Calculation of the taxable base

The taxable base for corporate income tax purposes is the amount of income obtained in the tax period by the taxpayer, whatever its source or origin, less the offsetting of tax losses from previous tax periods.

The tax base will be determined by the direct estimation method, by the objective estimation method when Corporation Tax Act (LIS) determines its application, and, subsidiarily, by the indirect estimation method, in accordance with the terms of the General Taxation Act.

In the direct estimation method, the tax base will be calculated, correcting, by applying the precepts established in the Corporation Tax Act, the book result determined in accordance with the rules laid down in the Commercial Code, in the other laws regarding this determination and any provisions which may be decreed in the development of the said rules.

In the objective estimation method, the taxable base may be totally or partially determined by applying the signs, indices or modules to the activity sectors as determined by the tax law.