400-Euro annual reduction in the Income Tax for each tax payer. This amount will be paid in advance through the reduction of the monthly deductions carried out by employers. In 2008, the deduction in June amounted up to 200 Euros and the rest of amount has been proportionally deduced during the following six months. In 2009 the deduction will be reduced by 33.33 Euros per month, from January to December, which this will provide tax payers with approximately 6,000 million Euros. This equals an increase of 1,667 Euros in the minimum tax-exempt amount.

Beneficiaries

More than 16 million tax payers will benefit from this measure: 15.5 million workers and pension holders and 850,000 self-employed workers. 1,300,000 workers and pension holders will benefit from this tax allowance, ceasing to be obliged to present the Income Tax Return; and 85,000 self-employed workers will remain tax-exempt.

Development

It was approved of by virtue of Royal Decree 2/2008, dated 21 April, and it came into force on June. It will remain into force during 2009. It provided families with aids amounting to 5,000 million Euros in 2008.

Further information

http://400euros.meh.es