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Practical manual for Income Tax 2022.

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 Regulation IRPF . See also arts. 1 and 2 Order HFP /1335/2021, of December 1 ( BOE of December 2)

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

Exceptionally for the 2022 financial year, the Second Additional Provision of Royal Decree-Law 31/2021, of December 28, which modifies Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands, and sets a new deadline for submitting waivers or revocations to special taxation methods and regimes ( BOE of December 29), allowed exercising the waiver or revocation of the waiver until January 30, 2022. However, the resignations or revocations submitted for the year 2022, during the month of December 2021, were understood to have been submitted during the valid period.

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 waiver must be submitted using form 036 for the census declaration of registration, modification and deregistration in the Census of entrepreneurs, professionals and withholding agents or form 037 for the simplified census declaration of registration, modification and deregistration in the aforementioned Census of entrepreneurs, professionals and withholding agents, approved by Order EHA/1274/2007, dated April 26.

Tacit resignation

Regulations: Art. 33.1 b) Regulation Income Tax . See also art. 5 Order HFP /1335/2021, of December 1 ( BOE of December 2)

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 Regulation IRPF

  • In general

    The waiver of the objective estimation method in relation to any activity means, for the purposes of Personal Income Tax , that the taxpayer is compulsorily subject to the direct estimation method, in the corresponding modality, to determine the net income of all the activities carried out, for a minimum period of three years.

    After this period, it will be understood to be tacitly extended for each of the following years in which the objective estimation method could be applicable, unless the waiver is formally revoked in the month of December prior to the start of the calendar year in which it must take effect.

    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.

  • Exceptionally

    Article 10 of Royal Decree-Law 35/2020, of December 22, on urgent measures to support the tourism, hospitality and commerce sectors and in tax matters ( BOE of December 23), established special measures regarding waivers for the years 2020 and 2021, allowing the application of the objective estimation method to be waived in these years without being subject to the minimum period of three years of mandatory linkage to the direct estimation method.

    Therefore, taxpayers who waived the objective estimation method for 2020 are allowed to revoke their waiver of said method before the three-year period elapses. This revocation may be submitted in both fiscal year 2021 and 2022. However, this special revocation period is only applicable to waivers submitted tacitly (art. 33.1.b of the Personal Income Tax Regulations) or, in the event of starting the activity after April 1, 2020, to those waivers that were submitted expressly.

    For 2021, the revocation of the waiver before the three-year period has elapsed can only be done for the 2022 tax period.