2. Waiver of the application of the objective estimation regime and the special simplified regime of VAT or IGIC

Express resignation

Regulations: Articles 33.1 a) and 4 Regulation IRPF . 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 objective estimation method and the special regimes are expressly waived. 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 waiver must be submitted using form 036 for the census declaration of registration, modification and deregistration in the Census of entrepreneurs, professionals and withholding agents or form 037 for the simplified census declaration of registration, modification and deregistration in the aforementioned Census of entrepreneurs, professionals and withholding agents, approved by Order EHA/1274/2007, dated April 26.

Tacit resignation

Regulations: Art. 33.1 b) Regulation 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 submitting within the statutory period (until April 20) the declaration corresponding to the fractional payment of the first quarter of the calendar year in which it must take effect in the manner provided for the direct estimation system.

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 the 2020 and 2021 financial years

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

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

taxpayers who were determining their net income in accordance with the direct estimation method ##3##they have tacitly waived the ##4##1## the net income of their economic activity according to the objective estimation method in both 2021 and 2022.

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 so, 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 January 2021), or tacitly by submitting on time the declaration corresponding to the fractional payment of the first quarter of the 2021 fiscal year in the manner provided for the objective estimation method (that is, by submitting form 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 fiscal year, either by express or tacit waiver, the possibility is established of re-determining the net income of their economic activity in accordance with the objective estimation method in the fiscal year 2022 , without being subject 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 filing on time the declaration corresponding to the fractional payment of the first quarter of the 2022 fiscal year 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 submit the waiver of the objective estimation method that must take effect for the year 2022, setting it from December 30, 2021 (the day following the date of publication in the BOE of the aforementioned Royal Decree-Law 31/2021) until January 31, 2022. However, waivers submitted during the month of December 2021 will be deemed to have been submitted during the valid period, without prejudice to the affected taxpayers being able to modify their option (revoke their waiver) within the aforementioned period, that is, from December 30, 2021 to January 31, 2022 .

Consequences of resignation

Regulations: Articles 33.2 and 3 Regulation IRPF

The waiver of the objective estimation method in relation to any activity means, for the purposes of Personal Income Tax , that the taxpayer is compulsorily subject to the direct estimation method, in the corresponding modality, to determine the net income of all the activities carried out, for a minimum period of three years.

Covid-19: As mentioned above, for the year 2021, the exceptional waiver of the objective estimation method has been permitted, eliminating the mandatory link to the three-year period, so that in 2022 the taxpayer who has waived it, in accordance with the provisions of article 10 of Royal Decree-Law 35/2020, may return to paying taxes using the objective estimation method provided that they 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 waiver is formally revoked in the month of December prior to the start 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 waiver of the objective estimation method in relation to any activity means that the taxpayer is obligatorily subject to the direct estimation method, in the corresponding modality, for determining the net income of all the activities carried out, for a minimum period of three years.

Covid -19: However, for the year 2021, as a result of Covid-19, the exceptional waiver of the objective estimation method has been permitted, eliminating the mandatory link to the three-year period, so that in 2022 the taxpayer who has waived, in accordance with the provisions of article 10 of Royal Decree-Law 35/2020, may return to paying taxes under the objective estimation regime as long as they 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 start of the calendar year in which it is to take effect.