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Practical Income Manual 2021.

3.2 Other causes of exclusion from the objective estimation method

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

Regulations: Art. 32.2 c) Regulation Personal Income Tax . See also article 3.2 of Order HAC /1155/2020, of November 25 ( BOE of December 4) .

For these purposes, it will be understood that the activities of collective urban transport and road passengers, autotaxi transport, road freight transport and moving services are carried out, in any case, within Spanish territory.

b. Have exceeded during the previous year (2020) the maximum specific magnitude (number of people employed or vehicles or punts used) established for each activity in article 3.1. d) of Order HAC /1155/2020, of November 25 ( BOE of December 4), which are included in list of activities reproduced in this Chapter

Regulations: Art. 34.1 Regulation Personal Income Tax .

In the first year of carrying out the activity, only the number of people employed, vehicles used or punts used on the day the activity starts will be taken into account for these purposes.

Not only the specific magnitude corresponding to the activity carried out by the taxpayer must be computed, but also those corresponding to those carried out by the spouse, descendants and ascendants, as well as the entities under the income attribution regime in which any of the above persons participate. , when the circumstances indicated above in the "Rules for determining the volume of full returns and purchases" occur.

Important: For the purposes of applying the objective estimation method, each of those that appear in the list reproduced below is considered to be independent activities, regardless of whether the activity is carried out in one or more premises or whether it corresponds to one or with several groups or headings of the Tax on Economic Activities ( IAE ) (Art. 38.1 Regulation Personal Income Tax ).

c. Determine the net return of some economic activity using the direct estimation method, in any of its two modalities.

Regulations: Articles 34.2 and 35 Regulation Personal Income Tax . See also article 3.1 of Order HAC /1155/2020, of November 25 ( BOE of December 4).

The regulations governing Personal Income Tax establish as a general principle the incompatibility of the objective estimate with the direct estimate. In accordance with this principle, taxpayers who determine the net return of any economic activity by the direct estimation method, in any of its modalities, are obliged to determine the net return of all their economic activities by said method, in the corresponding modality. .

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

d. Exclusion from the special simplified regime of VAT or IGIC

Regulations: Articles 34.2 and 36 Regulation Personal Income Tax .

By virtue of the principle of coordination of the objective estimation method with the Value Added Tax ( VAT ) or with the Canary Islands General Indirect Tax ( IGIC ), the exclusion of the special simplified regime in the VAT or in the IGIC implies the exclusion of the objective estimation method for all economic activities carried out by the taxpayer.