3. Personal Income Tax
Applicable to entrepreneurs and professionals, that is, natural persons who carry out an economic activity either directly or as natural persons who are members of entities under an income attribution regime, other than civil companies with a commercial purpose.
The Tax Agency's electronic headquarters includes a " Economic Activity Income Reporter ", where you can find out how to declare the income from your economic activity, the place where you carry out your activity, deductions to which you are entitled for carrying out the activity, as well as the obligation to make withholdings and fractional payments.
Link to information and procedures for IRPF
A taxpayer carries out an economic activity when he orders, on his own account, means of production and human resources, or just one of both, in order to intervene in the production or distribution of goods or services.
However, to determine when we are dealing with an economic activity, the following special rules must be taken into account:
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The income obtained by the taxpayer from an entity in whose capital he/she participates, derived from professional activities (those included in Section 2 of the IAE Rates) will be classified as professional income when it is included, for this purpose, in the special Social Security regime for self-employed workers (RETA), or in a social welfare mutual fund that acts as an alternative to the aforementioned special regime.
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The leasing of real estate is classified as an economic activity if at least one person is employed with a full-time employment contract.
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The transfer of tangible or intangible fixed assets and real estate investments, related to economic activity, regardless of the system for determining the income, gives rise to capital gains or losses that are not included in the net income of the activity. Its quantification and taxation is carried out according to the rules of capital gains or losses of the Tax.
In the IRPF the methods of determining the performance of economic activities, according to the activity developed are:
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Direct Estimate with two modalities :
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Normal
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Simplified
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Objective Estimate
Taxpayers will apply one of these methods to determine the performance of economic activities, considering the rules of incompatibility and the assumptions of waiver and exclusion.