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V1932-17 19 July 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · atribución de rentas

Partners' salaries in a joint ownership entity are included in economic activity income

A query was made regarding how to attribute negative returns in a joint ownership entity and whether a partner's salary should be included in their instalment tax payments. The DGT ruled that such a salary does not constitute employment income, but rather represents a higher share of the economic activity's returns.

The question raised

The method of attributing among the co-owners the negative yield obtained by the community, and whether the monthly salary must be taken into account in the installment payments to be made by the recipient.

The DGT's ruling

The amounts received by a co-owner for their work within the community are not earnings from employment, but are instead integrated through the income attribution regime as an increased share in the entity's yield. Therefore, they do not constitute a deductible expense for the community, but rather the co-owner shall receive their remuneration and subsequently be attributed their share of the remaining net yield. The installment payments of the co-owner receiving a salary must take such remuneration into account when calculating their share of the attributed income.

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