Skip to content
Back to index
V0047-16 8 January 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Remuneration for directors performing administrative officer duties is classified as employment income

A query was raised regarding the applicable withholding tax for an individual serving as both a director and an administrative officer within the same company. The Directorate-General for Taxes (DGT) indicates that if the officer's duties are encompassed within the director's role, the withholding tax must correspond to that of directors.

The question raised

Inquiry regarding the withholding tax applicable to remuneration paid for the performance of administrative officer functions.

The DGT's ruling

If the functions of administrative officer are subsumed within those of an administrator, the relationship is of a commercial nature but is considered earned income from employment. In this case, the withholding tax rate for administrators applies, which for the 2012 to 2014 fiscal years was increased to 42 percent pursuant to the thirty-fifth additional provision of the Personal Income Tax Law (LIRPF).

Book your free first meeting