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Practical manual for Income Tax 2020.

Rules for calculating modules

Regulations: Instruction 7 for the application of the signs, indexes or modules in the Personal Income Tax of Annex II of Order 1164/2019, of November 22 ( BOE of the 30th) and rt. 11 of Royal Decree-Law 35/2020, of December 22, on urgent measures to support the tourism, hospitality and commerce sector and in tax matters ( BOE of the 23rd).

In the Orders that develop the objective estimation method, a series of rules are established that the taxpayer must apply to calculate the average of the signs, indexes or modules relating to the entire period in which the activity has been carried out during said calendar year, when any of the following circumstances occur during the year:

  • Start of activity after January 1 of the calendar year.
  • Cessation of activity before December 31 of the calendar year.
  • Discontinuous exercise of the activity (without vacation periods being considered as such).
  • There have been variations during the year in the amount of the variables or modules corresponding to the activity.

For the 2020 financial year , in addition to the above circumstances, the impact of the states of alarm declared during 2020 has been taken into account, establishing the following rules for quantifying the number of units of the different modules:

1. WILL NOT BE COMPUTED, under any circumstances, as a period in which the activity was carried out:

  • During the first semester of 2020, the days of the state of alarm declared during said semester (also applies to activities that were declared essential).

    Note: The declaration of a state of emergency to address the health emergency situation caused by the Covid-19 coronavirus carried out by Royal Decree 463/2020, of March 14, covered, with its successive extensions, from March 14 until 00:00 hours on June 21, 2020. Therefore, the number of days in which the state of alarm was declared in the first half of 2020 was 99 days.

  • During the second semester , days in which, whether or not the state of alarm was declared, the effective exercise of economic activity would have been suspended as a result of the measures adopted by the competent authority to correct the evolution of the epidemiological situation derived from Covid-19 (also called SARS-CoV-2).

2. T Taking into account the above, the calculation of the average of the signs, indices or modules will be determined:

  1. In the “salaried personnel” and “non-salaried personnel” modules based on the hours worked, without counting as hours worked those corresponding to the days referred to in number 1 above.

  2. In the “distance traveled” and “electrical energy consumption” the kilometers traveled or the kilowatts/hour consumed will be taken into account, respectively, but kilometers traveled and the kilowatts/hour that proportionally correspond to the days referred to in number 1 above will not be counted.

  3. In the remaining cases , depending on the days of actual employment, use or installation, taking into account that these include normal days of rest and vacation, since the amounts set in the Order are annual. For this calculation not be counted, under any circumstances, as a period in which the activity would have been carried out on the days referred to in number 1 above.

4. When the calculated average does not result in a whole number, it is expressed with two decimal places .

Modules common to several activities : When there is partial use of a module in the activity or sector of activity, the value to be computed will be the result of its apportionment based on its effective use. If it is not possible to determine this, it will be allocated equally to each of the uses of the module.