Objective estimate

The objective method of estimating returns for certain economic activities will be applied (box 604 “ Inclusion ”), in accordance with the terms established by regulation, in accordance with the following rules :

One: Taxpayers who meet the circumstances provided for in the regulations governing this method will determine their income in accordance with it, unless they waive (box 605) its application, under the terms established by regulation.

Two: The objective estimation method will be applied jointly with the special regimes established in the Value Added Tax or in the Canary Islands General Indirect Tax, when so determined by regulation.

Third: This method may not be applied by taxpayers when any of the following circumstances occur, under the conditions established by regulation:

That determine the net performance of some economic activity by the direct estimation method.
That the volume of gross returns in the immediately preceding year exceeds any of the amounts established by regulation
That the volume of purchases of goods and services, excluding acquisitions of fixed assets, in the previous year exceeds the amounts provided for by regulations.
That the economic activities are carried out, totally or partially, outside the scope of application of the Tax referred to in article 4 of the regulatory Law.

Quarter: The scope of application of the objective estimation method will be determined, among other things, either by the nature of the activities and crops, or by objective modules such as the volume of operations, the number of workers, the amount of purchases, the surface area of the farms or the fixed assets used, with the limits determined by regulation for the set of activities carried out by the taxpayer and, where applicable, by the spouse, descendants and ascendants, as well as by entities under an income attribution regime in which any of the above participate.

Fifth: In the event of waiver (box 605) or exclusion (box 607) of the objective estimate, the taxpayer will determine the net income of all his economic activities by the direct estimate method during the following three years, under the conditions established by regulation.