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V3626-20 22 December 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación objetiva

Objective estimation method inapplicable if activity falls outside the scope of Personal Income Tax (IRPF)

A farmer inquired whether they could use the objective estimation method for their garlic cultivation activity in Portugal. The Directorate-General for Taxes (DGT) ruled that, as the activity is carried out outside the scope of Personal Income Tax (IRPF), the direct estimation method must be used instead.

The question raised

Question posed: Whether it is possible to determine the net income from the activity using the objective estimation method.

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