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V2998-18 21 November 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Socios' services to company: income from work or economic activity

The DGT clarifies that IRPF taxation depends on whether the partner is registered as self-employed, and VAT liability depends on the independence of the activity.

The question raised

A consultation is made regarding the taxation under Personal Income Tax (IRPF) for the remuneration corresponding to the services provided by partners 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 provided by partners shall be considered income from economic activities only if the partner is registered in the special regime for self-employed workers or an equivalent mutual fund. Regarding VAT, liability depends on a case-by-case analysis of independence: if the partner organizes their own means, assumes economic risk, and is not subject to the company's organizational criteria, the services shall be subject to the tax; otherwise, it shall be an employment relationship not subject to the tax.

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