3.4 Direct normal estimation

Direct estimation is the general method for determining the amount of the different components of the taxable base of PIT , which obviously includes income 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 PIT the direct estimation method allows two modalities: normal and simplified.

The Electronic Headquarters of the Tax Agency incorporates a "Virtual Rental Assistant », where you can find out how to declare your income under this regime and in which cases you can opt to apply the simplified direct assessment regime, as well as how to waive and exclude this regime.

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.