The Government has approved a decree that equates the validity of the changes introduced in the Wealth Tax to that of the temporary solidarity tax on large fortunes collected by the State, according to a statement following the Consell Executiu this Tuesday.
In December 2022 The Catalan government approved by Decree-Law the temporary increase in the Wealth Tax in Catalonia to equate it to the new state rate for large fortunes and prevent the State from capturing income from the highest incomes in the region. What it did then was incorporate a last tranche of liquidable base for assets of 20 million euros, which were to be recorded at a rate of 3.48%
These changes were valid for two years, linked to the existence of the new state tax. With the new decree, these technical modifications are maintained and continue to link their validity to that of the Spanish tax on large fortunes.
In this way, they allow the collection of this tax to remain in Catalonia “instead of going to the Spanish Treasury,” the regional Executive stated at the time, which emphasizes that if these technical modifications were not made, The Generalitat of Catalonia could lose revenue in favor of the State.
The temporary Solidarity Tax of Great Fortunes was created “with the aim of moving towards a fairer distribution of the economic effects derived from the war in Ukraine so that the country’s large assets, those that exceed 3 million euros, contribute more to society.” The fact is that this tax is complementary to the Wealth Tax, which is paid in its entirety by the Autonomous Communities. In this way In this way, the amount paid for the Wealth Tax is deducted from the amount payable for the Solidarity of Large Fortunes Tax. This avoids paying taxes twice for the same assets and concept. It guarantees that all great wealth contributes to the maintenance of the welfare state.
The tax rate is 1.7% for assets between 3 and 5 million euros; 2.1% for assets between 5 million and 10 million; and 3.5% for assets greater than 10 million euros. With the aim of preventing the State from capturing income from the highest incomes in the region, what Catalonia did in 2022, which it endorses today, was to incorporate a last tranche of liquidable base for assets of 20 million euros, which became recorded with a rate of 3.48%.
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