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V1626-24 3 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · mínimo por descendientes

Net income after expenses and Article 18 reduction must be used for the minimum allowance for descendants

A query was raised regarding which income concept should be used to verify whether a descendant exceeds the limits of €8,000 and €1,800. The DGT clarifies that the net income must be used after deducting expenses and the reduction provided for in Article 18.

The question raised

Concept of income, for the purposes of the limits (8,000 and 1,800 euros), regarding the application of the minimum for descendants. Specifically, whether the prior net return, the net return, or the reduced net return must be taken into account.

The DGT's ruling

The concept of income for the purposes of the family minimum limits is the algebraic sum of net returns, imputed income, and capital gains or losses. Returns must be net, meaning after deducting expenses but without applying reductions, except in the case of employment income where the reduction under Article 18 is applied. In the specific case, the amount to be considered is the net employment income after applying the reduction under Article 18 and the expenses under Article 19.

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