Simplified mode

Regulations: Art. 30.2 Regulation Income Tax

The set of deductible provisions and expenses that are difficult to justify will be quantified exclusively by applying the percentage of 5% on the positive net income in general (the positive difference between the total income and the other tax-deductible expenses, including amortization), excluding this concept, without the resulting amount being able to exceed 2,000 euros per year.

The 5% rate is applied on a per-activity basis, but the maximum amount that the taxpayer can deduct from all of his or her activities under this concept cannot exceed 2,000 euros.

In the case of joint taxation, the maximum limit of 2,000 euros applies to all members of the family unit who determine the net income by simplified direct estimation.

In case activities carried out through entities under the income attribution regime the deduction for deductible provisions and expenses that are difficult to justify will be applied individually by each taxpayer or partner, heir, commoner or participant on the net income from the economic activity that corresponds to them based on their percentage of participation in the entity, applying the limit of 2,000 euros on said amount. However, if the taxpayer carries out other economic activities under simplified direct estimation, the limit of 2,000 euros will be applied to the sum of the deductions corresponding to each of these activities, reducing the excess in proportion to the net income of each of them.

Note: The percentage of 5% for deductible provisions and expenses that are difficult to justify is incompatible with the application of the reduction for the exercise of certain economic activities contemplated in article 32.2.1 of the Personal Income Tax Law and 26.1 of the Regulations of the aforementioned tax, which is discussed below. Consequently, when the taxpayer chooses to apply the aforementioned reduction, the 5% percentage will not be applicable, and vice versa.