Self Employed and SMEs..Tax Changes Proposed by Government.

The 2019 Budgetary Plan, which the Government will send to Europe for approval, changes several taxes that directly affect SMEs and the self-employed.


The Government’s Budget Plan for 2019 incorporates several fiscal measures that will directly affect SMEs and the self-employed . 

This Plan has been recently approved in the Council of Ministers and will be sent to the European Commission, who will have to review the proposals and corroborate that they comply with the community regulations.

Of all the proposals included, which will directly affect small businesses and self-employed workers?

In the first place, there will be a reduction in the type of corporation tax paid by small and medium-sized companies with a turnover of less than one million euros. Specifically, it will go from 25% to 23%. 

The self-employed, for their part, are taxed by the IRPF. In this tax, the Government will raise two points taxation from 130,000 euros , and up to four points for those who record an income of more than 300,000 euros.

IVA will also be effected. Specifically to reduce this rate in feminine hygiene products, lowering it to the super reduced rate of 4%. The services of veterinarians will also see reduced their type, lowering it to 10%.

The Government has defended its package of tax measures. They assure that it will allow an additional income of 5,678 million euros. In a press release issued by Moncloa, it is stated that it will increase the contribution of those who earn more, the progressivity of the system will increase, and taxes will be reduced for small businesses. In government opinion, it will tax new sectors of activity, without affecting the taxes that must be paid by SMEs and the self-employed.

Source via Vera-Cruyanyes Asesores