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V1805-14 9 July 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · comunidad de bienes

Income from a community of goods providing legal services is subject to IRPF retention

The DGT confirms that income from a community of goods carrying out a professional legal activity is subject to IRPF retention due to its status as an entity under the attribution of income regime.

The question raised

Whether the income received by the community of property is subject to withholding under Personal Income Tax.

The DGT's ruling

Communities of property are not taxpayers of Personal Income Tax (IRPF); instead, income is attributed to their partners. If the entity carries out an economic activity where the partners assume the risk, the returns maintain the nature of that activity. As legal services constitute a professional activity, payments made to the community of property for said activity are subject to withholding under the terms of the Personal Income Tax.

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