Waiver or exclusion of the simplified modality

• Waiver of the simplified modality and revocation of the waiver

Regulations: Art. 29.1 Regulation Income Tax

As we have indicated, the simplified direct estimation method is a voluntary method, which implies that the taxpayer may waive its application to determine the net income of its economic activities.

The resignation must be made during the month of December prior to the beginning of the calendar year in which it must take effect. In the year in which the activity begins, the resignation must be made prior to the actual exercise of the activity.

Once submitted, the resignation will be for a minimum period of three years After this period, it will be understood to be tacitly extended for each of the following years in which the modality could be applicable, unless it is revoked within the period mentioned above .

Both the resignation and its revocation will be carried out in the corresponding census declaration, in accordance with the provisions of articles 9 and following of the General Regulation of the actions and procedures of tax management and inspection and development of the common rules of the procedures for the application of taxes, approved by Royal Decree 1065/2007, of July 27 ( BOE of September 5).

The declaration may be submitted using the census declaration forms 036/037 approved by Order EHA /1274/2007, dated April 26 (BOE of May 10), amended by Orders EHA /3695/2007, dated December 13 (BOE of December 19), EHA /3786/2008, dated December 29 (BOE of December 30), EHA /3111/2009, dated November 5 (BOE of November 20), HAP /2215/2013, dated November 26 (BOE of November 29), HAP /2484/2014, of December 29 (BOE of December 31), HFP /417/2017, of May 12 (BOE of May 15) and HFP /1307/2017, of December 29 (BOE of December 30), Order HAC /1416/2018, of December 28 (BOE of December 28) and Order HAC /609/2021, of June 16.

• Exclusion of the simplified modality

Regulations: Art. 29.2 Regulation Income Tax

The exclusion of the simplified modality occurs due to the fact that the net amount of the business figure corresponding to the set of activities carried out by the taxpayer exceeds the amount of 600,000 euros per year .

The exclusion will take effect from the beginning of the year immediately following the year in which said circumstance occurs. Consequently, in the year in which the amount of 600,000 euros per year is exceeded, the simplified form of the direct estimation method is used.

• Consequences of waiving or excluding the simplified modality

Regulations: Art. 29.3 Regulation Income Tax

The waiver or exclusion of the simplified modality has as a consequence that the net income of all economic activities developed by the taxpayer must be determined for a minimum period of the following three years by the normal modality of this method .