General scheme
The operations necessary to determine the amount of net income from work that is integrated into the tax base are represented in the following scheme:
Phase 1:
(+) Full amount accrued (monetary remuneration).
(+) Tax valuation plus non-passed-on account income (remuneration in kind).
(+) Business contributions to social security systems (imputed amounts).
(+) Contributions to the protected assets of people with disabilities.
(−) (Reductions applicable to the following yields:
- Generated within a period of more than two years.
- Obtained in a notoriously irregular manner over time.
- Benefits received from public social security schemes.
- Benefits received from private social security systems (transitional regime).
(=) Full performance of work.
Phase 2:
(−) Deductible expenses:
- Contributions to Social Security or mandatory mutual societies for civil servants.
- Deductions for passive rights.
- Contributions to orphan schools or similar institutions.
- Fees paid to unions.
- Fees paid to professional associations, if membership is mandatory.
- Legal defense expenses in litigation with the employer.
- Other expenses:
- General applicable fixed amount
- Increase due to geographic mobility
- Increase for active workers with disabilities
(=) Net work performance
Phase 3:
(−) Reduction for obtaining work income: Taxpayers with net income from work less than 16,825 euros and income other than income from work that does not exceed 6,500 euros.
(=) Reduced net income from work.