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V3459-20 30 November 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación objetiva

Objective estimation may be applied to forestry activities after the three-year exclusion period

A taxpayer inquired about the appropriate taxation method for their forestry activity in 2020, having previously used direct estimation in 2017. The Directorate General of Taxes (DGT) ruled that, once the three-year exclusion period has concluded, the taxpayer may revert to objective estimation provided all requirements are met.

The question raised

Method of determining yields that the consultant must use to determine the net yield of the forestry activity in 2020.

The DGT's ruling

The incompatibility between direct and objective estimation requires the use of the direct method, which excludes the taxpayer from the objective method for three years. In 2020, once the years 2017, 2018, and 2019 have elapsed, it is possible to apply the objective estimation method. To do so, the limits of Order HAC/1164/2019 must not have been exceeded in 2019, nor must the taxpayer have waived the method.

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