December is a tremendously important month for many freelancers. This is the time when the group has the possibility of changing the system by which it calculates its personal income tax . That is, those self-employed workers who contribute by the direct estimation system can switch to the objective estimation system, and vice versa.
Freelancers may have many reasons for wanting to change the way they calculate. However, not all professionals can carry out this procedure , there are a series of requirements that must be met to do so.
When can I change systems?
In the first place, the month to carry out this process is precisely December, in order for the change to take effect at the beginning of the following year; in this case, in January 2022. The resignation will be made in the presentation of form 036 or 037 of registration as an entrepreneur .
However, the self-employed has another opportunity, he can also carry out this change in the first quarter of the year, in January . To do this, the professional will have to present the personal income tax payment model that corresponds to the chosen estimate. In this way, the Treasury will carry out the procedure automatically.
What requirements must I meet?
Not all freelancers can carry out this procedure. In order to make the change from direct to objective estimation, professionals must meet a series of requirements:
- Carry out an activity that is included in the Order that develops the objective estimation regime.
- Do not exceed the billing limits established for each activity.
- The sales volume of the previous year of the company cannot exceed 250,000 euros.
- Business invoices cannot exceed 125,000 euros per year.
- The volume of purchases cannot exceed 250,000 euros.
- Not having renounced or be excluded from the simplified Canarian VAT or IGIC regime, or the special special regimes for Agriculture, Fishing or Livestock.
- Do not carry out other activities that pay taxes in normal or simplified direct estimation.