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V3679-16 5 September 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

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

The tax treatment under IRPF and VAT liability for services provided by partners to their own company is examined. The DGT states that administrator salaries are income from work, and professional services may constitute economic activity if the partner is self-employed and the company provides professional services.

The question raised

A consultation is made regarding the taxation under Personal Income Tax for the remuneration corresponding to the services provided by partners to the company, taking into account the new wording given to Article 27 of the Personal Income Tax Law by Law 26/2014.

The DGT's ruling

In Personal Income Tax (IRPF), remuneration for administrative positions constitutes income from employment; if the partner provides professional services, it shall be considered income from economic activity only if they are registered in the self-employed regime and the activity is professional. Regarding VAT, liability depends on whether the partner acts with independence or subordination, analyzing their working conditions, remuneration, and responsibility. If the partner uses their own means and assumes economic risk, it could be subject to VAT; if there is labor dependency, it will not be.

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