In the Official State Gazette (“ BOE ”), of December 28, 2023, Royal Decree-Law 8/2023 , of December 27, has just been published , which adopts measures to address the economic and social consequences derived from the conflicts in Ukraine and the Middle East, as well as to alleviate the effects of the drought. Among the measures adopted, the extension of the Temporary Solidarity Tax on Large Fortunes (“ ITSGF ”) stands out .
The ITSGF was approved a year ago by Law 38/2022, of December 27, with a validity limited to the years 2022 and 2023. Well, Additional Provision 5 establishes the extension of the tax for the years 2024 and following years ” in so long as the review of property taxation does not occur in the context of the reform of the regional financing system . Therefore, this extension has a certain indefinite nature and will extend until the aforementioned reform occurs, if it occurs.
Given that the legal instrument used for its approval is a Royal Decree-Law issued by the Government, the executive branch, and not a Law (ie, an instrument that requires approval by the Cortes Generales, the legislative branch), the justification of extreme and urgent need. Since we are still in 2023 and the effects derived from the application of the tax during its initial validity are not even known, this urgency is questionable and this opens another avenue for discussion about the legality of the Tax.
Likewise, there are two additional developments worth highlighting in relation to the ITSGF: Read more
