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V1815-19 11 July 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Services provided by a shareholder to their company are taxed as employment income for IRPF and are not subject to VAT

A query was made regarding the taxation of a shareholder providing mediation services to their own company. The DGT has determined that, as the activity does not meet the requirements of a professional activity under the LIRPF, the income is classified as employment income. Furthermore, as the individual does not organise their own means of production, the service is not subject to VAT.

The question raised

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

The DGT's ruling

For Personal Income Tax purposes, the services provided by the partner are considered income from employment (Art. 17.1 LIRPF) because they do not meet the requirements for economic activities as they do not constitute a professional activity. Regarding VAT, the provision is not subject to the tax because the partner does not organize their own means of production, lacking the necessary character of independence.

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