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V2688-20 2 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Partner remuneration for services to the company: work or business income?

The DGT clarifies that remuneration for administrative functions is considered work income, while professional services may be classified as business income if specific conditions of activity and registration as self-employed are met.

The question raised

Consultation regarding the taxation applicable to partners in Personal Income Tax for services rendered to the company.

The DGT's ruling

Remuneration of directors is considered income from employment pursuant to Article 17.1 of the Personal Income Tax Law (LIRPF). Services provided by a partner to their company may be considered income from economic activities if the entity's activity is listed in the Second Section of the IAE Schedules, the partner performs professional services (including organizational or management tasks), and the partner is registered in the special Social Security regime for self-employed workers or a mutual fund. If these requirements are not met, they are considered income from employment.

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