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V1722-18 18 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Professional partners' services may be taxable as business income in IRPF

The DGT confirms that remuneration for services provided by partners to their own consultancy company may be considered business income in IRPF, provided specific conditions on activity and social security regime are met.

The question raised

Consultation regarding the taxation under Personal Income Tax for the remuneration corresponding to the services provided by the partners to the company.

The DGT's ruling

In Personal Income Tax, if the company provides professional services and the partner is registered in the RETA, the income constitutes returns from economic activity; otherwise, it constitutes personal work. For VAT, liability depends on whether independence or subordination exists, analyzing the organization of own means, remuneration, and responsibility. In the IAE, liability requires that the activity involves the self-organization of means of production or human resources.

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