How the Income Statement is Made

April 5, 2023 By luedh

Any child of a neighbor who obtains income that exceeds an amount set by Law during a calendar year, must go through the cash register and declare it in the Personal Income Tax. This tax determines the difference between a gross salary and a net salary and constitutes one of the most important sources of financing for the Spanish State, since it represents around 60% of its income.

What is personal income tax

Personal income tax is a tax levied on individuals domiciled in Spanish territory on income from work and capital obtained during a year. Therefore, this tax does not only apply to personal income obtained by working, since any person who obtains income from real estate capital such as renting a Phone Number List home, movable capital (life or disability insurance, stock dividends or deposits and bank accounts) or capital gains and losses related, for example, to the sale of shares, real estate or NFTs, you must include them in your personal income tax return.

N26 has become the first neobank that allows all its customers to pay the vast majority of their taxes and other taxes to the State Tax Administration Agency (AEAT) through its app. Get up to date with your taxes by clicking on the ‘Send money’ tab, select the ‘Other payments’ option, click on the ‘Payments to AEAT’ shortcut and settle your tax debts quickly and safely. If you want to learn everything about taxes, go to our page about types of taxes in Spain.

It is a progressive tax, since the higher the income, the higher the tax rate applied to the tax base.

In the same way as the IVTM

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(Mechanical Traction Vehicle Tax) or the IBI (Real Estate Tax), the IRPF is a direct tax, since it taxes the income or assets of taxpayers directly.

The deductions that can be applied to this tax, such USA B2B List as those related to contributions to pension plans. Political parties or activities of cultural interest are then. Used to calculate the amount of tax that we will have to pay.