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V3662-16 5 September 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Administrator's remuneration deemed as income from work; VAT liability depends on independence and own resources

A partner and administrator of a consultancy company asked how to tax their services under IRPF and VAT. The DGT states that administrator salaries are considered income from work, and VAT liability for professional services depends on whether the partner acts independently and has own resources.

The question raised

The taxpayer inquires regarding the taxation applicable to the services provided 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, unless the partner is registered in the self-employed regime and meets the requirements for economic activity. Regarding VAT, liability depends on whether the partner acts with independence or subordination. It must be analyzed whether the partner organizes their own means, assumes the economic risk of their activity, and possesses organizational autonomy vis-à-vis the company.

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