How to calculate taxable income under the simplified regime

What is it for?

Under the Personal Income Tax (IRS) simplified regime (category B), taxable income is gross income multiplied by a legal coefficient, which depends on the type of income. This screen adds up the sales and services recorded in a period, per group of art. 31 of the IRS Code (CIRS), and applies the coefficient in force on the date of each journal entry.

The result is a supporting report: it creates no journal entries and submits nothing to the Tax and Customs Authority (AT). Pending validation by a certified accountant: the coefficients and the groups of art. 31 of the CIRS, as the screen applies them, and the eligibility limits of the regime.

When to use it?

• The client is self-employed or a sole trader under the simplified regime and wants the figure before filling in the IRS return.
• You are going to decide with the client whether to move to organised accounting (How to move to organised accounting).
• It is not for companies: they pay Corporate Income Tax (IRC), with Form 22 (Modelo 22). The screen does not refuse a company: the example below uses the sales of a demonstration company only to show the calculation.

Where to find it?

Accounting › Declare › Annual declarations › What is there to do with the annual declarations?, in the Maps and files area, button Simplified regime: taxable income. This screen is not in the Review menu.

Before you start

• Your profile is Accountant or Fiscal officer.
• The sales and services of the period have been issued: only posted journal entries in income accounts count. The year does not yet have its profit and loss closing entry (see “Important notes”).
• To choose the group of an account (step 5), you need the Fiscal officer profile.

How to use it

1. Open the dashboard and, in Maps and files, click Simplified regime: taxable income.

2. Check Period start and Period end. They are filled in with the previous year. In the example, type 01/01/2026 and 31/12/2026.

3. In Adjustments of art. 31 (accountant's decision), choose Pending validation, Applicable or Not applicable for each one, before calculating: the result page no longer has the Calculate button.

   • N.º 2 — compulsory contributions
   • N.º 10 — reduction in the first two years
   • N.º 12 — fast-wearing professions
   • N.º 13 — minimum expenses

   If you choose Applicable or Not applicable, type the reason in the field that appears: it is kept with the report. The screen does not calculate these adjustments: it only records the decision.

4. Click Calculate. The page shows one line per group, with Gross income, Coefficient and Taxable income.

5. If there are amounts in Income still to determine (no class or no coefficient), read the Why it was left out column. When it says “The account has no group: pick it in the account (field “IRS simplified regime”)”, the Fiscal officer opens the account in Accounting › Configure › General › Chart of accounts and chooses the group in IRS simplified regime (art. 31 CIRS). Accounts 71, 72 and 75 get a suggestion based on their code; the others are left without a group. Then go back to step 1 and calculate again.

Expected result

The example runs from 01/01/2026 to 31/12/2026, with account 7888 in group f:

Group	Gross income	Coefficient	Taxable income
Sales of goods and products, restaurants and hotels (art. 31(1)(a))	€30,690.50	0.1500	€4,603.58
Other services (art. 31(1)(c))	€7,722.50	0.3500	€2,702.88
Operating subsidies and other category B income (art. 31(1)(f))	€380.00	0.1000	€38.00
Total	€38,793.00		€7,344.46

• Taxable income (before art. 31 n.º 2, 10 and 13) is the sum of the lines, before these adjustments.
• Provisional stays ticked while an adjustment is pending or there is income still to determine. The report does not apply the adjustments: the accountant applies them afterwards.
• Each coefficient comes from the rule in force on the date of the journal entry: a period with a change in the law can have two coefficients in the same group.
• The calculation creates no journal entries.

Important notes

• What the report does not see. It only adds up what is posted in income accounts. Income outside the accounting is not included, and the report does not confirm whether the taxpayer may be under this regime.
• There is no list of reports. Each Calculate creates a new report, which you only see at that moment. To keep it, take a screenshot or note down the figures. To review it, calculate again.
• Do not use the report for a year whose profit and loss has already been closed. At present, the report also adds the profit and loss closing entry, which cancels the income, and gives €0.00 without warning. In the example, 2025 has €279,000.00 of sales and the report shows Gross income €0.00; 2026, once closed, too. Calculate before closing.
• With no income in the period, for example in a company without journal entries, the result is the same: €0.00 and no message.

Common problems

“The period start (01/01/2027) is after its end (31/12/2026)…”

• Cause: the dates are the wrong way round.
• What to do: correct them and click Calculate again.

“Fill in the reason why art. 31 n.º 2 is “Not applicable”…”

• Cause: you chose Applicable or Not applicable without typing the reason. The name of the state appears in English in the message.
• What to do: type the reason in the field next to it.

“Legal coefficient not configured — taxable income not determined for €380.00 of the gross income.”

• Cause: despite the text, in the example the coefficient is not missing: account 7888 has no group. The Why it was left out column shows the account and the reason.
• What to do: choose the group in the account (step 5) and calculate again.

“You do not have permission to change “Account”.”

• Cause: the Accountant profile cannot change the chart of accounts.
• What to do: ask the Fiscal officer to choose the group.