The greater volume of savings generated by the outbreak of the pandemic last year and the fact that 2020 was the last year in which savers with private pension plans were able to deduct contributions up to 8 in the personal income tax return. euros per year -ya this year this limit is reduced by 75% up to 2. 000 euros- caused a strong rebound in the cost assumed by the State for this tax benefit. Specifically, last year, the State stopped entering almost 2. million euros due to this exemption, which is a 16% more than in previous years, where the General Budget shows that the expected cost for this item has been around 1. 643 million euros – specific data from 2016 for AIReF’s Spend Review on this tax incentive -.
Among some of the conclusions that the data on the increase in the cost of personal income tax exemptions shows is that Savers with private pension plans did have been able to continue saving during the crisis , and their equity deposited in these financial instruments has even increased. According to Inverco data for the end of last year, the number of people with an individual pension plan stood at 7. 527. 819. slight increase compared to 7. 519. 285 recorded at the end of 2019, a 0, 11% more concretely. In other words, despite the impact of the crisis, the holders of these savings plans have continued their periodic contributions. Thus, these same figures show an increase in the assets managed during the past 2, 71% passing the 79. 850 million euros in portfolio to be counted at the end of last year with deposits amounting to 82. 014 millions.
Up to this point it seems logical that the highest volume of accumulated savings in a year in which consumption has been limited has caused both the increase in contributions and the cost of exemptions to these in the annual income tax return, which according to estimates of the Treasury technicians consulted by the Pension Economist , based on AIReF’s calculation methodology in its study, put this decrease in income in 1. 911 million.
However, the Finance technicians point out about this phenomenon, that with the current configuration of the scheme of tax incentives for savings, which is in force this year after the approval and entry into force of the General Budgets of 2021 this cost in the form of unpaid personal income tax will be reduced as a result of the reduction of the limit exempt from contributions to 2. 000 euros, which could limit the volume of deposits for this year. Although, according to the latest figures from Inverco, the assets of individual pension plans increased in June by 1. 038 million euros, standing at 86. 241 million euros, a 12, 7% more in year-on-year terms.
The pandemic and the greater capacity to save increases the equity in pension plans At this point, further, the reduction that may occur in this cost of the tax incentive in the short term through the individual system, is it should end up compensating in the medium term for the exemption provided for workers’ contributions to collective business plans. It should be remembered that what the Executive is proposing supported by recommendation sixteen of the Toledo Pact is a shift from the current incentives to individual savings towards collective savings, that of business plans, and not an elimination of them.
In his projection, the Minister of Inclusion, Social Security and Migrations, José Luis Escrivá, assures that the Government has set as a goal that half of the employed workers in our country are that is, about 9.5 million members, have a company pension plan.
The tax to income enter a 10% more in 2021 Beyond this specific exemption on personal income tax provided by the State for savers, the collection as a whole in this way It is experiencing much more fruitful behavior this year than that recorded last year, at the worst moment of the pandemic. Thus, the income tax has increased by 10% between January and June the income left in the State coffers , standing in the 39. 009 millions of euros.
In this sense, the general secretary of Gestha, José María Mollinedo, believes that the improvement in income tax collection until June of this year compared to the same period of 2019 is basically motivated by job retention. Specifically, it points out that job retentions have increased compared to the first semester of 2019 in 2. 400 million euros. Likewise, there has also been a “quite remarkable” improvement in the collection of Corporation Tax in the first half of the year compared to the same half of 2019.
In general, he has pointed out that there is a difference in the collection compared to the first semester of 2019 of slightly less than 2% (1.7%), since 7.0 15 millions less than until June 2019. However, he stressed that there could be larger differences in VAT, since a has been collected , 5% less than what was entered then.
Regarding the special taxes , as a whole 1 has been registered. 295 million euros less, a 34, 5%, although in hydrocarbons it is where the difference is larger (- 44 %).
It should be remembered at this point that between the months of January and May of this year a total of 94. 341 millions of euros through taxes. This figure is, as it would seem evident, higher than last year in a 15% (some 10. 000 million euros) but it also exceeds by 2. 768 million (3.5% more) the collection figure recorded in the same period of 2019, one year before the outbreak of the health crisis. Trend that accounts for the progress of the economic recovery.
What is meant by business?
A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. The term “business” also refers to the organized efforts and activities of individuals to produce and sell goods and services for profit.