Doctrine by topic · DGT Observatory

Cessation of Activity: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 53 rulings · 2015–2026

Current position

Benefits for cessation of activity are classified as income from employment pursuant to Article 17.1 b) of Law 35/2006. These benefits include the total amount received, including contributions for common contingencies paid by the mutual insurance company or the Instituto Social de la Marina. As income from employment, they are subject to withholding tax and must not be declared in Form 347.

The DGT's position is consistent in classifying benefits for cessation of activity as income from employment. Rulings have specified that the income includes contributions for common contingencies and that these benefits do not require declaration in Form 347. No change in criterion is observed, but rather a uniform application to different types of benefits.

Turning points

  1. V0831-21

    Specifies that income from employment comprises the total amount of the benefit, including the amount of contributions for common contingencies paid by the mutual insurance company or the Instituto Social de la Marina.

  2. V1394-23

    Establishes that the benefits for cessation of activity regulated in Royal Decree-laws 8/2020, 24/2020, and 30/2020 are excluded from the obligation to declare in Form 347.

Analysis based on 50 of 53 rulings with a stated position. Updated 19 September 2026.

Rulings on this topic

24
V1093-26 18 May 2026

Taxi licence sale does not allow disability reduction if activity continues

SG de Impuestos sobre la Renta de las Personas Físicas
ganancia patrimonialactivos fijos intangiblesestimación objetivaincapacidad permanentecese de actividad LIRPF — Ley 35/2006 del IRPF art. 32.1LIRPF — Ley 35/2006 del IRPF art. 37.1.n
Affects CompanyExpat · Non-residentIndividual
V0586-26 11 Mar 2026

Sales revenue from books after retirement is deemed business income

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos de actividades económicasimputación temporalprincipio de devengocese de actividadjubilación LIRPF — Ley 35/2006 del IRPF art. 14.1.bLIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11.1
Affects CompanyExpat · Non-residentIndividual
V0807-25 12 May 2025

Decline in business registry requires actual cessation of economic activity

SG de Tributos
declaración censalcese de actividadcenso de empresariosactividad empresarialobligación tributaria formal LGT — Ley 58/2003 General Tributaria art. disposición adicional quinta.1LGT — Ley 58/2003 General Tributaria art. disposición adicional quinta.2
Affects CompanyExpat · Non-residentIndividual
V0523-25 28 Mar 2025

Requirements for reducing capital gain from taxi licence transfer

SG de Impuestos sobre la Renta de las Personas Físicas
ganancia patrimonialestimación objetivaactivos fijos intangiblesreducción de ganancia patrimonialtransmisión de licencia LIRPF — Ley 35/2006 del IRPF art. disposición adicional séptimaReglamento del Impuesto
Affects CompanyExpat · Non-residentIndividual
V2820-23 17 Oct 2023

IVA deductions allowed for dissolved community of goods

SG de Impuestos sobre el Consumo
comunidad de bienessujeto pasivoderecho a la deducciónactividad empresarialcese de actividad LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 4.2
Affects CompanyExpat · Non-residentIndividual
V1394-23 24 May 2023

Annual operations declaration does not include cessation of activity benefits

SG de Tributos
modelo 347cese de actividadrendimientos del trabajoactividad empresarialoperaciones con terceros RGAT — RD 1065/2007, Reglamento General de Actuaciones Tributarias art. 31.1RGAT — RD 1065/2007, Reglamento General de Actuaciones Tributarias art. 33.1
Affects CompanyExpat · Non-residentIndividual

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