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V1998-15 26 June 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · atribución de rentas

Income earned by a partner for work performed in a civil society is considered attributable income from economic activities

A query was raised regarding whether a partner's remuneration for work performed within a civil society should be taxed as employment income. The DGT ruled that, due to the income attribution regime, these earnings form part of the economic activity attributed to the partner.

The question raised

Application of the third paragraph of section 1 of Article 27 of the Personal Income Tax Law to the remuneration received by partners for work performed through the civil society.

The DGT's ruling

In entities under the income attribution regime, the returns a partner receives for their work are not considered employment income, but rather constitute an increased share in the returns from the entity's economic activity. Therefore, these amounts are not a deductible expense for the company, but are instead integrated into the net return from the economic activity attributable to the partner.

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