Inheritances

Processing rejected the proposal of the PP Act to eliminate inheritance and gift tax

The Governing Council has agreed on Tuesday to express their contrary view taken into account and the processing of the bill of tax measures in the inheritance tax in Andalusia, presented by the parliamentary group of the PP-A, as , as explained, it would de facto elimination of this tax in the community and lead the decline in budget revenues.

This was stated at a press conference the spokesman of the regional government, Miguel Angel Vazquez, who underlined that the bill submitted does not contain the necessary economic valuation of lower returns resulting application, the Governing Council is to have a reduced social impact and high impact on revenues.

In addition, he indicated that this proposal would not favor the principle of progressivity that should inspire the Spanish tax system to mean the disappearance of a “direct, personal and progressive” tax.

The aim of the Andalusian Executive, said Vazquez, is to ensure a fair tax system, in which everyone contributes according to their economic capacity. Therefore, and in the case of inheritance tax, since 2002 they have adopted various tax benefits targeted to low income.

The government program for the current legislative measures including the tax reform aimed to improve equity without losing escalation. In particular, it is committed to a reduction or, where appropriate, the elimination of the tax burden this tax figure for low- and middle estates, and taxation to maintaining high.

The lower inheritance to 175,000 euros pay no inheritance tax in Andalusia and the number of respondents amounted in 2014 to 261,890, of which 11.1 percent had to pay taxes.

85.2 percent of estates declared in the community are transmitted from parents to children and between spouses or similar and only 2.36 percent of those entering the tax. Those who bear most of the annual revenues are a small number of heirs who receive assets of over one million euros.