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V1652-18 12 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Professionals' fees as business or work income

The DGT clarifies that IRPF tax classification depends on the activity and social security regime, while IVA applicability hinges on whether the partner is independent or subordinate.

The question raised

A consultation is made regarding the taxation under Personal Income Tax (IRPF) for the remuneration corresponding to services rendered by partners to the consulting company, as well as the VAT liability of said services.

The DGT's ruling

In Personal Income Tax (IRPF), remuneration for directors is classified as income from employment. Professional services provided by partners shall be considered income from economic activities only if the activity is professional, the company is a professional services firm, and the partner is registered in the special Social Security regime or a mutual insurance scheme. Regarding VAT, liability depends on whether the partner acts independently or in a subordinate manner, analyzing whether they organize their own resources, assume economic risk, and possess organizational autonomy.

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