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V3890-16 15 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

A sole shareholder and manager of a accounting advisory company seeks clarification on the taxation of their services. The DGT confirms that administrator's salaries are considered income from work, and VAT liability depends on the use of own resources and independence.

The question raised

The taxpayer requests a consultation 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 director functions constitutes income from employment; if the partner provides professional services and is registered under the self-employed regime, it may constitute income from economic activity. Regarding VAT, liability depends on a case-by-case analysis of the partner's independence, evaluating whether they organize their own resources, assume economic risk, and their level of organizational and remunerative subordination.

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