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V2351-21 18 August 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Copyright royalties from the assignment of literary works are classified as employment income

A taxpayer employed by others receives royalties for their books. The Tax Agency has ruled that these earnings constitute employment income rather than income from economic activities, unless the individual organises their own resources.

The question raised

Taxation under the IAE (writers' heading) and under the IRPF.

The DGT's ruling

Income from the assignment of exploitation rights of literary works is classified as income from employment. It shall only be considered income from economic activities if the author organizes, on their own account, means of production and/or human resources to intervene in the production or distribution of goods or services. In the case consulted, as such organization is not present, the consideration from the publisher is income from employment.

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