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V1057-22 11 May 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 be applied more than once if legal requirements are met

A query was raised regarding whether the reduction for commencement of activity is a one-off benefit or if it can be applied each time a new activity is started following a cessation. The DGT ruled that it may be applied provided that no economic activity was carried out during the previous tax year.

The question raised

Whether the reduction for commencement of activity is applied once per taxpayer or can be applied each time a new activity is commenced having ceased others with more than one year since the commencement of the new one.

The DGT's ruling

The 20 percent reduction of the positive net income under the direct estimation method may be applied without being limited to a single instance per taxpayer. To this end, it is a requirement that the taxpayer has not carried out any economic activity in the year prior to the commencement date of the new activity. Activities in which operations were ceased without having obtained positive net income are not taken into account.

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