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Practical manual for Income Tax 2024. Volume 1

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 art. 5 Order HFP / 1359/2023, of December 19 ( BOE of December 21), second transitional provision Royal Decree-Law 8/2023, of December 27 ( BOE of December 28), and art. 12 Royal Decree-Law 7/2024, of November 11 ( BOE of November 12)

  • The express waiver of both the objective estimation method and the special simplified and agriculture, livestock and fishing regimes of VAT or simplified and of agriculture and livestock of IGIC , must be carried out, as a general rule, by submitting 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 2024 financial year, the second transitional provision of Royal Decree-Law 8/2023, of December 27, which adopts measures to address the economic and social consequences arising from the conflicts in Ukraine and the Middle East, as well as to alleviate the effects of the drought ( BOE of December 28), allowed the exercise of the waiver or revocation of the waiver by extending the deadline from December 29, 2023 to January 31, 2024. However, resignations or revocations submitted for the year 2024, during the month of December 2023, prior to the start of the previously indicated period, were deemed to have been submitted within the applicable period. However, taxpayers may modify the option exercised during the month of December, if applicable, between December 29, 2023, and January 31, 2024.

  • However, exceptionally for the 2024 financial year, the following measures have been adopted with respect to the express waiver of the objective estimation method for personal income tax taxpayers who carry out economic activities in the municipal areas affected by the DANA:

    Personal Income Tax taxpayers who carry out economic activities in the municipal areas mentioned in the annex to Royal Decree-Law 6/2024, of November 5, which adopts urgent response measures to the damage caused by the Isolated Depression at High Levels (DANA) in different municipalities between October 28 and November 4, 2024 and who have been determining the net income in the 2024 tax period by the objective estimation method, may waive the application of the same in said 2024 tax period during the month of December of said year or by submitting the declaration corresponding to the fractional payment of the fourth quarter of 2024 within the regulatory period.

    The provisions of the preceding paragraph shall not apply if the taxpayer ceased to operate prior to October 29, 2024.

    To do so, taxpayers may opt out of objective estimation method during December 2024 or by submitting the partial payment corresponding to the fourth quarter of 2024 in accordance with the direct estimation method (i.e., by submitting Form instead of Form 131).

    In this case, they will be taxed in 2024 under the simplified form of the direct assessment method, although they must comply with the formal obligations for that tax period provided for in sections 6 and 7 of Article 68 of the Regulation for taxpayers who carry out their activities using the objective assessment method.

    Additionally, for the year 2025 or 2026, it has been exceptionally established that these taxpayers may again pay taxes under the objective estimation regime provided they meet the requirements for its application, revoking the previous waiver during the month of December 2024 or 2025, or by submitting on time the declaration corresponding to the fractional payment of the first quarter of the fiscal year 2025 or 2026, as appropriate, in the manner provided for the objective estimation method. That is, the mandatory three-year link for waiving the objective estimation method is eliminated.

  • 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 resignation 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 /1359/2023, of December 19 ( BOE of December 21)

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 method.

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 Personal Income Tax and 12 Royal Decree-Law 7/2024, of November 11 ( BOE of November 12)

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.

DANA 2024: However, for the year 2024, as a consequence of the damage caused by the Isolated Depression at High Levels (DANA) in the municipalities listed in the Annex of Royal Decree-Law 6/2024, of November 5, the extraordinary waiver to the objective estimation method has been allowed by eliminating the mandatory link to the three-year period, so that in 2025 the taxpayer who has waived, in accordance with the provisions of article 12 of Royal Decree-Law 7/2024, may return to paying taxes using the objective estimation method provided they meet the requirements for its application, revoking the previous waiver.

After this period, it will be deemed to be tacitly extended for each of the following years in which the objective estimation method may be applicable, unless the waiver is formally revoked in the month of December prior to the start of the calendar year in which it is to take effect or exceptionally for 2024, within the extended period indicated above.

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.