Earnings from economic activities

The determination of the attributable income will be carried out in accordance with the method of determining the net income that is applicable to the entity, without the 30% reduction being applicable to the calculation of the income to be attributed to each of its members. income with a generation period of more than two years or qualified by regulation as obtained in a notoriously irregular manner over time, when, in both cases, they are allocated in a single tax period provided for in article 32.1 of the Personal Income Tax Law.

Reductions for the exercise of economic activities of article 32.2. of the Personal Income Tax Law and for the start of a new activity of article 32.3 of the Personal Income Tax Law are not applicable by entities under the income attribution regime to determine the net return of their economic activities. It will be the members of the entity under the income attribution regime who are personal income tax taxpayers who will be able to make these reductions in their return, if applicable. For personal income tax, those who will be able to make these reductions in their return.

The expenses of each of the community members, partners or participants who, because their payment has not been agreed upon by the entity under the income attribution regime, are satisfied by each of them will be deductible for them, provided that there is due correlation with obtaining income. The deductibility of these expenses will be made by the community member, partner or participant who has paid them, reducing the return attributed to him by the entity.

The requirements for the application to entities under the income attribution regime of the direct estimation method , both in the normal and simplified modality, and the objective estimation method in both agricultural, livestock and forestry activities as well as the remaining activities can be consulted, respectively, in Chapters 7, 9 and 8 of this Manual