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V3293-20 6 November 2020 · SG de Tributos Locales Criterion in force
OTRO · impuesto sobre actividades económicas

No IAE tax due for teleworking employees in municipalities

A professional services company asks whether it must pay IAE and waste collection tax in municipalities where its employees work from home. The DGT responds that employee residences are not the company's establishments because there is no direct availability over them.

The question raised

Question raised In the Tax on Economic Activities: place of performance of the economic activity, in the event of telework by its employees.

The DGT's ruling

The place where the activity is carried out is the municipality where the establishment from which the services are effectively provided is located. For a premises to be considered an establishment, the taxpayer must have direct availability over it. The residences of employees where they perform telework cannot be considered company establishments as such direct availability does not exist. Therefore, there is no obligation to register or pay in municipalities where no premises or establishment is available.

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