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V1018-19 9 May 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos netos del trabajo

Procedure established for calculating the reduction for income from employment for the 2018 tax year

This analysis addresses how to calculate the reduction for income from employment under Article 20 of the Personal Income Tax Act (LIRPF) for the 2018 tax year, following the amendment to the General Budget Law (LPGE) 2018. The Directorate General for Taxes (DGT) clarifies that the calculation depends on whether the tax liability arose before or after 5 July 2018.

The question raised

Question raised: Procedure for calculating the reduction for the acquisition of income from employment as regulated in Article 20 of the LIRPF.

The DGT's ruling

For the 2018 tax year, if the tax was accrued before July 5, 2018 (deceased taxpayers), the regulations in force as of December 31, 2017, shall apply. If it was accrued from that date onwards, the reduction shall be the amount provided by the 2017 regulations increased by half of the difference between the amount provided by the 2019 regulations and that of 2017.

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