Method and modalities of determining the net income of economic activities

Regulations: Art. 16 Law Income Tax

Introduction

The methods for determining the net income from business, commercial or non-commercial activities, and professional activities are as follows:

Direct estimation, which supports two modalities: normal and simplified.
Objective estimate, which is applied as a voluntary method to each of the economic activities, considered in isolation, determined by the Minister of Finance.

Without prejudice to the detailed commentary on each of the methods and modalities of determining net income in the corresponding chapters of the Manual, the tables in the following sections contain the most significant notes on each of these methods and modalities.

Note: Article 61.Two of Law 31/2022, of December 23, on the General State Budget 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 tax period 2023 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 .