According to Article 25 of the Commercial Code, “All entrepreneurs must keep orderly accounts, appropriate to the activity of their business, which enable all their operations to be monitored chronologically, as well as the periodic preparation of balance sheets and inventories. Without prejudice to the provisions of laws or special provisions, he shall necessarily keep an annual inventory and accounts book and a journal”.

However, Article 19.1 states that registration in the Commercial Register is optional for sole traders, with the exception of shipowners. It is therefore the tax regulation that will determine whether or not the obligation to keep accounts is actually determined by tax law.

From a tax perspective

If the entrepreneur is taxed under the normal direct estimation regime, he/she is obliged to keep accounts in accordance with the commercial code and the general accounting plan.

If the company is taxed under the simplified or objective assessment regime (modules), it is not required to keep accounting books, although it is advisable, both because of the commercial requirement and because it allows the result of the same to be determined and the amount to be paid in personal income tax to be determined.