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An English teacher who hires other teachers to give classes questions whether her activity is professional or business-related. The DGT determines that, due to the existence of an organization of resources, the activity is business-related.
Question posed: Classification of the activity within the Rates of the Tax on Economic Activities.
Teaching activity is professional if it is carried out directly and personally by the taxpayer. It is business-related if it is exercised within an organization (academy or study center) detached from the professional personality of the teacher. If the applicant has teachers but no own premises, she must register in group 934 of the first section (teaching outside a permanent establishment), either as a natural person or a company.
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