Performance of economic activities

Directly estimated economic activities

Determination of net return

• Deductible expenses

  a) Expenses of the owner of the activity in social security and for contributions to mutual societies alternative to social security

  Two new features stand out:

  • As of January 1, 2023, all self-employed or self-employed persons included in this special regime will contribute based on the annual returns obtained in the exercise of their economic, business or professional activities, and must choose the monthly contribution base. that corresponds based on its forecast of annual net returns, within the general table established in the respective General State Budget Law and limited by a minimum contribution base in each of its sections and by a maximum base in each section for each year, although with the possibility, when they anticipate that their returns will be lower than the minimum interprofessional salary on an annual basis, of choosing a contribution base within a reduced table.

    The bases chosen will be provisional, until they are regularized based on the annual returns obtained and communicated by the Tax Administration from the following year with respect to each self-employed worker.

  • Law 31/2022, of December 23, on General State Budgets, sets for 2023 the maximum fee for common contingencies, which operates as a limit for deductible expenses in the concept of alternative mutuality to the special Social Security regime for workers due to self-employed or self-employed (RETA), at 15,266.72 euros. [0.283 x (4,495.50 x 12)]

  b) Expenses that are difficult to justify in simplified direct estimation during the 2023 tax period

  A fifty-sixth Additional Provision is added to the Personal Income Tax Law to raise the deduction percentage from 5 to 7 percent for all deductible provisions and expenses that are difficult to justify. referred to in article 30 of the Personal Income Tax Regulations .

• Repayments

  a) Accelerated depreciation of certain vehicles and new infrastructures

  As of January 1, 2023, the possibility of amortizing certain investments of elements used in economic activities and that come into operation in the tax periods beginning in 2023, 2024 and 2025 is established, depending on the resulting coefficient. of multiplying by 2 the maximum linear amortization coefficient provided for in the officially approved amortization tables, subject to compliance with certain requirements and conditions. Specifically, investments in:

  • Certain new vehicles FCV , FCHV , BEV , REEV or PHEV .

  • New electric vehicle charging infrastructure.

  b) Freedom of amortization in investments that use energy from renewable sources.

  Investments in facilities intended for: 

  • Self-consumption of electrical energy that uses energy from renewable sources in accordance with what is defined in Royal Decree 244/2019, of April 5.

  • Thermal use for own consumption that uses energy from renewable sources, which replaces installations that use energy from non-renewable fossil sources.

  This tax incentive will only apply to those investments whose start-up occurred in the years 2023 and 2024.

Determination of reduced net yield

Reduction of the “XXXVII Copa América Barcelona”

The thirty-sixth Final Provision of the General State Budget Law for the year 2023 allows natural persons who carry out economic activity using the direct estimation method to apply a special reduction to calculate the reduced net performance of their activity. of 65 percent of the net amount of the income they receive from the organizing entity or from the teams participating in the “XXXVII Copa América Barcelona”, during the celebration of said event and to the extent that they are directly related to their participation in the same.

Determination of Total Reduced Net Return

General reductions for the exercise of certain economic activities

Regarding the additional reduction applicable to economically dependent self-employed workers, both the maximum amount of the same is raised from 3,700 euros per year to 6,498 euros per year, as well as the threshold of net income from economic activities, which goes from 14,450 euros to 19,747. 5 euros, as long as they do not have income, excluding exempt income, other than income from economic activities exceeding 6,500 euros.

Objectively estimated economic activities

1. Resignation and consequences of resignation:

   For fiscal year 2023, a new deadline has been established to exercise the waiver or revocation of the waiver of the application of the objective estimation method, which runs from December 25, 2022 to January 31, 2023. However, the resignations or revocations presented for the year 2023, during the month of December 2022, prior to the start of the previously indicated period, were understood to have been presented during the business period. However, taxpayers may modify the option exercised during the month of December, if applicable, within the period between December 25, 2022 and January 31, 2023.

2. Exclusive limits:

   • Article 61.Two of Law 31/2022, of December 23, on the General State Budgets for the year 2023 ( BOE of December 24) has been modified, with effect from 1 January 2023, the thirty-second transitional provision of the Personal Income Tax Law , to extend the application of the same exclusive quantitative limits set for the years 2016 to 2022 to the 2023 tax period: both those relating to the volume of full income in the immediately preceding year derived from the exercise of economic activities (250,000 euros for all economic activities, except agricultural, livestock and forestry activities and 125,000 euros for operations in which there is an obligation to issue an invoice when the recipient is a businessman) and the volume of purchases of goods and services (250,000 euros, excluding acquisitions of fixed assets, for all activities in objective estimation - also including agricultural, livestock and forestry activities -).

   • For agricultural, livestock and forestry activities, the exclusionary limit provided for in article 31 of the Personal Income Tax Law applies to the volume of full income in the immediately preceding year (250,000 euros per year, for the all of its agricultural, livestock and forestry activities carried out by the taxpayer) and, for the volume of purchases of goods and services, the amount of 250,000 euros, excluding acquisitions of fixed assets, for all activities in objective estimation, provided for in the provision thirty-second transitional law in the Personal Income Tax Law and whose application is extended to the year 2023.

3. Determination of prior net performance:

   Order HFP /1172/2022, of November 29 ( BOE of December 1), by which the objective estimation method of the Personal Income Tax and the special simplified regime of the Value Added Tax maintain, in general, for the year 2023 the amount of the signs, indices or modules of the previous year with the exception of the indices of net return applicable to the following products derived from agricultural activities:

   • table grapes: reduced from 0.42 to 0.32

   • flowers and ornamental plants: is reduced from 0.42 to 0.32, and

   • tobacco: is reduced from 0.37 to 0.26

    Likewise, for the year 2023, the treatment of direct aid uncoupled from the Common Agricultural Policy is reviewed, so that its taxation in proportion to the income from its crops or farms is conditional on obtaining a minimum income in the different activity. that of direct aid itself.

4. Determination of the net reduced return:

   For agricultural and livestock activities, the existing reductions on the previous net income are maintained, applicable before the amortization of tangible and intangible assets, that is:

   • Reduction of 35 percent in the acquisition price of agricultural diesel.

   • 15 percent reduction in the purchase price of fertilizers.

   In both cases, the acquisitions must be necessary for the development of said activities, they must have been carried out in the financial year 2023 and must be documented in invoices issued in said period that meet the requirements set out in Royal Decree 1619/2012, of 30 December. November, by which the Regulation regulating billing obligations is approved.

5. Determination of net performance of modules:

   The corrective index for feed purchased from third parties is set at 0.50 percent and the index for crops on irrigated land that use, for this purpose, electrical energy is set at 0.75 of the yield from the crops grown. on land irrigated by electricity.

   For the application of this index, the requirement that the average daily electricity consumption, in terms of energy billed in kWh , of the invoice for the month of the tax period with the highest consumption be, is also eliminated. at least 2.5 times higher than that corresponding to two months of the same tax period.

6. Determination of the net performance of the activity: applicable reductions:

   • General reduction: The general reduction applicable to the net yield of modules obtained in the 2023 tax period by taxpayers in objective estimation with activities other than agricultural, livestock and forestry activities is set at 10 percent.

   • In the case of agricultural, livestock and forestry activities, article 2 of Order HAC /348/2024, of April 17, ( BOE of April 19), has increased said percentage of general reduction for the 2023 tax period, going from 10 to 15 percent.

   • Lorca Reduction: The reduction of 20 percent of the net income for economic activities carried out in the municipality of Lorca (Murcia) is maintained, applicable only to determine the net income in activities other than agricultural, livestock and forestry activities. 

   • Isla de la Palma Reduction: The 20 percent reduction in net income for taxpayers who carry out economic activities on the Island of La Palma is maintained in 2023.

     This reduction, unlike that of Lorca, applies to all economic activities that determine the net return in the objective estimation method, including agricultural, livestock and forestry activities.