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V1747-16 20 April 2016 · SG de Fiscalidad Internacional Criterion in force
OTRO · impuesto de actividades económicas

The liability for IAE of an Austrian company depends on whether its activity in Spain constitutes a permanent establishment

An Austrian company is inquiring whether it must register for the Economic Activities Tax (IAE) as a representative office to hire a personal secretary. The Directorate-General for Taxes (DGT) clarifies that tax liability depends on whether a permanent establishment exists under the Double Taxation Convention with Austria, or whether the hired individual carries out an economic activity on their own account.

The question raised

The question is raised regarding the appropriateness of registering the applicant in the IAE as a representative office without a permanent establishment.

The DGT's ruling

La sociedad no residente solo tributará en España por IAE si tiene un establecimiento permanente, lo que ocurriría si la persona contratada tiene poderes para concluir contratos en nombre de la empresa. Por su parte, la persona física contratada solo estará sujeta al IAE si ejerce la actividad por cuenta propia y asume el riesgo económico. Si la persona física actúa por cuenta de la empresa, no realiza una actividad económica según el TRLRHL.

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