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Form 100. 2018 Personal Income Tax return

7.5.2.7. Reduction due to the start of an economic activity

Taxpayers who start exercising an economic activity and determine the net return of the activity according to the direct estimation method, may reduce the net positive return declared in accordance with this method by 20%, if applicable, by the reductions foreseen in the 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 above paragraph, an economic activity shall be deemed to have started when no economic activity has been carried out in the year prior to the start date of the same, without taking into account activities in which the financial year had ceased without obtaining positive net returns from the start.

When a new activity begins after the start of the activity referred to in the first subparagraph without having ceased the financial year of the first, the reduction provided for in this section will be applied to the net returns obtained in the first tax period in which they are positive and in the following tax period, from the start of the first activity.

The amount of the net returns referred to in this section on which the aforementioned reduction will be applied may not exceed 100,000 euros per year.

The reduction foreseen in this section will not be applicable in the tax period in which more than 50% of its income they come from a person or entity from which the taxpayer has obtained earned income in the year prior to the start date of the activity.

Completion: Once the net return of the Casilla 0144 activity has been calculated, you must tick the following boxes with an X ask if you have the right to reductions for the exercise of certain economic activities, boxes 0148 and 0149 and for the start of an economic activity, box 0150.

Note: If you have carried out more than one economic activity during the financial year with the right to reduction, including those carried out through entities in the income allocation regime, you must tick the corresponding box in each of the activities.