The 2022 Income Campaign is still open. Taxpayers may submit their returns until June 30. This is a procedure through which taxpayers adjust their tax obligations with the Tax Agency on account of Personal Income Tax (IRPF).
Specifically, the withholdings already applied are compared with the personal income tax amount that corresponds to each taxpayer according to the total income and their personal circumstances. Thus, the declaration will be returned, paid to the Treasury or equal to zero if the withholdings have been exact.
The result came from the withholdings, which are an advance of personal income tax that the recipient will have to pay for their income. Specifically, all payers of income subject to withholding must deduct a percentage of the income and pay it into the Public Treasury. Other income includes wages, which are income from work.
Calculate from an algorithm
In the case of salaries, withholdings are reflected in each month’s payroll. It is applied to the gross salary and in order to determine what amount the withholding should be, it is necessary to take into account the income, the type of contract, its duration, as well as the personal circumstances that may give rise to deductions or even exemptions.
The Tax Agency calculates the withholdings corresponding to work income resulting from labor relations based on an algorithm that takes into account all the economic and family circumstances of the taxpayer. For example, according to the simulator offered by the Ministry of Finance, a single taxpayer, without dependent children, with a general contract and gross income of 24,000 euros, is entitled to a withholding rate of 15.46%. This is an annual import of 3,710.4 euros.
minimum personal income tax
All payers with the obligation to withhold must do so, even if it is at the minimum percentage. This is 2%. A lower withholding may not be applied, except for income exempt from withholding. This minimum percentage is applied to temporary contracts, lasting less than a year, internships and in agreements with scholarship holders. In all of them it is assumed that the yields of the receiver are minimal.
However, it must be taken into account that if, in addition to the returns subject to 2% personal income tax, the taxpayer has other income, it is likely that the withholding will be less than what corresponds to him and will be adjusted in the Income statement, with result to pay a farm.
To avoid this, it is possible to ask the payer for an increase in the applied withholdings. You may request to raise the withholding up to the desired percentage, although not the other way around. The company or payer will apply the personal income tax that corresponds to each worker according to their contract and other circumstances and cannot be lower.
Personal income tax brackets
Personal income tax withholdings are adjusted according to the sections in which the yields are located. Taking into account the state and regional sections established by law -each Autonomous Community can vary it-, the corresponding personal income tax rates are the following:
Up to 12,450 euros: 19% From 12,451 to 20,199 euros: 24% From 20,200 to 35,199 euros: 30% of 300,000 euros: 47%.