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V3272-18 26 December 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · valor normal de mercado

Market value is determined by the overall contractual relationship, not by individual services provided without consideration

A doctor inquired whether services provided to a medical association without payment should be valued at market value for Personal Income Tax (IRPF) purposes. The Directorate General of Taxes (DGT) ruled that the value must be determined by analysing the complete contractual relationship between the professional and the association.

The question raised

Impact on Personal Income Tax (IRPF): operability of Article 28.4 of Law 35/2006.

The DGT's ruling

The normal market value of services provided without consideration should not be calculated in isolation for each individual service. Attention must be paid to the contractual relationship as a whole that governs the provision of medical services between the professional and the medical assistance organization. Within that contractual scope, it shall be determined whether the considerations are significantly lower than the normal market value.

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