Examples
Example 1:
Mr. SMG Lawyer, in addition to the independent practice of his profession that he has been carrying out since 1990, has begun in 2020 the exercise of an agricultural activity that may be included in the objective estimation method.
How will you determine the net income from both activities in 2020, knowing that the net amount of the turnover from your professional activity did not exceed the amount of 600,000 euros per year in the 2019 financial year?
Solution:
The net income from professional activity must be determined using the simplified direct estimation method, as the net amount of the turnover in the immediately preceding year (2019) did not exceed 600,000 euros per year. Furthermore, given the incompatibility between the direct estimation method and the objective estimation method, the determination of the net yield from agricultural activity must also be carried out using the simplified form of the direct estimation method.
Example 2:
Mr. JJC, businessman, determines the net income of his economic activity using the simplified form of the direct estimation method. On May 5, 2020, a new economic activity begins that is not included in the scope of the objective estimation method and for which the simplified form of the direct estimation method is waived.
How will the net income of both activities be determined in fiscal years 2020 and 2021?
Solution:
In the 2020 financial year, the net income of the new activity will be determined using the normal modality of the direct estimation method, while the economic activity that was being carried out will remain in the simplified modality. The incompatibility between both modalities of the direct estimation method will not take effect until the following year, 2021, in which the net income derived from both activities must be determined in the normal modality of the direct estimation method.
Example 3:
Mr. AVC On July 1, 2020, it begins a business activity to which the objective estimation method is not applicable. Net sales in 2020 amounted to 425,000 euros.
How will the net income of the activity be determined in the 2020 and 2021 financial years?
Solution:
In the 2020 financial year, the net income will be determined using the simplified form of the direct estimation method, as its application has not been expressly waived.
In the 2021 financial year, the normal form of the direct estimation method must be applied, since the net amount of the turnover raised to the year exceeds 600,000 euros per year (425,000 x 12/6 = 850,000).