7,4,2,7. Reduction due to the start of an economic activity

Taxpayers who start exercising an economic activity and determine the net return of the activity according to the direct estimation method, may reduce the net positive return declared in accordance with this method by 20%, if applicable, by the reductions for returns with generation period greater than two years, for clearly irregular net returns and for certain activities carried out for a single customer, in the first tax period in which the customer is positive and in the following tax period.

An economic activity will be considered as starting when no economic activity has been carried out in the year prior to the start date of the financial year, without taking into account activities in which the financial year ended without obtaining positive net returns from the start.

When a new activity begins after the start of the activity referred to in the first subparagraph without having ceased the financial year of the first, the reduction provided for in this section will be applied to the net returns obtained in the first tax period in which they are positive and in the following tax period, from the start of the first activity.

The amount of the net returns referred to in this section on which the aforementioned reduction will be applied may not exceed 100,000 euros per year.

The reduction foreseen in this section will not be applicable in the tax period in which more than 50% of its income they come from a person or entity from which the taxpayer has obtained earned income in the year prior to the start date of the activity.