Skip to main content
Form 100. Personal Income Tax Return 2022

7,4,2,6. Reduction for taxpayers with non-exempt income of less than 12,000 euros

Reduction for taxpayers with non-exempt incomes less than 12,000 euros (Art.32.2.3 of the Law)

  • 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 (Taxable Base – 8,000 euros)]

As a result of the application of this reduction, the resulting balance of the net income from economic activities may not be negative.

This reduction is limited to the balance of the sum of net income from economic activities of the members of the family unit, without being able to be negative due to the application of the reduction, and without the amount of the reduction, together with the reduction for obtaining work income (article 20 of the Law) being able to exceed 3,700 euros.

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, their amount must be distributed proportionally among all of them.

The requirements for applying this reduction are strict and are related to the taxpayer, so if the taxpayer meets these requirements, he or she may apply the aforementioned reduction, regardless of whether the income from economic activities derives from his or her participation in an entity under an income attribution regime.

On the other hand, this reduction cannot be applied to determine the net income from the economic activities of entities under an income attribution regime.

The reduction is compatible with the estimated expenditure in the form of deductible provisions and expenses that are difficult to justify regulated in article 30 of the Personal Income Tax Regulations.

In joint taxation, if one of the taxpayers in the family unit applies the reduction for economically dependent self-employed workers or with a single unrelated client, the rest of the members of the family unit, to whom this reduction does not apply, will not be able to apply it given the incompatibility between the two.