Earned income

Exempt income from work in kind: In the exemption for premiums or fees paid by the company to insurance entities for the illness coverage of the worker, his or her spouse and descendants, from January 1, 2016, the exemption limit is increased to €1,500 when they are people with disabilities.

The deductible expenses for obtaining net income from work, in general (whether or not the recipient has a disability), are:

• Deductible expenses for work income. €2,000 per year, in general, for all taxpayers who earn income from work.

• Deductible expenses for geographical mobility. The deductible expenses of the first point will be increased by €2,000 for unemployed taxpayers registered at the employment office who accept a job located in another municipality and require the transfer of their habitual residence to the new address. It is applicable in the tax period in which the change of residence occurs and in the following one.

Active workers with disabilities, in addition to the previous expenses that correspond to them, will have the right to an increase in said expenses for disability of active workers , according to the following detail:

In joint taxation of family units with several active workers with disabilities, the increase in deductible expense will be single and the amount of the active worker of the family unit with the highest degree of disability will be applied.

The increase in disability expenses for active workers is applied when these two circumstances occur simultaneously at any time during the tax period:

• Have the required degree of disability.

• Be an active worker.

As a consequence of the application of said expenses for obtaining net income from work, the resulting balance cannot be negative.