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V2532-14 29 September 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

The nature of a professional partner's income depends on dependency and risk-bearing

A partner at a consultancy firm has requested clarification on whether the remuneration received for professional services should be classified as employment income or business activity income. The DGT indicates that this classification depends on the presence of elements of dependency and risk-bearing (ajenidad).

The question raised

Nature of the remuneration paid by the company to the partner for the provision of the referred professional services.

The DGT's ruling

If the elements of dependency and alienation characteristic of income from employment are not present, professional partners carry out an economic activity by organizing productive factors on their own account. In such a case, the withholding tax rates for economic activities set forth in Article 95 of the Personal Income Tax Regulations shall apply, rather than those in Article 80. The final classification will depend on the characteristics and circumstances of the provision of services.

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