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V3788-15 30 November 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · deducibilidad

Deductibility in Corporate Income Tax of remuneration to partners for professional services and for their position as director

The DGT confirms that both types of remuneration are deductible if they meet accounting registration, accrual, income-expense correlation, and documentary justification requirements.

The question raised

1) Whether the expense in Corporate Income Tax would be deductible regarding the remuneration received by the professional partner director in the performance of their specific duties in the exercise of their position and as remuneration for the services rendered to the company in the course of their professional activity.

The DGT's ruling

In Corporate Income Tax, remuneration for professional services and for the position of director is deductible if it complies with accounting registration, accrual, the correlation of income and expenses, and documentary justification. In Personal Income Tax, professional services may constitute income from economic activity if the partner is under the self-employed regime and the activity is inherent to the entity's corporate purpose. For VAT, liability depends on whether the partner acts with independence or subordination, analyzing the organization of own means, economic risk, and responsibility.

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