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Form 100. Personal Income Tax Return Declaration 2017

7.5.3.11. Reduction for taxpayers with non-exempt income of less than 12,000 euros

Taxpayers with non-exempt income of less than 12,000 euros, including income from their own economic activity, may reduce the net income from economic activities by the following amounts:

  • Taxpayers with non-exempt income equal to or less than 8,000 euros per year: 1,620 euros per year.

  • Taxpayers with non-exempt income between 8,000.01 and 12,000 euros per year: 1,620 euros – [0.405 x (Taxable Base – 8,000 euros)]

For these purposes, income is understood as the algebraic sum of net income (from work, movable and immovable capital, and economic activities), income imputations, and capital gains and losses computed in the year, without applying the integration and compensation rules. However, income must be computed at its net amount, that is, once expenses have been deducted but without applying the corresponding reductions, except in the case of income from work, in which the reduction provided for in article 18 of the LIRPF may be taken into account when applied prior to the deduction of expenses.

LIMIT

This reduction is limited by the amount of income from the economic activities of taxpayers that generate the right to its application.

CLARIFICATIONS

This reduction is unique for all economic activities carried out, regardless of the method used to determine net income, so if several are carried out, the amount must be distributed proportionally among all of them.

This reduction is not applicable to determine the net income from the economic activities of entities under an income attribution regime.

The wording is compatible with the estimated expenditure in the form of deductible provisions and expenses that are difficult to justify regulated in article 30 of the Personal Income Tax Regulations.

In joint taxation, this reduction is unique to the entire declaration and will be calculated taking into account the income of the family unit, without its amount being able to exceed the net income from the economic activities of the members of the family unit who individually meet the aforementioned requirements. However, in this case the amount of the reduction may not be higher than the net income from the activities of the spouse who has opted to apply the reduction.

As a result of the application of this reduction, the resulting balance cannot be negative.