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V0903-17 11 April 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Professionals' fees to partners may be economic income for IRPF

The DGT clarifies how services rendered by a partner to their own company are taxed and whether VAT applies, stating that if certain conditions are met, such services may constitute economic income for IRPF purposes and independence is required for VAT liability.

The question raised

Consultation regarding the taxation under Personal Income Tax for the remuneration corresponding to the 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 administrative positions constitutes income from employment; if the partner provides professional services and is registered in the RETA (Special Regime for Self-Employed Workers), it may constitute income from economic activities. For VAT, liability depends on whether the partner acts independently, organizing their own means and assuming economic risks, or if there is labor subordination. In the IAE (Economic Activities Tax), liability requires the self-directed organization of production means or human resources.

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