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The owner of an English language academy inquired whether undertaking new activities would disqualify them from the objective estimation method. The Directorate General of Taxes (DGT) ruled that the newly described activities are not included in the objective estimation regulations, thereby requiring the application of the direct estimation method to all their business activities.
Businesses must ensure all economic activities are covered under the objective estimation regime to avoid being forced into the direct estimation method for their entire operation.
The tax team reviews your specific situation.
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