Economic and tax measures just taken by the government

Just approved a bunch of tax measures that are going to have a quick effect on consumers, businesses and professionals.

1º.- Self-employed and professionals will pay more income tax, retentions on professionals and self-employed gains (economists, lawyers, architects, engineers, etc.) will go from 15% to 19% from the 1st September 2012 and, in principle, until the end of 2013. Not only will they be affected, but also employees due to the income tax retentions on salaries, this is, a higher amount (6% more).

2º.- The quarterly payments of business go from 8% up to 12%, with the limit of the financial expenses deduction.

3º.- The maximum base of payment to the National Insurance system is increased 5 points. The maximum amount is 3230 euros per month, and most of the amounts paid by a very high number of payers are not liable. Therefore, the monthly maximum base is increased 161 euros as well as the pension’s fund.

4º.- The government also has approved to increase an additional point on the minimum base of the national insurance payments of all self-employed workers.

5º.-. Homogenization of the work gains for National Insurance purposes: so far, there was income/gains not liable to National Insurance payments, however, from now on, all income/gains will be liable. Therefore, the workers’ pensions will be improved and the National Insurance payments by employers will be higher.

6º.- Homogenization of the penalties when behind in payments to the National Insurance system: all penalties: 20%. Independently of how long the payment is late, it seems that the penalties of 3%,5%, 10% and 20% will go directly to the latter one. Therefore, if behind only one date, there will be an additional payment of 20%  

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