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Practical Handbook for Companies 2021

Methods of calculation

The tax base shall be determined by the following methods:

  • Direct estimation

    The tax base is calculated by correcting , by applying the provisions of the Corporate Income Tax Act, the accounting profit determined in accordance with the rules laid down in the Commercial Code, in the other laws relating to such determination and in the provisions issued in implementation of the aforementioned rules.

  • Objective estimation

    The taxable base may be determined totally or partially by applying the signs, indexes or modules to the sectors of activity determined by the Corporate Income Tax Act.

    This method is applied to entities that benefit from the special regime for shipping entities based on the tonnage regulated in Chapter XVI of Title VII of the LIS (see Chapter 10 of this Practical Manual).

  • Indirect estimation

    The application of this method is subsidiary, and may only be used under the terms established by Article 53 of Law 58/2003, of 17 December, General Tax Law.