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Practical manual for Income Tax 2023.

Scope of application of normal mode

The normal form of the direct estimation method must be applied compulsorily in the year 2023 for the determination of the net income of all economic activities carried out by the taxpayer, unless the net income of all of them is determined by the objective estimation method, provided that either of the following two requirements are met:

  • That the net amount of the turnover of the previous year, corresponding to the set of activities carried out by the taxpayer , exceeds 600,000 euros per year.

    When an activity has been started in the immediately preceding year, the net amount of the turnover will be raised to the year, for these purposes only.

  • That the simplified form of the direct estimation method be renounced.

For the purposes of delimiting the scope of application of the normal form of the direct estimation method, it should be noted that the economic activities eligible for the objective estimation method and the requirements for their inclusion can be consulted in Chapters 8 and 9 .