3.2 Other causes of exclusion from the objective estimation method

a. Develop economic activity, totally or partially, outside of Spanish territory

Regulations: Art. 32.2 c) Regulation Income Tax . See also article 3.2 of Order HAC /1164/2019, of November 22 ( BOE of the 30th) .

For these purposes, it shall be understood that the activities of urban collective and passenger transport by road, transport by taxi, transport of goods by road and removal services are carried out, in any case, within Spanish territory.

b. Having exceeded during the previous year (2019) the maximum specific magnitude (number of people employed or vehicles or boats used) established for each activity in article 3.1. d) of Order HAC /1164/2019, of November 22 ( BOE of the 30th), which are included in the list of activities reproduced in this Chapter

Regulations: Art. 34.1 Regulation IRPF .

In the first year of carrying out the activity, only the number of people employed, vehicles used or trailers used on the day the activity begins will be taken into account for these purposes.

Not only the specific magnitude corresponding to the activity carried out by the taxpayer must be computed, but also those corresponding to those carried out by the spouse, descendants and ascendants, as well as the entities under the income attribution regime in which any of the above persons participate, when the circumstances indicated above in the "Rules for determining the volume of gross and purchase income" occur.

Important: For the purposes of applying the objective estimation method, each of those listed below are considered independent activities, regardless of whether the activity is carried out in one or more premises or whether it corresponds to one or more groups or sections of the Tax on Economic Activities ( IAE ) (Art. 38.1 Regulation IRPF ).

c. Determine the net performance of some economic activity in the direct estimation method, in any of its two modalities

Regulations: Articles 34.2 and 35 Regulation IRPF . See also article 3.1 of Order HAC /1164/2019, of November 22 ( BOE of the 30th).

The regulations governing IRPF establish as a general principle the incompatibility of the objective estimate with the direct estimate. In accordance with this principle, taxpayers who determine the net income of any economic activity by the direct estimation method, in any of its modalities, are obliged to determine the net income of all their economic activities by said method, in the corresponding modality.

However, if during the year an activity is started that is not included or for which the objective estimation method is waived, the incompatibility will not take effect for that year with respect to the activities that were previously carried out, but rather from the following year.

d. Exclusion from the special simplified regime of VAT or IGIC

Regulations: Articles 34.2 and 36 Regulation IRPF .

By virtue of the principle of coordination of the objective estimation method with the Value Added Tax ( VAT ) or with the Canary Islands General Indirect Tax ( IGIC ), the exclusion of the special simplified regime in the VAT or in the IGIC implies the exclusion of the objective estimation method for all economic activities carried out by the taxpayer.