7,4,3,9. Reduction of non-exempt income below 12,000 euros

Taxpayers with non exempt income of less than euros, including income from their own economic activity, may reduce the net income from economic activities by the following amounts:

• Taxpayers with non-exempt income equal to or less than 8,000 euros per year: 1,620 euros per year.

• Taxpayers with non-exempt income between 8,000.01 and 12,000 euros per year: 1,620 euros – [0.405 x (Income – 8,000 euros)]

Limit

This reduction is limited by the amount of income from the economic activities of taxpayers that generate the right to apply it.

Clarifications

This reduction is unique for all economic activities carried out, regardless of the method used to determine net income, so if several are carried out, the amount must be distributed proportionally among all of them.

This reduction is not applicable to determine the net income from the economic activities of entities under an income attribution regime.

In joint taxation, this reduction is unique to the entire declaration 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. However, in this case the amount of the reduction may not be higher than the net income from the activities of the spouse who has opted to apply the reduction.

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