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V3073-19 4 November 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Manager's remuneration treated as income from work; VAT liability depends on autonomy

A lawyer, manager and partner in a services company seeks advice on the taxation of their remuneration under IRPF and VAT. The DGT determines that payments for the role of manager are income from work, and the nature of professional services depends on whether there is a dependent relationship or an autonomous economic activity.

The question raised

Consultation regarding taxation under Personal Income Tax and Value Added Tax concerning the remuneration corresponding to the services provided by the applicant to the company.

The DGT's ruling

In Personal Income Tax, remuneration for the position of administrator constitutes income from employment, whereas professional services shall only constitute income from economic activity if the partner is registered in the self-employed regime or a mutual fund. Regarding VAT, liability depends on whether a relationship of subordination or independence exists. It must be analyzed on a case-by-case basis whether the partner organizes their own means, assumes the economic risk, and possesses organizational autonomy vis-à-vis the company.

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