2. Reduction for taxpayers with non-exempt income of less than 12,000 euros

Regulations: Articles 32.2.3 Law IRPF and 26 Regulation IRPF

Reduction amount

When the requirements for applying the above reduction are not met, taxpayers with non-exempt income of less than 12,000 euros, including income from their own economic activity, may reduce the net income from economic activities by the following amounts:

Note: For these purposes, income is understood to be the algebraic sum of net income (from work, movable and immovable capital, and economic activities), income imputations, and capital gains and losses computed in the year, without applying the integration and compensation rules. However, the income must be computed at its net amount, that is, once the expenses have been deducted, but without applying the corresponding reductions, except in the case of income from work, in which the reduction provided for in article 18 of the Tax Law may be taken into account when applied prior to the deduction of expenses.

Limit of the reduction

This reduction is limited by the amount of income from the taxpayers' economic activities that generate the right to apply it.

Clarifications

• This reduction is unique to the taxpayer, regardless of the number of economic activities carried out by him or her and the method by which net income is determined, so if several are carried out, the amount must be distributed proportionally among all of them.

• The requirements for applying this reduction are strict and are related to the taxpayer, so if the taxpayer meets these requirements, he or she may apply the aforementioned reduction, regardless of whether the income from economic activities derives from his or her participation in an entity under an income attribution regime. On the other hand, this reduction cannot be applied to determine the net income from the economic activities of entities under an income attribution regime.

• The reduction is compatible with the estimated expense in the form of deductible provisions and expenses that are difficult to justify, regulated by article 30 of the Personal Income Tax Regulations .

• In the case of joint taxation, if one of the taxpayers in the family unit applies the reduction for economically dependent self-employed workers or those with a single unrelated client provided for in article 32.2.1° of the Income Tax Law, rest of the members of the family unit to whom said reduction will not apply will not be able to apply this reduction, given the incompatibility between the two.