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V3016-17 20 November 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Manager remuneration is income from work; VAT depends on independence

The DGT determines that administrator salaries are income from work and VAT applicability requires an independence assessment.

The question raised

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

The DGT's ruling

Remuneration for the position of director constitutes income from employment. Professional services provided by a partner may constitute income from economic activities if the partner is registered under the special regime for self-employed workers and the activity is inherent to the company. Regarding VAT, liability depends on whether independence or subordination exists, analyzing working conditions, remuneration linked to results, and liability towards third parties.

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