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V1234-15 23 April 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Services rendered by a partner to their company constitute economic activity if certain conditions are met

The DGT confirms that a partner's remuneration for services provided to their company is considered economic activity under the revised LIRPF only if both the partner's and the company's activities are listed in Section Two of the IAE and the partner is registered as a self-employed individual or in a mutual organisation.

The question raised

A consultation is made regarding the taxation under Personal Income Tax for the remuneration corresponding to the services provided by the applicant 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

For the services provided by a partner to their company to be classified as income from economic activity, the activity must be included in the Second Section of the IAE (Tax on Economic Activities) Schedules for both the entity and the partner. Furthermore, the partner must be registered in the special Social Security regime for self-employed workers or in an alternative mutual fund. If these requirements are not met, the remuneration shall be characterized as income from personal employment. Transactions between related parties must be valued at their normal market value.

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