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V1546-17 16 June 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos netos del trabajo

Application of the reduction for employment income for earnings of €12,980.78

The taxpayer asks whether they can apply the reduction for obtaining employment income with earnings of €12,980.78. The DGT responds that the reduction under Article 20(b) of the Personal Income Tax Act (LIRPF) is applicable, provided that other income does not exceed €6,500.

The question raised

Whether the reduction for obtaining employment income is applicable, given that the taxpayer has obtained income of 12,980.78 euros.

The DGT's ruling

To apply the reduction provided in Article 20 of the Personal Income Tax Law (LIRPF), net employment income must be less than 14,450 euros and income other than employment income (excluding exempt income) cannot exceed 6,500 euros. In the case of income between 11,250 and 14,450 euros, the reduction is 3,700 euros minus the result of multiplying by 1.15625 the difference between the employment income and 11,250 euros.

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