised to 3,000.
These reductions are applied by sections , so that the lower the rents, the more benefits they have proportionally.
And who earn less than 15,000?
Likewise, the minimum annual gross salary required to present the income statement has also changed. Before it was 14,000 euros and now it has gone to 15,000 .
In addition, the minimum interprofessional salary has also changed. The Council of Ministers raised it to 1,080 euros per month by the year 2023 compared to the previous 1,000. This assumes that whoever collects it will also see the money increase in the payroll.