The acronym IRPF (Impuesto de la Renta de las Personas Físicas) stands for Income Tax for fiscal Individuals.It is the direct tax for excellence. The most famous and, in contrast to VAT, the most justified.

In tax terms, to be just does not mean to be equitative it means a progressive tax. And it is by that definition that the contribution of citizens to the state should be, as stated in the Constitution, depending on the economic capacity of each individual.

Therefore, in the settlement of this tax they are numerous scales, minimals and reductions. Income tax is perfectly audited. However, for example, savings income has tribute constantly to a sort of fiscal burden. Specifically, the 21,10% up to 44000 €.

In addition to this certain sources of income, like savings as mentioned before, there are no differences between the different autonomies. Which is a criticism of the saving effort of an individual based on the structure of their salary.. A higher salary, less effort, but equal taxation.

It is understandable that in the settlement of income tax the fiscal policy is created. It should finance public spending, while respecting the adjectives. Adjectives do not have to be euphemisms. We are used to complex and incomprehensible technical language. And that adjectives are, just that they are adjectives. Progressive is an adjective reflected in the Constitution.

And the adjective, in my opinion, should only pay tribute to their noun: the tax.

The noun is who? the person? the taxpayer? An individual should know clearly what it is that every April is advertised on television. Do you call it a draft. Is rental income the same as a salary. Is saving expensive or cheap. Or if a senior being of greater age needs more money to live; or how mandatory it is or if not to pay the tax.

That citizen-administration tax balance is Personal. Of course: Progressive but why not PERIODIC?

The best decisions are made with information. And I’m not talking about the fourth P, Planning.

Juan Luis Coma.
Trade Consultant.