The Personal Income Tax (IRPF) is a tax levied on the income obtained in a calendar year by natural persons or taxpayers residing in Spain. Therefore, it is a tax figure that belongs to the Spanish tax system.
Currently, personal income tax is the most important tax in the Spanish tax system, due to its quantitative and tax collection. In addition, personal income tax allows through its tax mechanics to apply the fiscal constitutional principles: principle of progressiveness, generality and economic capacity.
The first goes to the general base and the second to the economies.
These two incomes will be treated separately. While the first has a progressive rate that can reach 56% of income, the savings achieved are progressive in three levels: 21-25-27%.
Conceptually, this tax is much easier to understand. The revenues and expenses are in the same market, forming the result of the year. This exercise gives rise to the general chart of accounts, where its best philosophy is to reflect the true image of the company, which allows it to take a series of expenses that, for tax purposes, it could not.
If it is positive, it can be reduced based on the negative tax bases of previous years. This is very important because you may not be taxed that year, even if you have advantages if you still have to pay negative tax bases for previous years.
People whose income comes exclusively from earned income and earn less than € 22,000 per year if they only have one payer, or € 11,200 per year if they have more than one, except for a few exceptions, are exempt from filing income tax return. When the income from moving capital and capital gains are subject to withholding below 1,600 euros per year and the imputed real estate income is less than 1,000 euros per year.
Even if all these requirements are met, people who are entitled to a deduction for investment in housing, for a company-savings account and those who have made contributions to protected assets of people with disabilities and all those who wish to request staff reimbursements, the income tax must file the declaration.
