Skip to content
Back to index
V3280-18 27 December 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Payment to a substitute charged to a Professional Association is taxed as employment income

A query was raised regarding whether the salary paid to a substitute pharmacist by a Professional Association constitutes remuneration and which withholding tax should be applied. The DGT has determined that these amounts are classified as employment income and that the Association must apply the corresponding withholding tax.

The question raised

The nature of the aforementioned payment and the applicable withholding tax for Personal Income Tax purposes is consulted, as well as whether the College could pay said remuneration directly to the substitute pharmacist.

The DGT's ruling

The payment of the substitute's salary amount to the positions of President and Secretary constitutes remuneration for services rendered to the College. These amounts are considered income from employment as they belong to an administrative and management body. The College must apply the applicable withholding tax, even if the amount is paid directly to the substitute pharmacist.

Book your free first meeting