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V2006-20 18 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Professionals' services to a society deemed economic income

The DGT confirms that professionals' remuneration for services rendered to a legal services civil society qualifies as income from economic activities, provided the conditions for activity and registration as self-employed are met.

The question raised

Question posed: A consultation is made regarding the taxation applicable to partners for services provided to the company under Personal Income Tax.

The DGT's ruling

For services provided by a partner to their company to be taxed as income from economic activities, three requirements must be met: the entity's activity must be included in the Second Section of the Economic Activities Tax Schedules, the partner must perform professional services that form part of the entity's purpose, and the partner must be registered in the special Social Security regime for self-employed workers or an alternative mutual fund. Otherwise, they shall be considered income from personal work. Furthermore, the valuation of these operations must be carried out at their normal market value.

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