Practical Case

Special category bar (IAE heading: 673.1), located in a rented premises in which since its opening in 1995, 3 full-time salaried people have worked with the owner according to the Collective Agreement of the sector, which establishes a working day of 1,800 hours per year. The owner does not carry out any other economic activity.

In the previous year (2021), the activity was suspended for part of the year and of its three workers, one worked for 600 hours in the activity, returning to ERTE and the other two remained included throughout the year. year in ERTE .

In fiscal year 2022, the data to take into account are the following.

Economic activity was suspended during the month of January, reopening on February 1.
For the month of January in which the activity was suspended, the holder has received the extraordinary benefit for cessation of activity for an amount of 600 euros.
Regarding its three workers who at the beginning of the 2022 financial year were in ERTE, one of them incorporated into the activity on February 1, the other on May 15, with the third remaining in ERTE. The hours worked by each of the workers amounted to 1,650 and 900 hours/year, respectively.
The length of the bar counter is 10 meters and there are 8 authorized tables for four people.
The contracted electrical power is 35 kilowatts and a type "B" recreational machine is installed on the premises.

Of the assets assigned to the activity, the owner only keeps invoices for the coffee maker, a thermal display case, the air conditioning installation and the 8 tables with their chairs. The data that appears in your investment property record book is the following:

Element	Start of use	Cost price	Accumulated amortization as of 12-31-2021
Furniture (tables and chairs)	06-01-2017	1,500 euros	1,500 euros
Coffee maker	06-01-2018	9,400 euros	8,400 euros
Thermal display case	01-07-2019	4,000 euros	2,500 euros
Air conditioner installation	01-08-2019	6,600 euros	3,900 euros

To replace the tables and chairs of the establishment, the owner on February 1, 2022 acquired 8 new tables and 32 chairs for 2,400.00 euros, without the unit value of any of said furniture exceeding the amount of 601.01 euros.

Said furniture has been installed in the bar on the 15th of the aforementioned month. He sold the old furniture for 510.00 euros.
On August 10, 2022, a flood occurred in the bar, causing damage whose repair amounted to 1,200.00 euros, without the owner's insurance policy covering the aforementioned risk. On September 1, the owner of the activity submitted a document to the Tax Agency Administration corresponding to his tax domicile, communicating the aforementioned events and providing an invoice for the repairs carried out along with the document proving the flood issued by the fire service. of the town. By the competent services of the Tax Agency Administration, the certainty of the cause that motivated the extraordinary expense and its amount has been verified.
The taxpayer has not obtained other income during the year.

Solution

1 Phase: Determination of prior net performance.

1. Determination of the number of computable units of each of the modules applicable to activity .

Module 1. Salaried staff

Previous note: Salaried personnel are quantified based on the number of hours actually worked annually by each worker in the activity.

In the case of ERTE, salaried personnel must be valued exclusively by the hours of effective work they perform in accordance with the individual conditions that affect each worker.

Therefore, for the purposes of quantifying the “salaried personnel” module, salaried personnel must be valued, worker by worker, based on the conditions in which they are in the ERTE, not counting the part of the employment contract that is suspended. temporarily.

Worker 1: Reinstated on February 1

Computable hours worked: 1,650 hours
Worker 2: Reinstated on May 15

Computable hours worked: 900 hours
Worker 3

Computable hours worked: 0 hours (since it has been in ERTE all year).
Total hours (1,650 + 900 + 0) = 2,550 computable hours/year.
Calculation No. units of module "salaried personnel" (average): 2,550 hours worked ÷ 1,800 hours/year = 1.41

Module 2. Non-salaried staff: The owner

Previous note: in accordance with Instruction 7 for the application of signs, indices or modules in Personal Income Tax of Order HFP /1335/2021, of 1 December, to calculate the period in which the activity was carried out during said calendar year, the days in which the activity had been suspended (31 days) will not be taken into account, not including those days of vacation and weekly rest.

Computable days:

Closing of the activity: 31 days

Total days with activity (365- 31) = 334 days
Hours worked: (334 days ÷ 365 days) x 1,800 hours/year = 1,647 hours/year
Calculation No. module units "non-salaried personnel" (average): 1,647 hours worked ÷ 1,800 hours/year = 0.91

Module 3. Electrical power . Contracted kilowatts: 35.00 kW/hour

Closing of the activity: 31 days

Total days with activity (365 - 30) = 334 days
Average: 35 KW/hour × (334 days ÷ 365 days) = 32.02 kw/hour

Module 4. Tables . Tables for 4 people: 8 tables

Closing of the activity: 31 days

Total days with activity (365 -30) = 334 days
Average: 8 tables × (334 days ÷ 365 days) = 7.32 tables

Module 5 . Bar length. Linear meters: 10.00ml

Closing of the activity: 31 days

Total days with activity (365 - 30) = 334 days
Average: 10 × (334 days ÷ 365 days) = 9.15 bar length

Module 6. Type "A" recreational machines.

The premises do not have any type "A" recreational machines. Therefore, number of units = 0.00

Module 7. Type "B" recreational machines.

Closing of the activity: 31 days

Total days with activity (365 - 30) = 334 days
Average: 1 machine × (334 days ÷ 365 days) = 0.91 type "B" recreational machines

2. Application to the number of units of each module of the annual yield per unit before amortization established in Order HAC /1155/2020, of November 25 (BOE of December 4).

Module	No. units	Performance per unit	Performance per module
1. Salaried staff	1.41	4,056.30	5,719.38
2. Non-salaried Staff	0.91	15,538.66	14,140.18
3. Electrical power	32.02	321.23	10,285.78
4. Tables	7.32	233.04	1,705.85
5. Bar length	9.15	371.62	3,400.32
6. Type "A" machines	0.00	957.39	0.00
7. Type "B" machines	0.91	2,903.66	2,642.33
Previous net performance (sum)			37,893.84

Note: The benefit for cessation of activity is considered income from work, so it is not counted as income from economic activity.

2 Phase: Determination of the reduced net return.

1. Minority for employment incentives .

Minority coefficient due to increase in the number of salaried people .

- Increase in the number of salaried people: 1 people

Note: The workforce has been increased compared to the existing one in fiscal year 2021 since in that year only 1 of its 3 workers was employed in the activity for a few months, while in 2022 2 of them have been employed, so this applies. coefficient.

-Increase in the number of units of the "salaried personnel" module in 2022 compared to 2021:

Number of units of the "salaried personnel" module in 2021: 600 ÷ 1,800 = 0.33

Number of units of the "salaried personnel" module in 2022: 1.41

Increase in the number of units: 1.41– 0.33 = 1.08 people

When both requirements are met, the positive difference between the number of units of the "salaried personnel" module in 2022 compared to 2021 will be multiplied by 0.40.

Coefficient for increase in the number of salaried people: 0.40 x 1.08= 0.432.
Reduction coefficient by sections of the number of units of the "salaried personnel" module.

The coefficient by sections is applied to 0.33 (1.41- 1.08) units of the module in the following way:

Up to 1.00: 0.33 x 0.10 = 0.033

Reduction coefficient by sections: 0.033
Reduction coefficient for employment incentives.

It is the result of adding the reduction coefficients by increase in the number of salaried people and by sections of the number of units of the "salaried personnel" module: 0.432 + 0.033 = 0.465
Amount of the reduction for employment incentives.

It is the result of multiplying the minor coefficient by the annual performance per unit of the "salaried personnel" module: 0.465 x 4,056.30 = 1,886.18 euros.

2. Minority due to investment incentives .

Using the amortization table contained in Order HFP /1335/2021, of December 1 ( BOE of December 2), and applying the maximum linear amortization coefficients set therein, the amount of the reduction for investment incentives is determined as follows:

heritage element	Value acquisition⁽¹⁾	Maximum coefficient	Amortization period	Amortization
Minority due to investment incentives (sum)	6,050
Note to the box: ⁽¹⁾The input VAT is not included in the acquisition value of the fixed assets, since the activity is subject to the simplified VAT regime. ^(Back) ⁽²⁾Despite having been in operation in the company until it was terminated due to sale, it is not possible to amortize the old tables and chairs in 2022, since as of 12-31-2021 these elements were already fully amortized. ^(Back) ⁽³⁾As the amount that would result from the application of the maximum coefficient is higher than the amount pending amortization as of 12-31-2021, which amounts to 1,000 euros (acquisition value 9,400 - Accumulated amortization 8,400), the amortization has been carried out by the latter amount. ^(Back) ⁽⁴⁾The new tables and chairs can be freely amortized because their unit value is less than 601.01 euros and because, in addition, the global amount of the new assets acquired in 2022 does not exceed the amount of 3,005.06 euros. ^(Back)
Furniture (tables and chairs)	1,500	---	---	--- ⁽²⁾
Coffee maker	9,400	25%	All year	1,000⁽³⁾
Thermal display case	4,000	25%	All year	1,000
Air-conditioning	6,600	25%	All year	1,650
New tables and chairs (freely amortized)	2,400	100%⁽⁴⁾	Irrelevant	2,400

3. Determination of the net reduced return

Previous net performance: 37,893.84

less: Reduction for employment incentives: 1,886.18

less: Minority due to investment incentives: 6,050.00

equal to: Minorized net return (37,893.84 – 1,886.18 – 6,050) = 29,957.66

3 Phase: Determination of net performance of modules.

The corrective index is applicable for small companies when the following requirements are met:

That the owner of the activity is a natural person.
That carries out the activity in a single location.
That you do not have more than one vehicle used for the activity and that it does not exceed 1,000 kg of load capacity.
That at no time in 2022 have there been more than two salaried people.

Therefore: 29,957.66 x 0.90 = 26,961.89

4 Phase: Determination of the net performance of the activity.

It is appropriate to apply, first of all, the general reduction of 15 percent.

Note: the eighth Additional Provision of Order HFP /1172/2022, of November 29 ( BOE of December 1), as a consequence of the current economic situation, has increased for 2022 the general reduction provided for in the first Additional Provision of Order HFP/1335/2021, of December 1, from 5 to 15 percent.

Likewise, once all the requirements established for this purpose are met, the amount of the extraordinary expenses caused by the flood that occurred on August 10 must be deducted.

Therefore:

Net performance of modules = 26,961.89

less: General reduction (15% s/ 26,961.89) = 4,044.28

less: Extraordinary expenses due to exceptional circumstances: 1,200

equal to: Net performance of the activity (26,961.89 – 4,044.28 - 1,200) = 21,717.61

5 Phase: Determination of the reduced net return of the activity.

Reduction due to irregularity

As there are no returns with a generation period of more than two years or that are considered to have been obtained in a notoriously irregular manner over time, the reduced net return of the activity coincides with that determined in the previous phase 4, which amounts to 21,717.61 euros.

Comment : The capital gains or losses obtained as a result of the transfer of the assets affected by the activity (chairs and tables) must be declared in section F2 of the declaration.
Reduction for the exercise of certain economic activities

Since the income from economic activity exceeds 12,000 euros, it is not appropriate to apply the reduction in article 32.2.3. of the Personal Income Tax Law .

Determination of the total reduced net return of the activity.

The total reduced net return coincides with the total reduced net return of the activity = 21,717.61