Method and modalities for determining the net return from economic activities
Regulations: Art. 16 Personal Income Tax Law
The methods for determining the net income of business activities, commercial or non-commercial, and professional activities are the following:
Direct estimation, which admits two modalities: normal and simplified.
Objective estimate, which is applied as a voluntary method to each of the economic activities, considered separately, determined by the Minister of Finance.
Without prejudice to the detailed commentary on each of the methods and modalities for determining net performance in the corresponding Chapters of the Manual, the tables in the following sections include the most significant notes of each of said methods and modalities.
Note: article 63 of Law 11/2020, of December 30, on the General State Budgets for the year 2021 ( BOE of 31) modified the thirty-second transitional provision of the Personal Income Tax Law , extending for the 2021 tax period the exclusive quantitative limits set in the years 2016 to 2020 for the application of the objective estimation method, with exception of agricultural, livestock and forestry activities that have their own quantitative limit by volume of income .