Performance of economic activities
A. Economic activities in direct estimation
Tax deductible expenses
Losses due to impairment of credits derived from possible insolvencies of debtors of article 13.1 of the LIS.
In accordance with article 14 of Royal Decree-Law 35/2020, of December 22, on urgent measures to support the tourism, hospitality and commerce sector and in tax matters ( BOE of 23), taxpayers of Personal Income Tax who are considered a small company because they meet the conditions of article 101 of the LIS , may deduct , in the years 2020 and 2021, the losses due to impairment of credits derived from the possible insolvencies of debtors when at the time of the tax accrual the period that has elapsed since the expiration of the obligation referred to in article 13.1.a ) of the LIS is three months.
B. Economic activities in objective estimation
As a consequence of the health crisis caused by Covid-19, and with the aim that the amount of the net return determined in accordance with the objective estimation method adjusts to the reality of the economic activity caused by this situation, measures have been adopted to This fiscal year 2021 the following measures:
1. Resignation and consequences of resignation
Article 10 of Royal Decree-Law 35/2020, of December 22, on urgent measures to support the tourism, hospitality and commerce sector and tax matters ( BOE of 23) , eliminated the mandatory link to the direct estimation method for three years, established by articles 30.1 of the Personal Income Tax Law and 29 of its Regulations, when the taxpayer who carries out economic activities renounces the method objective estimation of Personal Income Tax . Specifically, the renunciation of the application of the objective estimation method for fiscal year 2021 does not prevent the return of the performance of the economic activity in 2022 from being determined in accordance with said method, provided that the requirements for its application are met, when the taxpayer revokes the previous resignation.
To this end, taxpayers were given the opportunity to waive the application of the objective estimation method for the 2021 financial year by submitting the payment in installments in accordance with the direct estimation method (therefore presenting form 130 instead of 131). In that case, they are taxed in 2021 using the direct estimation method.
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, whether through express or tacit waiver, the possibility of re-determining the net income of its economic activity in accordance with the objective estimation method in fiscal year 2022, without subjecting itself to the 3-year period.
2. Exclusive limits :
Article 63 of Law 11/2020, of December 30, on the General State Budgets for the year 2021 ( BOE of 31), modified the thirty-second transitional provision of the Law of the IRPF extending for the 2021 tax period the application of the same exclusive quantitative limits of the objective estimation method set for the years 2016 to 2020: both those relating to the volume of full income in the immediately preceding year derived from the exercise of economic activities (250,000 euros for all economic activities, except agricultural, livestock and forestry activities and 125,000 euros for operations in which there is an obligation to issue an invoice when the recipient is a businessman) and the volume of purchases of goods and services (250,000 euros, excluding acquisitions of fixed assets, for all activities in objective estimation - also including agricultural, livestock and forestry activities -).
For agricultural, livestock and forestry activities, the exclusionary limit provided for in article 31 of the Personal Income Tax Law applies to the volume of full income in the immediately preceding year (250,000 euros per year, for the all of its agricultural, livestock and forestry activities carried out by the taxpayer) and, for the volume of purchases of goods and services, the amount of 250,000 euros, excluding acquisitions of fixed assets, for all activities in objective estimation, provided for in the provision thirty-second transitional law in the Personal Income Tax Law and whose application is extended to fiscal year 2021.
3. Determination of prior net performance :
Order HAC /1155/2020, of November 25 ( BOE of December 4), maintains the amount of the signs for the 2021 financial year , indices or modules from the previous year.
4. Determination of the net performance of the activity: applicable reductions
General reduction: The general reduction is 20 percent for agricultural, livestock and forestry activities and 5 percent of the net return for the remaining economic activities.
The increase for 2021 from 5 to 20 percent of the reduction provided for in the first Additional Provision of Order HAC/1155/2020, of November 25, which develops agricultural, livestock and forestry activities for the year 2021 included in Annex I of the aforementioned Order has been carried out by article 4 of Royal Decree-Law 4/2022, of March 15, which adopts urgent measures to support the agricultural sector due to the drought ( BOE of 16).
Lorca Reduction: The reduction of 20 percent of the net income for economic activities carried out in the municipal area of Lorca (Murcia) is maintained.