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V3504-16 22 July 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Socios' services to their society: income or economic activities?

The tax treatment of services rendered by partners to their own society in IRPF and VAT is addressed. The tax authority states that remuneration for the role of administrator is considered income from work, while the nature of professional services depends on social security affiliation and activity independence.

The question raised

The inquiry concerns the taxation applicable to partners for services rendered to the company regarding Personal Income Tax (IRPF) and VAT.

The DGT's ruling

Remuneration for administrator functions constitutes income from employment. For professional services, if the partner is registered in the self-employed regime and the company's activity consists of professional services, these may constitute income from economic activity. Regarding VAT, liability depends on whether the partner acts with independence or subordination, analyzing their means of production, remuneration, and responsibility.

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