The Government of La Rioja approved on Thursday a 99% Inheritance and Gift Tax bonification for parents, children and spouses. Until now, this rebate was applied to inheritances with net taxable bases equal to or less than 400,000 euros. This action eliminates a tax considered obsolete and confiscatory (only 1% is maintained for administrative control purposes) and marks the beginning of a series of tax reforms aimed at reducing the tax burden for taxpayers in La Rioja during this legislature.
La Rioja has fully reintroduced this bonification, which was previously in force between 2004 and 2015. It now joins the eight autonomous communities of common regime (Andalusia, Balearic Islands, Canary Islands, Cantabria, Castilla y León, Extremadura, Madrid and Murcia) where it is cheaper to pass on inheritances to close relatives (first and second group of the tax).
The Government of La Rioja stresses that the tax reform will not be applied retroactively and has begun its legislative process as a draft bill in the regional Parliament. It is expected to be approved in “a few months”.
Furthermore, they assure that the bonification of the 99% on the tax quota will not result in a decrease of public services, since “it will be compensated by higher revenues derived from the improvement of the economy and by the strict control that the Community is applying in public spending policies”. It argues that the Inheritance and Gift Tax is considered “very outdated and confiscatory” due to its levy on goods and rights that have been previously acquired through other taxes, such as inheritances, legacies or donations.
Following this same line, the Government of the Valencian Community took the first step towards a similar measure last Tuesday by approving the draft bill that will allow the application of a 99% bonification on the tax quota.
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