The 2025 Income Tax campaign is approaching, bringing with it questions from many taxpayers in Tenerife about their tax obligations. In particular, those earning the Minimum Interprofessional Wage (SMI) often mistakenly believe they are required to declare, but the reality, according to the Tax Agency, is more nuanced and can even offer financial advantages.

Current tax regulations establish that if a worker has had a single payer throughout the year, the limit for the obligation to file the return is 22,000 euros annually. Since the SMI is below this figure, most of these taxpayers will not be obliged to complete the process.

In the case of having two or more payers, the threshold changes. However, Hacienda has implemented an important exception to protect those earning the minimum wage: if total income does not exceed the 2025 annual SMI, set at 16,576 euros, there will also be no obligation to declare.

There are specific situations that do require filing the return, even for those earning the SMI or less. These include beneficiaries of the Minimum Vital Income, self-employed workers, or those wishing to apply certain tax deductions. In these scenarios, the process becomes mandatory, regardless of income level.

The Government has introduced mechanisms to ensure that increases in the minimum wage do not result in a higher tax burden. This is achieved by raising the exempt minimum or applying specific deductions in the IRPF, such as the deduction of up to 591 euros, designed to offset the tax impact of SMI increases.

The main objective is for the wage increase to reach the worker's pocket in full. Therefore, even if it is not mandatory, experts recommend always reviewing the draft declaration. Many companies apply small IRPF withholdings on payrolls, even for low wages, and if the result of the declaration is a refund, Hacienda will deposit that money into the taxpayer's account, preventing it from being lost.