Income subject to withholding or payment on account

Without prejudice to the income on which there will be no obligation to make withholding or payment on account, established by regulation, the following income will be subject to withholding or payment on account:

1. The returns of work . Gross income from work is considered to be all compensation or benefits, whatever their name or nature, monetary or in kind, that derive, directly or indirectly, from personal work or from the employment or statutory relationship and do not have the character of income from economic activities.
2. The returns on movable capital . The following, among others, will be considered as gross income from movable capital:
   • Returns obtained from participation in the equity of any type of entity.
   • Income obtained from the transfer of own capital to third parties.
   • Monetary or in-kind returns from capitalisation operations and life or disability insurance contracts.
3. The returns from the following economic activities (In general, gross returns from economic activities are considered to be those that, coming from personal work and capital together, or from only one of these factors, involve the taxpayer's own use of production means and human resources, or one of both, for the purpose of participating in the production or distribution of goods or services):
   • The returns from professional activities . The following are considered to be included in the income from professional activities:
     1. In general, those derived from the exercise of the activities included in the Second and Third Sections of the Rates of the Tax on Economic Activities, approved by Royal Legislative Decree 1175/1990, of September 28.
     2. In particular, the following will be considered professional income:
        • Authors or translators of works arising from intellectual or industrial property. When authors or translators directly publish their works, their income will be included among those corresponding to business activities.
        • The commission agents. It is understood that commission agents are those who limit themselves to bringing together or approximating the 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.

        • Teachers, regardless of the nature of their teaching, who carry out their activity either at their home, in a private home or in an academy or open establishment. Teaching in academies or own establishments will be considered a business activity.

          Amounts received by persons who are paid by a company and are required to register with their respective professional associations for the functions they perform in the company, or, in general, those derived from an employment or dependent relationship, will not be considered income from professional activities. These amounts will be included among the income from work.

   • The returns from agricultural and livestock activities . Agricultural or livestock activities are understood to be those through which natural, plant or animal products are obtained directly from farms and are not subjected to transformation, processing or manufacturing processes.

     Any activity for which registration in a section corresponding to industrial activities in the rates of the Tax on Economic Activities is required shall be considered a transformation, production or manufacturing process.

     The following shall be deemed to be included among agricultural and livestock activities:

     • Independent livestock.
     • The provision, by farmers or ranchers, of accessory work or services of an agricultural or livestock nature, with the means that are ordinarily used on their farms.
     • Livestock breeding, keeping and fattening services.
   • The returns from forestry activities .
   • The returns of certain business activities , when their performance is determined by the objective estimation method .
4. Certain income allocations for the transfer of image rights. Taxpayers of Personal Income Tax will impute to their tax base the amount calculated in accordance with the regulations of this tax, when the following circumstances occur:
   • That they have transferred the right to exploit their image or have consented to or authorized its use by another person or entity, resident or non-resident. For the purposes of the provisions of this paragraph, it will be irrelevant whether the transfer, consent or authorization took place when the natural person was not a taxpayer.
   • Those who provide their services to a person or entity within the scope of an employment relationship.
   • That the person or entity with whom the taxpayer maintains the employment relationship, or any other person or entity linked to them in the terms of article 18 of Law 27/2014, on Corporate Tax, has obtained, through concerted acts with resident or non-resident persons or entities, the transfer of the right to exploit or the consent or authorization for the use of the image of the natural person.

     The imputation will not proceed when the work income obtained in the tax period by the natural person by virtue of the employment relationship is not less than 85% of the sum of the aforementioned income plus the total compensation payable by the person or entity referred to in paragraph c) of the previous section for the acts indicated therein.

     When imputation is appropriate, the person or entity with which the taxpayer maintains an employment relationship, or any other person or entity linked to them, must make a payment on account of the compensation paid in cash or in kind to non-resident persons or entities for the acts indicated therein. Likewise, the Minister of Economy and Finance must submit a declaration of the payment on account in the form, terms and forms established by the Minister of Economy and Finance. At the time of filing the declaration, you must determine the amount and pay it into the Treasury.

5. The capital gains obtained as a result of the transfers or reimbursements of shares and interests representing the capital or assets of collective investment institutions (except in the case where their calculation is not required by regulation and also excepting those derived from the reimbursement or transfer of interests or shares in the funds and companies regulated by article 49 of the Regulation of Law 35/2003, of November 4, on collective investment institutions), as well as those derived from the forestry use of public forests by residents.

following income will also be subject to withholding or payment on account, regardless of its classification:

1. Income from the leasing or subleasing of urban properties.
2. Income from intellectual and industrial property, from the provision of technical assistance, from the leasing of movable property, businesses or mines, from the subleasing of the aforementioned assets and from the transfer of the right to exploit image rights.
3. Prizes awarded as a result of participation in games, contests, raffles or random combinations, whether or not linked to the offer, promotion or sale of certain goods, products or services.