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V1666-23 13 June 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · reducción por inicio de actividad

Reduction for commencement of activity cannot be applied if an activity with positive net income was carried out in the previous year

A taxpayer inquired whether they could apply the reduction for the commencement of an activity in 2022 after having started and ceased another activity with positive net income in 2021. The DGT ruled that the right to the reduction depends on whether an economic activity with positive returns was carried out in the year preceding the start of the new activity.

The question raised

Whether the reduction for commencement of activity can be applied in 2022.

The DGT's ruling

To apply the reduction for commencement of activity, no economic activity must have been carried out in the year prior to the commencement date, without considering activities that ceased without obtaining positive net returns. If a new activity is started without having ceased the first, the reduction applies from the commencement of the first. Therefore, if in the year prior to the commencement of the second activity an activity with positive net returns was carried out, there is no entitlement to the reduction in the current tax period.

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