Mazón Announces New Tax Cuts and Deductions

The Valencian Government will expand tax deductions for the 2024 Tax Campaign that began this April. The Accompanying Law of the Generalitat's budget will include new tax cuts that will "double or even triple" deductions in the Personal Income Tax (IRPF) for births, adoptions, and foster care; the "elimination" of fees affecting the fishing sector or a 60% reduction in the tax on property transfers and documented legal acts for agricultural plots.

The President of the Generalitat, Carlos Mazón, also announced a 50% reduction in the tax on documented legal acts for projects of regional interest and stated that next year the water levy freeze will continue. This was detailed by the head of the Consell during the presentation of the 2024 Tax Campaign, held this Wednesday at the Palau de la Generalitat, in which he participated alongside the Minister of Finance, Ruth Merino.

In the 2024 Tax Campaign, two new social deductions are added in the regional section of the IRPF for people affected by the DANA. On one hand, for habitual residence, a 100% deduction on repair expenses, up to a maximum of 2,000 euros, applicable for tax periods ending in 2024 and 2025. These are, in any case, eligible expenses: construction of walls, painting or repair of installations, and replacement of elements such as heating installations, elevators, security doors, or others.

For businesses, a deduction of 45% on investments in the establishment or capital increase of certain entities is introduced, with up to 9,000 euros per taxpayer, applicable in the tax periods ending in 2024 and 2025. All this aims to "contribute to the acquisition of own resources by entities that carry out economic activities and have their social and fiscal domicile within the affected territorial area" by the floods.

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Meanwhile, for the second consecutive year, "social" deductions are maintained, up to 150 euros for 30% of amounts paid for expenses related to dental health, sports, and mental health, and up to 100 euros for 30% of expenses for the purchase of prescription glasses, brain injury or Alzheimer's and chronic or rare diseases.

The President highlighted that the purpose of these measures is to "advance by focusing on people" and advocated for the "change" in the Valencian government's fiscal policy to end the "fiscal hell we have lived through for years" in the Valencian Community. "Valencians now have more money at their disposal, which facilitates and boosts the dynamism of our economy and also the advancement of employment," he stressed. In total, he assured, Valencian taxpayers will save 256.5 million euros thanks to the fiscal policy promoted by the Consell.

Among the most notable novelties of this year's campaign, the possibility of paying via Bizum or by card, the increase in the reduction for work income from 6,498 to 7,302 euros, and the increase in the limit for the obligation to declare with two or more payers from 15,000 to 15,876 euros.

Modifications are also included in the reductions for housing rental, deductions for energy efficiency works, and for the acquisition of electric vehicles, the update of allowances for travel expenses, and the extension of the module system for freelancers.