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V0170-18 29 January 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · actividades profesionales

Orchestra fees classified as professional activity income subject to withholding tax

An orchestra owner has requested clarification regarding IAE taxation and the withholding of their fees. The DGT has ruled that they must register under both artistic and business activity categories, and that their income constitutes professional activity earnings.

The question raised

Taxation in the IAE and subjection to withholding of fees invoiced for performances.

The DGT's ruling

The applicant must register in group 032 of the third section (musical instrument interpreters) and in heading 965.4 of the first section (entertainment companies). Upon hiring personnel and organizing shows, their income is classified as income from professional activities. Therefore, fees are subject to withholding in accordance with the Personal Income Tax Regulations.

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