The lowering of tax rates and the tax benefits of insurance
The month of July started with surprises in the fiscal after the measure announced by Mariano Rajoy to advance to that month the tax reduction scheduled for 2016. Subsequently, on July 10, was approved by the Council of Ministers solving a problem that raised this measure , the impossibility of coexisting two marginal types per stretch of profit in the same year. For this reason, it was decided to apply average rates for all of 2015. Specifically, for income of less than 12,450 euros they will be taxed from 20% to 19.5%; for the tranche of 12,450 euros at 20,200 euros, from 25% to 24,5%; between € 20,200 and € 35,200, from 31% to 30.5%; from 35,200 euros to 60,000, from 39% to 38%; while in the income above this threshold, will go from 47% to 46%.
Regarding savings income, a scale will also enter half of what was this year and 2016. Thus the yields will lower their rate from 20% to 19.5% to 6,000 euros, between 6,000 and 50,000 euros is reduced from 22% to 21.5% and higher ones, from 24% to 23.5%. This generates a distortion in favor of the taxpayer that will not be resolved until the next income statement in April-June 2016.
Another demonstration of the tax advantages of Life Insurance
Until July, the returns on accounts, deposits and all products subject to withholding have had a higher rate (20%, 22% and 24% depending on the income tranche) to which they will be taxed, which is why they have generated a higher payment to customers (withholdings) during these months, discounted to their contributions. This again demonstrates the advantages of the better taxation of life insurance or savings insurance, since unlike the accounts, they do not pay until the reimbursement of the same occurs.
That is, in the same case of a deposit, the advantages of not having to pay until that moment are obvious, you have not advanced a payment, higher than the tax rate, and those revenues that are accumulated, generate in turn other higher income . At the time of reimbursement, the insured will pay for the benefits generated from the rescued party, in the taxable base of savings and taxing the rates approved this month of July.
Moreover, if you do not need to redeem any amount and you can do it in 2016, the benefits are even higher, since you will pay 19% up to the first 6,000 euros, 21% from 6,000 to 50,000 euros and 23% for higher amounts at 50,000 euros. That is to say, although income has been generated in 2015 or in previous years, you will liquidate taxes at a more favorable tax rate.
In taxation, not only is the tax rate important, but also the form and timing of taxation is important.