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V0057-22 14 January 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · atribución de rentas

Income from work performed by a co-owner is integrated into the community of property's economic activity

A pharmacist has requested clarification on how income should be attributed within a community of property where other co-owners receive remuneration for their work. The Directorate General for Taxes (DGT) has ruled that these amounts do not constitute employment income, but rather form part of the economic activity income attributable to the co-owner.

The question raised

Question posed: Method of attributing to the applicant the returns obtained by the community of property.

The DGT's ruling

Entities under the income attribution regime are not taxpayers; rather, income is attributed to their members while maintaining the nature of the source. If the community carries out an economic activity, the returns are attributed according to agreements or, in their absence, in equal shares. Amounts received by a co-owner for their work are not considered income from employment, but rather form part of the return from the entity's economic activity. Therefore, such amounts are not a deductible expense for the community, but instead increase the co-owner's share in the net return.

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