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V3675-16 5 September 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Administrator's remuneration classified as income from work

A partner and administrator of two valuation firms seeks advice on IRPF and VAT treatment of their services. The DGT determines that administrator's fees are income from work, and the professional services classification depends on whether the partner acts independently or under subordination.

The question raised

The taxation applicable to the applicant regarding Personal Income Tax and Value Added Tax for the services provided to the company is consulted.

The DGT's ruling

In Personal Income Tax (IRPF), remuneration for the position of administrator constitutes income from employment; if the partner provides distinct professional services, these shall be considered income from economic activity only if they are registered in the special regime for self-employed workers or a mutual insurance society. Regarding VAT, liability depends on whether the relationship is one of employment dependency or independence, analyzing whether the partner organizes their own means, assumes economic risk, and possesses organizational autonomy. If the partner is subject to the company's organization, does not receive remuneration linked to results, and the company is liable to third parties, the services are not subject to VAT.

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