Systems to determine the income of the economic activity
Which methods you can use, which are incompatible, when you are excluded and which you can renounce
Objective assessment (modules)
You can apply the objective estimation method provided that:
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The activity you carry out is included in the Order that develops this system.
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You have not waived your application.
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There are no incompatibilities with other performance measurement methods.
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You have not renounced or are excluded from the simplified VAT or IGIC regime.
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You have not renounced the REAGP , nor the IGIC agriculture and livestock regime.
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Do not carry out activities wholly or partly outside Spanish territory except: urban collective and passenger transport by road, autotaxis, road haulage and removals.
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Do not exceed the specific quantities established by the Order for each activity.
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The volume of full returns in the immediately preceding year does not exceed:
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€150,000 for all your economic activities, except agriculture, livestock and forestry. All operations are taken into account, irrespective of whether there is an obligation to issue an invoice.
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€75,000 taking into account the transactions for which you are obliged to issue an invoice.
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€250,000 for all the agricultural, livestock and forestry activities.
For the years 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023 and 2024 the limits of €150,000 and €75,000 become €250,000 and €125,000 respectively.
Not included in income: current subsidies, capital subsidies, compensation, VAT and, where applicable, equivalence surcharge.
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For these years, the volume of purchases of goods and services in the immediately preceding year does not exceed €250,000. Acquisitions of fixed assets are not included.
For the purposes of the objective estimate in the Personal Income Tax to determine the volume of gross income, purchases and specific magnitudes, you will compute not only the operations corresponding to the activities you carry out, but also those corresponding to the activities carried out by your spouse, descendants and ascendants, and by the entities in income attribution in which any of you participate, provided that:
- the activities you carry out are identical or similar (they are classified in the same group of IAE )
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there is a common management, sharing material and human resources
In the case of entities under the income allocation system, you will calculate not only the operations corresponding to the activities of the entity, but also those corresponding to the activities carried out by its partners, heirs, joint owners or participants; their spouses, descendants and ascendants; as well as by other entities in income allocation in which any of the above have a shareholding, provided that the aforementioned circumstances are met.
To determine performance, the actual flow of income and expenses is not taken into account, but rather it is calculated based on objective data (staff module, surface area of the premises, tables, bar length, vehicle load, kilometres travelled, etc.) that vary depending on the activity you carry out.
Even if you carry out several activities to which this method applies, the calculation is carried out in isolation and separately for each activity that is considered independent.
The scheme to follow to obtain the performance would be:
Phase 1
Module units used, utilized or installed
(x) Annual return per module unit (before amortization)
= Previous net performance
Phase 2
(-) Minority due to employment incentives
(-) Minority due to investment incentives
= Reduced net income
Phase 3
(x) Corrective indices (depending on the activity and certain circumstances)
= Net module yield
Phase 4
(-) General reduction: (for 2022: 15%, by 2023: 10% and by 2024: 5%)
(-) Special reduction for economic activities in Lorca: 20%
(-) Special reduction for economic activities on the island of La Palma: (2022, 2023 and 2024: twenty%)
(-) Extraordinary expenses due to exceptional circumstances (Fires, floods, subsidence, etc. , communicated to the AEAT in a timely manner)
(+) Other business perceptions
= Net income from the activity
Phase 5
(-) Reduction for irregularity: 30%
= Reduced net performance of the activity
(*) Applicable only with respect to the "Other business income" component with a generation period of more than two years or which are classified by regulation as having been obtained in a notoriously irregular manner over time.
The calculation of the performance of each activity will be the result of performing the following operations on the volume of income:
Phase 1
Total revenue (including subsidies, compensation and aid CAP single payment)
(×) Net performance index
(*) When the recipient of the single payment direct aid from the CAP has not obtained income from agricultural or livestock activities, the net performance index to be applied is 0.56.
From 2023, the rate to be applied to aid will be 0.56 when income from agricultural and livestock activities, other than aid, is less than 25% of total income. Otherwise, the aid will be added to the income from crops or farms.
= Previous net performance
Phase 2
In 2022, 2023 and 2024 (for agricultural and livestock activities): Reduction for the purchase of agricultural diesel (35% of the purchase price)
In 2022, 2023 and 2024 (for agricultural and livestock activities): Reduction for the acquisition of fertilizers (15% of the purchase price)
(−) Amortization of tangible and intangible fixed assets (excluding forestry activities)
= Reduced net income
Phase 3
(×) Corrective indices (depending on the type of activity and certain circumstances)
= Net module yield
Phase 4
(−) General reduction: (for 2022: 25%, by 2023: 15% and by 2024: 5%)
(−) Special reduction for economic activities on the island of La Palma: (2022, 2023 and 2024: twenty%)
(−) Reduction of young farmers: 25%
(−) Extraordinary expenses due to exceptional circumstances (fires, floods, subsidence, etc. , communicated to the AEAT in a timely manner)
= Net income from the activity
Phase 5
(−) Reduction for irregularity: 30% (Reductions in returns generated over more than 2 years or obtained in a notoriously irregular manner)
= Reduced net performance of the activity