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V2421-17 27 September 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Patent profit sharing classified as employment or business income

A consultation was raised regarding the classification of payments received by teaching and research staff through profit-sharing from the exploitation of university patents. The Directorate General for Taxes (DGT) ruled that these do not constitute income from movable capital, but rather employment income or income from economic activities.

The question raised

Classification of the amounts received for said reason in the Personal Income Tax.

The DGT's ruling

Amounts received by researchers for the exploitation of patents are not income from movable capital as they are not holders of the industrial property. They are considered income from employment if an employment relationship exists, or income from economic activity if the researcher provides services independently. The withholding tax will depend on the nature of said income.

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