7,4,2,7. Reduction for starting an economic activity
Taxpayers who begin to carry out an economic activity and determine the net income thereof using the direct estimation method may reduce by 20% the positive net income declared using said method, reduced where applicable by reductions for income with a generation period of more than two years, for clearly irregular net income and for certain activities carried out for a single client, in the first tax period in which it is positive and in the following tax period.
An economic activity will be deemed to have started when no economic activity has been carried out in the year prior to the start date of the activity, without taking into consideration those activities whose exercise has ceased without having obtained positive net returns since its start.
When, after the start of the activity referred to in the first paragraph above, a new activity is started without having ceased the exercise of the first, the reduction provided for in this section will be applied to the net income obtained in the first tax period in which it is positive and in the following tax period, counting from the start of the first activity.
The amount of net income referred to in this section to which the aforementioned reduction will be applied may not exceed 100,000 euros per year.
The reduction provided for in this section will not apply in the tax period in which more than 50% of the income comes from a person or entity from which the taxpayer obtained employment income in the year prior to the date of commencement of the activity.