Special criteria for tax imputation in the Personal Income Tax Regulations

Criteria for allocating collections and payments

Regulations: Art. 7.2 Personal Income Tax Regulation

a. In general

Taxpayers who carry out economic activities, with the exception of holders of commercial business activities whose net income is determined by the direct estimation method, standard modality, obliged to keep accounting adjusted to the provisions of the Commercial Code, as well as those who, without being obliged to do so, voluntarily keep such accounting, may opt for the "receipts and payments" criterion to temporarily allocate the income and expenses derived from all their activities.

This criterion will be deemed approved by the Tax Administration by the mere fact of stating it in the corresponding declaration for the IRPF .

The option for this criterion, whose minimum duration is three years, will lose its effectiveness if, after said option, the taxpayer develops any business activity of a commercial nature using the direct estimation method, normal modality, or keeps accounting in accordance with the provisions of the Commercial Code and other regulations for its development.

Attention : Taxpayers who determine net income by normal direct estimate when they are not required to keep accounting adjusted to the Commercial Code (professionals and businessmen who are not commercial in nature), as well as taxpayers in simplified direct estimate or in objective estimate who opt in 2019 for the collection and payment criterion for the temporary imputation of income and expenses of all their activities, will express said option by entering an "X" in box [0169] (in the case of economic activities in direct estimate), in box [1443] (if it is an economic activity, except agricultural, livestock and forestry, in objective estimate) and in box [1487] (in agricultural, livestock and forestry activities in objective estimate). Likewise, this box/es [0169], [1443] and [1487] will be marked by taxpayers who opted for this temporary imputation criterion in previous tax periods and maintain this option in the current tax period.

b. Entities in the income allocation system

In the case of entities under an income attribution regime, compliance with the requirements to determine the method of estimating the performance of the applicable economic activity is determined at the headquarters of the entity and said method will be applicable to the entity regardless of the method that corresponds to the commoners, partners or participants for the economic activities developed by them individually or through other entities (Arts. 31 and 39 Regulation IRPF ).

As a result, the accounting or registration books corresponding to the economic activity carried out by the entity under the income attribution regime will be unique for each entity, without the partners, commoners or participants having to keep accounting or registration books corresponding to their participation in the entity; Likewise, the accounting or registration books kept by the entity are independent of those that must be kept by the commoners, partners or participants for the economic activities carried out by them individually or through other entities (Art. 68.8 Personal Income Tax Regulations).

In accordance with the above, to the extent that the requirements for the application of the collection and payment criterion, relating to the method of estimating the performance of the economic activity and formal obligations, must be met by the entity, the application of the collection and payment criterion will correspond to the entity, so it will be necessary for all its members to opt for said application, without consequently it being possible for its partial application by the entity for one or some of its members.

Likewise, since the aforementioned requirements can be met by the entity, but not by each of its members, and vice versa, the application of the collection and payment criteria by the entity will be independent of the temporary imputation criteria that corresponds to the commoners, partners or participants for the economic activities carried out by them individually or through other entities in the attribution of income in which they participate.

Criteria for allocating the advance payment on account of the transfer of the exploitation of copyright

Regulations: Art. 7.3 Personal Income Tax Regulations

In the case of income from professional activities derived from the transfer of the exploitation of copyright that accrue over several years, the taxpayer may choose to allocate the advance payment to the account of the same as the rights accrue.