Introduction

Regulations: Art. 50 Law Personal Income Tax

Once the general tax base and the savings tax base have been determined, as a consequence of the income integration and compensation procedure discussed in the previous chapter, the general taxable base and savings taxable base must be determined.

The general taxable base is the result of making the following reductions in the general taxable base, exclusively and in this order, without being negative as a consequence of said reductions:

• Reduction for joint taxation (art. 84 Personal Income Tax Law).

• Reduction for contributions and contributions to social security systems (art. 51 Personal Income Tax Law).

• Reduction for contributions and contributions to social security systems established in favor of people with disabilities (art. 53 Personal Income Tax Law).

• Reduction for contributions to protected assets of people with disabilities (art. 54 Personal Income Tax Law).

• Reduction for compensatory pensions (art. 55 Personal Income Tax Law).

• Reduction for contributions to the social security mutual fund for professional athletes (Additional Provision eleventh Personal Income Tax Law).

The taxable base of savings is the result of reducing the taxable base of savings in the remainder, if any, of the reduction for compensatory pensions, without it being negative as a consequence of such decrease .

The process of determining these two magnitudes can be represented schematically as follows: