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V2104-20 23 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Insurance brokerage commissions may be taxed as income from economic activities

An insurance agency employee inquired whether commissions received via invoice for issuing insurance policies should be classified as employment income. The Directorate General for Taxes (DGT) indicates that if the activity is carried out under insurance brokerage regulations, it could be classified as income from economic activities.

The question raised

Question regarding the classification of these commissions for Personal Income Tax (IRPF) purposes, stating in the consultation request that the only contract linking the individual to the agency is an employment contract.

The DGT's ruling

If the distribution of insurance is carried out in accordance with Article 8.1 of Law 26/2006, the commissions received are classified as income from economic activity as they derive from a professional mediation activity. However, this classification could change if the commissions were a bonus within the employment relationship, although the facts reported do not suggest such a scenario.

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