3.4 Direct normal estimation

Direct estimation is the general method for determining the amount of the different components of the taxable base of IRPF , which obviously include those derived from the exercise of economic activities. This method is based on the declarations submitted by the taxpayer, as well as on the data recorded in the accounting books and records that he is required to keep, verified by the tax authorities.

When it comes to determining the performance of economic activities in the IRPF the direct estimation method allows two modalities: normal and simplified.

The Tax Agency's electronic headquarters includes a " Economic Activities Income Reporter ", where you can find out how to declare the income from your activity under this regime and in which cases you can choose to apply the direct estimation regime in its simplified form, as well as the waiver and exclusion of said form.

It applies, in general, to entrepreneurs and professionals who are not covered by the simplified modality or the objective estimation method.

In any case, it applies if the amount of the turnover of all activities exceeds €600,000 per year in the immediately preceding year or the simplified direct estimate is waived.