General 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.

(=) Previous net performance of the work.

Other expenses:

1. General applicable fixed amount: 2,000 euros.
2. Increase due to geographic mobility.
3. Increase for active workers with disabilities.

(=) Net work performance.

Phase 3:

(-) Reduction for obtaining work income (only for taxpayers with net work income less than 16,825 euros and income other than work income that does not exceed 6,500 euros).

(=) Reduced net income from work.