The income tax is a financial benefit that natural persons must satisfy before the Condition. It is calculated based on the individual’s income and certain personal circumstances.
East tax it’s a tribute that is levied on all income, gains, and
capital losses of natural persons, taking into account their personal and
family circumstances.
It has an annual periodicity. Each year, this tax will be
calculated according to the income and the circumstances of the person.
Characteristic
The main characteristics of this tax are:
1. It
is a personal tribute: it is quantified individually for
each person. If it were a general tax, it would not take into account the
person in particular and would establish an equal tax for everyone, such as,
for example, the Value Added Tax (VAT). Instead, this tax is personalized and
quantified differently depending on the person.
2. Direct
tax: tax the person directly. It is based on the reality
of the economic capacity of the person.
3. It
is subjective: This is so because it considers the
personal circumstances of the taxpayer, not like the Consumption Tax (VAT). It
will influence the amount of the tax if the taxpayer has dependent descendants
or if they have some degree of disability, for example.
4. Progressive: The
higher the base, the higher the applicable tax. Suppose a person has a higher
income, the higher his amount to pay. The amount to be paid increases if rents
rise proportionally. In this way, the principle of economic capacity and
progressiveness.
5. The
percentage to apply will depend on the tax base amount: The
tribute is calculated by sections or steps. For example, the tax base can be
divided into sections, and each part will be applied its corresponding
percentage. Once its percentage is applied to each section, the resulting
quotas will be added, and the result of that sum will be the tax amount to be
collected by the State.
6. Periodicity: The
income taken into consideration to calculate this tax is that of the calendar
year. Each year this tax will be calculated again, thus updating the tax on the
economic capacity of the person.
Income tax elements
The main elements that make up this tax are:
· Taxable event: the situation that
gives rise to the tax obligation is that a natural person obtains income
throughout the tax year. What is the rent? Income is made up of income from
work, income from capital, income from economic activities, and capital gains
and losses.
· Passive subject: It is the taxpayer.
In Spain, the taxpayer of this tax will be the person who has the habitual
residence in the country.
· tax base: The amount on which the
tax percentage is applied. It will depend on the income of each person and
their circumstances.
· lien type: This is the proportion
applied to the tax base to calculate the amount to be paid.
· Tax rate: The amount that the
citizen to the Administration must pay.
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