7.5.2. Direct estimation system. Normal mode and simplified mode

There are two ways of determining the returns of economic activities in direct estimation:

The simplified form of the direct assessment regime will be applied when the following circumstances occur:

That the activities carried out by the entrepreneur are not covered by the objective estimation regime.
That in the previous year the net amount of the turnover (ordinary income), for all the activities carried out by the taxpayer, does not exceed 600,000 euros annually.
That its application has not been waived.
That no activity carried out by the taxpayer is in the normal modality of the direct assessment regime.

The simplified form of the direct estimate regime has the following special rules regarding the determination of deductible expenses:

Depreciation of tangible fixed assets must be carried out on a straight-line basis based on a simplified depreciation table, specifically for this type.
The set of deductible provisions and expenses that are difficult to justify will be quantified exclusively by applying the percentage of 5 per 100 on the net income, this calculation is carried out and applied by the program.

IMPORTANT:

If you carry out an economic activity in direct estimation in any of its modalities (normal or simplified) you must fill out section "E1. Performance of economic activities in direct estimation" (page 6 of the declaration).
If the activity is carried out through an entity under an income attribution regime, such as entities without legal personality (communities of property, unclaimed inheritances, etc.) or civil companies, which are not subject to Corporation Tax whether or not they have legal personality, you should not fill out this section; you should record the attributed net income in section F " Special regimes" (page 9 of the declaration).