Skip to content
Back to index
V1759-18 18 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Occasional tasks performed by a retiree classified as employment income rather than business income

A company queried whether remuneration for occasional administrative tasks performed by a retired former employee should be classified as business income or employment income. The Directorate General for Tax (DGT) ruled that these constitute employment income, as there is no self-organised arrangement of production means or human resources.

The question raised

Classification of remuneration for the purposes of subject to personal income tax withholding.

The DGT's ruling

Income from sporadic tasks performed by a retired person constitutes earned income, as the organization of production means and human resources necessary to constitute an economic activity is not present. The organization of said means is carried out by the requesting company. The personal income tax withholding shall be determined according to the general procedure of the Tax Regulations.

Book your free first meeting