Skip to main content
Methodology

Population scope

The population framework consists of all taxpayers who declare Personal Income Tax and who have recorded income from economic activity in any of the methods for determining business or professional income established in the tax.

In accordance with the provisions of Article 27 of the Personal Income Tax Law, the concept of income from economic activities is defined by the following conditions:

  • Existence of an autonomous organization of means of production and/or human resources
  • Purpose of intervening in the production or distribution of goods and services

It should be noted that the exclusion from the obligation to file Personal Income Tax returns in the case of income derived from economic activities is severely limited in the tax law. Article 96 of this Law only provides for this exclusion in cases where the total gross income obtained from work, capital, or economic activities, as well as capital gains, do not exceed 1,000 euros per year. In other words, holders of economic activities, including agricultural and livestock activities, are required to file a declaration, regardless of the method used to determine their net income, with the sole exception mentioned in the previous paragraph.

It may be of interest to make the following clarification: Data relating to companies that adopt the form of entities referred to in Article 35.4 of the General Tax Law (LGT) for the exercise of their economic activity, paying tax by attribution of income in accordance with the regime provided for in Articles 86 to 90 of the Personal Income Tax Law, have not been included within the objective scope of the statistics. However, although it has not been included as a selection criterion for the entrepreneurs studied, the amount of income obtained by attribution of income derived from the exercise of economic activities by those selected as a result of carrying out other economic activities of their own, as an individual entrepreneur, is included.

In short, this statistic constitutes a study of a subpopulation of the annual Personal Income Tax statistics, made up of self-employed entrepreneurs or individual entrepreneurs.