Ownership of pharmacy license and its treatment in Personal Income Tax

The Directorate General of Taxes (DGT) has issued a relevant ruling regarding the classification of income derived from the operation of a pharmacy office. The central issue lies in determining whether the income and expenses of these types of establishments should be included in the taxable base of Personal Income Tax (IRPF) as income from economic activities.

What the DGT has ruled

The advisory body establishes that income from pharmacy activity is attributable to the person listed as the holder of the license or authorization for the establishment. This criterion applies even if ownership is obtained provisionally through a judicial process.

Consequently, if a natural person holds such authorization, the income from the pharmacy office must be attributed to them as income from economic activities. To calculate the net income, the difference between income and deductible expenses must be applied, following the rules established in the Corporate Tax Law.

What this means for you

This ruling directly affects natural persons who hold a pharmacy license. The nature of how the authorization was obtained does not matter; if the license is in your name, the administration considers you the holder of the economic activity.

This implies that the management of income and expenses cannot be carried out under any other tax classification, but must comply with the obligations and rights inherent to an economic activity in IRPF. The determination of net profit will be subject to current expense deductibility regulations.

What you should do

It is necessary to verify the legal status of the license ownership in the establishment. In the event that the authorization is provisional, it must be ensured that the accounting and the tax return correctly reflect the nature of this income as income from economic activities.

Given the complexity of the applicable regulations, it is recommended to assess each particular situation to ensure that the treatment of expenses and the determination of net income strictly comply with the Corporate Tax Law and the IRPF Law.