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Practical Income Manual 2021.


Despite the legal definition of income from economic activities being the one set out in article 27.1 of the Personal Income Tax Law , it is necessary to differentiate within them those derived from the exercise of business activities. and professionals and, within the former (business activities), those of a commercial and non-commercial nature.

The importance of these distinctions lies in the different tax treatment of some income and others, in aspects as important as the subjection to withholding or payment on account, the accounting and registration obligations of the owners of said activities and the declaration separated from them.

However, the personal income tax declaration model for the 2021 financial year will not include, as in previous years, from that perspective, the types and keys of economic activities (in direct estimation).

There has been a constant demand in recent years, on the part of the group of taxpayers who own economic activities and social collaborators, the need to adopt, in the tax field, a codification or nomenclature of types of activities, unique and common for the main tax figures, which allows harmonizing and homogenizing the codes used for the registration of data and facilitates the flow of information, essential to optimize the management of the different taxes that affect them, their adequate coordination with the tax censuses and records required for the compliance with their tax obligations and, finally, improve assistance to this group in the exercise of their rights and in compliance with their obligations.

For this reason, this year new codes and types of economic activities have been included in the completion of the Personal Income Tax declaration for the 2021 financial year, with the purpose of gradually extending it to other tax returns. See in this regard the types and keys of economic activities in personal income tax, which are discussed in the corresponding section of this Chapter.