Reduction in net income due to the start of an economic activity
Regulations: Art. 32.3 Personal Income Tax Law
The taxpayer who meets each and every one of the following requirements is entitled to this reduction:
That begins the exercise of an economic activity and determines the net return of its economic activity in accordance with the direct estimation method .
To comply with this requirement, all economic activities carried out by the taxpayer must be taken into account, both those carried out individually and those carried out through entities under the income attribution regime.
That economic activity has started as of January 1, 2013 .
That has not carried out any other activity in the year prior to the start date of the new activity .
For these purposes, it will be understood that an economic activity begins when no economic activity has been carried out in the year prior to its start date, without taking into consideration those activities whose exercise had been ceased without having obtained returns. net positive since its inception.
Once the above requirements have been met, the taxpayer may reduce 20 percent of the amount of the positive net income declared from all its activities, previously reduced, if applicable, by application of the reduction for net income with a generation period of more than two years, or obtained in a notoriously irregular manner over time, and for the reduction that corresponds to the exercise of certain economic activities referred to in article 32.2 of the Personal Income Tax Law .
The reduction will be applied in the first tax period in which the yield is positive and in the following .
In those cases in which an activity is started that generates the right to apply this reduction and another is subsequently started, without having ceased in the previous one, the reduction will begin to be applied in the tax period in which the sum of the positive net returns of both activities is positive , being applied to said sum.
Maximum reduction limit
The amount of net income to which the aforementioned reduction will be applied cannot exceed the amount of 100,000 euros per year .
The reduction is not applicable in the tax period in which more than 50 percent of the income of the same comes from a person or entity from which the taxpayer has obtained income from work in the year prior to the start date of the activity.