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V3016-20 6 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Services provided by a partner to a company may be taxed as income from economic activities under certain conditions

The DGT clarifies that if certain conditions are met, income from services rendered by a child replacing a parent in an insurance agency may be classified as income from economic activities rather than income from work.

The question raised

A consultation is made regarding the taxation that will apply to the son in the Personal Income Tax for the services rendered to the company.

The DGT's ruling

For the services provided by a partner to their company to be taxed as income from economic activities, the activity must be included in the Second Section of the IAE (Economic Activities Tax) Schedules, for both the partner and the company. Furthermore, the partner must be registered in the special Social Security regime for self-employed workers or in an alternative mutual insurance scheme. If these requirements are not met, the remuneration shall be characterized as income from employment.

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