Last January 28, the Government approved a new Omnibus Decree in which, to the surprise of self-employed hauliers, the extension of the module regime was not included. This absence means a drastic change in the fiscal conditions of the sector, leaving thousands of hauliers, including cab driversin a “legal limbo”.
The repeal of the extension means that the turnover limit allowed to benefit from this regime is reduced from 250,000 to 150,000 euros, which could force a significant percentage of cab drivers to be taxed under the direct estimation regime, a system that implies higher tax costs.
A tax hit for cab drivers
According to Joan Marí, a member of the board of the Agrupación de Autotaxis de las Islas Baleares, this change especially affected cab drivers operating with an ordinary and a seasonal license, as many of them exceed the new limit of 150,000 euros of annual turnover. “If they exceed it, they will have to go by direct estimation, that is, income minus expenses, which means paying much more in taxes,” Marí explained. Until 2024, cab drivers were eligible for the module system as long as their turnover did not exceed 250,000 euros per year. This system, now at risk of disappearing for many, allowed them to pay taxes in a simpler and more predictable way. For his part, Gabriel Moragues, president of the Balearic Taxi Federation, remains hopeful that the Government will take corrective measures. “I think it will be corrected. I think that the 50 things that have been dangled from the initial 80 will be chopped up,” he commented in dialogue with La Voz de Ibiza.
Uncertainty and unequal competition
The National Federation of Transport Associations of Spain (Fenadismer) has denounced that the exclusion of the extension generates uncertainty for more than 30,000 self-employed carriers and puts them in a “legal limbo”. “They have started the fiscal year with the expectation of benefiting from the module regime and now they could be excluded without a clear alternative,” warn from the federation. Beyond the impact on the tax burden, there are those who point out that the module regime has allowed certain non-transparent practices in the sector. From the business sphere, it has been repeatedly mentioned that this system facilitates the payment in “B” of part of the drivers’ salaries, allowing cab drivers to compete with an advantage over other sectors such as VTC and buses.
