How to calculate taxable income
420.Positive net balance of capital gains and losses attributable to 2018 to be included in the general tax base 498,460702,693,9521,410 424.Positive net balance of capital gains and losses attributable to 2018 to be included in the savings tax base 2,202,94121,855,643,8649,921 429. Balance of positive income from movable capital to be included in the savings tax base 10,531,53616,546,076,071,451,4531,571 432.Net balance of income to be included in the general tax base and income allocations 19. 367,945413,211,315,77721,335 435.General taxable income19,417,307413,855,593,28821,314 460.Savings taxable income10,865,42136,684,032,53213,376
Individual income tax base
There are two types of taxable income. The one we have just seen is the general taxable base. This is where the income obtained from our work, our economic activity and some types of investments (such as, for example, the money earned from real estate investments or income from a pension plan) go.
The interests obtained from bank deposits are classified by the Tax Authorities as income from movable capital and are not added to the general taxable base, but to the savings taxable base.
As we have been analyzing, in the bank deposits only the interests obtained are taxed (not the deposited capital). Depending on how much these total gains amount to, we can be taxed between 19% and 23% (the brackets established in the savings taxable base).
The interests are not added to the income we get from our work or other economic activity, so they do not affect our general taxable base (thus avoiding the percentage applied, called “marginal rate”, to soar).
General and savings taxable income
It is very important that we differentiate the types of income that exist, since for the calculation of the tax they are classified in 2 large groups: general income and savings income. How do they differ? What are the components of one and the other? We explain it below.
As we have just explained, there are two main groups of income: general income and savings income. Broadly speaking, the former refers to income from economic activities, while the latter covers income derived from investments. But let’s look at it in detail.
Thus, for example, if the result of our general income is €46,000 and we make a contribution to a pension plan of €2,000, the result of the base will be reduced to €44,000 and therefore, when applying the corresponding percentage, the result will be lower.
The taxable base is divided into two blocks: the general taxable base that includes all the components of the general income and the savings taxable base includes the components of the savings income.
Fact and taxable amount
The first sentence of Article 17(7) of the Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to taxes on motor vehicles and their trailers is to be interpreted as meaning that
In the context of a contract of sale under which it is provided that, in accordance with the buyer’s intended use of the vehicle, the dealer is to deliver the vehicle already registered and for a price including the registration tax paid before delivery, the tax, the chargeable event for which does not arise on the delivery of the vehicle, but on the first registration of the vehicle, is to be paid by the dealer, but on the first registration of the vehicle in the national territory, is not covered by the concept of taxes, duties, fees and parafiscal charges within the meaning of Article 11(A)(2)(a) of the Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonization of the laws of the Member States relating to the harmonization of the laws of the Member States relating to turnover taxes.
(2)(a) of Article 11(A)(2)(a) of the Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonization of the laws of the Member States relating to foreign exchange losses suffered by an undertaking having its registered office in the territory of that State on repatriation of the endowment capital which it had granted to a permanent establishment owned by it situated in another Member State.