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A taxpayer inquired about the appropriate taxation method for their forestry activity in 2020, having previously used direct estimation in 2017. The Directorate General of Taxes (DGT) ruled that, once the three-year exclusion period has concluded, the taxpayer may revert to objective estimation provided all requirements are met.
This ruling clarifies the transition periods between taxation methods for forestry businesses, confirming that the mandatory exclusion period is strictly three years.
The tax team reviews your specific situation.
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