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V1786-22 27 July 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Manager remuneration is income from work; partner taxation depends on activity type

The DGT clarifies how partners should tax income from services provided to the company. Wages paid to managers are considered income from work, while the nature of other services depends on whether the activity is professional or commercial.

The question raised

Consultation regarding the taxation applicable to partners in Personal Income Tax for services rendered to the company.

The DGT's ruling

Remuneration for director functions is considered income from employment pursuant to Article 17.2 of the Personal Income Tax Law (LIRPF). For services other than the role of director, if the activity is professional (Second Section of the Economic Activities Tax (IAE)) and the partner is registered in the self-employed regime, it is taxed as income from economic activities. If the activity is not professional or the partner is not self-employed, it is considered income from employment. In any case, the remuneration must correspond to the normal market value.

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