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V1232-15 23 April 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Services provided by partners to a company are deemed work income

The DGT confirms that partner income from services rendered to a company is classified as work income and must be valued at market value.

The question raised

A consultation is made regarding the taxation applicable to partners for services rendered to the company and the withholdings that the company must apply to said remuneration.

The DGT's ruling

Income from services provided by partners, other than those derived from their role as directors, constitutes employment income, as they do not meet the requirements to be classified as economic activities. Remuneration must be adjusted to fair market value in accordance with transfer pricing regulations. The corresponding withholdings for employment income shall apply.

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