Providing courses: Income from employment or economic activity?

The tax classification of income obtained from providing courses is a recurring point of friction for training professionals. The Directorate General of Taxes (DGT) has specified the criteria to determine whether this income should be included as employment income or as income from economic activities in the Personal Income Tax (IRPF) return.

What the DGT has resolved

The tax authority's criteria establish that, as a general rule, providing courses is taxed as employment income. The exception for these earnings to be considered part of an economic activity lies in the self-organized management of means of production or human resources.

The resolution underlines that if the company hiring the instructor is the one that organizes and provides the necessary means for the training, the income received by this professional maintains its nature as employment income. The classification as an economic activity is not automatic, but rather depends on the existence of such organization of productive factors in each specific case.

What it means for you

If you are a professional offering training services, the way you structure your service will determine your tax treatment. If you act as an instructor using the facilities, materials, and organization of a contracting entity, your income is considered employment income.

For this income to be included as income from economic activities, you must demonstrate that you manage and organize your own means of production or human resources to carry out the activity. This distinction is fundamental for the correct income tax declaration, especially regarding registration in the Census of Economic Activities.

What you should do

It is necessary to analyze the structure of your training contracts and the origin of the resources used to provide the courses. Determining whether there is an organization of means of production on your part is the decisive factor for the correct classification of your income. It is recommended to assess the nature of each contract individually to ensure that the inclusion in the income tax return is appropriate according to current regulations.