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A taxpayer has inquired whether the sale and packaging of live bait can be taxed using the objective assessment method for Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that this depends on the IAE classification: if it is classified as retail trade (heading 659.7), the objective method may be used, but if it involves manufacturing (heading 494.2), the direct assessment method must be applied.
Taxpayers involved in the live bait sector must ensure their IAE classification correctly reflects their activity to avoid incorrect tax assessment methods.
The tax team reviews your specific situation.
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