Self-employed driving instructors cannot use the objective estimation regime

The nature of economic activities determines the taxation regime applicable to Personal Income Tax (IRPF). Recently, the Dirección General de Tributos (DGT) has clarified the incompatibility that arises when a self-employed individual combines the management of a driving school with the provision of driving instruction services to third parties on a self-employed basis.

What the DGT has ruled

The advisory body has distinguished between two types of activities with different legal and tax natures:

• Business activity: The management of one's own driving school is classified under heading 933.1, being an activity of a business nature.
• Professional activity: Driving instruction for third parties carried out on a self-employed basis falls under group 825, which defines it as a professional activity.

Since professional activities in group 825 are not included in the objective estimation regime (modules), the coexistence of both activities creates an incompatibility. In this scenario, the taxpayer is obliged to pay taxes using the direct estimation method for the totality of their economic income.

What this means for you

If you are a self-employed individual managing your own driver training center but, complementarily, provide teaching services to other entities or third parties independently, you will not be able to opt for the modules of the objective estimation regime. Even if your total income does not exceed the limits established for said regime, the mere professional nature of driving instruction obliges you to declare your profits through direct estimation.

It is important to note that, if the relationship with the other driving school were of an employment nature and not a provision of services on a self-employed basis, it would not be considered an additional economic activity, and the tax situation would be different.

What you should do

In this situation, it is necessary to analyze the structure of your income and the way you provide teaching services. The correct classification of your activities in the IAE (Tax on Economic Activities) is decisive to avoid errors in your IRPF declaration. It is recommended to assess whether the provision of driving services is carried out independently or under a relationship of dependency, as this radically modifies the tax obligation and the applicable income regime.