Minimum vital income becomes tax-free and a court ruling gets paid

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1. The minimum vital income (ingreso mínimo vitalIngreso mínimo vital A Social Security benefit for people and families without enough resources.) becomes exempt from personal income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings., like other social benefits. The exemption also covers regional and local government aid, and aid for victims of violent crimes and gender violencegender violence Violence a woman suffers from a current or former partner because she is a woman., with a joint annual limit of 1.5 times the IPREMIPREM Indicador público de rentas de efectos múltiples: a reference index the State uses to set benefits and income limits. reference index.
2. The Ministry of Finance will enforce Supreme Court ruling 1404/2020, which orders the State to pay 1,350.729 million euros in compensation to Banco Santander, CaixaBank and Bankia for the money they advanced for the Castor underground gas storage. A credit increase of €638,000,000 is approved to pay it, funded with public debt, and the credit will be extended to cover the full amount of the ruling.
3. Law 14/2000 is amended so that procedures for subscribing shares or making contributions to multilateral financial institutions can be completed even when the first payment falls in the following year.
4. The deadline to use the reserve for investments in the Canary Islands, funded with profits from tax periods starting in 2016, and for advance investments made in 2017, is extended by one year to four years, due to the pandemic's impact in 2020.
5. Any conflicting rules of equal or lower rank are repealed, and the Government and the Ministry of Finance are empowered to issue the measures needed to implement the law. It takes effect the same day it is published in the official gazette (BOE).

Who it affects

• People receiving the minimum vital income and similar social benefits: They will not pay personal income tax on these benefits, up to the set annual limit.
• Banco Santander, CaixaBank and Bankia: They will receive the State compensation recognized by the Supreme Court in the Castor case.
• Ministry of Finance: It enforces the court payment and gets a credit increase to fund it.
• Companies and individuals with a reserve for investments in the Canary Islands: They get one extra year to use that reserve.
• Spain before multilateral financial institutions: Processing of its contributions is made easier when the first payment falls in the following year.

Words worth knowing

Ingreso mínimo vital

A Social Security benefit for people and families without enough resources.

IRPF

Personal income tax in Spain (Impuesto sobre la Renta de las Personas Físicas).

IPREM

Indicador público de rentas de efectos múltiples: a reference index the State uses to set benefits and income limits.

Responsabilidad patrimonial del Estado legislador

The State's duty to compensate those who lose money because of a law declared illegal by the courts.

Ampliación de crédito

Authorization to spend more public money than budgeted in a specific budget line.

gender violence

Violence a woman suffers from a current or former partner because she is a woman.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries