Despite the daily political controversy over the management of DANAthe Government of Carlos Mazón tries to continue forward with the approval of two decree laws with which it intends to face the emergency and advance the recovery and reconstruction in the affected municipalities. One of them includes a battery of fiscal measures for those affectedmainly deductions and bonuses for those who have lost their home, car or business.
Thus, the new rule approved by the Consell in its extraordinary session this Tuesday afternoon is added to the direct aid that has already been approved amounting to 250 million euros. The Council also approved urgent aid for housing rental intended for those families or cohabitation units whose habitual residence is uninhabitable due to the consequences of DANA for another 50 million euros.
In the fiscal package, benefits are included in the autonomous section of the Personal Income Tax (IRPF)like a 100% deduction of the expenses incurred to address the damage caused by the storm to the habitual residencewith a limit of 2,000 euros. According to the Minister of Finance herself, Ruth Merino, it will be applied to the tax periods concluded in the years 2024 and 2025, with income limits of up to 45,000 euros of taxable base in individual taxation and 60,000 euros in joint taxation.
In the case of businesses damaged by water and the need to contribute capital to them, the decree law includes a 45% deduction on the amounts invested in the subscription and disbursement of shares or social participations as a consequence of agreements to establish or increase capital of public limited companies, limited liability companies and labor companies or of contributions made by partners to cooperative societies.
Of course, it affects entities that develop economic activities and have their headquarters within the affected territorial area, which According to the current wording, it is limited to the municipalities in which the equivalent of the catastrophic zone has been declared.. In this case, 9,900 euros per taxpayer can be reached.
Homes and cars
Other main measures are that in practice those affected will not have to pay taxes on Property Transfers (ITP) and Documented Legal Acts (AJD) when it comes to purchases of homes or vehicles to replace those lost by DANA.
The Generalitat has decided to establish a 100% bonus on the fee applicable to operations related to the acquisition of properties intended to replace others destroyed or seriously damaged by the storm and to acts of declaration of new construction and/or horizontal division.
A measure that extends to another of the assets most destroyed by the meteorological phenomenon, automobiles, makes it unavoidable. Given the high accident rate, a bonus of 100% of the ITP and AJD fee is approved for the acquisition of vehicles that replace those destroyed by the floods, provided that said acquisition is made from October 29, 2024 to October 31. December 2025, both inclusive.
Inheritances and Donations
In another transferred tax, the Inheritance and Donation Tax, a 50% bonus is approved in favor of mortis causa acquisitions made by second and third degree collateral relatives, ascendants and descendants by affinity, of people who died as a result of the DANA. . That is, in those cases in which they are not first-degree relatives, who had been exempt after the change that Mazón applied when he arrived at the Generalitat.
In addition, reductions in the tax base of 100% are incorporated in favor of people or entities that receive cash or other types of assets and rights by donation to alleviate the material damage suffered by the storm. The application of the benefit will be subject to the donation being used to alleviate material damage resulting from the floods within a period of 12 months from the acquisition.
The approved decree law includes the exemption from the sanitation fee for water consumption carried out in the affected areas between October 29, 2024 and March 31, 2025 in the territorial scope of the affected municipalities. The truth is that in many of the municipalities in zone zero they have been without water supply for days, whose bill includes payment, and sanitation is very damaged. The Generalitat had already announced that would reduce the collection of water and waste rates that manages those affected by the floods.
Modifications and emergency contracts
The other approved decree law aims to establish a regulatory scheme that facilitates economic-budgetary management to facilitate the reconstruction of the city after the effects derived from DANA. Among other issues, The decree establishes the organization of donations to the Generalitat in the face of the emergencybut it also recovers the formulas to obtain resources more quickly and emergency hiring that were used during the pandemic.
According to the Consell, the system of budget modifications is reorganized in a similar way to how it was done to deal with COVID, in order to speed up its processing and prioritize attention to expenses linked to DANA, which means eliminating limitations included in legislation.
This also includes measures to streamline the aid and subsidy regime and “regulate” emergency hiring justified by the need to act immediately. Precisely, the current Consell was very critical of Ximo Puig’s Government for resorting to these formulas with fewer controls.
New organism
In addition, the Consell has created a new body, the Autonomous Instrument for Response, Attention and Reconstruction against DANA in Valencia, which will be attached to the public company Vaersa. According to its functions, it will be responsible for the management, attention, coordination and material support of the measures that are required by the regional and local authorities affected by DANA.
#Valencian #aid #DANA #bonus #Asset #Transfers #AJD #replace #house #car
