The Plenary of the Constitutional Court (TC) has estimated the appeal of unconstitutionality of the Government against a law approved by the Generalitat of Catalonia in 2020 and that affected the IRPF when considering quand invades the powers of the State. Supposed a reduction of that tax to the lowest incomes.
According to Constitutional sources confirm to Europa Press, the sentence of which the magistrate Pedro González-Trevijano has been the speaker agrees with the Government that appealed article 88 of Law 5/2020 in March 2021. It was thus against the decision of Catalonia to raise the taxpayer’s personal and family minimum (personal income tax) if the sum of the general taxable bases and savings total more than 12,450 euros. The Executive considered that this creates a new category in personal income tax that exceeds the powers of the Generalitat.
The law that included that article now declared unconstitutional is that of Fiscal, Financial and Administrative Measures of the Public Sector and the Creation of the Tax on Installations that affect the Environment. In point b, article 88 of this rule stipulates that “if the sum of the general taxable bases and the taxpayer’s savings is equal to or less than 12,450 euros, the minimum for the taxpayer is 6,105 euros per year”, when in general the minimum is set at 5,550 euros per year.
As explained at a press conference in March by the Minister of Finance, María Jesus Montero, it was not possible to reach an agreement with the Generalitat in relation to that article, which is why the Executive chose to appeal it, understanding that it involved a transfer of powers to this autonomy, since it created a new category that affects the minimum personal income tax.
In this sense, the minister explained that the CCAA have jurisdiction over personal income tax to raise the personal and family minimum, but always within the concepts that are already defined in the architecture of the tax itself. In other words, the Generalitat cannot create new categories that are not included in this general framework.
From 5,550 to 6,105 euros
Montero then reminded Catalonia that it has the competence to raise the personal and family personal income tax minimum to 10 percent, if it so wishes, in any of the cases that are already contemplated in the categories regulated by personal income tax and that are related to income tax. age of the taxpayer, children or dependents.
However, Catalonia was creating a new category of taxpayers to which they add the general taxable base and savings, saying that if they are equal to or less than 12,450 euros, it is necessary to act in one way or another. The rule that the Executive appealed is the one that supposes the elevation of 5,550 euros to 6,105 euros per year as a minimum personal and family.