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V0356-19 19 February 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Partner remuneration may be economic activity or personal work depending on Social Security registration

The tax treatment in IRPF and IVA for services provided by partners to their own company is queried. The tax authority states that IRPF treatment depends on whether the partner is registered as a self-employed person, and IVA liability depends on whether the partner acts independently or subordinately.

The question raised

Consultation regarding the taxation under Personal Income Tax (IRPF) for the remuneration corresponding to the services provided by the partners to the company.

The DGT's ruling

In Personal Income Tax (IRPF), if the company's activity consists of professional services and the partner is under the special Social Security regime for self-employed workers, the remuneration is considered income from economic activity; otherwise, it is income from personal work. Regarding VAT, liability depends on whether the partner acts independently or under subordination, analyzing their working conditions, remuneration, and responsibility. If the partner uses the company's resources and is subject to its organization, they are not subject to VAT.

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