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Practical Income Manual 2020.

2. Waiver of the application of the objective estimation regime and the special simplified VAT or IGIC regime

Express waiver

Regulations: Articles 33.1 a) and 4 Regulation Personal Income Tax . See also articles 1 and 2 of Order HAC /1164/2019, of November 22 ( BOE of 30) and article 10 of Royal Decree-Law 15/2020, of April 21, on complementary urgent measures to support the economy and employment (BOE of 22)

The express waiver of both the objective estimation method and the special regimes. simplified and of agriculture, livestock and fishing of VAT or simplified and of agriculture and livestock of IGIC must be carried out, as a general rule, in the month of December prior to the beginning of the calendar year in which it must take effect.

However, exceptionally for fiscal year 2020 the following measures have been adopted with respect to the express waiver of the objective estimation method:

  • Initially, the first transitional provision of Royal Decree-Law 18/2019, of December 27, which adopts certain measures in tax, cadastral and social security matters ( BOE of 28 ), allowed the resignation or revocation of the resignation to be exercised until January 30, 2020. However, resignations or revocations presented for the year 2020, during the month of December 2019, are understood to have been presented during the business period.
  • However, after the declaration of the state of alarm due to Covid-19, article 10 of Royal Decree-Law 15/2020, of April 21, on complementary urgent measures to support the economy and employment (BOE of the 22nd), to making the regime for SMEs and the self-employed more flexible, adapting it to the real situation of economic activity caused by the health emergency, made it possible to waive the objective estimation method for personal income tax and/or the simplified estimation regime for VAT in the 2020 financial year without being subject to the deadline. of 3 years, so that taxpayers can reapply said method in fiscal year 2021, as long as they meet the regulatory requirements for its application.

    To do this, taxpayers could waive the objective estimation method by submitting the installment payment corresponding to the first quarter of 2020 in accordance with the direct estimation method (that is, submitting form 130, instead of 131).

    In this case, they are taxed in 2020 using the direct estimation method. Additionally, for the year 2021, it has been exceptionally established that they can return to tax under the objective estimation regime as long as they meet the requirements for its application, revoking the previous waiver during the month of December 2020 or by submitting it on time. of the declaration corresponding to the installment payment for the first quarter of fiscal year 2021 in the manner provided for the objective estimation method.

    It is also provided for by article 10.1 of Royal Decree-Law 35/2020, of December 22, on urgent measures to support the tourism, hospitality and commerce sector and in tax matters (BOE of 23), the waiver of the application of the objective estimation method for the year 2021, which is also not binding for 2022.

In the event of starting business activity, the waiver will be made when the tax register declaration for the start of activity is filed.

The resignation must be submitted using form 036 of the census declaration of registration, modification and deletion in the Census of businessmen, professionals and retainers or in form 037 of the simplified census declaration of registration, modification and deletion in the aforementioned Census of businessmen, professionals and retainers. retainers, approved by Order EHA/1274/2007, of April 26.

Tacit resignation

Regulations: Art. 33.1 b) Regulation Personal Income Tax . See also article 5 of Order HAC/1264/2017, of November 27 ( BOE of 30).

The waiver of the objective estimation method is also understood to have been made by the presentation within the regulatory period (until April 20) of the declaration corresponding to the installment payment of the first quarter of the calendar year in which it must take effect in the manner provided for the regime. of direct estimation.

In the case of starting business activity, the waiver will be understood to have been made when the instalment payment is made corresponding to the first quarter of the financial year within the regulatory period and in the manner provided for the direct assessment method.

Consequences of resignation

Regulations: Art. 33.2 and 3 Personal Income Tax Regulations

The renunciation of the objective estimation method in relation to any activity causes the taxpayer to be obligatorily subject to the direct estimation method, in the corresponding modality, for the determination of the net income of all the activities carried out, during a minimum period of three years.

Covid-19: However, for the year 2020, as a consequence of Covid-19, the exceptional waiver of the objective estimation method has been allowed, eliminating the mandatory link to the three-year period, so that in 2021 the taxpayer who has waived, in accordance with As established in article 10 of Royal Decree-Law 15/2020, you may return to tax under the objective estimation regime as long as you meet the requirements for its application, revoking the previous waiver.

After this period, it will be understood to be tacitly extended for each of the following years in which the objective estimation method could be applicable, unless it is formally revoked in the month of December prior to the beginning of the calendar year in which it must take effect. .

In any case, if in the year immediately prior to the year in which the waiver of the objective assessment method is to take effect, the limits that determine its scope of application will be exceeded, this waiver will be deemed not filed.