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V3098-16 4 July 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Income for self-employed individuals transitioning to employees must be taxed as employment income

A taxpayer who was previously self-employed has been registered as an employee with retroactive effect following an inspection. They are seeking guidance on how to regularise their situation regarding Personal Income Tax (IRPF).

The question raised

Method of regularizing their tax situation regarding Personal Income Tax.

The DGT's ruling

If an employment relationship exists, the income received during that period must be classified as employment income and not as economic activities. To regularize the situation, the taxpayer may file supplementary self-assessments or substitute returns in accordance with the General Tax Law.

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