On November 19, the Provincial Council of Bizkaia published a Draft Provincial Law introducing certain measures for the tax review of the tax system, affecting different taxes in the tax system of the Historical Territory of Bizkaia, which will come into force on January 1, 2025, in general.
The Provincial Regulation aims to address the following challenges: family, equality, work-life balance for women and young people; housing; social security for employment; green transition; and progressiveness and protection and promotion of the productive fabric. To this end, among other measures, changes are being introduced to the definition of young people and improvements to deductions for renting and leasing primary residences, with a particular focus on this group, in contributions to social security systems, with the clear objective of encouraging their perception in the form of income, in tax incentives aimed at promoting sustainable mobility, in the bonus for work performance and the obligation to declare, as well as in tax compensation for micro-enterprises and BIN compensation for micro and small enterprises (eliminating the 70% compensation limit). In addition, the rates applicable to the taxable base for savings are modified.
Our tax team has prepared a document detailing the most relevant modifications included in the aforementioned Draft Bill, which is still pending approval and final publication.
