The publication of Law 12/2023, on the Andalusian Budget for 2024, has brought with it relevant modifications to the 100% regional rebate on the Wealth Tax (IP), introduced by Decree-Law 7/2022, which led to tax residents in Andalusia not paying this tax in 2022.
However, with the entry into force of the Solidarity Tax for Great Fortunes approved through Law 38/2022, of 27 December, it led to IP taxpayers in Andalusia with a wealth of more than 3.7 million euros to pay this tax.
All this has forced the Andalusian government to reform the regulation. This reform is contained in the new Transitional Provision 5 of Law 5/2021.
Transitional Provision 5 of Law 5/2021 introduces significant changes to the allowances applicable to Wealth Tax in Andalusia. Firstly, it establishes that, during the term of the ITSGF, Andalusian taxpayers have the option to choose between two types of relief, both of which are mutually incompatible.
The first option allows taxpayers to apply a rebate determined by the difference between the full amount of the Wealth Tax and the joint limit established by the regulations corresponding to the ITSGF, in accordance with the provisions of the State Law. This choice implies that the revenue generated by the tax remains in the Treasury of the Junta de Andalucía.
The second option consists of maintaining the 100% rebate on the full amount of the Wealth Tax, as previously established. However, in this case, taxpayers will be obliged to declare and contribute to the ITSGF, and the collection corresponding to this tax will be directed to the State Treasury.
Opting for either of the two alternatives does not result in any increase in the tax burden for the taxpayer, but simply changes the destination of the tax payable.
Sara Gámez Córdoba.
