A few days ago the Tax Agency issued an explanatory statement (here!) Of the TEAC resolution on taxation by health professionals when they are invited to conventions organized by pharmaceutical companies with all expenses paid. The general criterion from now on will be that the attendance at congresses is considered a taxable income and therefore should be taxed for it in the Income Tax return.
Let us see in more detail the origin of the controversy and the solution proposed by the administration.
Taxes for assistance to conventions
It is a very common practice in the health professionals sector, especially when it comes to doctors, that large pharmaceutical companies organize conferences and conventions inviting leading professionals in the sector, and representatives of medical centres and hospitals, attracting them with trips to Interesting places and luxury hotels with all expenses paid.
To date, the professionals invited did not consider such income as a taxable income, since they were covered by article 9 of the Personal Income Tax Law, which specifies the conditions under which travel and subsistence expenses are exempt. Well, this criterion has been firmly rejected by the General Directorate of Taxes, and from 2016 (therefore applicable to this IRPF declaration) attendance at medical congresses will be taxed as follows:
- As a wage or salary, monetary or in kind
Attendance at congresses whose expenses are borne by the pharmaceutical companies will be considered a retribution in kind, or monetary, for the case in which they are assigned a net amount.
- As an income of professional Activity
If the health professional attends the conference invited by his or her recognized professional prestige or as lecturers, the expenses paid by the organization will be considered as an income of the economic activity, although it is true that the expense may also be considered if they to attend as a lecturers.
At GM TAX we believe that such a change of approach will bring many serious consequences for the medical sector.
If you wish to know more about this subject, do not hesitate to contact us.
