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V3190-16 8 July 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · oficina de farmacia

Pharmacy returns are subject to Personal Income Tax rather than Corporate Tax

A query was raised regarding whether pharmacies can be subject to Corporate Tax. The Directorate General for Taxes (DGT) ruled that, as pharmacy activities are non-transferable to the owner, the income must be taxed under the pharmacist's Personal Income Tax (IRPF).

The question raised

Possible application to pharmacies of Article 7, paragraph 1, letter a) of the Corporate Income Tax Law.

The DGT's ruling

The activities of acquisition, custody, and dispensing of medicines legally correspond to the pharmacist owner-holder and cannot be exercised by a commercial company. Therefore, the income from the pharmacy office is taxed under the holder's Personal Income Tax (IRPF), whether individually or under the income attribution regime. Distinct assets, such as premises or furniture, may indeed be owned by a commercial company.

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