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Practical Income Manual 2022.

Phase 1: Determination of full performance of work

The monetary income from work must be computed for the full or gross amount accrued, that is, without deducting the amounts that have been deducted by the payer as deductible expenses or the withholdings on account of Personal Income Tax practiced on said returns.

For the purposes of completing the self-assessment, if the returns are received in a monetary unit other than the euro, they must be converted into the latter currency by applying the official exchange rate. For these purposes, and according to the provisions of article 36 of Law 46/1998, of December 17, 1998, on the introduction of the Euro, the official exchange of the national currency against other currencies will be considered to be the one that publishes for the euro the European Central Bank, by itself or through the Bank of Spain.

The income from work in kind must be computed by the amount resulting from adding to the value of the remuneration received, determined in accordance with the rules indicated in the corresponding section of this same Chapter, the payment on account that would have been made by the payer of the same. , provided that the amount has not been passed on to the worker.

As a general rule, full returns are computed in their entirety in accordance with what we have just indicated, unless any of the reductions discussed below apply:

  1. Reductions applicable to certain full income