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V1691-20 29 May 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación objetiva

Correction index for small businesses cannot be applied if premises or staff limits are exceeded

A taxpayer inquired whether the correction index for small businesses could be applied under the objective estimation method. The DGT ruled that this is not possible because the activity was carried out across two premises and involved three employees.

The question raised

Application of the correction index for small-scale enterprises.

The DGT's ruling

To apply the correction index of 0.90, the activity must be carried out in a single premises and with a maximum of two salaried employees. These requirements must be met throughout the entire tax period, without exceeding the limits for premises or personnel at any time. If activities are carried out in several municipalities, the index of the municipality with the largest population applies.

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