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Practical Income Manual 2019.

Earned income

Reductions applicable to certain full income

Transitional regime for reductions on benefits received in the form of capital derived from private social security systems.

In 2019, it is no longer possible to apply this transitional reduction regime to benefits received in the form of capital derived from pension plans, social security mutual societies and pension plans insured for contingencies that occurred in 2010 or previous years.

Determination of reduced net yield

Reduction due to work performance

For the 2019 financial year, in order to reduce the tax burden of workers with lower incomes, both the amount of the reduction for obtaining income from work is increased (up to 5,565 euros per year) and the threshold of net income from work that allow this reduction to be applied (up to 16,825 euros).

In this way, taxpayers who obtain net income from work in 2019 of less than 16,825 euros, as long as they do not have income, excluding exempt income, other than income from work greater than 6,500 euros, will reduce the net income from work by the following amounts :

  1. Taxpayers with net income from work equal to or less than 13,115 euros: 5,565 euros annually.
  2. Taxpayers with net income from work between 13,115 and 16,825 euros: 5,565 euros less the result of multiplying the difference between work performance by 1.5 and 13,115 euros per year.