3.5.2 Calculation of net return
The net return is calculated according to the rules of IS (income minus expenses) as in normal direct estimation, with the following particularities:
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Deductible provisions and expenses that are difficult to justify are quantified by applying 5% of the positive net income, excluding this concept without the resulting amount exceeding €2,000/year. It will not apply when the reduction is chosen for the exercise of certain economic activities. By 2023 the percentage will be 7%.
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Amortization of property, plant and equipment is carried out on a straight-line basis, based on the specific simplified amortization table, without prejudice to the application of the assumptions of freedom of amortization established in IS .
To the net return calculated in this way, the reduction will be applied, if applicable, for returns generated in more than two years or obtained in a notoriously irregular manner over time, the reduction of the net return applicable to economic activities that meet certain requirements, the reduction for taxpayers with non-exempt income less than €12,000 or the reduction for starting activity, in accordance with the rules indicated in the normal modality of the direct estimation method.