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V1810-23 21 June 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Income from teaching courses taxed as employment income or business income depending on organisation of means

A query was raised regarding the classification of income and the applicable withholding tax for speakers conducting courses organised by a provincial council. The DGT determines that, as a general rule, such income constitutes employment income, unless the speaker organises production means or is part of a pre-existing economic activity.

The question raised

Applicable IRPF withholding tax.

The DGT's ruling

Income from teaching courses constitutes employment income, unless it involves the self-organization of means of production or human resources. If the speaker already carries out an economic activity and the event is an additional service within that activity, it shall be considered income from economic activities. The withholding tax rate shall be 15% for employment income or 15% (or 7% in specific cases) for professional activities. Regarding travel expenses, if the entity directly provides the means of transport or accommodation, no income is generated; if they are reimbursed without proof that they strictly compensate for the expense, they are considered income.

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