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Practical Guide to Income Tax 2025. Part 1.

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 Regulations PIT. 

See also art. 5th Order HAC/1347/2024, of November 28 (BOE of November 30) and Transitional Provision Two Royal Decree-Law 8/2023, of December 27 (BOE of December 28), and art. 12 Royal Decree-Law 7/2024, of November 11 (BOE November 12th)

  • The express renunciation of both the objective estimation method and the simplified special regimes and those of agriculture, livestock and fishing of theVAT or simplified and of agriculture and livestock of the IGIC, must be carried out, as a general rule, by submitting the census declaration in the month of December prior to the beginning of the calendar year in which it must take effect.

    Thus, taxpayers who carry out activities to which the objective estimation method applies and wish to waive it for the year 2025, will have from December 1 to 31, 2024 to exercise this option.

  • Exceptionally, personal income tax (IRPF) taxpayers who carry out economic activities in the municipalities listed in the annex to Royal Decree-Law 6/2024, of November 5, which adopts urgent measures to respond to the damage caused by the Isolated Depression at High Levels (DANA) in different municipalities between October 28 and November 4, 2024, and who had been determining their net income in the 2024 tax year using the objective estimation method, but had waived its application in said 2024 tax year during the month of December of that year or by submitting, within the regulatory period, the declaration corresponding to the quarterly payment for the fourth quarter of 2024 in the manner provided for the direct estimation method, may again apply said objective estimation regime in the 2025 or 2026 tax years, provided that they meet the requirements for its application, revoking the previous waiver during the month of December 2024 or 2025, or by submitting on time the declaration corresponding to the installment payment for the first quarter of the year 2025 or 2026, as appropriate, in the manner provided for the objective estimation method. That is, the mandatory three-year link for waiving the objective estimation method is eliminated.

    It is also recalled that those affected taxpayers who, in the 2024 tax year, opted to be taxed by the direct estimation method as a result of this exceptional measure, determined the net income of their activity in accordance with the simplified form of said method, and must comply with the formal obligations corresponding to said tax period provided for in sections 6 and 7 of article 68 of the Regulation applicable to taxpayers who carry out their activities by the objective estimation method.

  • 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 resignation must be submitted using form 036 of census declaration of registration, modification and deregistration in the Census of entrepreneurs, professionals and withholding agents. From February 3, 2025, as a result of the development of new census assistance tools and the improvement in completion assistance programs, the simplified census declaration (model 037) is eliminated, as it is understood that the simplification that this model represented in the presentation of census declarations of registration, deregistration and modification in the census of entrepreneurs, professionals and withholding agents, can be offered through model 036 itself. See the Order for these purposes HAC/1526/2024, of December 11 (BOE January 9).

Tacit resignation

Regulations: Art. 33.1 b) Regulations PIT. See also art. 5 Order HAC/1347/2024, of November 28 (BOE November 30th)

The objective estimation method is deemed to have been waived 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.

Consequences of resignation

Regulations: Articles 33.2 and 3 Regulations PIT and12 Royal Decree-Law 7/2024, of November 11 (BOE November 12)

The waiver of the objective estimation method in relation to any activity gives rise, for the purposes of the PIT, that the taxpayer is compulsorily subject to the direct estimation method, in the corresponding modality, for the determination of the net income of all the activities carried out, for a minimum period of three years.

DANA 2024: As an exception, taxpayers who in 2024 waived the objective estimation method as a result of the damage caused by the Isolated Depression at High Levels (DANA) in the municipalities listed in the Annex of Royal Decree-Law 6/2024, of November 5, may return to paying taxes in 2025 under the objective estimation method provided they meet the requirements for its application. This possibility is recognized in Article 12 of Royal Decree-Law 7/2024, and allows the revocation of the resignation made in 2024, without the general three-year mandatory commitment period being applicable.

After this period, it will be understood to be tacitly extended for each of the following years in which the objective estimation method may be applicable, unless a formal procedure is followed to revocation of resignation in the month of December prior to the start of the calendar year in which it is to take effect or, exceptionally for 2025, within the extended period indicated above.

In any case, if in the year immediately preceding the year in which the waiver of the objective estimation method must take effect, the limits determining its scope of application are exceeded, said waiver will be deemed not to have been submitted.