A brief guide that will guide the self-employed in the preparation of the Statement of Income for the fiscal year 2010.

Direct estimation is a normal way of quantifying the purposes of tax base with real data provided by the taxpayer and applies, in general, entrepreneurs and professionals unless they are benefiting from the simplified method or objective assessment scheme.Shall apply provided that the amount of turnover of all activities performed by the taxpayer exceed 600,000 euros per year in the previous year or had given up the direct estimation simplified.


Calculation of net profit of self or employer

In general, the net return is calculated as the difference between countable income and deductible expenses, applying, with some qualifications, the income tax regulations.In normal direct estimation apply incentives and investment incentives of corporate income tax.

It is formulated as follows:

* (RNP x 5%) – RDS = RN

Where IC are countable income, are deductible expenses GGDD, RNP is net income prior RDS are reductions and RN is the net return.The settlement amount is 20% of net income, less any partial payments (PF), less the deductions made (RET) of Income Tax,

L = (RN x 20%) – PF – RET

What are the countable income?

As countable income means the total gross income from sales and services which constitute the proper object of the activity, as indicated by the Commercial Code, as well as consumption, free transfers and subsidies .

They are also countable income:

* Financial income.
* Compensation.
* Remuneration in kind. In this case, be calculated at market value plus the income has not passed on or transferred to the recipient of the payment.
* Offs of well below normal value on the market. In this case, income is the difference between the normal value in the same market and the consideration made.
* Work performed for own fixed assets.

What expenses are deductible?

The corporate tax law establishes certain requirements that must be met for an expense is tax deductible. The basic requirements are:

* That is counted.
* That is attributable to the current fiscal year.
* Duly justified by a valid invoice or substitute document.

Without falling into a very extensive list can be considered deductible expenses include:

* Personnel Expenses.
* Shopping consumed.
* Jobs.
* Supplies and external services.
* Taxes and taxes.
* Financial expenses.
* Provisions.
* Amortization.
* The remuneration stipulated with the spouse and children who live with the taxpayer, developed within the same business activity, provided they are accredited by contract and Social Security membership and an amount not exceeding that set by the market for their skills and performance.
* Disposals of property or rights held by the spouse or minor children of the taxpayer who live with them, to serve the purpose of economic activity involved the consideration stipulated that does not exceed normal market value.

It is necessary to note that not deductible expenses will be considered as the following:

* Donations to regional industrial development corporations or national, which are not considered a deductible expense previously.
* Transfers and donations to sports federations and clubs, but are considered as expenses in the corporate tax.
* Contributions to social welfare mutual business or professional, except in special cases determined by specific arrangements of Social Security.

The conditions necessary for tax in the Income Statement Based on normal direct estimation may seem cumbersome and complicated, but you only need a little order and administrative control to meet them. Once the order, the development is easy and simple.