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V2946-18 14 November 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Services rendered by a partner to their company may be deemed income from work or economic activity depending on their social security regime

The tax treatment of services provided by a partner to their own company in IRPF and VAT is queried. The tax authority responds that in IRPF it will depend on whether the activity is professional and whether the partner is under the self-employed regime, while in VAT it will depend on whether there is independence or subordination.

The question raised

Consultation regarding the taxation under Personal Income Tax (IRPF) of the remuneration corresponding to services provided by the partner to the company, as well as the liability of said services for Value Added Tax (VAT).

The DGT's ruling

In Personal Income Tax (IRPF), remuneration for administrative positions constitutes income from employment; professional services may constitute income from economic activities if the partner is registered in the self-employed regime and the activity meets specific requirements. Regarding VAT, liability depends on a case-by-case analysis of the partner's independence, evaluating their working conditions, remuneration (economic risk), and responsibility. If the partner is subject to the company's organization, lacks significant economic risk, and the company is liable to third parties, the services are not subject to VAT.

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