If you want to know what IRPF is , you're in the right place. Throughout this article, we'll try to answer this question in the simplest way possible, so that anyone can understand the term. So keep reading.
Know everything you need about the Personal Income Tax or better known as IRPF, so you can not stop reading this article.
What is personal income tax?
Let's be clear from the start: What is IRPF ? Let's try to answer this question. These are the initials for Personal Income Tax, and as you may already know, this is the most important tax in the Spanish tax system. For this reason, it's very important for people to learn a little more about it.
At this point another question may arise depending on what aspects is this tax charged? Well, the answer is quite simple, it is calculated based on your wealth, therefore, the more income you have, the greater the amount you will have to cancel, this can be calculated personally, by family or by company.
But one aspect that you must know and keep in mind at all times is that its payment is mandatory on the part of the taxpayer or the citizen, in addition that this is done without seeking to have a monetary benefit in return, but that its reimbursement will be seen in public works. or different public aspects that can contribute to us. To put it more concisely, it is used to support all public order expenses.
It was already said that the payment was mandatory, but now it would be important to mention if it would have the same status for all people and the answer is that it is mandatory that they reside or live in Spain, regardless of their nationality or immigration status. Unless it is proven that he is clearly a tourist.
Where this tax is collected, it is deducted month by month from salaries, until the time of the year arrives to make the well-known "Income Declaration", at this moment all our data is placed, from income, physical conditions, core family, among other aspects, in order to find out if what has been paid in personal income tax up to now is fair, or if more or less has been charged, so you can have the options on the part of the corresponding entity of return or enter, depending on what is required and whichever the case.
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Taxes in the Personal Income Tax
According to what the Treasury Law stipulates, there are five main aspects which are taxed in personal income tax, these are:
- From work: This will correspond to all the income that a person receives for reasons of carrying out their work, basically what we know as salary and loans for being unemployed can also be included in this line.
- Capital: This corresponds to all the money that comes from family assets, assets and different rights that we can possess, and that are not totally linked to any economic activity, to make it simpler here we can include aspects such as the types of house rentals, etc.
- Economic activities: It is that money that reaches the person for an economic activity that does not consist of a salary, this can be for commercial activity, provision of some service or trade, if the person is artistic or sportsman, these are some of the examples that we can give.
- Equity gains and losses: These involve the patrimonial elements, as well as all the investment funds that we could have, shares in different places, among others.
- Imputations for established income: Here are concentrated all those incomes that are held by law such as real estate, international tax transparency, transfer of image rights or any other that could have been obtained by partners or institutions.
These can summarize the points to be taxed in the tax return, however, there is a wide catalog with additional points, among which we can name: unemployment compensation, benefits given to people due to total or partial disability, aid given for pregnancy, childbirth, adoption, among others.
We hope this article has helped you understand what Personal Income Tax (IRPF ) is. We tried to be as concise and to the point as possible. However, since we know you may still have some questions, we've included the following video. We encourage you to take a few minutes to watch it so you can fully understand the topic. Don't forget to share this information!
