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

3.5.2 Calculation of net return

Net income is calculated according to the rules of IS (income less 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 being able to exceed €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. Depreciation of tangible fixed assets is carried out on a straight-line basis, based on the specific simplified depreciation table, without prejudice to the application of the assumptions of freedom of depreciation established in IS .

The net income thus calculated will be subject to, where applicable, the reduction for income generated over more than two years or obtained in a notoriously irregular manner over time, the reduction of the net income applicable to economic activities that meet certain requirements, the reduction for taxpayers with non-exempt income of less than €12,000 or the reduction for starting an activity, in accordance with the rules indicated in the normal form of the direct estimation method.