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V0946-19 7 May 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Administrators' remuneration: work income or business income?

The DGT clarifies that administrative fees are considered work income, while professional services may be classified as business income if specific conditions are met.

The question raised

A consultation is made regarding the taxation applicable to the aforementioned partners in Personal Income Tax and Value Added Tax for the services provided to the company.

The DGT's ruling

Remuneration for the position of administrator constitutes income from employment. Professional services distinct from the position of administrator shall be considered income from economic activities if the company provides professional services, the partner is registered in the self-employed regime, and carries out the activity on their own account. For VAT purposes, liability depends on whether independence or subordination exists, analyzing the organization of resources, remuneration linked to results, and liability towards third parties.

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