Incompatibility between methods and modalities of determining net income

Regulations: Art. 28.3 Regulation Income Tax

The system of relationships between the methods of determining net income, direct estimation and objective estimation, is characterized by a rigid incompatibility between them . Thus, if the taxpayer determines the net income of any of its economic activities using the direct estimation method, simplified modality, it must determine the net income of all its remaining activities using this same method, even if they are activities that may be included in the objective estimation method.

Similarly, if the taxpayer determines the net income of any of its economic activities using the normal method of direct estimation, it must determine the net income of all its activities using this same method.

However, when an economic activity is started during the year for which the simplified modality is waived, the incompatibility will not take effect for that year with respect to the activities that were previously carried out, so that said year the direct estimation method, normal modality, will be used simultaneously for determining the net income of the new activity and the direct estimation method, simplified modality, for the rest of the activities, all of which will be taxed in the following year by direct estimation, normal modality, as a consequence of the waiver.