Objective estimation for teaching activities under heading 933.9 of the IAE

The Directorate General of Taxes (DGT) has issued a relevant ruling for professionals engaged in teaching activities. The inquiry focuses on determining whether it is possible to apply the objective estimation method to calculate net income for Personal Income Tax (IRPF) when the activity falls under heading 933.9 of the Economic Activities Tax (IAE).

What the DGT has ruled

The tax authority has confirmed that teaching activities included in heading 933.9 of the IAE are included in the objective estimation regime, in accordance with the provisions of Order HAC/1347/2024. The ruling establishes that net income may be determined using this method provided that the exclusionary magnitudes provided for in Article 3 of the aforementioned Order are met and no other causes for exclusion that prevent its application occur.

What it means for you

If you are an individual intending to start or currently performing a teaching activity under heading 933.9 of the IAE, this resolution allows you to consider the objective estimation method as an option for determining your net income for IRPF. This implies that you will not be obliged to use exclusively the direct estimation method, provided that your activity does not exceed the income limits or magnitudes established by current regulations.

What you should do

It is necessary to verify compliance with the technical requirements and the exclusion magnitudes detailed in Order HAC/1347/2024 before opting for this regime. Since the application of this method depends on not reaching certain economic thresholds, it is fundamental to analyze the activity's projection to ensure that an ex officio exclusion does not occur. It is recommended to assess each particular situation to determine which method is most suitable according to the cost structure and projected income.