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V0410-25 20 March 2025 · SG de Tributos Locales Criterion in force
OTRO · impuesto sobre actividades económicas

15% profit threshold applies to economic sectors, not actual profits

An real estate promotion company with losses asks whether the 15% average presumed profit limit of the IAE applies. The DGT responds that this limit is based on general sectoral estimates, not on individual taxpayers' actual profits.

The question raised

It is asked whether the 15 percent limit of the presumed average profit provided for in the fourth base of Article 85.1 of the TRLRHL is applicable.

The DGT's ruling

The 15% limit of the presumed average profit established in the fourth base of Article 85.1 of the TRLRHL does not refer to the actual and subjective profit data of each taxpayer. This cap must be understood as applicable to economic sectors in general as an objectified estimation. The IAE taxes the mere exercise of the activity regardless of whether profits or losses are obtained.

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