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V2403-17 21 September 2017 · SG de Tributos Locales Criterion in force
OTRO · hecho imponible

Individuals are exempt from the Business Activity Tax for all their activities

A retiree working as a self-employed insurance broker asks whether they must pay Business Activity Tax. The DGT states that although insurance brokerage is subject to the tax, individuals benefit from an exemption covering all their economic activities.

The question raised

Liability for the Tax on Economic Activities.

The DGT's ruling

The activity of insurance broker carried out by a natural person on their own account is a scenario that constitutes the taxable event for the tax. However, pursuant to Article 82.1.c) of the TRLRHL, natural persons are exempt from the Tax on Economic Activities for the exercise of all their economic activities. Therefore, they are not required to submit the registration declaration for the tax register (Form 840), but they must comply with census obligations through Forms 036 or 037.

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