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V1920-19 22 July 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Taxation of a partner depends on Social Security registration and nature of services

The DGT examines how a sole partner and manager of a dental clinic should be taxed in IRPF, VAT and IAE.

The question raised

The taxation applicable to the aforementioned partner in Personal Income Tax is consulted. Furthermore, the liability of said services for Value Added Tax and Economic Activities Tax is consulted.

The DGT's ruling

In Personal Income Tax, remuneration for the position of administrator constitutes income from employment, unless the partner is registered in the self-employed regime and the activity is professional. For VAT, liability depends on whether the partner acts independently, organizing their own means and assuming economic risks, or if a relationship of labor subordination exists. In the Economic Activities Tax, liability is determined according to whether the partner organizes their own means of production or human resources.

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