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V1901-17 18 July 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Professional partner's services taxed based on self-employment status and independence

A partner in a real estate management civil society enquires about IRPF withholding and VAT liability of their services. The DGT states that fiscal treatment depends on whether the partner is registered as self-employed and whether they act independently or subordinated.

The question raised

Type of withholding applicable to the remuneration paid to the applicant for services rendered to the civil society and liability for Value Added Tax on such services.

The DGT's ruling

For Personal Income Tax (IRPF), if the partner is under the special regime for self-employed workers and the activity is professional, the services constitute income from economic activity; otherwise, they constitute income from employment. Regarding VAT, liability depends on whether the partner acts independently, organizing their own resources and assuming economic risks, or if a relationship of labor subordination exists. It must be analyzed on a case-by-case basis whether the professional possesses organizational autonomy, remuneration linked to results, and liability towards third parties.

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