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V1785-19 11 July 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Services of a partner to the company may be income from economic activity or work depending on the regime and activity

A sole shareholder and manager of a geology company asks how their services rendered to the company are taxed under IRPF and VAT. The DGT clarifies that under IRPF it will depend on whether the activity is professional and whether it is registered under the self-employed regime, while under VAT the independence or subordination of the relationship must be assessed.

The question raised

A consultation is made regarding the taxation applicable to the applicant in Personal Income Tax and Value Added Tax for the services provided to the company.

The DGT's ruling

In Personal Income Tax, remuneration for the position of administrator constitutes income from employment, unless it is gratuitous. Professional services provided to the company shall constitute income from economic activity if the partner is registered under the self-employed regime and the activities of both the company and the partner are classified under the Second Section of the Economic Activities Tax (IAE). Regarding VAT, liability depends on whether the partner acts with independence or subordination, analyzing whether they organize their own resources, assume economic risk, and possess organizational autonomy.

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