Method and modalities for determining the net return from economic activities

Regulations: Art. 16 Law Personal Income Tax

Introduction

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 61.Two of Law 31/2022, of December 23, on the General State Budgets for the year 2023 ( BOE of December 24) modified, with effect from January 1, 2023 and indefinite validity, the thirty-second transitional provision of the Personal Income Tax Law , extending for the 2023 tax period the exclusive quantitative limits set in the years 2016 to 2022 for the application of the objective estimation method, with the exception of agricultural, livestock and forestry activities that have their own quantitative limit by volume of income .