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V3078-15 14 October 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Managers' high-level salaries taxed as earnings from labour

The DGT confirms that remuneration for a Managing Director who is also a solidary administrator is considered earnings from labour under judicial precedent.

The question raised

The taxation applicable to the taxpayer regarding the remuneration received as Managing Director is consulted.

The DGT's ruling

Remuneration received for the performance of duties inherent to the position of director must be understood as included within income from employment, regardless of whether a senior management employment contract has been formalized. The relationship with the company is understood to be of a commercial nature and the duties are subsumed under those of the position of director. The applicable withholding tax rate for directors is 35 percent, or 19 percent if the turnover is less than 100,000 euros, in accordance with current regulations.

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