IRS tables for 2018 are now available! Know the changes. -


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Sunday, 7 January 2018

IRS tables for 2018 are now available! Know the changes.

The new IRS Tables are now available for 2018. The IRS is the monthly simple average of the interest rates for transactions in euros with a maturity of five years, calculated by the ISDA (International Swaps an Derivatives Association, Inc.). With the entry in 2018, there are several novelties brought by the new IRS Tables. The retention value that rises to 632 euros and the number of steps, went from five to seven with monthly benefits for the general taxpayers and also the end of the surcharge.

It is a new index proposed by the Bank of Spain as a substitute for the Euribor for future mortgage operations. At 5 years, the IRS Tables reflect the cost of money at this term without risk premium, and supposedly is more stable than the Euribor. And it allows converting the variable interest rate into a fixed rate at any time and for as long as you want.

The Euribor is the "European Interbank Offer". That is, the interest rate set by credit institutions to lend to each other, the funds in Euros. To fix it, the highest 15% and the lowest 15% of the interest rates collected are eliminated, and calculated as the daily average of a panel of 50 of the most active credit institutions in the interbank market.

The IRS entered into force on April 29, 2012, and will be applied gradually to new mortgages and those whose previous indices end up disappearing. By 2018, the IRS Tables improve the employee's benefit.

According to the IRS5 blog, "the experts calculate that the average of the IRS will be a point higher than the Euribor. It benefits above all the credit institutions, which will play with the variation of the exchange rates in their favor and guarantee their income for longer periods ".

The new IRS source retention tables went into effect this Wednesday. There are several alterations, highlighting the number of steps of IRS (which passes to seven) and also the absolute end of the surcharge. In general, taxpayers will pay less IRS in 2018, compared to 2017.

According to the simulations carried out by Deloitte, the new tables will be a "reduction in the smallest source withholding of the final IRS rates". Deloitte's study also shows the reduction of the tax burden due to the elimination of the surcharge and the reduction of withholdings at the source in the new steps, we must take into account the impact of the elimination of the twelfth of Christmas subsidies and on vacation.

Let's go to examples ...
A couple with a child, where only one works and whose gross monthly income is 1,057 euros, will receive 880.11 euros net, three euros more than in 2017. However, if you have a gross monthly income of 1,740 euros, the network will be 1322.92 euros , five euros more than last year.

A couple with a member and a dependent, but with gross income of 3252.17 euros, the net salary will be 2182.43 euros this year, which means more than 28.45 euros last year.

Single and without children and with a gross income of 1057.43 euros, will take home 807.11 euros, plus eight euros in 2017. If the gross return is 1740.36 euros at the end will have a net return of 1,185.92 euros.

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