Law 66/1997 of 30 December 1997 on fiscal, administrative and social order measures incorporates a number of measures on the taxation of small and medium-sized enterprises with a view to promoting job creation and encourage business investment, while ensuring better control of fraud.

In accordance with these measures, it is also appropriate to amend the precepts which are affected by them from the provisions of the Regulations corresponding to the Income Tax of the Physical Persons, on the Added Value and General Indirect Canarian, on the basis of the normative ratings contained in the respective regulatory laws of the aforementioned taxes.

In the development of such modifications, the provisions of the Royal Decrees 1041/1990 and 2402/1985, which regulate the censal declarations and the duty to issue and deliver the invoice which is the responsibility of the employers and professionals.

In this regard, in the Tax on the Income of the Physical Persons, new wording is given to Title IV of the Tax Regulation, regulating the simplified modality of the direct estimation regime and the estimation regime. objective, in the development of the provisions of the articles of the Law of the Tax that refer to this matter.

The new simplified direct estimate is characterised by the reduction in registration obligations and the determination of net yield by difference between revenue and expenditure, simplifying the calculation of some of them, especially those which, according to the general rules, would have greater accounting requirements.

On the other hand, the objective estimation regime is developed, in order to adapt it to the new regulation established in the Tax Law. Among the most significant new features of this regime, the disappearance of the coefficients mode, the incompatibility with the direct estimate, the new rules of coordination with the simplified and the special regimes should be highlighted. (a) Agriculture, livestock and fisheries of the value added tax and consideration in the calculation of the net yield of the depreciation of the fixed assets.

Finally, the formal obligations to adapt them to the new regulatory measures for the taxation of small and medium-sized enterprises are also modified.

In the Value Added Tax, measures on the new taxation of small and medium-sized enterprises affect four of the special schemes currently in force: the simplified scheme, the system of agriculture, livestock and fisheries and the two special schemes applicable to retail trade, but the reform has been done at a pace which can enable the affected taxable persons to adapt to their new obligations.

Therefore, in this first phase, the simplified regime and the system of agriculture, livestock and fisheries have mainly been modified. The first is defined as an optional regime, with the main new features of the authorization of the deduction of the quotas supported by the acquisition of the investment goods and of establishing the full coordination with the objective estimation of the Tax on the Income of the Physical Persons. The Regulation, under the Law, establishes rules for the waiver of the regime, the causes of exclusion from its application, the procedure for determining the fees to be entered, and the formal obligations that correspond to the taxable persons.

In relation to the special arrangements for agriculture, livestock and fisheries, the necessary amendments are incorporated to coordinate their application with the objective of the objective estimation of the income tax. Natural persons in respect of the agricultural activities which are also covered by the said target scheme.

As regards the arrangements of retailers, in coordination with Law 66/1997 of 30 December 1997, of tax, administrative and social measures, the subjective scope of application of the special scheme of the Proportional determination of the taxable bases, which shall only apply to taxable persons who, in compliance with the other requirements, do not exceed a certain number in their operations.

With regard to the special scheme for the surcharge on equivalence, Law 66/1997 of 30 December 1997 on tax, administrative and social security measures has considered it more prudent to delay its amendment and subsequent amendment. disappearance, until the retail traders are able to know the reform better and be aware of its adaptation to it, so this Royal Decree does not introduce any modification in the regulatory provisions that regulate it.

The harmonic functioning of the tax system also requires adjusting the rules of the Indirect Canarian General Tax, in order to accommodate the essential principles of this reform.

In its virtue, on the proposal of the Second Vice-President and Minister of Economy and Finance, completed the report of the Autonomous Community of the Canary Islands, in accordance with the opinion of the Council of State and prior deliberation of the Council of Ministers at its meeting on 16 January 1998,

D I S P O N G O:

Article first. Amendment of the Income Tax Regulation of the Physical Persons.

The following amendments are made to the Income Tax Regulation of the Physical Persons, approved by Article 1 of Royal Decree 1841/1991, of December 30:

1. New wording is given to Title IV, which will be worded as follows:

" TITLE IV

Business Activity Performance Determination Regimes

and professionals

CHAPTER FIRST

Business And Professional Performance Determination Regimes

Article 17. Classes of regimes.

One. According to points (a) and (b) of Article 68 of Law 18/1991 of 6 June of the IRPF, the following schemes for the determination of business and professional returns shall be:

1. Direct estimation, which will have two modes, normal and simplified.

2. Objective estimation.

Two. Taxable persons shall apply any of the above schemes taking into account the limits of application, the rules of incompatibility and the rules of renunciation contained in the following Articles.

CHAPTER II

Simplified direct estimate

Article 18. Scope of application.

One. Taxable persons carrying out business or professional activities shall determine the net performance of all their activities by the simplified mode of the direct estimation scheme, provided that:

1. Do not determine the net performance of these activities by the objective estimation scheme.

2. The net amount of the turnover of all these activities, defined in accordance with Article 191 of the consolidated text of the Companies Act, does not exceed one hundred million pesetas per year.

3. Do not give up this mode.

Two. The net amount of the turnover which is set as the limit for the application of the simplified mode of the direct estimation scheme shall be as the reference for the immediate year preceding the year in which this mode is to be applied.

In the first year of activity, the net yield shall be determined by this mode, unless the net yield is waived in the terms provided for in the following article.

When the activity started in the previous year, the net amount of the business figure will be raised per year.

Three. Taxable persons who determine the net performance of any of their business or professional activities by the normal mode of the direct estimation scheme shall determine the net performance of all their activities by way of normal.

However, when any business or professional activity for which this modality is waived is initiated during the year, the incompatibility referred to in the preceding paragraph shall not have any effect for that year in respect of the activities that were previously carried out.

Article 19. Renunciation and exclusion.

One. The waiver of the simplified mode of the direct estimate shall be made during the month of December preceding the beginning of the calendar year in which it is to take effect.

The waiver will have effects for a minimum period of three years. After that period, it shall be understood as a tacitly extended period for each of the following years in which the modality may be applicable, unless the time limit laid down in the preceding paragraph is revoked.

If in the immediate year preceding the one in which the waiver of the simplified mode of the direct estimate regime is to take effect, the limit that determines its scope will be exceeded, such waiver will be tabled.

The resignation as well as its revocation will be carried out in accordance with the provisions of Royal Decree 1041/1990 of 27 July, which regulates the census statements to be presented for tax purposes by businessmen. professionals and other tax authorities.

In case of start of activity, the waiver shall be made as provided for in the preceding paragraph.

Two. The exclusion of the simplified mode of the direct estimation scheme will be a determining factor in the exclusion of the limit set out in the previous article.

The exclusion will produce effects in the immediate year after the year in which that circumstance occurs.

Three. The waiver or exclusion of the simplified mode of the direct estimation scheme shall mean that the taxable person shall determine the net performance of all his business or professional activities in the normal mode of this scheme.

Article 20. Determination of net yield.

The net performance of business or professional activities, to which the simplified mode of the direct estimation scheme applies, shall be determined in accordance with the rules laid down in Articles 41 and 42 of the Law 18/1991 of 6 June of the Tax on the Income of Physical Persons, with the following specialties:

1.The depreciation of tangible fixed assets will be practiced in a linear manner, according to the table of simplified redemptions approved by the Minister of Economy and Finance. The amounts of depreciation resulting from these tables shall apply the rules of the special scheme for small-scale undertakings provided for in Law 43/1995 of 27 December 1995 on the tax on companies which affect the concept.

2.a The set of deductible provisions and difficult-to-justify expenses will be quantified by applying the 5 per 100 percentage on net yield, excluding this concept and the increases and decreases in property derived from affections.

Article 21. Entities under the allocation scheme.

One. The simplified mode of the direct estimation scheme shall be applicable for the determination of the net performance of the business or professional activities carried out by the entities referred to in Article 10 of the Tax Act, provided that:

1.o All your partners, heirs, community members or members are natural persons.

2.o The entity meets the requirements defined in Article 18 of this Regulation.

Two. The waiver of the modality shall be carried out by all the partners, heirs, communes or members, in accordance with the provisions of Article 19 of this Regulation.

Three. The application of this modality shall be carried out independently of the circumstances which are individually fulfilled in the members, heirs, communes or members.

Four. The net yield shall be attributed to the partners, heirs, community members or unit-holders, according to the rules or covenants applicable in each case and, if they do not consist of the Administration in a feisty form, shall be attributed equally.

CHAPTER III

Objective Estimation

Article 22. Scope of application.

One. The objective estimation scheme shall apply to business and professional activities determined by the Minister for Economic Affairs and Finance, unless the taxable persons give up or are excluded from their application, in accordance with the terms laid down in the Articles 23 and 24 of this Regulation.

Two. This scheme shall apply in respect of each activity, in isolation considered, to be provided for in the Ministerial Order.

Article 23. Waiver of the objective estimation regime.

One. The waiver of the objective estimate shall be made during the month of December preceding the beginning of the calendar year in which it is to take effect.

Two. The waiver of the objective estimation scheme shall mean the inclusion in the scope of the simplified mode of the direct estimation scheme, in accordance with the terms set out in Article 18 (1) of this Regulation.

Three. The waiver shall have effect for a minimum period of three years. After that period, it shall be deemed to be tacitly extended for each of the following years in which the objective estimation system may be applicable, unless the time limit laid down in paragraph 1 is revoked.

If, in the immediate year preceding the year in which the waiver of the objective estimation regime is due to take effect, the limits that determine its scope will be exceeded, such waiver shall be held for failure to be submitted.

Four. The waiver and its revocation will be carried out in accordance with the provisions of Royal Decree 1041/1990 of 27 July, which regulates the census statements to be presented for tax purposes by employers, professionals and other tax authorities.

Five. In the event of the commencement of activity, the waiver of the objective estimate shall be made as provided for in the preceding paragraph.

Article 24. Exclusion from the objective estimation scheme.

One. The exclusion of the objective estimation regime will be a determining factor in the fact that it has exceeded the limits laid down in the Ministerial Order.

The exclusion will produce effects the immediate year after the year in which that circumstance occurs.

Two. The incompatibility provided for in Article 26 and the exclusion from Article 27 (2) of this Regulation shall also be considered as grounds for exclusion from the scheme.

Three. The exclusion of the objective estimation scheme shall mean the inclusion in the scope of the simplified mode of the direct estimation scheme, as provided for in Article 18 (1) of this Regulation.

Article 25. Increases and decreases in equity.

One. Net income calculated by means of the objective estimation scheme shall be understood to include net increases in assets resulting from the onerous transfer of assets of fixed assets to business or business activities. professional, provided that the annual amount of those does not exceed 500,000 pesetas. The determination of this amount shall take account of all the business and professional activities carried out by the taxable person.

The positive difference between the increases and the decreases in equity derived from the onerous transfer of property assets affected by the business activities shall be considered as net worth increases. and professionals.

Two. Taxable persons who are taxed under heading 721.2 of Section 1.a of the Economic Activities Tax rates shall include in the net yield calculated by the objective estimation scheme the increases and decreases in the assets arising from the transfer of intangible fixed assets to the business, if the transfer is motivated by death, permanent incapacity, retirement or, in the end of activity, by restructuring of the sector.

The provisions of the preceding paragraph shall also apply where, for reasons other than those mentioned therein, intangible assets are transmitted to family members up to the second degree.

Three. Taxable persons who determine the net yield by this scheme may be eligible, provided that they satisfy the conditions laid down in Article 122 (1) of Law 43/1995 of 27 December 1995 on the corporate tax, to the exemption by reinvestment, under the conditions laid down in Article 127 of that Law.

They may also benefit from the reinvestment of extraordinary profits, in the terms and conditions provided for in Article 21 of Law 43/1995, cited above.

Article 26. Incompatibility with direct estimation.

Liabilities that determine the net performance of any business or professional activity by the direct estimate regime, in any of its modalities, shall determine the net performance of all of its activities business or professionals for the scheme, in the appropriate form.

However, when any business or professional activity not included or by which the objective estimation regime is abandoned during the year is initiated, the incompatibility referred to in the preceding paragraph shall not have any effect. for that year in respect of the activities that were previously carried out.

Article 27. Coordination with the Value Added Tax.

One. The waiver of the simplified special scheme or the special scheme for agriculture, the earning and the fishing of the value added tax shall mean the waiver of the objective estimation regime for all business and professional activities. exercised by the taxable person.

Two. The exclusion of the simplified special scheme in the value added tax shall mean the exclusion of the objective estimation scheme for all business and professional activities carried out by the taxable person.

Article 28. Determination of net yield.

One. The taxable persons shall determine, with reference to each activity to which this scheme applies, the corresponding net return.

Two. The determination of the net yield referred to in the preceding paragraph shall be determined by the taxable person himself, by imputation to each activity of the signs, indices or modules which the Minister of Economy and Finance has fixed.

Where signs, indices or modules are approved for the calculation of the net yield, the amortisation of the fixed assets may be deducted. The amount deducted by this concept will be exclusively the one that results from the application of the simplified table approved by the Minister of Economy and Finance.

Three. In the case of initiation after 1 January or the end of the day on 31 December of the operations of an activity received under this scheme, the signs, indices or modules shall, where appropriate, be applied in proportion to the period of time in which such activity has been exercised by the taxable person during the calendar year.

The provisions of this paragraph will not apply to the seasonal activities that will be governed by the corresponding ministerial order.

Four. 1. Where the development of business or professional activities to which this scheme applies is affected by fire, floods or other exceptional circumstances affecting a particular sector or area, the Minister of The economy and the Treasury may, by way of exception, authorise the reduction of signs, indices or modules.

2. Where the development of business or professional activities to which this scheme applies is affected by fires, floods, sinks or major breakdowns in the industrial equipment, which involve serious disturbances in the development of the activity, the interested parties may request the reduction of the signs, indices or modules in the Administration or Delegation of the State Agency of Tax Administration corresponding to their tax domicile, within the period of thirty days from the date on which they occur, providing the evidence they consider (a) appropriate and, where appropriate, making reference to the compensation to be paid for such alterations. The effectiveness of these alterations may be authorised, the reduction of the signs, indices or modules which may be necessary may be authorised.

The reduction of signs, indices or modules may also be permitted where the holder of the activity is in temporary incapacity and has no other staff employed. The procedure for reducing the signs, indices or modules shall be the same as that provided for in the preceding paragraph.

The reduction of the signs, indices or modules shall be taken into account for the purposes of the split payments due after the date of the authorisation.

3. Where the development of business or professional activities resulting from this scheme is affected by fires, floods, sinkings or other exceptional circumstances which determine extraordinary non-profit expenses the normal process of the exercise of that year, the persons concerned may undermine the net yield resulting from the amount of such expenditure. To this end, the taxable persons shall make such a circumstance known to the Administration or Delegation of the State Administration of Tax Administration corresponding to their tax domicile, within 30 days from the date of the date on which it is produced, providing for that purpose the justification for the compensation and making reference, where appropriate, of the compensation to be paid for such alterations. The Tax Administration will verify the certainty of the cause that motivates the reduction of the yield and the amount of the same.

Five. The Ministerial Order under which the signs, indices or modules applicable to each activity are fixed shall contain the instructions necessary for its proper computation and shall be published in the Official Gazette before 1 December. prior to the applicable period.

The Ministerial Order may refer to a period of time higher than the year, in which case the method of calculating the yield for each of the years included shall be determined separately.

Article 29. Independent activities.

One. For the purposes of the application of the objective estimation scheme, independent activities shall be considered each of those specifically collected in the Ministerial Orders governing this scheme.

Two. The determination of the economic operations included in each activity shall be carried out in accordance with the rules of the Economic Activities Tax, in so far as they are applicable.

Article 30. Entities under the allocation scheme.

One. The objective estimation scheme shall be applicable for the determination of the net performance of the business or professional activities carried out by the entities referred to in Article 10 of the Tax Act, provided that all of its partners, heirs, community members or members are natural persons.

Two. The waiver of the scheme, to be carried out in accordance with Article 23, shall be made by all the members, heirs, members or members.

Three. The application of this objective estimation scheme shall be carried out independently of the circumstances of the individual partners, heirs, members or members.

Four. The net yield shall be attributed to the partners, heirs, community members or unit-holders, in accordance with the rules or covenants applicable in each case, and, if they are not established by the Administration in a feisty manner, shall be attributed equally. "

2. New wording is given to Rule 62, which will be worded as follows:

" Article 62. Amount of fractionation.

One. The taxable persons referred to in the preceding Article shall, within each period, enter the following quantities:

(a) For activities that are under direct estimate, in any of its modalities, the 20 per 100 of the net yield corresponding to the period of time elapsed from the first day of the year to the last the day of the quarter to which the split payment refers.

Of the amount resulting from the application of the provisions of this letter, the fractional payments entered in the preceding quarters of the same year shall be deducted.

(b) For activities which are under objective estimation, 5 per 100 of the net yields resulting from the application of that scheme on the basis of the data-base of the first day of the year to which the payment relates or, in the event of the start of activities, on the day on which they were commenced.

However, in the case of activities with only one person who is salaried, the percentage above will be 4 per 100, and in the event that no salaried staff are available, this percentage will be 2.5 per 100.

When any of the base data cannot be determined on the first day of the year, it shall be taken, for the purposes of the split payment, for the preceding immediate year. In the event that no date-base could be determined, the split payment will consist of 2 per 100 of the quarter's sales volume or revenue.

(c) Dealing with agricultural, livestock, forestry or fisheries activities, whichever is the net yield determination scheme, 2 per 100 of the quarter's revenue volume, excluding capital grants and the compensation.

Two. The percentages referred to in the preceding paragraph shall be divided by two for the business or professional activities which are entitled to the deduction in the quota provided for in Article 78 (7) (d) of the Tax Act.

Three. Of the quantity resulting from the provisions of the preceding paragraphs, the following shall be deducted:

(a) In the case of professional activities which determine their net performance by the direct estimation scheme, in any of its forms, the withholding taxes and the revenue to be taken into account in accordance with the provided for in Articles 51 and 55 of this Regulation corresponding to the period of time from the first day of the year to the last day of the quarter to which the split payment relates.

(b) In the case of professional activities which determine their net performance by the objective estimation scheme, the withholding taxes and the revenue to be taken into account in accordance with Articles 51 and 55 of the this Regulation for the quarter.

(c) In the case of agricultural or livestock activities, the withholding tax and the income to be made in accordance with the provisions of Articles 51 and 55 of this Regulation for the quarter.

Four. The taxable persons may apply in each of the payments broken down percentages higher than those indicated. "

3. New wording is given to Article 63, which will be worded as follows:

" Article 63. Declaration and income.

One. Employers and professionals shall be required to declare and enter into the Treasury on a quarterly basis the amounts determined in accordance with the foregoing Article within the following time limits:

The first three quarters, between 1 and 20 of the months of April, July and October.

The fourth quarter, between the 1st and 30th of the month of January.

When the application of the provisions of the previous article does not result in amounts to be entered, the taxable persons shall submit a negative statement.

Two. The Minister for Economic Affairs and Finance may extend the time limits referred to in this Article, as well as to establish six-monthly income assumptions with the adjustments that come from the percentages determined in the previous article.

Three. The taxable persons shall submit the declarations to the competent authority of the tax administration and shall enter the amount in the Treasury.

The declaration shall be in accordance with the conditions and requirements and the income shall be in the form and place determined by the Minister of Economy and Finance. "

4. New wording is given to Article 67, which will be worded as follows:

" Article 67. Accounting and registration obligations.

One. Taxable persons who carry out business activities whose performance is determined in the normal mode of the direct estimation scheme shall be obliged to keep accounts in accordance with the provisions of the Trade Code.

Two. By way of derogation from the above paragraph, where the business activity carried out is not of a commercial nature, in accordance with the Trade Code, the accounting obligations shall be limited to the keeping of the following records:

a) Book record of sales and revenue.

b) Book of purchases and expenses.

c) Book record of investment goods.

Three. Taxable persons who carry out business activities whose performance is determined in the simplified mode of the direct estimation scheme shall be obliged to carry out the books referred to in the preceding paragraph.

Four. Taxable persons engaged in professional activities whose performance is determined by direct estimation, in any of its forms, shall be required to carry the following records:

a) Income record book.

b) Book of expenditure.

c) Book record of investment goods.

d) Book of funds and supply provisions.

Five. Taxable persons who carry out business and professional activities which determine their net performance by means of the method of objective estimation shall keep, numbered by order of dates and grouped by quarters, the invoices issued in accordance with the provisions of Royal Decree 2402/1985 of 18 December 1985 on the duty to issue and deliver an invoice which is the responsibility of employers and professionals and the invoices or documentary evidence of another type received. They shall also keep the evidence of the signs, indices or modules applied in accordance with the provisions of the Ministerial Order approving them.

The taxable persons under this scheme who deduct redemptions will be required to carry a book of investment goods. In addition, for activities whose net performance is determined taking into account the volume of transactions, a book of sales or revenue shall be carried.

Six. An entity under a revenue allocation scheme which carries out business or professional activities shall carry a number of compulsory books corresponding to the activity carried out, without prejudice to the allocation of appropriate returns. to carry out in relation to its partners, heirs, community members or unit-holders.

Seven. The Minister for Economic Affairs and Finance is hereby authorised to determine the manner of keeping of the records referred to in this Article.

Eight. Taxable persons who bear accounting in accordance with the provisions of the Trade Code shall not be required to carry the records set out in the preceding paragraphs of this Article. "

Article 2. Amendment of the Value Added Tax Regulation.

The following amendments are made to the Value Added Tax Regulation, as approved by Article 1 of Royal Decree 1624/1992 of 29 December 1992:

1. Chapters I (General rules of special schemes) and II (Simplified scheme) of Title VIII are amended, which shall be drawn up as follows:

" CHAPTER I

General rules

Article 33. Option and waiver of the application of special schemes.

1. The taxable persons of the tax shall inform the tax administration of their choice for the application of the special system of proportional determination of the taxable bases.

The option must be made at the time of filing the declaration of commencement of the activity or, where appropriate, during the month of December preceding the beginning of the calendar year in which it must have effects, tacitly understood extended for the following years as long as it is not expressly waived.

The waiver must be made during the month of December preceding the beginning of the calendar year in which it is due to take effect.

2. The simplified special schemes and for agriculture, livestock and fisheries shall apply to taxable persons who fulfil the requirements laid down for the purpose by the value added tax law and who have not expressly waived the requirements of the "

The waiver shall be made at the time of filing the declaration of commencement of the activity or, where appropriate, during the month of December preceding the beginning of the calendar year in which it is due to take effect. The waiver submitted on the occasion of the commencement of the activity to which the simplified scheme or of agriculture, livestock farming and fishing shall apply shall take effect from the moment the application starts.

When the taxable person is engaged in the simplified scheme or in the form of agriculture, livestock and fisheries, he shall start during the year another eligible for any such scheme, the waiver of the Special arrangements for the latter activity shall have no effect for that year in respect of the activity which was previously carried out.

The waiver shall have effect for a minimum period of three years, and shall be deemed to be extended for each of the following years in which the respective special arrangements may apply, unless it is revoked within the prescribed period. in the preceding paragraph.

If, in the immediate year preceding the year in which the waiver of the simplified regime or of agriculture, animal husbandry and fishing should take effect, the limit determining its scope will be exceeded, such renunciation shall be not presented.

The waiver of the objective estimate of the Income Tax of the Physical Persons will mean the waiver of the simplified special regimes and of the agriculture, livestock and fishing in the Tax on the Value Added for all business and professional activities carried out by the taxable person.

The special scheme of used goods, art objects, antiques and collectibles shall apply to transactions which meet the requirements laid down by the Tax Act, provided that the taxable person has presented the a declaration provided for in Article 164 (1) (1) of that Act concerning the commencement of its business or professional activities. However, in the form of determination of the taxable amount by the profit margin of each transaction, the taxable person may waive the special scheme and apply the general scheme for each operation which he carries out, without that this waiver must be expressly communicated to the Administration and is not subject to any other requirement.

3. The express options and resignations provided for in this Article, as well as their revocation, shall be made in accordance with the provisions of Royal Decree 1041/1990 of 27 July 1990 on the censal statements to be submitted For tax purposes, employers, professionals and other tax authorities.

CHAPTER II

Simplified regime

Article 34. Subjective extension.

Tax taxable persons who meet the following requirements shall be taxed by the simplified scheme:

1.o That are natural persons or entities in the system of income allocation in the Income Tax of the Physical Persons, provided that, in the latter case, all of its members, heirs, community members or unit-holders are persons physical.

The application of the simplified special scheme to the entities referred to in the preceding paragraph shall be carried out regardless of the circumstances that are individually involved in the persons who integrate them.

2.o Make any of the economic activities described in Article 37 of this Regulation, provided that, in relation to such activities, they do not exceed the limits laid down by the Minister for Economic Affairs and Finance.

Article 35. Waiver of the simplified scheme.

The taxable persons may waive the application of the simplified scheme in the form and time limits provided for in Article 33 of this Regulation.

The waiver of the special regime simplified by the entities under the attribution system shall be made by all the partners, heirs, community members or unit-holders.

Article 36. Exclusion from the simplified scheme.

1. The following are the determining circumstances of the exclusion of the simplified scheme:

1.o Haber exceeded the limits that, for each activity, determine the Minister of Economy and Finance, with effect from the immediate year after the year in which this circumstance occurs, except in the case of the beginning of the activity, in which the exclusion shall take effect from the moment of commencement of the exclusion. Taxable persons previously excluded for this reason who do not exceed those limits in successive years shall be subject to the simplified special scheme unless they give up.

2.o Regulatory alteration of the objective scope of application of the simplified scheme determining the non-application of that special scheme to the economic activities carried out by the taxable person, with effect from the moment to set the corresponding standard for the amendment of that objective field.

3.o Haber is excluded from the application of the objective estimate of the Income Tax of the Physical Persons.

4.o Conduct activities not covered by the simplified special schemes, agriculture, livestock and fishing or the equivalence surcharge. However, the exclusion of the simplified special scheme shall not entail the performance by the taxable person of other activities in whose development he exclusively carries out transactions exempt from the tax on the application of Article 20 of his Law (a) the rules governing the application of the provisions of Article 40 (2) of Law No 18/1991 of the European Parliament and of the Council of 6 June 1991 on the application of the provisions of Article 40 (2) of the Treaty on the Natural Persons.

2. Circumstances 3.o and 4.o of the preceding paragraph shall have effect from the immediate year after the year in which they occur, unless the taxable person does not come carrying out business or professional activities, in which case the exclusion effects from the moment the start of such activities takes place.

3. If the Tax Inspectorate finds, as a result of the actions of verification or investigation of the taxable situation of the taxable person, the existence of circumstances determining the exclusion of the simplified scheme, it shall proceed to the appropriate regularisation of the same in general.

Article 37. Objective scope.

1. The simplified scheme shall apply in respect of each of the activities covered by the objective estimate of the income tax of the physical persons, except those to which any other of the schemes applies. (a) special rules governing the provision of services for the purposes of Article 4 (1) (a);

For the purposes of the application of the simplified scheme, independent activities shall be considered each of those specifically listed in the Ministerial Order governing this scheme.

2. The determination of the economic operations included in each of the activities referred to in paragraph 1 of this Article shall be carried out in accordance with the rules governing the tax on economic activities in so far as they are applicable.

Article 38. Content of the simplified scheme.

1. The determination of the quotas to be entered as referred to in the first subparagraph of Article 123 of the Tax Act shall be determined by the taxable person himself, calculating the total amount of the contributions due by way of the economic activity of the indices and modules which, with a specific reference to each activity and for the corresponding annual period of time, has been fixed by the Minister for Economic Affairs and Finance, which may deduct from that amount the contributions satisfied by the acquisition or import of goods and services other than fixed assets, the development of the activity.

The Minister of Economy and Finance will be able to set a minimum amount of the quotas to be entered for each activity to which this special regime applies.

2. The amount of the fees to be paid as provided for in paragraph 1 above shall be increased by the fees payable for the operations referred to in the second subparagraph of Article 123 (1) of the Tax Act, and may be reduced by the amount of the quotas supported or satisfied by the purchase or import of the fixed assets for the development of the activity.

3. Where the development of activities to which the simplified scheme applies is affected by fires, floods or other exceptional circumstances affecting a particular sector or area, the Minister for Economic Affairs and Finance may, by way of exception, authorise the reduction of indices or modules.

4. Where the development of activities to which the simplified scheme applies is affected by fires, floods, sinks or major breakdowns in the industrial equipment involving serious disturbances in the development of the activity, the persons concerned may request the reduction of the indices or modules in the Administration or Delegation of the State Administration of Tax Administration corresponding to their tax domicile within 30 days from the date of the the date on which those circumstances occur, providing the evidence they deem appropriate. The effectiveness of such alterations to the Tax Administration will be credited, the reduction of the indices or modules that proceeds will be agreed upon.

In addition, in accordance with the same procedure as indicated in the preceding paragraph, it may be possible to request the reduction of the indices or modules in cases where the holder of the activity is in a situation of temporary incapacity and not has other staff employed.

Article 39. Income statement.

The result of applying the provisions of the foregoing Article shall be determined by the taxable person at the end of each calendar year, however, in the statements-settlements corresponding to the first three quarter of the same income on account of a part of this result, calculated according to the procedure established by the Minister of Economy and Finance.

The settlement of transactions referred to in Article 123 (1), second subparagraph of the Tax Act shall be effected in the settlement statement corresponding to the settlement period in which the tax is due. Tax and the deduction of the shares supported or satisfied by the acquisition or import of the fixed assets may be carried out in accordance with the general rules contained in the tax rules. However, the taxable person may liquidate the transactions covered by this paragraph in the declaration-settlement for the last period of the calendar year.

Article 40. Formal obligations.

1. Taxable persons covered by the simplified scheme shall keep a Book of invoices received in which they shall record the invoices and equivalent documents relating to the acquisitions and imports of goods and services for which they are supported or satisfied the tax and intended for use in the activities for which the special scheme is applicable. In this book, the imports and acquisitions of the fixed assets as laid down in the second subparagraph of Article 123 (1) of the Tax Act must be entered in the same way as the imports and acquisitions of fixed assets, the latter all the information necessary to carry out the regularisations which, if appropriate, would have to be carried out.

Liabilities to other activities to which the simplified special scheme is not applicable shall be required to record, with due separation, the invoices relating to the acquisitions corresponding to each sector Differentiated activity.

The taxable persons covered by the special scheme simplified by activities whose indices or modules operate on the volume of transactions carried out shall also carry a Book of record in which they shall record transactions carried out in the course of these activities.

2. The taxable persons covered by this scheme shall keep the supporting documents for the indices or modules applied in accordance with what, if appropriate, provides for the Ministerial Order to approve them.

3. Taxable persons covered by this special scheme shall keep, numbered by order of dates, invoices received and documents containing the settlement of the tax corresponding to the transactions described in Article 123, Paragraph 1, second subparagraph, numbers 1 and 2 of the Tax Act, as well as documents containing the liquidation and payment of the tax on imports.

In addition, they must keep, numbered by order of dates and grouped by quarters, the invoices to be issued in compliance with the provisions of Article 2 (3) of Royal Decree 2402/1985 of 18 December. An invoice shall be issued for the transmissions of the fixed assets referred to in the second subparagraph of Article 123 (1) of the Tax Act.

Article 41. Statements-settlements.

1. The taxable persons covered by the simplified scheme shall submit four statements-settlements in accordance with the specific model determined by the Minister for Economic Affairs and Finance.

2. The first calendar days of the months of April, July and October shall be presented in the first twenty calendar days.

The final declaration-settlement must be filed during the first thirty calendar days of January of the following year.

Article 42. Approval of indexes, modules, and other parameters.

1. The Minister for Economic Affairs and Finance shall approve the indices, modules and other parameters within the meaning of Article 123 (1) of the Tax Law.

2. The Ministerial Order may refer to a period of time exceeding the year, in which case the method of calculation for each of the years covered shall be determined separately.

3. The Ministerial Order shall be published in the Official Journal of the State before 1 December preceding the beginning of the corresponding annual period of application. '

2. Articles 43 and 47 (special arrangements for agriculture, animal husbandry and fisheries) are hereby amended as follows:

" Article 43. Subjective scope of application.

1. The agricultural, livestock and fisheries arrangements shall apply to holders of agricultural, forestry, livestock or fishing holdings in which the requirements laid down in the Tax Law and in this Regulation are met, provided that they do not they have renounced the same in accordance with Article 33 of the latter.

The taxable persons whose total volume of operations during the year immediately above would have exceeded 50,000,000 pesetas will be excluded from this special scheme, except that the rules governing the tax on the Income of the Physical Persons shall establish another figure for the purpose of applying the objective estimation scheme for the determination of the performance of the activities referred to in the preceding paragraph, in which case the latter shall be the case.

2. The waiver of the special arrangements for agriculture, livestock farming and fishing shall take place in the form and time limits provided for in Article 33 of this Regulation. The waiver of such a regime by the entities in the system of income allocation in the Income Tax of the Physical Persons shall be formulated by all the members, heirs, community members or members.

3. Agricultural, forestry, livestock or fishing holdings shall not be considered as holders for the purposes of this special scheme:

1. The owners of farms or farms that are ceding them on tenancy or in partnership or who in any other way cede their exploitation.

2.o Those performing livestock holdings under integrated livestock farming. "

" Article 47. Formal obligations.

1. In general, the taxable persons covered by this special scheme shall, in relation to the value added tax, carry out a record book in which they shall record the transactions covered by the special scheme.

2. The following liabilities shall also comply with the following obligations:

1.o Liabilities to other activities to which the simplified scheme is applicable or the special scheme of the equivalence surcharge shall be required to keep the Book of invoices received, with due account separation of invoices corresponding to acquisitions corresponding to each distinct sector of activity, including those concerning the special arrangements for agriculture, livestock and fisheries.

2.o taxable persons carrying out activities to which any other arrangements other than those referred to in number 1 are applicable shall comply with them in respect of the formal obligations laid down in general or specified in this Regulation. In any case, invoices relating to acquisitions corresponding to activities to which

the special regime for agriculture, livestock and fisheries is applicable. "

3. Article 56 (special scheme for the proportional determination of the taxable bases) is amended as follows:

" Article 56. Exclusions from the special scheme.

The retail traders listed below will be excluded from the special scheme of proportional determination of the taxable bases:

1.o In general terms, retail traders to whom the special scheme of the equivalence surcharge applies.

2.o With particular reference to the products or items listed below, retail traders who market the following goods:

(a) Motor-driven vehicles for road traffic.

b) Ships and ships.

c) Aircraft, planes, sailboats and other aircraft.

Exclusion shall not produce effects in relation to other retail sales by retailers referred to in this number 2.o

3.o Retail traders whose turnover corresponding to all their business or professional activities has exceeded the preceding calendar year of 100,000,000 pesetas. If the preceding calendar year has been the start of the activity, the amount of the volume of transactions in the activity shall be raised per year. This limit shall not be taken into account in the first year of the activity. '

Article 3. Amendment of Royal Decree 2538/1994 of 29 December 1994.

The Royal Decree 2538/1994, of 29 December, is amended, whereby detailed rules regarding the Indirect General Tax and the Arbitration for Production and Import in the Canary Islands, created by the Law 20/1991 of 7 June.

1. The full text of Chapters I and II of Title III shall be amended as follows:

" TITLE III

Special Regimes

CHAPTER I

General rules

Article 90. General rules.

1. The special schemes in the Indirect General Tax Canarian are as follows:

1.o The simplified regime.

2.o Special regime of used goods.

3.o The special regime of art objects, antiques and collectibles.

4.o The special regime of travel agencies.

5.o The special regime of agriculture and animal husbandry.

6.o The special regime of retail traders.

2. The special arrangements for used goods and the special arrangements for objects of art, antiques and collectors ' items shall be optional.

The simplified special schemes and agriculture and livestock farming will apply to taxable persons who meet the requirements of the Indirect Canarian General Tax Law and who have not resigned. to the same.

The waiver of the objective estimate of the Income Tax of the Physical Persons will mean the waiver of the simplified special regimes and of agriculture and livestock in the Indirect General Tax Canarian for all business or professional activities carried out by the taxable person. Likewise, the waiver of the application of any of the aforementioned special regimes in the Indirect General Tax Canarian will entail the waiver of the objective estimation regime in the Income Tax of the Physical Persons for all the business or professional activities carried out by the taxable person.

Where the taxable person is engaged in the simplified scheme or in the case of agriculture and livestock farming, and in the course of the year he or she is entitled to benefit from any such scheme, the waiver of the scheme This activity will have no effect on the activity that had been carried out before the end of the year.

If in the immediate year preceding the one in which the waiver of the simplified regime of agriculture and animal husbandry should take effect will be exceeded the limit that determines its scope, such renunciation will be tabled.

3. Special schemes of an optional nature shall apply exclusively to taxable persons who have submitted the censal declaration of commencement or modification of the activities, which is established by the Autonomous Government of the Member States. Canary Islands.

CHAPTER II

Simplified regime

Article 91. Subjective extension.

Tax taxable persons who meet the following requirements shall be taxed by the simplified scheme:

1.o That are natural persons or entities in the system of income allocation in the Income Tax of the Physical Persons, provided that, in the latter case, all of its members, heirs, community members or unit-holders are persons physical.

The application of the simplified special scheme to the entities referred to in the preceding paragraph shall be carried out regardless of the circumstances that are individually involved in the persons who integrate them.

2.o Make any of the economic activities included in the scheme, provided that, in relation to such activities, they do not exceed the limits determined by the Government's Ministry of Economy and Finance Autonomous Canary Islands.

Article 92. Waiver of the simplified scheme.

The taxable persons may waive the application of the simplified scheme in the form and time limits determined by the Autonomous Government of the Canary Islands.

The waiver of the special regime simplified by the entities under the attribution system shall be made by all the partners, heirs, community members or unit-holders.

Article 93. Exclusion from the simplified scheme.

1. The following are the determining circumstances of the exclusion of the simplified scheme:

1.o Haber exceeded the limits that, for each activity, determine the Ministry of Economy and Finance of the Autonomous Government of the Canary Islands, with effect from the immediate year after the year in which this circumstance occurs, except in the case of the start of the activity, where the exclusion shall take effect from the moment of commencement of the activity. Taxable persons previously excluded for this reason who do not exceed the limits in successive years shall be subject to the simplified special scheme unless they give up.

2.o The regulatory alteration of the objective scope of the simplified scheme determining the non-application of that special scheme to the economic activities carried out by the taxable person, with effect from time to set the corresponding standard for the amendment of that objective field.

3.o Haber is excluded from the application of the objective estimate of the Income Tax of the Physical Persons.

4.o Conduct activities not covered by the simplified special schemes, agriculture and livestock farming or retail traders. However, the exclusion of the simplified special scheme shall not entail the performance by the taxable person of other activities in whose development he exclusively carries out transactions exempt from the tax on the application of Article 10 of his Law (a) the right of establishment, or leases of immovable property, the performance of which does not involve the development of a business in accordance with the provisions of Article 40 (2) of Law 18/1991 of 6 June of the Income Tax Natural Persons.

2. Circumstances 3.o and 4.o of the preceding number shall have effect from the immediate year after the year in which they occur, unless the taxable person does not come carrying out business or professional activities, in which case the exclusion effects from the moment the start of such activities takes place.

3. If the Tax Inspectorate finds, as a result of the actions of verification or investigation of the taxable situation of the taxable person, the existence of circumstances determining the exclusion of the simplified scheme, it shall proceed to the appropriate regularisation of the same in general.

Article 94. Objective scope.

1. The simplified scheme shall apply in respect of each of the activities covered by the objective estimate of the income tax of the physical persons, except those to which any other of the schemes applies. (a) special provisions of Title III of this Regulation.

For the purposes of the application of the simplified scheme, independent activities shall be considered as separate activities, each specifically included in the Order of the Economic and Finance Ministry of the Autonomous Government of the Canary Islands. This scheme.

2. The determination of the economic operations included in each of the activities referred to in Article 1 of this Article shall be carried out in accordance with the rules governing the tax on economic activities in so far as they are applicable.

Article 95. Content of the simplified scheme and revenue making.

1. The determination of the quotas to be entered as referred to in Article 50 (1) of the Tax Act shall be determined by the taxable person himself, calculating the total amount of the contributions due by way of his economic activity the indices and modules which, with specific reference to each activity and for the corresponding annual period of time, have fixed the Economic and Finance Ministry of the Autonomous Government of the Canary Islands, which may deduct from that amount the supported or satisfied by the acquisition or import of goods and services, other than assets fixed, intended for the development of the activity.

The Economic and Finance Ministry of the Autonomous Government of the Canary Islands may establish a minimum amount of the quotas to be entered for each activity to which this special regime applies.

2. The amount of the fees to be paid as provided for in the preceding number 1 shall be increased by the fees payable for the operations referred to in the second subparagraph of Article 50 (1) of the Tax Act, and may be reduced in the amount of the quotas supported or satisfied by the purchase or import of the fixed assets for the development of the activity.

3. Where the development of activities to which the simplified scheme applies is affected by fires, floods or other exceptional circumstances affecting a particular sector or area, the Economic and Social Council Hacienda del Gobierno Autónomo de Canarias may authorize, exceptionally, the reduction of the indices or modules.

4. Where the development of activities to which the simplified scheme applies is affected by fires, floods, sinks or major breakdowns in the industrial equipment involving serious disturbances in the development of the activities, the interested parties may request the reduction of the indices or modules in the body of the Ministry of Economy and Finance of the Autonomous Government of the Canary Islands corresponding to their tax domicile within thirty days from the date of the the date on which those circumstances occur, providing the evidence they deem appropriate. The effectiveness of these alterations in the case of the Ministry of Agriculture will be agreed upon, the reduction of the relevant indices or modules will be agreed upon.

In addition, in accordance with the same procedure as indicated in the preceding paragraph, it may be possible to request the reduction of the indices or modules in cases where the holder of the activity is in a situation of temporary incapacity and not has other staff employed.

5. The result of applying the provisions set out in the preceding numbers shall be determined by the taxable person at the end of each calendar year, however, in the statements-settlements corresponding to the first three quarters of the same year. income from a part of that result, calculated in accordance with the procedure laid down by the Ministry of Economy and Finance of the Autonomous Government of the Canary Islands.

The settlement of transactions referred to in the second subparagraph of Article 50 (1) of the Tax Act shall be effected in the declaration-settlement for the settlement period in which the tax is due and the deduction of the shares supported or satisfied by the acquisition or import of the fixed assets may be carried out in accordance with the general rules contained in the tax rules. However, the taxable person may liquidate the transactions covered by this paragraph in the declaration-settlement for the last period of the calendar year.

Article 96. Approval of indexes, modules, and other parameters.

1. The Economic and Finance Ministry of the Autonomous Government of the Canary Islands shall approve the indices, modules and other parameters within the meaning of Article 50 (1) of the Tax Law.

2. The Order may refer to a period of time exceeding the year, in which case the method of calculation for each of the years covered shall be determined separately.

3. The Order shall be published in the Official Gazette of the Autonomous Community of the Canary Islands before the 10th of December preceding the beginning of the corresponding annual period of application.

Article 97. Determination of the volume of operations.

1. For the purposes of this Regulation, the volume of transactions shall mean the total amount, excluding the Indirect Canarian General Tax itself and, where applicable, the surcharge of the special scheme of retail traders and the compensation to (a) a lump sum of the supplies of goods and services effected by the taxable person during the calendar year, including those exempt from the tax.

2. Transactions shall be deemed to have been carried out on the occasion of or, where appropriate, the accrual of the Indirect Canarian General Tax.

3. For the determination of the volume of operations, the following shall not be taken into account:

1.o The occasional deliveries of real estate.

2.o The supply of qualified goods as investment in respect of the transfer in accordance with the provisions of Article 40, Nos. 8 and 9, of the Tax Law.

3.o Financial transactions referred to in Article 10 (1) (18) of the Tax Act, including those which do not benefit from exemption, where they are not customary for the business or professional activity of the subject liabilities. '

Article 4. Amendment of Royal Decree 1041/1990 of 27 July 1990.

The following articles of Royal Decree 1041/1990 of 27 July 1990 are amended, regulating the census statements to be presented for tax purposes by employers, professionals and others. Tax.

1. Article 8 shall be worded as follows:

" Article 8. Tax situations.

1. The following data shall also be found in the census of employers, professionals or retainers:

(a) The condition of an exempt entity, for the purposes of the Company Tax, in accordance with Articles 9 and 133 of the Law of this Tax.

(b) The subject of the tax obligation to the special scheme of the equivalence surcharge for value added tax purposes.

c) The waiver of the simplified special scheme or the special scheme for agriculture, livestock and fisheries, in the value added tax.

d) The waiver of the objective estimation regime and the simplified mode of the direct estimate regime in the Income Tax of the Physical Persons.

2. This census shall be jointly formed with the Register of Exporters and other Economic Operators which shall be made available in the Delegations of the State Tax Administration Agency for the returns referred to in Articles 115, two, and 116 of the Law of Value Added Tax. "

2. Article 9 shall be worded as follows:

" Article 9. Declaration of commencement.

1. Employers or professionals who are to begin the exercise of one or more business or professional activities on Spanish territory must submit a declaration of discharge in the census.

2. Legal persons who, without being employers or professionals, satisfy, pay or owe income from work, capital or professional, artistic or sporting activities, subject to retention, shall also submit a statement of discharge in the census.

They will also have to present a declaration of discharge in the census of legal persons who, without acting as employers or professionals or satisfying yields subject to retention, make intra-Community acquisitions of goods. subject to Value Added Tax.

3. This declaration will allow the tax authorities to communicate the data collected in Articles 4 to 7 and in the first paragraph of Article 8 of this Royal Decree.

4. This initial declaration will also serve the following purposes:

a) Request the allocation of the tax identification number, if it is not available.

(b) Submit the prior declaration at the beginning of the operations referred to in Article 111 of the Value Added Tax Act.

(c) Waive the objective estimation regime and the simplified mode of the direct estimation scheme in the Income Tax of the Physical Persons or the simplified special schemes and of agriculture, Value added tax on livestock and fisheries.

d) To opt for the application of the special system of proportional determination of the tax bases.

(e) To opt for the method of determining the tax base in the special scheme of the travel agencies referred to in Article 146 of the Law on Value Added Tax and for the determination of the tax base by means of the overall profit margin in the special scheme for used goods, art objects, antiques and collectors ' items referred to in Article 137 (2) of the same Law.

f) Opting for the subjection to the value added tax of intra-Community acquisitions of goods, as laid down in Article 14 (4) of the Value Added Tax Act, where the declarant is not already registered in the census.

(g) To opt for non-compliance with the Value Added Tax on the supply of goods referred to in Article 68 (4) of the Law on the tax.

(h) Communicate the subjection to the Value Added Tax of the supplies of goods referred to in Article 68 (3) and (5) of the Law of the said tax, when the declarant is not already registered in the census.

i) Propose to the Administration the provisional percentage corresponding to the special scheme of proportional determination of the taxable bases in the case referred to in Article 152 (1), number 4, second paragraph, of the Law on Value Added Tax.

5. This declaration must be submitted, as the case may be, prior to the commencement of the relevant activities, to the conduct of the operations or to the birth of the obligation to retain on the yields which are satisfied, paid or deben.

For the purposes of this Royal Decree, the commencement of a business or professional activity shall be deemed to be the beginning of any delivery, performance or acquisition of goods or services. charges or payments or contract staff, in order to intervene immediately or in the future in the production or distribution of goods or services. "

Article 5. Amendment of Royal Decree 2402/1985 of 18 December 1985.

Article 2 (2) of Royal Decree No 2402/1985 of 18 December 1985 regulating the duty to issue and deliver an invoice for employers or professionals is hereby amended, as follows: continuation:

" 2. The entire supply of goods and services, carried out by employers or professionals in the course of their business, shall be invoiced, with the exception of the following operations:

(a) Those made by taxable persons of the value added tax to which the equivalence surcharge scheme applies, unless those activities are taxed under the direct estimate of the tax on the Income of the Physical Persons.

(b) The transactions exempt from the Value Added Tax, pursuant to Article 20 of its Regulatory Law, except those referred to in points 2, 3, 4, 5, 15, 20, 21, 22, 24 and 25 of that article.

c) The use of toll motorways.

(d) Those which, with reference to specific business or professional sectors or undertakings, authorise the competent authority of the tax administration, in order to avoid disturbances in the development of activities The economic and social sectors.

e) Those made by taxable persons of the Income Tax of the Physical Persons in the exercise of activities that are in the regime of objective estimation.

(f) Those made by taxable persons of the Value Added Tax in the exercise of activities which are taxed under the simplified special scheme. "

Additional disposition first. Rules for the registration of items of tangible fixed assets.

The taxable persons of the Income Tax of the Physical Persons who carry out business activities which, at 31 December 1997, were not obliged to carry the book registration of investment goods and had affections to its heritage elements activity, record these elements by applying the following rules:

1.a The rules contained in paragraph 1 (c) of the Order of 4 May 1993 governing the manner of conduct and the diligent of the records in the Income Tax of Persons shall apply. Physical.

2.a For the calculation of the cumulative amortisation at 31 December 1997, it shall be incorporated, for the tax periods in which the net return was determined by objective estimate, the result of applying the derived from the maximum depreciation period according to the officially approved amortisation tables, in force at any time.

Additional provision second. Application of the additional provision of the Companies Tax Regulation adopted by Royal Decree 537/1997 of 14 April 1997.

1. The depreciation coefficients referred to in paragraph 1 (b) of the first provision of the Corporate Tax Regulation shall apply in accordance with the following rules:

1.a The write-downs for tax periods prior to 1 January 1998 shall be determined by applying the coefficients derived from the maximum depreciation period according to the official depreciation tables, in force at each moment.

2.a write-downs corresponding to tax periods initiated as from 1 January 1998 shall be determined by applying the rules contained in Article 28 (2) of the Income Tax Regulation. Physical Persons.

2. The maximum repayment period referred to in paragraph 2 of the first provision of the Company Tax Regulation shall apply in accordance with the following rules:

provisions of the additional provision shall apply to the transfers of property assets to business and professional activities carried out before 1 January 1998.

2.The transfer of property assets to business and professional activities carried out from 1 January 1998 shall be taken as the maximum depreciation period resulting from the simplified table of depreciation provided for in Article 28 (2) of the Income Tax Regulation of the Physical Persons.

First transient disposition. Publication of the Order in which the simplified special scheme of value added tax and the objective estimate of the income tax of the physical persons are regulated for the year 1998.

1. By way of derogation from Article 42 (3) of the Value Added Tax Regulation, the Order referred to in that provision for the financial year 1998 must be published in the 'Official State Gazette' before the 15th of the year. February 1998.

2. Without prejudice to the provisions of Article 28 (5) of the Financial Income Tax Regulation, the Ministerial Order in respect of which the signs, indices or modules for 1998 are set shall be published in the Bulletin Official of the State " before the 15th of February 1998.

Second transient disposition. Application for the year 1998 of the simplified special schemes and of the agricultural, livestock and fisheries of the value added tax, the objective estimation scheme and the simplified mode of the direct estimate of the Tax on the Income of the Physical Persons.

One. 1. The waiver of the application of the simplified special schemes and of agriculture, livestock farming and fishing for the year 1998, as well as the revocation of the same as it must have effects in that financial year, may be effected from the day following the date on which the application was made. of the publication in the "Official Gazette of the State" of the Ministerial Order until 31 March 1998.

2. Taxable persons who have renounced the application of the simplified special scheme or of agriculture, livestock and fisheries may revoke such a waiver within the same period referred to in paragraph 1 above, even if the time limit has not elapsed. Three years as laid down in Article 33 (2) of the Value Added Tax Regulation.

Any taxable person who has renounced the application of the special arrangements for agriculture, livestock and fisheries and does not revoke the special scheme within the period indicated, may not carry out such a revocation until the three years after the date of the said resignation.

Two. 1. Without prejudice to the provisions of Article 23 (1) of the Rules of Procedure on the Income of the Physical Persons, the waiver of the objective estimate for 1998 may be effected from the day following the date of the publication in the "Official State Gazette" of the Ministerial Order until 31 March 1998.

2. Taxable persons who have renounced the application of the objective estimation scheme may revoke such a waiver by 1998 within the same period of time referred to in paragraph 1 above, even if the three-year period laid down in the first subparagraph has not elapsed. Article 23 (2) of the Income Tax Regulation of the Physical Persons.

3. Without prejudice to the provisions of Article 19 (1) of the Rules of Procedure on the Income Tax of the Physical Persons, the waiver of the simplified mode of the direct estimation scheme for 1998 shall be effected within the period prescribed referred to in paragraph 1 above.

Transitional provision third. Regularisation of the deduction of the shares supported by the acquisition of investment goods by taxable persons covered by the simplified scheme of the value added tax or the Indirect General Tax and acquired before the Entry into force of this Royal Decree.

1. The deduction of the shares which are supported or satisfied before 1 January 1998 by the acquisition or import of investment goods affected by activities under the simplified scheme may be subject to regularisation in accordance with the provisions of the Article 107 of the Law on Value Added Tax, or Article 40 of the Law amending the Fiscal Aspects of the Fiscal Economic Regime of the Canary Islands, as long as the period of regularisation indicated in such precepts.

The regularisation shall be effected, where appropriate, in the declaration-settlement for the last period of liquidation of the financial year, taking into account that, for these purposes, the proportion of the activities subject to the Simplified scheme until 1 January 1998 was zero, except in respect of the quotas which were supported or satisfied by the purchase or import of the buildings, vessels and intangible assets excluded from the scheme until 1 January 1998.

2. The Book referred to in the first subparagraph of Article 40 (1) of the Value Added Tax Regulation shall be entered in the Book Book as referred to in the first subparagraph of Article 40 (1) of the Financial Regulation. Decree, provided that its period of regularisation had not elapsed, indicating all the information necessary to carry out the regularisations which, if necessary, would have to be carried out.

Transitional disposition fourth. Effects of the waiver for 1998 on the objective estimate of the income tax on the physical persons, the special arrangements for agriculture, livestock and fisheries of the value added tax and the special arrangements for agriculture and Direct Indirect Canarian General Tax.

1. For the year 1998, the waiver of the objective estimate of the Income Tax of the Physical Persons will not imply the renunciation of the special regime of the Agriculture, Livestock and Fishing of the Tax on the Added Value or the renunciation to the Special regime for the agriculture and livestock of the Indirect Canarian General Tax.

2. For the year 1998, the waiver of the special regime of agricultural, livestock and fishing of the value added tax or the renunciation of the special regime of agriculture and livestock of the Indirect General Tax will not mean the renunciation of the the objective estimation of the Income Tax of the Physical Persons.

Single end disposition. Entry into force.

This provision shall enter into force on the day following that of its publication in the Official Gazette of the State, and shall have effect from 1 January 1998.

Given in Madrid on 16 January 1998.

JOHN CARLOS R.

The Second Vice President of the Government

and Minister of Economy and Finance,

RODRIGO DE RATO Y FIGAREDO