Skip to content
Back to index
V1686-20 29 May 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Administrators' remuneration classified as income from work with 19% or 35% retention

The DGT clarifies that administrator payments are income from work, while other services may be considered income from economic activities under specific conditions.

The question raised

Type of withholding tax applicable to the remuneration received by one of the partners of a company, who is also an administrator of said company.

The DGT's ruling

Remuneration for administrator functions constitutes income from employment pursuant to Article 17.2.e) of the LIRPF. If the position is unpaid, there is no remuneration to impute. Other services provided by the partner may constitute income from economic activities if the company provides professional services, the partner's activity coincides with the entity's 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.

Book your free first meeting