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V1299-15 28 April 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Payments to a partner for serving work are deemed earnings from labour

A restaurant society asks whether remuneration paid to a majority partner for working as a waiter should be taxed as economic activity. The DGT responds that, as the requirements for economic activity are not met, these incomes are considered earnings from labour.

The question raised

Consultation regarding the taxation under Personal Income Tax of the aforementioned remuneration intended to be paid to the partner for the services rendered to the company.

The DGT's ruling

The income paid to a partner for the development of the company's activities is characterized as income from employment. This is because the requirements to be considered income from economic activities under Article 27.1 of the Personal Income Tax Law (LIRPF) are not met. The remuneration must be assessed at its normal market value in accordance with Article 41 of the LIRPF.

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