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V0031-21 ·15 January 2021 ·consulta-vinculante Medium impact
Tax

Objective estimation method not applicable to VTC licensed activities for Personal Income Tax (IRPF)

A taxpayer inquired whether they could calculate their net income using the objective estimation method for a VTC licensed activity. The Directorate-General for Taxes (DGT) ruled that this is not possible, as the activity constitutes a vehicle rental service with a driver.

In 5 key points

How it affects those involved

Taxpayers operating VTC services must use the actual expense method (direct estimation) rather than the simplified objective estimation method for their tax returns.

Lifecycle

2021-01-15PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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