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V2825-14 20 October 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Negative income from economic activities can be offset against the general tax base or in future tax years

A lawyer with self-employed professional activity asks how to offset negative income and how to classify income from teaching courses. The DGT explains the loss offset process and determines that course fees can be classified as income from economic activities if there is an organisation of means.

The question raised

For the purposes of Personal Income Tax, the following is requested:

The DGT's ruling

Negative returns from economic activities are integrated into the general taxable base to be offset against other returns from the same base. If a negative balance persists, it becomes a negative general taxable base and may be offset against positive bases in the following four years. Regarding courses, they are taxed as economic activities if the taxpayer organizes their own means of production or human resources, or if they are part of their habitual professional activity.

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