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V0694-17 16 March 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · atribución de rentas

Pharmacy returns are subject to Personal Income Tax rather than Corporate Tax

A query was made regarding the tax implications of converting a civil society into a community of property for the operation of a pharmacy. The DGT ruled that pharmacy returns are always subject to Personal Income Tax (IRPF) for the owners, whether individually or through the attribution of income.

The question raised

Tax consequences in Personal Income Tax of the aforementioned operation.

The DGT's ruling

The income from pharmacy offices is not subject to Corporate Tax because dispensing activities must be carried out by the pharmacist owner. Therefore, taxation corresponds to the pharmacists under Personal Income Tax, whether individually or through the income attribution regime. The change from a civil society to a community of property does not alter this tax treatment.

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