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V1665-15 28 May 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IRPF · rendimientos del trabajo

Remuneration of partners for services other than the position of administrator is considered employment income

A query is made regarding the taxation of payments made by a construction company to its partners for services rendered. The DGT determines that payments for administrator functions are employment income and that payments for other services, as they do not constitute professional activities, are also considered employment income.

The question raised

Question posed In relation to Personal Income Tax, the taxation applicable to the remuneration paid by the company to the partners for the services rendered by them.

The DGT's ruling

Remuneration for the position of administrator constitutes employment income pursuant to Article 17.2.e) of the LIRPF. Services rendered by partners other than those related to their position as administrator, as they do not meet the requirements for economic activities under Article 27.1 of the LIRPF, also have the nature of employment income. For services other than administration, the remuneration must be assessed at its normal market value in accordance with the LIS.

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