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V1331-15 29 April 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Administrator remuneration is income from work and professional services may constitute economic activity

A partner and administrator asks how their remuneration for the position and other services rendered to their company is taxed. The DGT clarifies that the administrator's role is taxed as income from work, and that other services may constitute economic activity if specific conditions are met.

The question raised

A consultation is made regarding the taxation under Personal Income Tax applicable to the taxpayer for 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. Likewise, it is consulted whether the partner must comply with the formal obligations that said Tax establishes for taxpayers performing professional activities.

The DGT's ruling

Remuneration for the position of administrator is always considered income from employment. Services provided by the partner to the company, distinct from the position of administrator, shall be considered income from economic activity only if the company provides professional services (Second Section of the IAE), the partner performs tasks inherent to that activity, and the partner is registered in the special regime for self-employed workers or an equivalent mutual fund. If registration with the Social Security is not fulfilled, the services are considered income from employment.

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