He Valencian government who presides Carlos Mazon In its first meeting of this new course, it approved the draft bill to comply with one of its star measures announced in July: the suppression of the Inheritance and Donations Tax.
The draft approved today in Castellón by the Plenary Session of the Valencian Consell contemplates the modification of Law 13/1997 that establishes the autonomous section for this tax. With this proposal, it will be implemented a 99% bonus on Inheritances and Donations which must now be processed and approved in Les Corts Valencianes as an emergency procedure. PP and Vox have an absolute majority in the autonomous parliament to carry out this initiative.
As Mazón himself already revealed, the entry into force of this bonus will apply from May 28, 2023since it is a favorable norm for the majority of taxpayers, it can be applied in this same exercise.
According to the Generalitat Valenciana, the draft will include a 99% bonus on the tax rate on mortis causa acquisitions and receipts of amounts obtained by the beneficiaries of life insurance that are added to the estate made by relatives of the deceased belonging to groups I. and II (descendants and adoptees, spouses, ascendants and adopters) of Law 29/1987 on Inheritance and Donation Tax.
At the moment The tax rate bonus was generally 50%except in the case of sons and daughters under 21 years of age or people with a certain degree of disability, in which cases the discount reaches 75%.
Inter vivos donations
It also introduces a similar benefit for acquisitions by donation or other lucrative acts inter vivos celebrated in favor of the spouse, parents, adopters, children or adoptees of the donor, grandchildren and grandparents in order to simplify the current regulation of reductions associated with kinship and incorporating the spouses of the donor as beneficiaries.
Likewise, purchases by people with physical or sensory disabilities with a degree of disability equal to or greater than 65% or by people with mental disabilities with a degree of disability equal to or greater than 33% will enjoy the same bonus.
In transfers inter vivos, various reductions will be applicable to the tax base. If the acquisitions are made by children or adopted children under 21 years of age, a reduction of 100,000 euros will be applied, plus 8,000 euros for each year less than 21 that the recipient has, without the reduction being able to exceed 156,000 euros.
When purchases are made by children or adopted children aged 21 or over, by the spouse, parents or adopters, a reduction of 100,000 euros will be assigned; In purchases by grandchildren, a reduction of 100,000 euros will be set if the grandchild is 21 or older, and 100,000 euros, plus 8,000 euros for each year less than 21 that the grandchild is, without, in this last year, the reduction being possible. exceed 156,000 euros, while in purchases made by grandparents, the reductions will be 100,000 euros.
In purchases by people with physical or sensory disabilities, with a degree of disability equal to or greater than 65%, and with mental disabilities, with a degree of disability equal to or greater than 33%, a reduction will be applied to the tax base of 240,000 euros.
When the acquisition is made by people with physical or sensory disabilities, with a degree of disability equal to or greater than 33%, who are the spouse, parents, adopters, children or adoptees of the donor, a reduction of 120,000 euros will be applied. The same reduction, with the same disability requirements, will be applicable to grandchildren and grandparents.
The arguments
The Minister of Economy and spokesperson for the Consell, Ruth Merino, referred to the Inheritance Tax as “death tax” to justify its elimination. In addition, the coalition government of PP and Vox argues the low impact on total public revenue, which is barely a 1% of expected revenue in the budget of the Generalitat. The same occurs with the tax on the donationsthat barely supposes 0.1% of public income and on which there is no type of bonus in the tax quota that Valencians have to pay.
In the budgets for this year prepared by the previous left-wing Executive of Ximo Puig, it was estimated that both taxes would contribute almost 400 million to the public coffers of the Valencian Community.
