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V0178-22 4 February 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · reducción por inicio de actividad

Reduction for commencement of activity may apply if Article 32.3 IRPF requirements are met

An employee at a pharmacy has enquired whether she can apply the reduction for commencement of activity upon acquiring the business. The DGT indicates that she may apply it provided that the established legal requirements are met.

The question raised

Whether the reduction for commencement of activity provided for in paragraph 3 of Article 32 of the Personal Income Tax Law may be applied.

The DGT's ruling

Taxpayers who commence an economic activity under the direct estimation method may reduce the positive net income by 20 percent in the first period in which it is positive and in the following period. The reduction shall not apply if more than 50 percent of the income originates from a person or entity from which employment income was obtained in the previous year. In the specific case, the consultant may apply the reduction provided that the requirements of Article 32.3 of the Personal Income Tax Law (LIRPF) are met.

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