|Type of Tax||Direct|
|Collected by||Provincial Government|
|Tax base||Annual income and returns|
|Abatements in the base||Summary table|
|Net tax base||Calculated by subtracting the corresponding abatements from the tax base (see above table)|
|Tariff or Rate||Summary table|
|Liability||Calculated by applying the tax rate to the net tax base|
|Amount payable||Calculated by subtracting the corresponding deductions from the tax liability|
This is a direct tax which is paid on an annual basis; the tax returns are submitted in spring of the year following the year in which the income or returns were made, coinciding with the income declaration campaign. Before the period for submitting tax returns begins, a table is published with withholdings on income from work, adjustment coefficients for calculating capital gains, changes to the regulations, etc.
In Gipuzkoa, the tax is collected by the provincial government.
Private Income Tax is levied on income obtained during the calendar year by persons resident in Gipuzkoa. The tax is governed by the principles of equality, generality and progressivity and takes into account the individual and family circumstances of the taxpayer.
Edurne is an IT engineer working at the company Teknik. She also runs her own IT consultancy. Over the last year, her income or revenue, once the relevant reductions have been subtracted is 42,750€
When it comes to applying deductions, we need to bear in mind that Edurne has a 3-year old child.
How much does she have to pay in Personal Income Tax?
We'll calculate this as follows: