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A taxpayer queried whether making homemade rugs as a secondary activity should be subject to Income Tax (IRPF) withholdings. The Directorate General for Taxes (DGT) ruled that, as an artistic and artisanal activity, it is classified as a professional activity subject to withholding.
Question raised: Subject to withholding of income under the Personal Income Tax.
The manufacture of rugs through manual labor and original designs is considered an artistic activity according to the IAE Tariffs. Therefore, the income derived from this activity is considered income from professional activities. This income shall be subject to withholding tax for IRPF when paid by persons or entities obligated to withhold.
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