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V2176-16 19 May 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Services rendered by a partner to their society may constitute income from work or economic activities

A partner and manager asks how their services rendered to their own society are taxed under IRPF and VAT. The DGT clarifies that the nature of income under IRPF depends on whether the activity is professional and whether the partner is under the self-employed regime, while VAT liability depends on whether the relationship is independent or subordinate.

The question raised

Consultation regarding the taxation under Personal Income Tax (IRPF) of the remuneration corresponding to the services provided by the partner to the company, taking into account the new wording given to Article 27 of the Personal Income Tax Law by Law 26/2014.

The DGT's ruling

In Personal Income Tax (IRPF), remuneration for the position of administrator constitutes income from employment; if the partner provides professional services to the company, these shall constitute income from economic activities if the activity falls under the Second Section of the IAE and the partner is registered in the RETA. Regarding VAT, liability depends on whether the partner acts with independence or subordination, analyzing the organization of own means, economic risk, and liability towards third parties.

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