November 2022 Tax Newsletter

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November 2022

We are coming to the end of 2022, a year that is not going unnoticed in the field of asset management, not only due to the turbulence in the financial markets but also in the fiscal sphere.

In 2022, we were seeing the materialization of something that for years seemed like it was going to happen, but that did not stop happening. We are referring to the change in the tax regime of SICAVs (open-ended collective investment schemes), which has led to a massive liquidation of these vehicles.

Similarly, we are facing the gestation of a new tax, called "solidarity" of large fortunes, which in practice will mean the end of the privileges in the Wealth Tax that, until now, taxpayers with tax residence in Madrid had and the cancellation of the one that from this year the residents of Andalusia were going to have.

Also, let's not forget that, given the dates we are in, it is time to identify those alternatives offered by current legislation that could contribute to

improving the taxation of Personal Income Tax (IRPF). In relation to these, as always, remember the importance of the rules for integrating and offsetting income, which could allow us to make the most of the losses generated during the financial year, whether or not they materialize, as well as those that we may have pending from previous financial years.

Another issue to take into account this year, which we do not want to fail to mention, is that, according to the General State Budget Bill for the year 2023, as of January 1 there will be an increase in the maximum rates of the applicable tax scale based on savings, which could affect decision-making between now and the end of the year.

In short, we end a year that has been marked by the modification of the tax regime of the SICAVs and the choice by their partners or shareholders of the investment alternative that has best fitted their equity structure, and the prospect of a 2023 in which the new "solidarity" tax of large fortunes appears.

Jesús Muñoz García

Director of Asset Planning

BBVA Private Banking

We are entering the final stretch of the year, a key moment to identify those optimization alternatives that could contribute to improving the taxation of Personal Income Tax, corresponding to the 2022 financial year.
Law 12/2022, published in the Official State Gazette (BOE) on 30 June, again introduces modifications to the tax treatment applicable to contributions to pension plans and other social welfare systems

In recent months, the Tax department has ruled on certain issues related to the taxation of financial products that we consider to be of interest in asset management, some of them related to the transitional regime for dissolution with liquidation of SICAVs

The Tax department admits the possibility that financial assets pledged as collateral for loans intended for investments related to the company's economic activity may be considered affected. It also decides on the application of the maintenance requirement in the reduction of the family business in the Inheritance and Gift Tax when certain company operations occur in the inherited or donated company.

Below, we comment on some recent replies to Tax Enquiries by the Tax department, which we believe may be of interest, such as (i) the consideration of the main residence as a productive asset for the purposes of applying the joint limit rule of taxation of the Wealth Tax together with the Personal Income Tax; and (ii) in the field of investment in cryptocurrencies, the application of the FIFO system in the transfer of these assets and the tax treatment of the so-called "staking".

Note:

The content in this section is provided for information purposes only and does not comprise tax or legal advice.