Introduction

Regulations: Articles 28.1 and 30 Law Personal Income Tax , 30 Regulation Personal Income Tax ; 12 to 16 LIS and 3 to 7 Regulation IS

The determination of the net return of economic activities in the direct estimation method is carried out in accordance with the rules of the Corporate Income Tax (IS), without prejudice to the rules contained for these purposes in the Personal Income Tax Law and Regulations.

By virtue of this referral to the Corporate Tax regulatory block, the determination of the net income must be carried out by correcting, through the application of the qualification, valuation and imputation criteria established in the aforementioned regulations, the accounting result determined in accordance with the provisions of the Commercial Code and its development rules, especially those contained in the General Accounting Plan. 

However, given that in the scope of Personal Income Tax the obligation to keep accounting in accordance with the Commercial Code and other implementing regulations does not affect all taxpayers who carry out economic activities, the corrections or Fiscal adjustments must be made in the following way:

• Taxpayers obliged to keep accounting in accordance with the Commercial Code (owners of business activities of a commercial nature whose net income is determined in the normal modality of the direct estimation method): They must apply corrections and adjustments of a fiscal nature to the components of the accounting result, that is, to income and expenses.

• Taxpayers who are not required to keep accounting in accordance with the Commercial Code (owners of non-commercial business activities, professionals, artists or athletes, regardless of the method of determining their net returns and holders of business activities whose net return is determined in the simplified form of the direct estimation method): They must apply these same tax principles to the registration entries of income and expenses that appear in their record books to formulate the net performance of the activity.

In short, the determination of the net return in the direct estimation method, in any of its modalities, must be carried out based on the tax concepts of full income and tax-deductible expenses that appear in the declaration model.

To do this, the tax criteria for imputation, qualification and valuation detailed below must be applied to each of the items that are considered computable income and deductible expenses, as well as the tax incentives established for companies. of small size .