Skip to content
Back to index
V1460-24 17 June 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación objetiva

Objective estimation cannot be used in retail if copyright is deemed an economic activity

A taxpayer inquired whether they could apply the objective estimation method to their cosmetics retail business while also holding copyrights. The Directorate General for Taxes (DGT) ruled that if copyrights are classified as an economic activity, the direct estimation method must be used, thereby precluding the use of the objective estimation method for the retail activity.

The question raised

Whether the net income of the commercial activity can be determined by the objective estimation method.

The DGT's ruling

If copyrights involve the self-organization of means of production or human resources, they are classified as income from economic activities. As professional activities, they must be determined by the direct estimation method. Due to the incompatibility between methods, the taxpayer may not use the objective estimation method in their commercial activity while receiving such copyright royalties.

Book your free first meeting