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Practical Income Manual 2021.

Practical Case

Special category bar (IAE heading: 673.1), located in a rented premises in which since its opening in 1995, 3 full-time salaried people have worked with the owner according to the Collective Agreement of the sector, which establishes a working day of 1,800 hours per year. The owner does not carry out any other economic activity.

In the previous year (2020), the number of units in the "salaried personnel" module amounted to 0.60 people by including its three workers in a ERTE since March 19, 2020 .

In fiscal year 2021, as a consequence of the health emergency situation caused by the Covid-19 coronavirus and the various measures adopted in response to this situation, the data to take into account are the following.

  1. Economic activity has been closed by resolution of the competent authority of the Autonomous Community where the bar is located as a measure to contain the spread of Covid-19 for a total of 30 days, with capacity restrictions for the rest of the year. 

  2. The holder requested and obtained during the time in which the activity was closed the extraordinary benefit for cessation of activity for an amount of 600 euros.

  3. Regarding its three workers, it extended the ERTE due to force majeure of suspension of employment contracts that was recognized in 2020, although on May 15 it reinstated one of the workers in ERTE who made a total 900 hours.

  4. The length of the bar counter is 10 meters and there are 8 authorized tables for four people.

  5. The contracted electrical power is 35 kilowatts and a type "B" recreational machine is installed on the premises.
  6. Of the assets assigned to the activity, the owner only keeps invoices for the coffee maker, a thermal display case, the air conditioning installation and the 8 tables with their chairs. The data that appears in your investment property record book is the following:

    ElementStart of useCost priceAccumulated amortization as of 12-31-2020
    Furniture (tables and chairs) 06-01-2016 1,500 euros 1,500 euros
    Coffee maker 06-01-2017 9,400 euros 8,400 euros
    Thermal display case 01-07-2018 4,000 euros 2,500 euros
    Air conditioner installation 01-08-2018 6,600 euros 3,900 euros
  7. To replace the tables and chairs of the establishment, the owner on February 1, 2021 acquired 8 new tables and 32 chairs for 2,400.00 euros, without the unit value of any of said furniture exceeding the amount of 601.01 euros.

    Said furniture has been installed in the bar on the 15th of the aforementioned month. He sold the old furniture for 510.00 euros.

  8. On August 10, 2021, a flood occurred in the bar, causing damage whose repair amounted to 1,200.00 euros, without the owner's insurance policy covering the aforementioned risk. On September 1, the owner of the activity submitted a document to the Tax Agency Administration corresponding to his tax domicile, communicating the aforementioned events and providing an invoice for the repairs carried out along with the document proving the flood issued by the fire service. of the town. By the competent services of the Tax Agency Administration, the certainty of the cause that motivated the extraordinary expense and its amount has been verified.

  9. The taxpayer has not obtained other income during the year.


1 Phase: Determination of prior net performance.

1. Determination of the number of computable units of each of the modules applicable to activity .

Module 1. Salaried staff

Previous note: Salaried personnel are quantified based on the number of hours actually worked annually by each worker in the activity.

In the case of ERTE, salaried personnel must be valued exclusively by the hours of effective work they perform in accordance with the individual conditions that affect each worker.

Therefore, for the purposes of quantifying the “salaried personnel” module, salaried personnel must be valued, worker by worker, based on the conditions in which they are in the ERTE, not counting the part of the employment contract that is suspended. temporarily.

  • Worker 1: Reinstated on May 15

    Computable hours worked: 900 hours

  • Workers 2 and 3

    Computable hours worked: 0 hours (since they are in ERTE).

  • Total hours (900 + 0) = 900 computable hours/year.

  • Calculation No. units of module "salaried personnel" (average): 900 hours worked ÷ 1,800 hours/year = 0.5

Module 2. Non-salaried staff: The owner

Previous note: In accordance with Instruction 7 for the application of signs, indices or modules in personal income tax of Order HAC/1155/2020, of November 25, to calculate the period in which the activity was carried out during said calendar year, it will not be taken take into account the days in which the activity would have remained closed (30 days) without including vacation and weekly rest days.

  • Computable days:

    Closing of the activity: 30 days

    Total days with activity (365- 30) = 335 days

  • Hours worked: 335 x 1,800 hours/year = 1,652 hours

  • Calculation No. module units "non-salaried personnel" (average):  1,652 hours worked ÷ 1,800 hours/year = 0.91

Module 3. Electrical power . Contracted kilowatts: 35.00 kW/hour

  • Closing of the activity: 30 days

    Total days with activity (365 - 30) = 335 days

  • Average: 35 KW/hour × (335 days ÷ 365 days) = 32.12 kw/hour

Module 4. Tables . Tables for 4 people: 8 tables

  • Closing of the activity: 30 days

    Total days with activity (365 -30) = 335 days

  • Average: 8 tables × (335 days ÷ 365 days) = 7.34 tables

Module 5 . Bar length. Linear meters: 10.00ml

  • Closing of the activity: 30 days

    Total days with activity (365 - 30) = 335 days

  • Average: 10 × (335 days ÷ 365 days) = 9.17 bar length

Module 6. Type "A" recreational machines.

The premises do not have any type "A" recreational machines. Therefore, number of units = 0.00

Module 7. Type "B" recreational machines.

  • Closing of the activity: 30 days

    Total days with activity (365 - 30) = 335 days

  • Average: 1 machine × (335 days ÷ 365 days) = 0.91 type "B" recreational machines

2. Application to the number of units of each module of the annual yield per unit before amortization established in Order HAC /1155/2020, of November 25 (BOE of December 4).

ModuleNo. unitsPerformance per unitPerformance per module
1. Salaried staff 0.50 4,056.30 2,028.15
2. Non-salaried Staff 0.91 15,538.66 14,140.18
3. Electrical power 32.12 321.23 10,310.91
4. Tables 7.34 233.04 1,710.51
5. Bar length 9.17 371.62 3,407.76
6. Type "A" machines 0.00 957.39 0.00
7. Type "B" machines 0.91 2,903.66 2,642.33
Previous net performance (sum) 34,246.84

Note: The benefit for cessation of activity is considered income from work, so it is not counted as income from economic activity.

2 Phase: Determination of the reduced net return.

1. Minority for employment incentives .

  1. Minority coefficient due to increase in the number of salaried people .

    The workforce has not been increased compared to the existing one in fiscal year 2020, so this coefficient does not apply.

  2. Reduction coefficient by sections of the number of units of the "salaried personnel" module.

    The sectional coefficient is applied to 0.50 units of the module in the following way:

    Up to 1.00: 0.5 x 0.10 = 0.05

    Reduction coefficient by sections (0.05 + 0.00): 0.05

  3. Reduction coefficient for employment incentives.

    It is the result of adding the reduction coefficients by increase in the number of salaried people and by sections of the number of units of the "salaried personnel" module: 0 + 0.05 = 0.05

  4. Amount of the reduction for employment incentives.

    It is the result of multiplying the minor coefficient by the annual performance per unit of the "salaried personnel" module: 0.05 x 4,056.30 = 202.82 euros.

2. Minority due to investment incentives .

Using the amortization table contained in Order HAC /1155/2020, of November 25 ( BOE of December 4), and applying the maximum linear amortization coefficients set therein, the amount of the reduction for investment incentives is determined as follows:

Minority due to investment incentives (sum) 6,050

Note to the box:

(1) The acquisition value of the fixed assets does not include the VAT supported, since the activity is subject to the simplified regime of the VAT. (Back)

(2) Despite having been in operation in the company until it was terminated due to sale, it is not possible to amortize the old tables and chairs in 2021, since as of 12-31-2020 these elements were already fully amortized. (Back)

(3) As the amount that would result from the application of the maximum coefficient is higher than the amount pending amortization as of 12-31-2020, which amounts to 1,000 euros (acquisition value 9,400 - Accumulated amortization 8,400), the amortization has been carried out by the latter amount. (Back)

(4) The new tables and chairs can be freely amortized because their unit value is less than 601.01 euros and because, in addition, the global amount of the new assets acquired in 2021 does not exceed the amount of 3,005.06 euros. (Back)

heritage elementValue acquisition(1)Maximum coefficientAmortization periodAmortization
Furniture (tables and chairs) 1,500 --- --- --- (2)
Coffee maker 9,400 25% All year 1,000(3)
Thermal display case 4,000 25% All year 1,000
Air-conditioning 6,600 25% All year 1,650
New tables and chairs (freely amortized) 2,400 100%(4) Irrelevant 2,400

3. Determination of the net reduced return

Previous net performance: 34,246.84

less: Reduction for employment incentives: 202.82

less: Minority due to investment incentives: 6,050.00

equal to: Minorized net return (34,246.84 – 202.82 – 6,050) = 27,994.02

3 Phase: Determination of net performance of modules.

The corrective index is applicable for small companies when the following requirements are met:

  • That the owner of the activity is a natural person.
  • That carries out the activity in a single location.

  • That you do not have more than one vehicle used for the activity and that it does not exceed 1,000 kg of load capacity.

  • That at no time in 2021 have there been more than two salaried people.

Therefore: 27,994.02 x 0.90 = 25,194.62

4 Phase: Determination of the net performance of the activity.

It is appropriate to apply, first of all, the general reduction of 5 percent.

Likewise, once all the requirements established for this purpose are met, the amount of the extraordinary expenses caused by the flood that occurred on August 10 must be deducted.


Net performance of modules = 25,194.62

less: General reduction (5% s/ 25,194.62) = 1,259.73

less: Extraordinary expenses due to exceptional circumstances: 1,200

equal to: Net performance of the activity (25,194.62 – 1,259.73 - 1,200) = 22,734.89

5 Phase: Determination of the reduced net return of the activity.

  1. Reduction due to irregularity

    As there are no returns with a generation period of more than two years or that are considered to have been obtained in a notoriously irregular manner over time, the reduced net return of the activity coincides with that determined in phase 4 above, which amounts to 22,734.89. euros.

    Comment : The capital gains or losses obtained as a result of the transfer of the assets affected by the activity (chairs and tables) must be declared in section F2 of the declaration.

  2. Reduction for the exercise of certain economic activities

    Since the income from economic activity exceeds 12,000 euros, it is not appropriate to apply the reduction in article 32.2.3. of the Personal Income Tax Law .

Determination of the total reduced net return of the activity.

The total reduced net return matches the total reduced net return of the activity = 22,734.89