Introduction

Although the legal definition of income from economic activities is unique, as set out in article 27.1 of the Income Tax Law, it is necessary to differentiate within these those derived from the exercise of business and professional activities and, within former (business activities), those of a commercial and non-commercial nature.

The importance of these distinctions lies in the different tax treatment of each type of income, in aspects as significant as the subjection to withholding or payment on account, the accounting and registration obligations of the holders of said activities and the separate declaration of the same.

However, the IRPF declaration model, in response to the needs of the group of taxpayers who are owners of economic activities and social collaborators, has adopted, since the 2021 financial year, a coding or nomenclature of types of activities, unique and common for the main tax figures, in order to harmonize and homogenize the codes used to record data and facilitate 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 to comply with their tax obligations and, finally, improve assistance to this group in the exercise of their rights and in the fulfillment of their obligations.

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