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V0023-16 7 January 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Administrator remuneration is income from work and services

The tax treatment of administrator services by partners in IRPF and VAT is queried. The tax authority states that administrative duties constitute income from work, and professional services may be considered economic activities if specific LIRPF requirements are met.

The question raised

Consultation regarding the taxation under Personal Income Tax for the remuneration corresponding to the services provided by the two partners to the company, taking into account the new wording given to Article 27 of the Personal Income Tax Law by Law 26/2014. Likewise, consultation is made regarding the liability of said services to Value Added Tax.

The DGT's ruling

Remuneration for director functions constitutes income from employment. Professional services provided to the company may constitute income from economic activities if the activity is listed in the Second Section of the IAE Schedules, the partner is under the self-employed regime, and the activity is the object of the entity. For VAT purposes, liability depends on whether independence or subordination exists, analyzing the organization of own means, remuneration linked to results, and liability towards third parties.

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