The PIT, Personal Income Tax, is a personal, progressive and direct tax levied on the income obtained each year by individuals.
The fact that it is progressive means that the more money a person earns, the higher the percentage that taxes his or her income and the more the taxpayer pays in personal income tax.
The IRPF taxes the income from work, capital, economic activities, capital gains and losses and the income imputations that a person receives.
Specifically, the Income Tax is levied on the following income:
- Income from Employment.
- Income from Capital.
- Income from Economic Activities.
- Imputations of Income
You can see a comparison of the IRPF in the different countries in: Personal income tax for employees countries ranking.