new prescription charges & tax declarations
Jul 5th 2012, 12:46 pm
#1
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new prescription charges & tax declarations
this was on another forum this morning
http://iberosphere.com/2012/07/new-c...criptions/6502
This is the information we are aware of at the time of writing. On July 1 a co-payment system for prescriptions in Spain was introduced. Everyone now has to make a contribution towards the cost of medical prescriptions in Spain according to their income.
This new co-payment system is being implemented in two stages:
Stage 1
From July 1 anyone given a prescription in Spain should notice that it will include the percentage of the cost of the medication that they have to pay. This percentage will be taken from information about your income obtained from the annual resident tax declaration (IRPF).
Anyone with an income greater than €18,000 a year will have to pay half the cost of the medication. Those below this amount will pay up to 40 percent. Pensioners with an income of less than €18,000 who have made a tax declaration will pay 10 percent with a maximum payment of €8 per month. Pensioners with an income greater than €18,000 will pay a maximum of €18 per month.
If you have not made an annual resident tax declaration in Spain there will be no indication on the prescription of how much you must pay. Instead, blanket charges will be made of 40 percent for non-pensioners with low incomes and 10 percent for pensioners. However, it is important to note that no income information means no cap on your monthly contribution.
so it will quite possibly hit pensioners in the pocket if they haven't been making a tax declaration
http://iberosphere.com/2012/07/new-c...criptions/6502
This is the information we are aware of at the time of writing. On July 1 a co-payment system for prescriptions in Spain was introduced. Everyone now has to make a contribution towards the cost of medical prescriptions in Spain according to their income.
This new co-payment system is being implemented in two stages:
Stage 1
From July 1 anyone given a prescription in Spain should notice that it will include the percentage of the cost of the medication that they have to pay. This percentage will be taken from information about your income obtained from the annual resident tax declaration (IRPF).
Anyone with an income greater than €18,000 a year will have to pay half the cost of the medication. Those below this amount will pay up to 40 percent. Pensioners with an income of less than €18,000 who have made a tax declaration will pay 10 percent with a maximum payment of €8 per month. Pensioners with an income greater than €18,000 will pay a maximum of €18 per month.
If you have not made an annual resident tax declaration in Spain there will be no indication on the prescription of how much you must pay. Instead, blanket charges will be made of 40 percent for non-pensioners with low incomes and 10 percent for pensioners. However, it is important to note that no income information means no cap on your monthly contribution.
Jul 5th 2012, 1:06 pm
#2
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Re: new prescription charges & tax declarations
Seems fair enough to me. I do have one query though and I accept that no one may know the answer. I love what if's!! Lets say you are a married couple husband has old age pension and work pension lets say pre tax 20,000 Euro total. Wife has statutory old age pension say pre tax 7000 Euro. However to live they have to survive on the combined income. I take it you are individually assessed and one would pay 40% other 10%?
Jul 5th 2012, 1:22 pm
#3
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Re: new prescription charges & tax declarations
Seems fair enough to me. I do have one query though and I accept that no one may know the answer. I love what if's!! Lets say you are a married couple husband has old age pension and work pension lets say pre tax 20,000 Euro total. Wife has statutory old age pension say pre tax 7000 Euro. However to live they have to survive on the combined income. I take it you are individually assessed and one would pay 40% other 10%?
However, if for any reason you submit a joint return ( for example husband has income of €25,000 and wife €2,000 state pension - so around the minimum) then not sure they would have individual information, so you would presumably both pay 40% (You did say you loved what ifs?).
Jul 5th 2012, 3:26 pm
#4
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Re: new prescription charges & tax declarations
Seems fair enough to me. I do have one query though and I accept that no one may know the answer. I love what if's!! Lets say you are a married couple husband has old age pension and work pension lets say pre tax 20,000 Euro total. Wife has statutory old age pension say pre tax 7000 Euro. However to live they have to survive on the combined income. I take it you are individually assessed and one would pay 40% other 10%?
I don't know where you get your tax figures from but the basic rate in Spain is now 24.75% on the first 17k of taxable income (ie after allowances).
On the figures you mention, assuming both over 65, the husband would pay about €2800 and the wife nothing.
Jul 5th 2012, 3:35 pm
#5
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Re: new prescription charges & tax declarations
The choice of being individually assessed is down to you. When they run the tax program you put in the individual income details and it tells you the tax on both joint and individual declarations - clearly you opt for the lowest total figure.
I don't know where you get your tax figures from but the basic rate in Spain is now 24.75% on the first 17k of taxable income (ie after allowances).
On the figures you mention, assuming both over 65, the husband would pay about €2800 and the wife nothing.
I don't know where you get your tax figures from but the basic rate in Spain is now 24.75% on the first 17k of taxable income (ie after allowances).
On the figures you mention, assuming both over 65, the husband would pay about €2800 and the wife nothing.
Jul 5th 2012, 3:36 pm
#6
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Re: new prescription charges & tax declarations
The choice of being individually assessed is down to you. When they run the tax program you put in the individual income details and it tells you the tax on both joint and individual declarations - clearly you opt for the lowest total figure.
I don't know where you get your tax figures from but the basic rate in Spain is now 24.75% on the first 17k of taxable income (ie after allowances).
On the figures you mention, assuming both over 65, the husband would pay about €2800 and the wife nothing.
I don't know where you get your tax figures from but the basic rate in Spain is now 24.75% on the first 17k of taxable income (ie after allowances).
On the figures you mention, assuming both over 65, the husband would pay about €2800 and the wife nothing.
Jul 5th 2012, 3:41 pm
#7
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Re: new prescription charges & tax declarations
Yes that's correct Lynn
Jul 5th 2012, 3:47 pm
#8
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Re: new prescription charges & tax declarations
What income figure they use isn't clear but it's likely to be the basic taxable income after basic allowances.
But as you say, if you have done a joint declaration they won't know which band you each fit into.
It's not so much a problem with pensioners as they will only pay 10% unless they earn over 100k. Also any rebates due because of the €8 or €18 cap could be sorted out on your tax declaration.
For the rest it's going to turn into a real mess. Take the case of someone who earns over €100k. If his prescription or health records are coded with his income details there is a real data protection issue here. The chemist will know that he is a high earner which is none of his business.
It's all going to end in tears!
Jul 5th 2012, 4:36 pm
#9
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Re: new prescription charges & tax declarations
Probably got the Human Rights Lawyers salivating already.
Jul 5th 2012, 4:55 pm
#10
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Re: new prescription charges & tax declarations
It's like a lot of good ideas, sound good in principle, but difficult to administer
Jul 15th 2012, 2:59 pm
#12
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Re: new prescription charges & tax declarations
The Spanish government have introduced this system to prescriptions.It means now most pensioners pay 10% of every prescription (up to a maximum of 8 euros per month).In September a charge of 5 euros will be made on food supplements which will effect cancer sufferers. It's not a large amount but is symptomatic of the governments attempt to make the poorest members of society feel they are in some way guilty of causing the present crisis and that they must make restitution.Sad really
Jul 15th 2012, 3:21 pm
#13
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Re: new prescription charges & tax declarations
Whilst Graham was ill he was having prescriptions that cost about 100 euros per month and we were spending about the same on things that we could not have prescribed. So I am not surprised that in this sort of case a levy is charged. My two prescriptions on the other hand cost about 6 euros a month so hardly a problem. Due to being stuck in the hospital I had no idea that this had begun so when the chemist asked me for 40 cents I could not understand it, paid up and thought, to hell with it. For me it would be alright if I had to pay the whole amount but for others with more complex and expensive needs this is definitely not an option.
Rosemary
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Jul 15th 2012, 3:41 pm
#14
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Re: new prescription charges & tax declarations
The Spanish government have introduced this system to prescriptions.It means now most pensioners pay 10% of every prescription (up to a maximum of 8 euros per month).In September a charge of 5 euros will be made on food supplements which will effect cancer sufferers. It's not a large amount but is symptomatic of the governments attempt to make the poorest members of society feel they are in some way guilty of causing the present crisis and that they must make restitution.Sad really
You'd think the way some expats are complaining about it, this charge was aimed at them. They seem to forget there are millions of Spanish pensioners who also live in Spain!
Jul 15th 2012, 5:00 pm
#15
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Re: new prescription charges & tax declarations
I think that you'll find a lot of expat pensioners are sympathetic to the plight of their Spanish counterparts and are complaining here solely because it's their only outlet.It did sadden me to see pensioners leaving pharmacies being interviewed by TV saying they agreed with the charges.Seems the media and government brainwashing tactics may have worked.