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V1292-15 28 April 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Administrator's remuneration is treated as income from work

The DGT clarifies that an administrator's remuneration is considered income from work, and professional services may constitute economic activity if specific conditions relating to activity and Social Security registration are met.

The question raised

A consultation is made regarding the Personal Income Tax treatment applicable to the taxpayer concerning the remuneration paid by the company for services corresponding to the position of administrator and other services, taking into account the new wording given to Article 27 of the Personal Income Tax Law by Law 26/2014.

The DGT's ruling

Remuneration for the position of administrator constitutes income from employment pursuant to Article 17.2 of the Personal Income Tax Law (LIRPF), even if the position is unpaid. Services provided by a partner to the company may constitute income from economic activities if the entity's activity falls under the Second Section of the Economic Activities Tax (IAE) and the partner is registered in the special regime for self-employed workers or a mutual fund. If registration with the Social Security is not fulfilled, such services shall be considered income from employment.

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