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Practical manual for Income Tax 2020.

Introduction: scheme

Normative; See Annex II and instructions of Order HAC /1164/2019, of November 22 ( BOE of the 30th) and arts 9 and 11 of the Royal Decree-Law on urgent measures to support the tourism, hospitality and commerce sector .

In the objective estimation method, the operations necessary to determine the net income, if applicable, reduced, are carried out in an isolated and separate manner for each activity that is considered independent, even if the same taxpayer carries out several to which said method is applicable.

For 2020, the determination of the annual reduced net income corresponding to each activity is carried out, once the year has elapsed, through the successive operations indicated in the following scheme:

Phase 1:

MODULE UNITS USED, UTILIZED OR INSTALLED

(*) In 2020, the days in which the state of alarm was declared in the first half of 2020 and the days in the second half of 2020 in which, whether or not the state of alarm was declared, the effective exercise of the economic activity would have been suspended as a result of the measures adopted by the competent authority to correct the evolution of the epidemiological situation derived from Covid-19 (also known as SARS-CoV-2) are NOT counted as a period in which the activity would have been carried out for the purposes of calculating the units.

In particular, for the quantification of the modules "salaried personnel" and "non-salaried personnel", where applicable, the hours corresponding to the days referred to in the previous paragraph will NOT be counted as worked and for the quantification of the modules "distance travelled" and "electrical energy consumption", the kilometres travelled and the kilowatts/hour that proportionally correspond to the days referred to in the previous paragraph will not be counted.

(x) ANNUAL YIELD PER MODULE UNIT (before amortization)

= PREVIOUS NET YIELD

Phase 2

(-) MINORATION FOR EMPLOYMENT INCENTIVES

(-) MINORATION FOR INVESTMENT INCENTIVES

= REDUCED NET INCOME

Phase 3

(x) CORRECTION INDEXES ((depending on the activity and certain circumstances)

= NET YIELD OF MODULES

Phase 4

(-) GENERAL REDUCTION: 20% or 35% depending on the activity category

(-) SPECIAL REDUCTION FOR ECONOMIC ACTIVITIES IN LORCA: 20%

(-) EXTRAORDINARY EXPENSES DUE TO EXCEPTIONAL CIRCUMSTANCES (Fires, floods, subsidence, etc., reported to the AEAT in a timely manner)

(+) OTHER BUSINESS PERCEPTIONS

= NET INCOME FROM THE ACTIVITY

Phase 5

(-) REDUCTION DUE TO IRREGULARITY (*) : 30%

= REDUCED NET PERFORMANCE OF THE ACTIVITY

(*) Applicable only with respect to the "Other business income" component with a generation period of more than two years or which are classified by regulation as having been obtained in a notoriously irregular manner over time. (Back)