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Form 100. Personal Income Tax Return 2019

7,4,2,5. Reduction for economically dependent self-employed workers or with only unrelated client

Reduction for economically dependent self-employed workers or those with a single unrelated client (Article 32.2.1 and 2 of the Law)

Amount

In general, the amount of the reduction will be 2,000 euros.

Additionally, the net income from these economic activities will be reduced by the following amounts:

  1. When the net income from economic activities is less than 14,450 euros, provided that they do not have income, excluding exempt income, other than that from economic activities exceeding 6,500 euros:

    • Taxpayers with net income from economic activities equal to or less than 11,250 euros: 3,700 euros a year.

    • Taxpayers with net income from economic activities between 11,250 and 14,450 euros: 3,700 euros less the result of multiplying by 1.15625 the difference between the performance of economic activities and 11,250 euros per year.

  2. In the case of persons with disabilities who obtain net income from the effective exercise of these economic activities, 3,500 euros per year. This reduction will be 7,750 euros per year for people with disabilities who effectively carry out these economic activities and prove that they need help from third parties or have reduced mobility, or a degree of disability equal to or greater than 65 percent.

    As a result of the application of this reduction, the resulting balance cannot be negative.

Requirements

  1. Net income shall be determined using the direct estimation method. However, if it is determined in accordance with the simplified form of the direct estimation method, the reduction will be incompatible with the application of the 5% deductible (with a maximum amount of 2,000 euros) for the set of provisions and expenses that are difficult to justify; in this case, the programme will apply the most favourable amount.

  2. All deliveries of goods or services must be made to a single person, natural or legal, not related in the terms of article 18 of the consolidated text of the Corporate Tax Law, or the taxpayer must be considered an economically dependent self-employed worker in accordance with the provisions of Law 20/2007, of July 11, on the Statute of Self-Employment, and the client on whom he or she is economically dependent is not a related entity.

  3. The set of deductible expenses corresponding to all of its economic activities exceed 30 percent of its declared gross income.

  4. All formal obligations and information, control and verification obligations determined by regulations must be fulfilled during the tax period.

  5. That no income from work is received in the tax period. However, this requirement will not be deemed to be breached if unemployment benefits or any of the benefits provided for in letter a) of article 17.2 are received during the tax period, provided that their amount does not exceed 4,000 euros.

  6. That at least 70 percent of the income of the tax period is subject to withholding or payment on account.

  7. That you do not carry out any economic activity through entities in income attribution.

Incompatibility

The reduction for economically dependent self-employed workers or those with a single unrelated client and the reduction for taxpayers with non-exempt incomes of less than 12,000 euros are incompatible with each other.

Joint income tax return

When the taxpayer opts for joint taxation, he or she will be entitled to the reduction when he or she individually meets the requirements. In this case, the amount of the reduction to be computed in the joint declaration will be unique and will be calculated taking into account the income of the family unit, without its amount being able to exceed the net income from the economic activities of the members of the family unit who individually meet the aforementioned requirements.