7,4,2,1. Activities carried out and ownership

Business and professional activities (art. 95.2 Rgl.)

Business activities

As a general rule, income from business activities is that which is derived from the exercise of activities included in the First Section of the Rates of the Tax on Economic Activities.

In particular, this consideration applies to the income from extractive, manufacturing, trade or service provision activities, including crafts, agriculture, forestry, livestock, fishing, construction and mining.

Professional activities

1. Professional activities of an artistic or sporting nature

   Income from artistic and sporting activities is derived from the exercise of activities included in the Third Section of the Rates of the Tax on Economic Activities.

2. Other professional activities

   As a general rule, income from professional activities is also derived from the exercise of activities included in the Second Section of the Rates of the Tax on Economic Activities (even if they are carried out by joint property companies and other entities under an income attribution regime, who are required by the IAE regulations to register under the corresponding or analogous section of the First Section).

   In particular, income derived from the exercise of liberal professions is considered as such.

Special cases

1. Authors and translators of works

   As a general rule, income derived from the production of literary, artistic or scientific works is considered income from work, provided that the right to exploit it is transferred and it does not involve the self-management of means of production and human resources or one of both, for the purpose of participating in the production or distribution of goods or services, in which case it will be classified as income from economic activities.

   When classified as economic activities, the income obtained by authors or translators of works derived from intellectual or industrial property will be considered professional income.

   However, if authors or translators publish their works directly, their income will be included among those corresponding to business activities.

2. Commission Agents

   Professional income is that obtained by commission agents who limit themselves to bringing together or approximating interested parties for the celebration of a contract.

   On the contrary, it will be understood that they are not limited to carrying out operations typical of commission agents when, in addition to the function described in the previous paragraph, they assume the risk and venture of such commercial operations, in which case the performance will be included among those corresponding to business activities.

   The remuneration obtained by commission agents linked by a common or special employment relationship with the company they represent, is in all cases considered to be work performance.

3. Teachers

   Professional income is that obtained by teachers, whatever the nature of the teaching, who carry out the activity, either at their home, private homes or in an academy or open establishment, without an employment or statutory relationship.

   However, teaching in academies or private establishments is considered a business activity.

   The remuneration obtained by teachers under an employment or statutory relationship constitutes employment income.