Skip to main content
Practical Income Manual 2019.

Performance of economic activities

Objectively estimated economic activities

  • Order HAC /1264/2018, of November 27, maintains for the 2019 fiscal year the amount of the signs, indices or modules of the previous fiscal 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 exclusive quantitative limits of the objective estimation method set for the years 2016, 2017 and 2018: both those relating to the volume of full income in the immediately preceding year derived from the exercise of economic activities (250,000 euros for all economic activities, except 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 the volume of purchases of goods and services (250,000 euros, excluding acquisitions of fixed assets)
  • For agricultural, livestock and forestry activities, the exclusionary limit provided for in article 31 of the Personal Income Tax Law applies to the volume of full income in the immediately preceding year (250,000 euros per year, for the all of its agricultural, livestock and forestry activities carried out by the taxpayer) and, for the volume of purchases of goods and services, the amount of 250,000 euros, excluding acquisitions of fixed assets, provided for in the thirty-second transitional provision in the Personal Income Tax Law and whose application is extended to fiscal year 2019
  • The general reduction of 5 percent and the reduction of 20 percent of the net return for economic activities carried out in the municipality of Lorca (Murcia) is maintained.

Accounting and Registration Obligations

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

As of January 1, 2019, this exception disappears except for taxpayers who carry out business activities whose performance is determined in the normal modality of the direct estimation method. The rest of the personal income tax taxpayers who carry out economic activities are obliged since January 1, 2019 to keep the record books determined in each case by the personal income tax regulations, even when they maintain accounting in accordance with the provisions of the Commercial Code.