More public spending, tax breaks and job measures for 1993

Automatic summary, not yet reviewed

1. The State budget gets 50,000 million pesetas in credit supplements for public investments: roads, rail, water, coastal works, the environment and transfers to farming agencies.
2. Several public bodies (Correos, river basin authorities, Spanish Airports and Air Navigation) are authorized to borrow during 1993 in the amounts listed in Annex I, and spending limits for future years are raised.
3. Certain sanitation and environmental restoration works are declared of general interest, and the expropriation of land for the highways listed in Annex IV is declared urgent.
4. New businesses starting before December 31, 1994 can offset losses without limit, depreciate equipment 50% faster and cut net income by 20% under the objective method of personal income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.; for 1993 the cut is 10%.
5. To help small and medium-sized businesses get funding, the Government may create special markets for trading their securities and extend securitization to their loans and credit rights.
6. Temporary employment-promotion contracts expiring in 1993 can be extended by one more year (up to four in total), with a 250,000-peseta subsidy if they later become permanent; the benefits of permanent hiring extend to part-time contracts of at least half the standard workday.

Who it affects

• Businesses starting a new activity before the end of 1994: They can offset losses without limit, depreciate faster and pay less personal income tax under the objective method.
• Small and medium-sized enterprises (SMEs): They will find it easier to issue securities on the stock market and securitize their loans to get funding.
• Workers on temporary employment-promotion contracts: Their contracts can be extended by one more year, up to four in total.
• Employers who make those contracts permanent: They receive a 250,000-peseta subsidy.
• Owners affected by expropriation for the Annex IV highways: The taking of their property is declared urgent.

Words worth knowing

Suplemento de crédito (credit supplement)

Extra money added to an already approved budget.

Amortización (depreciation)

Tax deduction of the cost of machines and equipment over the years; faster depreciation lowers the tax bill.

Estimación objetiva por signos, índices o módulos (objective estimation method)

A simplified way for self-employed people and small businesses to calculate taxable income using objective data instead of real accounts.

Titulización (securitization)

Turning a pool of loans into securities that can be sold to investors to raise money.

Expropiación forzosa (compulsory expropriation)

When the government takes private property in exchange for compensation.

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