Deduction calculation

Taxpayers may deduct from the total amount corresponding to their individual declaration for the IRPF the result of the following operations:

1. The following quantities are added together:

The full state and regional quotas reduced by the deductions provided for in articles 67 and 77 of the IRPF Law, of the members of the family unit who are taxpayers for the IRPF
The Non-Resident Income Tax rates corresponding to the income obtained in Spanish territory in that same tax period by the rest of the members of the family unit.

This operation is represented graphically below 1.

Operation diagram 1
State net prior quota =	Previous net regional quota =
Σ State prior net quota + Autonomous prior net quota + IRNR quota = Amount obtained (C¹)
(+) Full state quota	(+) Full regional quota
(-) Deductions from article 67 of the Personal Income Tax Law: 50% Deduction for investment in primary residence 100% Deduction for investment in new or recently created companies 50% Deduction for actions for the protection and dissemination of the Spanish Historical Heritage and the cities, groups and assets declared World Heritage 50% Deduction for donations and other contributions 50% Deduction for incentives and stimuli for business investment 50% Deduction for allocations to the Reserve for Investments in the Canary Islands (Law 19/1994) 50% Deduction for income derived from the sale of tangible assets produced in the Canary Islands (Law 19/1994) 50% Deduction for income obtained in Ceuta or Melilla 50% Deduction for rent of the habitual residence. Transitional scheme	(-) Deductions from article 77 of the Personal Income Tax Law: 50% Deduction for investment in primary residence 50% Deduction for actions for the protection and dissemination of the Spanish Historical Heritage and the cities, groups and assets declared World Heritage 50% Deduction for donations and other contributions 50% Deduction for incentives and stimuli for business investment 50% Deduction for allocations to the Reserve for Investments in the Canary Islands (Law 19/1994) 50% Deduction for income derived from the sale of tangible assets produced in the Canary Islands (Law 19/1994) 50% Deduction for income obtained in Ceuta or Melilla 50% Deduction for rent of the habitual residence. Transitional scheme 100% regional deductions

2. The total net quota that would have resulted from having been able to choose to pay taxes jointly with the rest of the members of the family unit is determined ( C ²).

For this calculation, only the portion of the positive income of non-resident members of the family unit that exceeds the negative income obtained by the latter will be taken into account for each source of income.

Note: For these exclusive purposes, it will be understood that all members of the family unit are taxpayers for the IRPF .

3. It is subtracted from the amount obtained in number 1. (C¹) the quota referred to in number 2. (C²). When this difference is negative, the amount to be computed will be zero.. Therefore:

C¹ − C² is less than or equal to 0: No deduction is applicable
C¹ − C² is greater than 0: Deduction is required

4. The amount provided for in number 3 will be deducted from the total state and regional quota, once the deductions provided for in articles and 77 of the Income Tax Law have been made. in the following way :

The full state rate will be reduced in the proportion that the Non-Resident Income Tax rates represent with respect to the total amount provided for in number 1., and
The remainder will reduce the full state and regional quota in equal parts.

When there are several taxpayers of IRPF integrated into the family unit, this reduction will be made in proportion to the respective full quotas, once the deductions provided for in articles 67 and 77 of this Law have been made, for each of them.