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V0301-18 8 February 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Services from a partner to their society may be economic or work income

The article asks how services rendered by a partner and manager to their own society are taxed. The DGT clarifies that income tax classification depends on whether economic activity and social security requirements are met, while VAT analysis focuses on the independence of the relationship.

The question raised

Consultation regarding the taxation under Personal Income Tax (IRPF) of the remuneration corresponding to services provided by the partner to the company, taking into account the new wording given to Article 27 of the Personal Income Tax Law by Law 26/2014.

The DGT's ruling

In Personal Income Tax (IRPF), remuneration for director functions constitutes income from employment, whereas professional services may constitute income from economic activities if the partner is registered under the self-employed regime and the company is engaged in professional services. Regarding VAT, liability depends on whether the partner acts independently, organizing their own means and bearing economic risk, or if a relationship of labor subordination exists. In the Economic Activities Tax (IAE), it must be analyzed whether the activity involves the self-directed organization of means of production or human resources.

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