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Practical Guide to Income Tax 2025. Part 1.

Due tax

Withholdings and payment on account

Type of withholding applicable to certain employment income

Royal Decree-Law 13/2025, of November 25, modified the Fifty-Seventh Additional Provision of the Law of IRPFABBR to extend to 2025 the deduction provided for in article 68.4 of the Personal Income Tax Law (deduction for income obtained in Ceuta and Melilla) applicable to taxpayers with habitual and effective residence on the Island of La Palma. As a result, the withholding percentage will be reduced by 60 percent for the 2025 tax year when employment income benefits from the deduction provided for in article 68.4 of the Law on IRPFABBR (deduction for income obtained in Ceuta and Melilla) and for the 2025 tax year, also when it comes to income obtained on the island of La Palma by taxpayers with habitual and effective residence on that island, as referred to in the Fifty-Seventh Additional Provision of the aforementioned Law.

However, for the 2025 tax year, the above is only applicable to determine:

  • The withholding tax rate or payment on account for employment income determined by the general withholding procedure provided for in Article 82 of the Regulations IRPFABBR that are paid or credited from November 27, 2025 onwards, and must, where appropriate, adjust the withholding tax rate or payment on account for the first employment income that is paid or credited from that date.

    However, the payer is given the option to carry out the above in the first employment income that is paid or credited from the month of December, in which case the rate of withholding or payment on account on the employment income paid previously will be determined without taking into account the reduction of the amount of said payments on account.

  • The type of installment payment corresponding to economic activities that are entitled to it whose filing period had not started by November 27, 2025.