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V1402-15 5 May 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Profits from professionals' services to their society may be considered economic activities

The DGT confirms that if a society and its shareholder carry out activities under the Second Section of the IAE and the shareholder is registered as a self-employed person, the income is classified as economic activity income.

The question raised

A consultation is made regarding the taxation of services rendered 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, and whether said article is inapplicable to the case consulted, given that the company is registered in the first section, and not the second, of the Economic Activities Tax schedules.

The DGT's ruling

Remuneration for the position of director is always considered income from employment pursuant to Article 17.2.e) of the Personal Income Tax Law (LIRPF). For professional services rendered by a partner to their company to be classified as income from economic activities, the activity must be listed under the Second Section of the Economic Activities Tax (IAE) for both the company and the partner, and the partner must be registered in the special regime for self-employed workers or a mutual insurance society. If these requirements are not met, the services are considered income from employment.

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