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V0028-21 15 January 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación objetiva

Direct estimation method must be used in 2021 if excluded from objective estimation in 2018

A taxpayer who was excluded from the objective estimation method in 2019 for exceeding income limits in 2018 asks whether they can return to this method in 2021 after their income decreased in 2020. The DGT rules that they must remain under direct estimation for the three years following the exclusion.

The question raised

Whether it would be possible, in 2021, to determine the net income of the activity using the objective estimation method.

The DGT's ruling

Exclusion from the objective estimation method obliges the taxpayer to apply the simplified modality of direct estimation during the following three years. As the cause for exclusion occurred in 2018, the taxpayer must use direct estimation in 2019, 2020, and 2021, regardless of whether they meet the thresholds for objective estimation in those years.

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