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Form 100. Personal Income Tax Return 2019

7.4.2. Direct estimation system. Normal mode and simplified mode

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

  • Normal direct assessment

  • Simplified direct estimation.

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

  1. That the activities carried out by the entrepreneur are not covered by the objective estimation regime.

  2. 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.

  3. That its application has not been waived.

  4. 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:

  1. Depreciation of tangible fixed assets must be carried out on a straight-line basis based on a simplified depreciation table, specifically for this type.

  2. 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, excluding said concepts for the calculation, with a limit of 2,000 euros.

    When it is decided to apply the reduction provided for holders of economic activities carried out for a single client, the 5% percentage for provisions and expenses that are difficult to justify will not be applicable.

Important

  • If you carry out an economic activity in direct estimation in any of its modalities (normal or simplified) you must fill out section "D1. Performance of economic activities in direct estimation"
  • If the activity is carried out through an entity subject to the income attribution regime, such as joint property, unclaimed inheritances, civil companies that do not have legal personality, civil companies with legal personality that do not have a commercial purpose, etc., you should not fill in this section; you should record the attributed net income in section E "Special regimes" Income attribution regime: returns on capital and economic activities and capital gains and losses
  1. 7,4,2,1. Activities carried out and ownership
  2. 7,4,2,2. Gross income
  3. 7,4,2,3. Tax deductible expenses
  4. 7,4,2,4. 30% reduction
  5. 7,4,2,5. Reduction for economically dependent self-employed workers or with only unrelated client
  6. 7,4,2,6. Reduction for taxpayers with non-exempt income of less than 12,000 euros
  7. 7,4,2,7. Reduction for starting an economic activity
  8. 7,4,2,8. Completion of activities in direct estimation