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V3266-18 26 December 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Professional partners' remuneration: earnings from work or economic activity

The article addresses how services rendered by a professional partner to their own professional society are taxed. The DGT states that income classification for personal income tax depends on whether economic activity criteria and social security affiliation are met, while VAT liability depends on whether the partner is independent or subordinate.

The question raised

Consultation regarding the taxation under Personal Income Tax (IRPF) of the remuneration corresponding to the services provided by the partner to the company.

The DGT's ruling

In Personal Income Tax (IRPF), remuneration for administrator functions constitutes income from employment, whereas professional services may constitute income from economic activities if the partner is registered in the RETA and the activity meets the requirements of the Second Section of the IAE. For VAT, liability depends on a case-by-case analysis of the partner's independence, evaluating their organizational autonomy, economic risk, and ownership of the means of production. In the IAE, liability is determined by whether there is self-directed management of means of production or human resources.

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