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WEDDING

Spanish taxman denies chasing after newlyweds’ wedding gift money

The recent case of 350 couples who were cross-examined by the country’s tax agency about cash payments made during weddings has raised the alarm over whether the traditional handouts are about to be stamped out.

Spanish taxman denies chasing after newlyweds' wedding gift money
Photo: Deposit Photos

Spanish tax authorities have denied claims they are clamping down on the practice of giving money to newlyweds as gifts during wedding ceremonies.

Traditionally guests at Spanish weddings give €100 or €200 to the bride and groom in a small envelope, with the practice of gifting actual presents having almost completely fizzled out.

But the recent news of 350 married couples being cross-examined by Spain’s Agencia Tributaria for a massive fraud investigation in the northern region of Asturias has led many to believe the practice is now under scrutiny.

Spanish tax agency has clarified that all money gifted to newlyweds during their weddings is in fact already considered taxable as a donation, but that “tax inspectors don’t pay too much attention to these amounts”, as Jesús Sanmartín, President of Spain’s General Council of Tax Advisers, told el País.

What they have stressed is that they do intend to stamp out under-the-table payments made to wedding venues and other people involved in the industry.

The ongoing investigation which has seen married couples who tied the knot as far back as 2016 questioned by tax authorities relates to a fraud case involving a renowned wedding venue in the northern Spanish region.

However, newlyweds have been advised to hold on to all their wedding bills and to keep in mind that the money they get as gifts is technically taxable.

Bank transfers over €3,000 and cash handouts of more than €500 can incur fines in Spain.

According to several wedding industry studies, Spanish weddings cost couples and quite often their families between €20,000 and €30,000 on average.

SEE ALSO: The ultimate guide to Spanish wedding etiquette 

 

Photo: Flavio Lorenzo Sanchez/Flickr 

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TAXES

Beskæftigelsesfradraget: What is Denmark’s employment allowance?

Denmark's government may soon announce changes to its tax reform plans, which will give all wage earners a bigger employment allowance. What is this and how will it affect foreigners' earnings?

Beskæftigelsesfradraget: What is Denmark's employment allowance?

What is the employment allowance? 

The Beskæftigelsesfradraget (from beskæftigelse, meaning employment, and fradrag, meaning rebate) was brought in by the centre-right Liberal Party back in 2004, the idea being that it would incentivise people to get off welfare and into a job.

Everyone whose employer pays Denmark’s 8 percent AM-bidrag, or arbejdsmarkedsbidrag, automatically receives beskæftigelsesfradraget. Unlike with some of Denmark’s tax rebates, there is no need to apply. The Danish Tax Agency simply exempts the first portion of your earnings from income taxes. 

In 2022, beskæftigelsesfradraget was set at 10.65 percent of income with a maximum rebate of 44,800 kroner. 

How did the government agree to change the employment allowance in its coalition deal? 

In Responsibility for Denmark, the coalition agreement between the Social Democrats, the Liberals and the Moderate Party, the new government said it would set aside 5 billion kroner for tax reforms.

Of this, 4 billion kroner was earmarked for increasing the employment allowance, with a further 0.3 billion going towards increasing an additional employment allowance for single parents.

According to the public broadcaster DR, the expectation was that this would increase the standard employment  allowance to 12.75 percent up to a maximum rebate of 53,600 kroner. 

How might this be further increased, according to Børsen? 

According to a report in the Børsen newspaper, the government now plans to set aside a further 1.75 billion kroner for tax reforms, of which nearly half — about 800 million kroner — will go towards a further increase to the employment allowance. 

The Danish Chamber of Commerce earlier this month released an analysis in which it argued that by raising removing all limits on the rebate for single parents and raising the maximum rebate for everone else by 20,300 kroner, the government could increase the labour supply by 4,850 people, more than double the 1,500 envisaged in the government agreement. 

According to the Børsen, the government estimates that its new extended allowance will increase the labour supply by 5,150 people.  

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