7.5.2.7. Reduction for starting an economic activity
Taxpayers who begin to carry out an economic activity and determine the net income thereof using the direct estimation method may reduce by 20 percent the positive net income declared according to said method, reduced where applicable by the reductions provided for in sections 1 and 2 above, in the first tax period in which it is positive and in the following tax period.
For the purposes of the provisions of the preceding paragraph, it shall be understood that an economic activity has begun when no economic activity has been carried out in the year prior to the date of commencement of the same, without taking into consideration those activities whose exercise has ceased without having obtained positive net returns since its commencement.
When, after the start of the activity referred to in the first paragraph above, a new activity is started without having ceased the exercise of the first, the reduction provided for in this section will be applied to the net income obtained in the first tax period in which it is positive and in the following tax period, counting from the start of the first activity.
The amount of net income referred to in this section to which the aforementioned reduction will be applied may not exceed 100,000 euros per year.
The reduction provided for in this section will not apply in the tax period in which more than 50 percent of the income comes from a person or entity from which the taxpayer obtained employment income in the year prior to the date of commencement of the activity.
COMPLETION: Once the net income of activity Box 0131 has been calculated, must mark with an X the following boxes that ask if he/she is entitled to reductions for carrying out certain economic activities, boxes 0135 and 0136, and for starting an economic activity, box 0137.
Note: If you have carried out more than one economic activity during the year with the right to the reduction, including those carried out through entities under the income attribution regime, you must check the corresponding box for each of the activities.