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V2780-18 24 October 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Insurance agents subject to Income Tax withholding regardless of whether they employ staff

A query was raised regarding whether an insurance agent with employees must be subject to withholding tax on income from economic activities. The Directorate General for Taxes (DGT) ruled that, as this is classified as a professional activity under the Economic Activities Index (IAE), they are subject to withholding regardless of whether they employ staff.

The question raised

Subject to IRPF withholding on income corresponding to the activity carried out by an insurance agent who employs staff.

The DGT's ruling

Income from insurance agents is classified as professional income as it is included in the Second Section of the IAE (Economic Activities Tax) Schedules. Therefore, payments made to these intermediaries are subject to withholding or payment on account according to the IRPF (Personal Income Tax) Regulations. This obligation to withhold remains regardless of whether the agent employs staff in the performance of their activity.

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