Personal income tax tranches

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¿Sabes qué es el impuesto sobre la renta de las persons físicas? Todos, en mayor o menor medida, sabemos que es un impuesto, que se aplica a las personas físicas, que es progresivo… y lo asociamos regularmente con los autónomos.

But, Do you know what the sections of the income tax are? If you don't know, keep reading, we explain it to you as well as other related concepts that you should know, such as the personal income tax tables, who is obliged to pay personal income tax.

The sections of the personal income tax

The income tax brackets consist of a table of income, so that, depending on these, those who enter or earn more money, the tax is higher, and for those who pay less, the tax is lower.

The target of the The income tax brackets is the proportionality of the tax.

The personal income tax, remember, is the personal income tax, and it is paid through withholdings, in other words, it is paid in advance on a quarterly basis. At the end of the calendar year, a balance is made between what a self-employed person really should have paid, with what they really paid, to understand whether the self-employed should pay more, or the government should return what they paid more.

Withholdings are made through invoices and the Tax Agency relies on them to estimate the possible earnings of the self-employed person.

Income tax tables

First of all we must determine the famous table of income tax brackets. This table has undergone a series of numbers in each change of legislature, always using it as an electoral weapon between one government and another.

The last was the advance of the tax cut approved by the current government in office, in the middle of this year, causing chaos, especially in smaller SMEs, which do not have an accounting specialist.

This table of personal income tax came into force in July 2015, and remains intact for the current course, awaiting possible changes for the course of 2017.

Base	State percentage	Autonomous percentage	Total
Up to € 12,450	9,50	9,50	19
Up to € 20,500	12	12	24
Up to € 35,200	fifteen	fifteen	30
Up to € 60,000	18,50	18,50	37
€ 60,000 onwards	22,50	22,50	Four. Five

La tabla aparece en la Web oficial de la Agencia Tributaria with regional and state data and their possible variants according to each taxpayer.

If there are no changes soon, this is the personal income tax table you need to pay attention to. If you exceed an amount, and go to the next income tax bracket, it may imply an increase of up to 8 percentage points in what you will have to pay to the Treasury each year.

Who pays the personal income tax

Well, we already know how much you pay based on your income, but ...who pays personal income tax?

We are often wrong, and it is to think that only people who work on their own account are subject to personal income tax, but it is wrong: it is paid by all natural persons, who are self-employed or employed.

In theory, We must all declare personal income tax.

The post 8 de la Ley del Impuesto sobre la Renta de las Personas Físicas dicta: son contribuyentes del Impuesto sobre la Renta, todos "Natural persons who have their frequent residence in Spanish territory", both "individuals who had their residence abroad due to any of the circumstances provided for in post 10 of this Law."

Then, according to the legislation, all people, pensioners, employees, self-employed, anyone who obtains some type of income or profit, must pay taxes for this tax and, decidedly, do the income statement every year.

Even though it is possible to explain that, as we have seen, according to the income obtained, a more or less percentage of the income tax will be paid, and according to some income, they will not even have to pay the tax, due to a positive balance, or because their income they are small, as by way of example, a person who is unemployed for the entire current year.

Although yes, there are clarifications.

Who is obliged and exempted from declaring personal income tax?

This can be very confusing for you, but there are exceptions to the rule, or rather, conditions, for certain people who do not They have the obligation to present your personal income tax return.

First, let's talk about the people with income from work, wages, salary or pensions that they have received throughout the calendar year. Those who do not meet these conditions are not required to declare:

22. Have had an income of € 22,000
23. Those who have an income of € 12,000, from more than one payer, receiving at least € 1,500 from the second.
24. Income of € 12,000 in the case of pensioners whose only income is found in post 17.2 of the Personal Income Tax Law, by two or more taxpayers.
25. € 12,000 of income from compensatory pensions
26. Income of € 12,000 when the payer is not obliged to withhold
27. € 12,000 income when full income from work is received

Even though those people can send your statements, regularmente saldrá, en el mejor de los casos, para volver. Si, a modo de ejemplo, eres una persona que ha cobrado el paro durante todo el año, sin haber trabajado en ningún momento, vas a poder presentar tu planilla, pero lo más probable es que el resultado be cero.

In the case of the self-employed, there is no salvation: all the self-employed have the obligation to present their return, even when they have only caused an income of € 600. The amount does not matter.

If you had, as a freelancer, a minimum income, and depending on the activity in which you are registered, you will have to make your withholdings due on invoices, and the declaration with personal income tax to 19%, unless your Community has reduced some percentage point Autonomous section of the personal income tax, since each Community can do it in the percentage part that corresponds to it.

IPRF withholdings in 2017

TO characteristic of personal income tax, at the same time of the proportionality with the income, is that it is paid in advance.

For the self-employed, a percentage is subtracted, according to income and branch, in form of payment of income tax in advance.

Freelancers must subtract a percentage from each invoice charged on the basis of personal income tax, plus VAT decidedly.

At the end of the calendar year, the count is closed, and later, the Tax Agency, makes a balance between the real income tax caused against that paid.

If a self-employed person, or worker, pays more personal income tax than his share, the Tax Agency will return it to him, if he has paid less he will have to pay, as we all know.

When are income tax withholdings entered?

While an employed person has it extremely simple, because the employer withholds your personal income tax, The self-employed must do all the administration on their own, with the advisable and almost obligatory help of an expert in the field, decidedly.

In general, the withholding is entered in the Tax Agency on a quarterly basis, through the famous model 111, or 115 if it is for rentals.

If the self-employed person is lucky (good or bad, it depends on each person) to make a payment on account of his personal income tax, he must do so with form 130.

The dates for this year were:

1. First quarter: April 20
2. Second July 20
3. Third quarter: October 20
4. Fourth quarter: January 20, 2017

How the income tax tranches work in 2017

Finally, we leave a topic that generates a lot of confusion, or that people often misunderstand.

We tend to think that sections of the personal income tax are rigidly enforced, fixed, on the total income generated by the self-employed or self-employed.

In other words, if a person generates € 30,000 in a year, he pays the 24% of personal income tax on the € 30,000. And it is not that easy. Why doesn't it work like this? It may be difficult to clarify, but let's give it a try.

You should pay attention that personal income tax is like a ladder, the more steps you go up, the more taxes you go up.

If we apply a percentage to the final result of the annual income obtained, we would be doubling, and even quadrupling that person's income, greatly increasing the amount to be paid.

Sections work both ways, as income increases, so does the tax rate of the personal income tax.

Better let's look at an example: suppose that a person has generated an income of € 40,000 in the calendar year. Yes, he is a person who does not have financial problems.

How will that person pay income tax?

• Of the first € 12,450 you will pay the 19%, in other words,
• Up to € 20,200, 24%
• Up to 35,200, 30%
• Up to 40,000, 37%

In other words:

• For the first section (€ 12,450): € 2,365
• For the second section (€ 7,750): € 1,860
• For the third section (€ 15,000): € 4,500
• For the fourth section (€ 4,800): € 1,440

In total, this person generates an income tax of: € 10,165

In other words, you pay for the money accumulated in each of the sections of the personal income tax throughout the year, and as the income tax bracket goes up or up, it will pay the percentage corresponding to that bracket.

Remember that since you pay in advance, you climb the stairs, it is not calculated according to the net or gross accumulated annually, but by quarters.

It is more expensive? Perhaps, but that guarantees that a person who generates an income for a tranche, pays only according to that percentage, and if it rises, for example, only by € 100, an increase of up to 8 points is not made to all its income generated.

As an example: if you have earned € 12,600, when the 19% tranche is € 12,450, would you be interested in applying the percentage of the second tranche, in other words, the 24%, and not the 19% to all your money? Or only to the money caused in the rent of that section?

We know that you prefer the second, and the Tax Agency as well. This is why the sections of the personal income tax work like this: proportionality and progression is the key to personal income tax brackets.