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V2788-19 10 October 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación objetiva

Income must be annualised if activity commenced during the financial year to determine eligibility for the objective estimation method

The applicant asks how to determine eligibility for the objective estimation method in 2017 after starting activity in October 2016. The DGT rules that the income obtained must be annualised and compared against the LIRPF limits, taking into account the transitional amounts applicable for those financial years.

The question raised

Scope of application in 2017, based on volume of income, of the objective estimation method.

The DGT's ruling

In the event of the commencement of an activity, the volume of gross income obtained must be annualized. If the result of said annualization exceeds the limits of 250,000 euros for the set of activities or 125,000 euros for transactions with entrepreneurs or professionals (limits applicable for 2017 pursuant to the 32nd transitional provision of the LIRPF), the taxpayer is excluded from the objective estimation method and must apply the direct estimation method.

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