3.2 Other causes of exclusion from the objective estimation method

In addition to the exclusive quantitative limits, the following are causes for exclusion from the objective estimation method:

a. Develop economic activity, totally or partially, outside of Spanish territory

Regulations: Art. 32.2 c) Regulation PIT.

b. Determine the net performance of any economic activity using the direct estimation method, in any of its forms.

Regulations: Articles 34.2 and 35 Personal Income Tax Regulations.

However, if during the year an activity is started that is not included or for which the objective estimation method is waived, the exclusion will not take effect for that year with respect to the activities that were previously carried out, but rather from the following year.

c. The exclusion of the simplified special regime from VAT or of the IGIC

Regulations. Art. 36.2 and 4 Personal Income Tax Regulations .

The exclusion from the special simplified regime of the Value Added Tax or the Canary Islands General Indirect Tax will entail the exclusion from the objective estimation method for all economic activities carried out by the taxpayer.