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V0278-15 26 January 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Manager remuneration is earnings from work; professional partners' fees are earnings from economic activities

The nature of a limited liability company partner's income from their role as manager and from providing professional services is examined. The DGT determines that management payments constitute earnings from work, and professional services constitute earnings from economic activities if certain conditions are met.

The question raised

Inquiry is made regarding the taxation of services provided by the aforementioned partners to the company.

The DGT's ruling

Remuneration for directors and members of representative bodies is considered income from employment pursuant to Article 17.2.e) of the LIRPF. If the position is unpaid, no remuneration shall be imputed. Services provided by professional partners are considered income from economic activities if the taxpayer is included in the special Social Security regime for self-employed workers or an equivalent mutual fund. These transactions between related parties must be valued at their normal market value.

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