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V3331-20 11 November 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · socio trabajador

Tax status of working partner's services cannot be determined without knowledge of their activity

A taxpayer has requested guidance on how to classify their income for Personal Income Tax (IRPF) purposes and the amount they should receive for services provided to a company of which they will be the sole shareholder. The Directorate General for Taxes (DGT) has stated that, as neither the specific activity nor the services provided are known, it is impossible to determine the tax classification of the remuneration.

The question raised

Classification for Personal Income Tax (IRPF) purposes and the amount of remuneration that may be received from the company for the provision of the aforementioned services.

The DGT's ruling

The DGT cannot determine the classification for Personal Income Tax (IRPF) purposes of remuneration for services other than those of an administrator, as neither the company's activity nor the services rendered are known. To assess remuneration between related parties, the normal market value must be applied. It is noted that, for professional partners, the agreed value may coincide with the market value if specific requirements regarding income, total remuneration, and criteria for determining the amount are met.

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