Sports service centers may offer pilates under the objective estimation regime

The nature of the economic activity and its organizational structure determine the applicable taxation regime for Personal Income Tax (IRPF). A recent binding ruling from the Directorate General of Taxes (DGT) has specified the tax treatment of pilates services when they are integrated into a pre-existing business structure.

What the DGT has resolved

The advisory body has determined that, if pilates courses are taught within the framework of a business organization, heading 967.2 of the first section of the Economic Activities Tax (IAE) Tariffs is appropriate for its exercise. Being classified under this heading, the net income from the activity can be included in the calculation using the objective estimation method.

However, the resolution establishes a fundamental distinction based on the business structure: if the pilates activity is carried out personally and individually, without a business organization to support it, the professional will not be able to use said heading and must register under group 826 of the second section of the IAE.

What this means for you

This distinction has a direct impact on the tax burden and the administrative management of sports businesses:

• For business organizations: The incorporation of pilates classes does not alter their current taxation regime, provided that the business organization structure is maintained and heading 967.2 is used.
• For self-employed professionals: If an instructor decides to offer these services independently and without a company structure, they must tax under a different heading, which could imply a change in the way their net income is determined.

What should be done

It is necessary to verify that the operational structure of the activity meets the requirements of a business organization to ensure the correct use of heading 967.2. Correct classification in the IAE is decisive for the application of the objective estimation method in the IRPF. It is recommended to assess the specific situation of each business model to avoid errors in activity registration or in the determination of net income.