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Methodology

Performance determination method

Performance determination method (in Annex III it is collected under the acronym MDRAE and MDRAE ppal): In accordance with the provisions of Article 16 of the Personal Income Tax Law, the methods for estimating the net income from business, commercial or non-commercial, and professional activities are as follows.

  • Normal direct assessment
  • Simplified direct assessment
  • Objective evaluation:
    • Objective: activities other than agriculture, livestock and forestry
    • Agricultural: agricultural, livestock and forestry activities

From the perspective of declaration (acronym MDRAE ppal), each of them is classified by a single estimation method even though, in the same statement, there may be several activities in different estimation methods. For this purpose, the determination method that accumulates the greatest yield in absolute value is taken as the one.

From the perspective of activity (acronym MDRAE), the method of determining the performance coincides with the method of estimating the performance of the economic activity.