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V3503-16 22 July 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Managerial remuneration considered income from work and professional services may constitute economic activity

The DGT states that administrator remuneration is income from work, and professional services may constitute economic activity if specific conditions of independence and own resources are met.

The question raised

A consultation is made regarding the taxation applicable to partners for services rendered to the company in terms of Personal Income Tax (IRPF) and VAT.

The DGT's ruling

In Personal Income Tax (IRPF), remuneration for the position of administrator constitutes income from employment. Professional services rendered to the company shall be considered income from economic activities only if the partner is registered in the self-employed regime or a mutual insurance scheme and the activity is professional. Regarding VAT, liability depends on whether the partner acts with independence or subordination, analyzing whether they organize their own resources, assume economic risk, or are integrated into the company's organizational structure.

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