About personal income tax

Deductions: They are amounts that reduce the amount to be paid for a tax. In Personal Income Tax, deductions are subtracted from the resulting amount after applying the tax scale and rates. These deductions are those established by law in cases such as those of working mothers with children under three years of age, or in the case of large families or dependents of disabled persons, and deductions for donations. The Autonomous Communities may also establish certain deductions.
Exemptions: They consist of the fact that, in certain cases, even though the events that give rise to the payment of a tax occur, the obligation to pay tax does not arise because the law has established it as such. For example, certain literary, artistic, or gambling prizes, state benefits for acts of terrorism, and certain scholarships are exempt from personal income tax.
Personal Income Tax (IRPF): It is a direct tax levied on income earned as an immediate manifestation of citizens' economic capacity, based on the principles of equality, generality, and progressiveness, and in accordance with individuals' personal and family circumstances.
Minimum personal and family: This is the amount of money we all need to live with dignity and pay for our basic needs, and therefore is not subject to personal income tax. This amount varies depending on the taxpayer's personal and family circumstances.
Web Rent: This is the support service provided by the Tax Agency to taxpayers so they can complete their tax returns directly through the Tax Agency's website.
Reductions: These are amounts that reduce the taxable base of the Personal Income Tax. They are established by law and, among them, the following can be mentioned: for employment income, childcare, age, disability, and pension plan contributions.
Rent: It is the object of the Personal Income Tax. It is understood to consist of all income (from work, economic activities and capital), and capital gains and losses.
Withholdings: These are amounts that payers of certain income are required by law to deduct from the income they pay and pay into the Treasury, as an advance payment on the personal tax that the recipients of the income must pay. In Personal Income Tax, companies must make these withholdings every month from the salaries they pay their employees. When it comes time to file their tax return, employees will deduct those withheld amounts from their tax liability. Banks and savings banks also apply withholding taxes on the interest they pay to people who have checking or savings accounts. Likewise, professionals and business owners make payments on account of Personal Income Tax, which are deducted from the final amount when they file their personal income tax return.