Skip to content
Back to index
V0352-22 24 February 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Administrator remuneration is income from work and professional services

A partner and administrator asks how their remuneration is taxed and the deductibility of their expenses. The DGT clarifies that payments for the role of administrator are income from work, while professional services may be considered income from economic activities if specific conditions relating to the activity and social security are met.

The question raised

A consultation is made regarding the taxation under Personal Income Tax for the remuneration corresponding to services provided by the partner to the company and the expenses that could be deducted in the event that such remuneration is classified as income from economic activities.

The DGT's ruling

Remuneration for administrator functions constitutes income from employment (Art. 17.2 LIRPF). Services provided by a partner to the company may constitute income from economic activities if the company provides professional services (Section Two of the IAE), the partner performs services inherent to the entity's object, and is registered in the special regime for self-employed workers or a mutual fund. Expenses for determining net income are governed by Corporate Tax rules, requiring correlation with income, substantiation, and accounting records.

Book your free first meeting