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 /1155/2020, of November 25 ( BOE of December 4).

Without prejudice to the exceptional measures that have been adopted for 2020 and 2021, to which we refer below, 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, through the presentation of the census declaration in the month of December prior to the beginning of the calendar year in which it must take effect.

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/ 1155/2020, of November 25 ( BOE of December 4).

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.

Special measures for fiscal years 2020 and 2021

Regulations: See article 10 of Royal Decree-Law 35/2020, of December 22, on urgent measures to support the tourism, hospitality and commerce sector and on tax matters (BOE of the 23rd).

Exceptionally, for the years 2020 and 2021 the following measures have been adopted with respect to the renunciation of the objective estimation method:

Income tax taxpayers who their net return in accordance with the direct estimation method for having tacitly renounced the objective estimation method (art. 33.1. b of the Personal Income Tax Regulation) or, in the event of the activity starting on April 1, 2020, expressly to the objective estimation method in the 2020 financial year.

Attention: Please note that in fiscal year 2020, article 10 of Royal Decree-Law 15/2020, of 21 of April, of urgent complementary measures to support the economy and employment ( BOE of the 22nd), allowed the waiver of the objective estimation method in personal income tax and/or special simplified VAT regime to be exercised without subject to the 3-year term, presenting the installment payment corresponding to the first quarter of 2020 in accordance with the direct estimation method (that is, presenting form 130, instead of 131), or expressly, at the time of submitting the census declaration in case of start of the activity from April 1, 2020 .

To do this, they must meet the requirements for its application and have revoked the waiver of the objective estimation method, either expressly during the month of December 2020 (this period was extended to the month of January 2021), or tacitly by submitting on time the declaration corresponding to the installment payment for the first quarter of fiscal year 2021 in the manner provided for the objective estimation method (i.e., presenting model 131).
Additionally, for personal income tax taxpayers who carry out economic activities in accordance with the objective estimation method and waive its application for the 2021 financial year, either through express or tacit waiver, it is established the possibility of re-determining the net performance of their economic activity in accordance with the objective estimation method in the year 2022 , without subjection to the 3-year period, provided that they meet the requirements for its application and revoke the waiver of the objective estimation method, revoking the previous waiver from December 30, 2021 to January 31, 2022 (or during the month of December 2021), or by submitting the corresponding declaration on time to the fractional payment of the first quarter of fiscal year 2022 in the manner provided for the objective estimation method.

Attention: Royal Decree-Law 31/2021, of December 28, which modifies Law 19/ 1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands, establishes in its second Additional Provision a new deadline to present the renunciation of the objective estimation method that must take effect by the year 2022, setting it from December 30 2021 (day following the date of publication in the BOE of the aforementioned Royal Decree-Law 31/2021) until January 31, 2022. However, the resignations presented during the month of December 2021, will be deemed to have been submitted during the business period, without prejudice to the affected taxpayers being able to modify their option (revoke their resignation) within the aforementioned period, that is, from December 30, 2021 to January 31, 2022 .

Consequences of resignation

Regulations: Articles 33.2 and 3 Regulation Personal Income Tax

The renunciation of the objective estimation method in relation to any activity causes, for the purposes of Personal Income Tax , that the taxpayer is obligatorily subject to the direct estimation method, in the corresponding modality thereof, for the determination of the net performance of all the activities carried out, for a minimum period of three years.

Covid-19: As mentioned before, for the year 2021 the exceptional renunciation of the objective estimation method has been allowed, eliminating the mandatory link to the three-year period, so that in 2022 the taxpayer who has waived, in accordance with the provisions of the article 10 of Royal Decree-Law 35/2020, you may return to tax using the objective estimation method 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 the resignation is formally revoked in the month 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.

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: no However, for the year 2021, 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 2022 the taxpayer who has waived, in accordance with the established in article 10 of Royal Decree-Law 35/2020, 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. .