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V1173-24 23 May 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · mínimo por descendientes

The €8,000 limit for the personal allowance for descendants applies to net employment income

A query was raised regarding whether the €8,000 income limit for applying the family allowance for descendants refers to gross or net income. The Directorate General for Taxes (DGT) clarifies that it must be the net employment income, after deducting expenses and the reduction provided for in Article 18 of the Personal Income Tax Law (LIRPF).

The question raised

Whether the 8,000 euro limit established in Article 58 of the LIRPF is in gross or net terms.

The DGT's ruling

Regarding the 8,000 euro limit under Article 58 of the LIRPF, the concept of income is the algebraic sum of net earnings, imputed income, and capital gains or losses. In the case of earnings from employment, the net earnings defined in Article 19 must be calculated, including the reduction from Article 18 and the deduction of expenses from paragraph 2.

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