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Economic Activities Manual. Fiscal duties of employers and resident professionals in Spanish territory

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:

  1. 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%.

  2. 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.