The modular system can lead to tax savings for many companies that benefit from it.
It is foreseeable that there will be a tendency for fewer and fewer companies to benefit from objective estimation.
The objective estimation regime, also known as modules , has been in question for years, as it is a tool from a past in which fiscal control as exhaustive as today could not be exercised. However, despite the 2015 tax reform that lowered the limits to be eligible for this modality, the truth is that in 2020 the limits in force in 2019 have been extended again .
The limits of the module system do not change in 2020, as the acting government extended them
In fact, in 2015, new limits were established for being able to pay taxes under the objective assessment regime, with a two-year grace period so that those affected could ghana email list adapt and prepare. This meant that they would come into force in 2018, but with governments in office and consecutive elections, they have been extended for three more years than planned.
Limits provided for in the 2015 tax reform for modules
Although the 2015 tax reform initially introduced new, more restrictive limits, a transitional regime was subsequently established. The main difference is that the limits for volume of income were relaxed by 100,000 euros , going from the current 150,000 euros provided for by the tax reform that has not been applied until now.
Among the reasons for the extension we find that the reform affected a large number of companies and professionals, especially in the transport sector.
In addition, the limit of 75,000 euros for turnover was relaxed to 125,000 for the immediately preceding financial year. Otherwise, many companies would no longer be able to benefit from this taxation option, which, in addition to simplifying the procedures, is also much more favourable.
The tax savings of taxing by modules
According to estimates from the statistics of the Tax Agency, the effective rate at which taxpayers pay taxes under the objective assessment regime in the non-agricultural modality is 7.27% for the data available for 2016.
The average effective rate for modules is much lower than what they would be subject to if they were not taxed under this regime.
In the case of restaurants and shops, the rate was slightly higher: 8.14%. In other sectors, such as transport and communications, it remained at 2.17%. For this reason, a reduction in the limits that allow taxation in modules poses a problem for those who can no longer do so.
How the module system will look in 2020
Those who meet the following requirements may pay taxes under this regime:
They must be natural persons or entities under the income attribution regime in the Personal Income Tax , provided that, in the latter case, all their partners, heirs, commoners or participants are natural persons.
Each of its activities must be included in the ministerial order that develops the modular system and the limits established therein for each activity must not be exceeded.
The volume of income in the immediately preceding year (if it was the year in which the activity began, it will be raised to the year) does not exceed any of the following amounts:
250,000 euros for all economic activities , except agricultural, forestry and livestock.
250,000 euros for all agricultural, forestry and livestock activities.
The volume of purchases and imports of goods and services in the previous year, excluding the acquisition of fixed assets, must not exceed the amount of 250,000 euros per year (excluding VAT). If the activity has started, the volume of purchases will be raised to the year. In the case of subcontracted works and services, the amount of these will be taken into account for the calculation of this limit.