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V1117-15 ·13 April 2015 ·consulta-vinculante Medium impact
Tax

Unallocated copyright advances are classified as income from economic activities

An author has requested clarification on how to classify and temporally attribute copyright advances that exceed the royalties accrued upon the termination of her publishing contract. The Directorate General for Tax (DGT) has ruled that these amounts constitute income from economic activities and must be attributed to the tax period in which the contract ends.

In 6 key points

How it affects those involved

This ruling clarifies the tax treatment of surplus advances in publishing contracts, ensuring they are taxed as business income in the year the contractual relationship concludes.

Lifecycle

2015-04-13PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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