Delimitation

Regulations: Additional Provision Twentieth Personal Income Tax Law

The progressively exempt income is considered to be income that, without being subject to taxation , must be taken into account for the purposes of calculating the tax rate applicable to the remaining income of the tax period.

As an example of these incomes, those provided for in the Agreements to avoid double taxation signed by Spain can be cited.

The progressively exempt income will be added to the general or savings tax base , as appropriate to the nature of the income, for the purpose of calculating the average tax rate that corresponds to the determination of the full state and regional quota.

The average tax rate thus calculated will be applied to the general or savings taxable base, without including progressively exempt income.

In certain Conventions to avoid double taxation signed by Spain, it is established that, when the income obtained by a taxpayer is exempt, in accordance with the provisions of the Convention itself, they must be taken into account for the purposes of calculating the tax rate applicable to the tax. rest of the income obtained by said taxpayer in the year.