7.5.2. Direct estimation regime. Normal mode and simplified mode

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

The simplified modality of the direct estimation regime will be applied when the following circumstances occur:

That the activities carried out by the entrepreneur are not subject to 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 per year.
That its application has not been renounced.
That no activity carried out by the taxpayer is in the normal modality of the direct estimation regime.

The simplified modality of the direct estimation regime has the following special rules regarding the determination of deductible expenses:

Depreciation of property, plant and equipment must be carried out on a straight-line basis based on a simplified depreciation table, special for this modality.
All deductible provisions and expenses that are difficult to justify will be quantified exclusively by applying the percentage of 5 per 100 on the net return, 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 the income attribution regime, such as entities without legal personality (communities of property, existing inheritances, etc.) or civil companies, which are not subject to Corporate Tax whether or not legal personality, you must not fill out this section, you must enter the net income attributed in section F " Special regimes" (page 9 of the declaration).