Skip to main content
Practical manual for Income Tax 2019.

Performance of economic activities

Objectively estimated economic activities

  • Order HAC /1264/2018, of November 27, maintains for the year 2019 the amount of the signs, indexes or modules of the previous year.
  • The thirty-second transitional provision of the Personal Income Tax Law is modified to extend to the 2019 financial year the application of the same quantitative limits excluding the objective estimation method set for the 2016, 2017 and 2018 financial years: both those relating to the volume of gross income in the immediately preceding year derived from the exercise of economic activities (250,000 euros for all economic activities, except for agricultural, livestock and forestry activities and 125,000 euros for operations in which there is an obligation to issue an invoice when the recipient is a businessman) and to the volume of purchases of goods and services (250,000 euros, excluding the acquisition of fixed assets)
  • For agricultural, livestock and forestry activities, the exclusion limit provided for in article 31 of the Income Tax Law applies to the volume of gross income in the immediately preceding year (250,000 euros per year, for all agricultural, livestock and forestry activities carried out by the taxpayer) and, for the volume of purchases in goods and services, the amount of euros, excluding acquisitions of fixed assets, provided for in the thirty-second transitional provision of the Personal Income Tax Law and whose application is extended to the 2019 financial year.
  • The general reduction of 5% and the reduction of 20% of the net income for economic activities carried out in the municipal area of Lorca (Murcia) are maintained.

Accounting and Registration Obligations

Until 2018, taxpayers who kept their accounting records in accordance with the provisions of the Commercial Code were not required to keep record books.

As of January 1, 2019, this exception will disappear except for taxpayers who carry out business activities whose performance is determined using the normal method of direct estimation. All other personal income tax payers who carry out economic activities are required from 1 January 2019 to keep the record books determined in each case by the personal income tax regulations, even when they keep accounting records in accordance with the provisions of the Commercial Code.