Phase 4: Determination of the net performance of the activity

The determination of the net performance of the activity is the result of reducing the net performance of modules by the amount of the general reduction (if applicable, by the amount of the specific reduction for economic activities carried out in the municipality of Lorca). and in that of extraordinary expenses due to exceptional circumstances. The balance resulting from this operation must be increased by the amount corresponding to other business perceptions.

General reduction: 5 per 100

The first Additional Provision of Order HAC/1264/2018, of November 27, which develops for the year 2019 the method of objective estimation of the Income Tax of Physical Persons and the special simplified regime of the Tax on the Added Value ( BOE of 30), has established a reduction in the net performance of modules of 5 percent applicable generally in fiscal year 2019 a all taxpayers who determine the net income of their activity by the objective estimation method.

Reduction for economic activities carried out in the municipality of Lorca: 20 percent general

Once the previous reduction is applied and, only for those taxpayers who carry out their economic activity in the municipality of Lorca and determine the net return of said activity by the objective estimation method, the net return of 2019 modules corresponding to such activities by 20 percent . The reduction must be entered in box [1476] of the declaration.

See the fourth Additional Provision of Order HAC/1264/2019, of November 27 ( BOE of 30), which establishes the 20 percent reduction in 2019 of the net yield calculated by the objective estimation method of Personal Income Tax and the fee accrued for current operations of the special simplified regime of VAT for economic activities carried out in the term municipal of Lorca.

Extraordinary expenses due to exceptional circumstances

Regulations: Art. 37.4.3 Regulation Personal Income Tax . See also Annex III of Order HAC/1264/2018, of November 27 ( BOE of 30).

When the development of the activity has been affected by fires, floods, subsidence or other exceptional circumstances, which have led to extraordinary expenses unrelated to the normal process of the exercise of the activity, the interested parties may reduce the resulting net return by the amount of said expenses.

To do this, taxpayers must inform the Administration or Delegation of the State Tax Administration Agency corresponding to their tax domicile of said circumstance, within a period of 30 days from the date on which it occurs, contributing, to such effect, the corresponding justification and mentioning, where appropriate, the compensation to be received due to such alterations. The Tax Administration will verify the certainty of the cause that motivates the reduction in performance and the amount thereof.

Other business insights

The net performance of modules must be increased by the amount corresponding to other business perceptions such as current and capital subsidies.

The criteria for temporal allocation of current and capital subsidies are discussed in Chapter 7 of this Manual.

Important: The benefits received from Social Security for temporary disability, risk during pregnancy or provisional disability, where applicable, are taxed as income from work.

See in this regard in Annex III common standard 3 of Order HAC/1264/2018, of November 27 ( BOE of 30).