Special tax imputation criteria of the Personal Income Tax Regulations
Criteria for imputation of collections and payments
Regulations: Art. 7.2 Regulation Personal Income Tax
a. In general
Taxpayers who carry out economic activities, with the exception of owners of commercial business activities whose net income is determined by the direct estimation method, normal modality, obliged to keep accounting in accordance with the provisions of the Commercial Code, as well as those who , without being obliged to do so, voluntarily keep such accounting, may opt for the "collections and payments" criterion to temporarily allocate the income and expenses derived from all their activities.
Said criterion will be deemed approved by the Tax Administration simply by stating it in the corresponding declaration by Personal Income Tax .
The option for said criterion, whose minimum duration is three years, will lose its effectiveness if, after said option, the taxpayer develops any business activity of a commercial nature using the direct estimation method, normal modality, or keeps accounting in accordance with the provisions of the Commercial Code and other regulations implementing it.
Precision: The capital subsidies will be allocated as income for the year in proportion to the amount for the amortization carried out in that period for the aforementioned elements or, where appropriate, when their disposal occurs, valuation correction due to impairment or derecognition of the balance sheet, although the taxpayer has previously opted for the criterion of temporary allocation of collections and payments or cash criterion, given its specialty and the reference that the Personal Income Tax Law makes to the specific regulations of Corporate Tax and this , in turn, to the accounting result. See in this regard the Third Legal Basis of the Supreme Court Sentence no. 398/2022, of March 30 (Litigation Chamber), relapsed in cassation appeal no. 8193/2020 (RED: STS 1285/2022).
Attention : taxpayers who determine the net income by normal direct estimation when they are not required to keep accounting in accordance with the Commercial Code (professionals and businessmen who carry out activities that are not commercial in nature), as well as taxpayers in simplified direct estimation or in objective estimation that opt in 2022 for the criteria of collections and payments for the temporary allocation of income and expenses of all their activities, they will express this option by entering an "X" in box  (in the case of economic activities in direct estimation), in box  (in the case of economic activities, except agricultural, livestock and forestry , in objective estimation) and in box  (in agricultural, livestock and forestry activities in objective estimation). Likewise, taxpayers who opted for this temporary imputation criterion will mark this box/s ,  and  in previous tax periods and maintain said option in the current tax period.
b. Entities in the income allocation system
In the case of entities under the income attribution regime, compliance with the requirements to determine the method of estimating the performance of the applicable economic activity is determined at the headquarters of the entity, and said method will be applicable to the entity regardless of which corresponds to the community members, partners or participants for the economic activities carried out by them individually or through other entities (Arts. 31 and 39 Regulation Personal Income Tax ).
As a consequence, the accounting or record books corresponding to the economic activity carried out by the entity under the income attribution regime will be unique for each entity, without the partners, community members or participants having to keep an accounting or record books corresponding to their participation in the entity; Likewise, the accounting or record books kept by the entity are independent of those that correspond to the community members, partners or participants for the economic activities carried out by them individually or through other entities (Art. 68.8 Personal Income Tax Regulation).
In accordance with the above, to the extent that the requirements for the application of the collections and payments criterion, related to the method of estimating the performance of the economic activity and formal obligations, must be met by the entity, the application of the Collections and payments will correspond to the entity, so it will be necessary for all its members to opt for said application, without consequently being able to partially apply it by the entity for one or some of its members.
Likewise, since the aforementioned requirements can be met by the entity, but not by each of its members, and vice versa, the application of the criteria of collections and payments by the entity will be independent of the temporal imputation criterion that corresponds to the community members, partners or participate in the economic activities carried out by them individually or through other entities in which they participate.
Criteria for allocating the advance payment on account of the transfer of the exploitation of copyright
Regulations: Art. 7.3 Regulation Personal Income Tax
In the case of income from professional activities derived from the transfer of the exploitation of copyrights that accrue over several years, the taxpayer may choose to allocate the advance payment to their account as the rights accrue.