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Practical Income Manual 2021.

3.1 Exclusive quantitative limits

The following quantitative limits constitute causes for exclusion from the objective estimation method:

A. Having achieved in the previous year (2020) a volume of income greater than 250,000 euros annually , for all of its agricultural, livestock and forestry activities carried out by the taxpayer

Regulations: Art. 32.2 a) Regulation Personal Income Tax . See also article 3.1 b) of Order HAC / 1155/2020, of November 25 (BOE of December 4)

When the activity had started in the immediately preceding year, the volume of income will increase per year.

To determine these limits, the following operations will be computed:

  • Those that must be recorded in the sales or income record book provided for in article 68.7 of the Personal Income Tax Regulations.
  • Those that must be recorded in the record book provided for in article 40.1 (record book of invoices received) of the VAT Regulation , approved by Royal Decree 1624/1992, of December 29 ( BOE of 31).
  • B. Having exceeded in the previous year ( 2020 ) the volume of purchases of goods and services for the set of economic activities carried out by the taxpayer. amount of 250,000.00 euros per year, excluding acquisitions of fixed assets

    Regulations: Transitional provision thirty-second Personal Income Tax Law and art. 32.2 b) Personal Income Tax Regulations

    In the case of subcontracted works or services, their amount will be taken into account for the calculation of this limit.

    When an activity had been started in the immediately preceding year, the volume of purchases will increase per year.

    Note: e Article 63 of Law 11/2020, of December 30, on the General State Budgets for the year 2021 (BOE of 30) has been modified, with effect from January 1, 2021 and indefinite validity, modifies the thirty-second transitional provision of the Personal Income Tax Law , to extend the application of the magnitude of 250,000 to the 2021 tax period euros of purchase volume in goods and services set for the years 2016, 2017, 2018, 2019 and 2020 .

Rules for determining the volume of full returns and purchases:

To determine the volume of full income and purchases of goods and services mentioned above, not only the operations corresponding to the economic activities carried out by the taxpayer, but also those corresponding to those carried out by the spouse, descendants and ascendants, must be computed. as well as by entities under the income attribution regime in which any of the above participate, in which the following circumstances occur:

  • That economic activities are identical or similar.

    For these purposes, it will be understood that the economic activities classified in the same group in the Tax on Economic Activities are identical or similar.

  • That there is a common direction for such activities, sharing personal or material means.

In the case of operations carried out with related entities , in the terms provided for in article 18 of Law 27/2014, of November 27, on Corporate Tax (BOE of 28), They must be valued at their normal market value, understood as the value that would have been agreed upon by independent persons or entities under conditions of free competition.

In these cases, the taxpayer must comply with the documentation obligations of said operations in the terms and conditions established in articles 13 to 16, Chapter V ("Information and documentation on related entities and operations") of Title I of the Tax Regulations. Companies, approved by Royal Decree 634/2015, of July 10 (BOE of 11).