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V1212-18 10 May 2018 · SG de Tributación de las Operaciones Financieras Criterion in force
OTRO · relación laboral

No employment relationship exists when the sole director holds effective control of the company

A query was raised regarding whether a sole shareholder and director performing commercial tasks maintains an employment relationship with her company. The DGT has determined that no employment relationship exists because she holds effective control of the company.

The question raised

1. Whether the aforementioned sole shareholder and administrator of the company can be considered to maintain an employment relationship with the company due to commercial tasks.

The DGT's ruling

An employment relationship is not maintained when management and executive functions are exercised as an administrator and effective control of the commercial company is held. Effective control is understood to exist when the worker's shares represent, at least, half of the share capital. Therefore, as the sole shareholder, she is excluded from the scope of the employment relationship.

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