Skip to content
Back to index
V0808-15 13 March 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Honorary president with administrative functions: earnings from work

A company asks about the tax nature and applicable retention on the remuneration of an honorary president without executive functions. The DGT determines that, due to administrative and managerial functions, such remuneration is considered earnings from work.

The question raised

It is inquired whether the remuneration should be subject to any limitation regarding its amount, whether it has the nature of income from employment, and what the applicable withholding tax is.

The DGT's ruling

Remuneration for directors and members of representative bodies constitutes income from employment pursuant to the Personal Income Tax Act (LIRPF). Even if the position does not entail executive functions, if it involves functions of administration, guidance, and supervision of management, this criterion applies. The applicable withholding tax rate for directors is 35 percent, subject to exceptions based on turnover or location.

Book your free first meeting