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V1383-22 14 June 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 to total positive net income

A taxpayer commenced an activity in 2019 resulting in losses and a new one in 2020 resulting in profits. The DGT rules that the reduction applies to total net income in the first period in which it is positive and in the following period, counting from the commencement of the first activity.

The question raised

Whether the taxpayer can apply the reduction for the commencement of an activity in the Personal Income Tax (IRPF).

The DGT's ruling

The 20 percent reduction applies to positive net income in the first tax period in which it is obtained and in the following one. If a new activity is started without having ceased the first one, the calculation of these periods is carried out starting from the beginning of the first activity. The reduction shall apply to the total positive net income obtained.

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