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V0628-18 8 March 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Services of a shareholder to his company may be economic activity or work income

The DGT determines that remuneration for the role of administrator constitutes work income and examines the nature of other services provided.

The question raised

The inquiry concerns the taxation applicable to the aforementioned partner in Personal Income Tax for the services rendered to the company, as well as the liability of said services for Value Added Tax.

The DGT's ruling

In Personal Income Tax, remuneration for the position of administrator constitutes income from employment, whereas professional services may constitute income from economic activity if the partner is registered in the self-employed regime and the company's activity consists of professional services. Regarding VAT, liability depends on a case-by-case analysis of the partner's independence, evaluating whether they organize their own means, assume economic risk, and possess organizational autonomy vis-à-vis the company.

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