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V1327-15 29 April 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Managerial remuneration considered as income from work and professional services

The DGT clarifies that management positions are income from work, and professional services may constitute income from economic activities if specific conditions are met.

The question raised

Consultation regarding the Personal Income Tax treatment applicable to both partners for the remuneration paid by the company for services corresponding to the position of directors 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 director constitutes income from employment pursuant to Article 17.1 of the Personal Income Tax Law (LIRPF). Professional services provided by a partner to their company may constitute income from economic activity if the company is engaged in services within the Second Section of the Economic Activities Tax (IAE), the partner performs services inherent to the corporate purpose, and the partner is registered in the self-employed regime or a mutual fund. If these requirements are not met, the services are considered income from employment.

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