The Valencian Government has quantified in euros what it will no longer collect with the measures announced in the autonomous section of the personal income tax by Carlos Mazón himself and which includes in the preliminary draft law relating to tax measures, administrative and financial management and the organization of the Generalitat of 2025, known as the budgetary support law, approved today. An amount which shows the limited nature of this announced reduction compared to what Mazón himself defined as “fiscal hell”.
The extension of tax deductions provided for under the regional personal income tax title in the event of birth, adoption and foster care will benefit approximately 41,900 peopleas quantified by the Ministry of Finance. All in all, he predicts what this will mean for these taxpayers. a global economy quantified in 10 million euros.
The change announced by Mazón means that the current amounts of deduction for birth or adoption will increase from the current 300 euros to 600 euros, if it is the first son or daughter; 750 euros, in the case of the second or second, and 900 euros, in the case of the third or third and subsequent ones. Of course, limited to a maximum of 30,000 euros per year in individual returns and 47,000 euros in joint returns.
The regional deduction for birth or adoption is the third most applied regional deduction (41,295), behind that for rental of a habitual residence (89,099) and that of taxpayers with two or more descendants (42,782), according to the data available on the 2022. personal income tax return.
Other tax measures
The tax measures also include the removal of two rates that tax the fishing sector, those of groups G-2 and G-4 relating to the stay of vessels in regional ports and to maritime fishing services, measures which should benefit 15 brotherhoods with a total of 377 fishing boats based in the ports of the Generalitat.
The law on fiscal measures also incorporates as a novelty a 60% tax reduction for acquisitions of agricultural plots made by owners of registered agricultural operations who do not meet the conditions to be considered professional farmers.
To this end, the rate that taxes these operations in the tax on property transfers and documented legal acts is reduced from 10% to 4%, all with the aim of promoting generational change, the incorporation of new people in agriculture and competitiveness. This measure should have an economic impact of 2.6 million euros.
Likewise, projects of regional interest (PIA) defined by the new administrative simplification decree-law will benefit from a specific bonus of 50% of the tax corresponding to documented legal acts, among other recovery measures.
Ivace and AVI merger
The Generalitat also introduces regulatory changes in the preliminary drafts to take the first step towards the integration of the Valencian Institute of Business Competitiveness (Ivace) and the former Valencian Innovation Agency (AVI).
In this way, Ivace+i Industria will have the skills in industry, entrepreneurship, internationalization and energy and Ivace+i Innovación will assume all the skills in innovation. Since the start of the legislature, the savings made thanks to a restructuring eliminating intermediate gaps have been estimated at 500,000 euros per year.
