Summary of the fiscal measures of the Budget Law 2022

We begin the year with a summary of the fiscal measures contained in the Budget Law of 2022.

IRPF and VAT modules

A new extension of the exclusionary limits of modules is carried out, applying the increased limits provided for in transitory provision 32 of the Personal Income Tax Law and transitory provision 13 of the Value Added Tax Law since 2016. In this way, those that do not exceed the following billing limits in 2021 will be able to continue in modules in 2022: for all economic activities, 250,000 euros. And 125,000 euros when the recipient is a businessman or professional (articles 60 and 64 LPGE 2022)

Personal Income Tax

Reduction of the general reduction limit for contributions and contributions to social security systems:

Effective January 1, 2022, the general reduction limit applicable to the tax base for contributions and contributions to social security systems is reduced, from 2,000 euros per year to 1,500 euros, although the amount of the increase in this limit up to 8,500 euros (up to now 8,000 euros), not only by making business contributions, as is already the case, but also by making contributions from the worker to the same social security instrument provided that these contributions are equal to or less than the amount respective business contribution.

Corporate tax

Minimum taxation:
With effect for tax periods starting from January 1, 2022, minimum taxation of 15% of the tax base is established for those taxpayers with a net amount of turnover equal to or greater than twenty million euros during the 12 months before the start date of the tax period or that are taxed under the tax consolidation regime, in this case, whatever the amount of their turnover.

In addition, the concept of the minimum liquid fee is introduced, which may not be less than 15% of the tax base once reduced or increased, as appropriate, by the levelling reserve regulated in art. 105 LIS.

The minimum tax rate will be 10% for newly created entities, whose rate is 15%, and 18% for credit and exploration, research and exploitation entities of hydrocarbon deposits and underground storage, the general rate of 30%. This means that, due to the application of the deductions, the liquid fee may not be lowered below said amount.

In the case of cooperatives, the minimum liquid fee may not be less than the result of applying 60% to the total fee calculated in accordance with the provisions of Law 20/1990, of December 19, on the Tax Regime of Cooperatives.

Reduction of the bonus for entities dedicated to housing leasing

Effective for tax periods beginning on January 1, 2022, the tax credit for entities engaged in housing leasing is reduced from 85% to 40%. Article 61 LPGE 2022 modifies article 49.1 of the Corporation Tax Law.

Deductions and discounts from the total tax group fee

With effect for the tax periods that start from January 1, 2022, the total tax group quota reduced by the amount of the deductions and bonuses that may be applicable may not give rise, in any case, to a negative liquid fee. Article 61 LPGE 2022 modifies article 71.1 of the Corporation Tax Law.

Non-Resident Income Tax

The measures adopted in matters of minimum taxation in Corporation Tax correlate in the Income Tax of Non-Residents, for income obtained through a permanent establishment. Thus, article 63 LPGE 2022, with effects for tax periods starting on January 1, 2022, modifies sections 4, 5 and 6 of article 19 of the Consolidated Text of the Income Tax Law of no Residents and adds a new tenth additional provision in the Consolidated Text of the Non-Resident Income Tax Law.

Tax on Economic Activities

A new group 863 is created in the second section of the Rates of the Tax on Economic Activities to precisely classify the activity carried out by journalists and other information and communication professionals, which to date lacked such classification.

Legal interest of money

The legal interest of the money is established at 3% until December 31, 2022.
During the same period, the default interest referred to in article 26.6 of Law 58/2003, of December 17, General Tax, will be 3.75%.
During the same period, the default interest referred to in article 38.2 of Law 38/2003, of November 17, General Subsidies, will be 3.75%.

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