The Council of Ministers has approved on 28 February, 2015 the “Royal Decree Law on second chance mechanisms and the reduction in the financial burden, and other measures of a social order”. The Royal Decree includes several measures on employment issues and taxation which are summarized below;
Corporate income tax
In order to support not-for-profit organizations, partially exempt entities with annual turnover not exceeding EUR 50,000 will, subject to certain requirements, be excluded from the obligation of submitting the corporate income tax return.
Individual income tax
The legislation provides for measures to support families on tax issues. ‘Family cheques’ of 1,200 euros per annum will be extended to single-parent families with two children. Moreover, the tax break for large families and those with ascendants or descendants with a disability is extended to those cases in which taxpayers are pensioners or unemployed with an entitlement to receive benefits.
Income attributed to debtors from the deduction of debts and the handing over of assets as a payment of debts will be exempt from individual income tax, provided the debts do not derive from a business activity.
