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V3891-16 15 September 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Societal service remuneration: work income or economic activity

The DGT clarifies that administrator remuneration is considered work income, and professional services may constitute economic activities if certain conditions relating to activity and social security registration are met.

The question raised

Consultation regarding the taxation applicable to partners for services rendered to the company in terms of Personal Income Tax (IRPF) and VAT, formal obligations, and deductible expenses in IRPF.

The DGT's ruling

In Personal Income Tax (IRPF), remuneration for the position of administrator constitutes income from employment; if the partner provides professional services, these shall be considered income from economic activities only if they are registered in the self-employed regime or a mutual fund and the activity meets the requirements of the Second Section of the Economic Activities Index (IAE). Regarding VAT, liability depends on whether the partner acts with independence or subordination, analyzing whether they organize their own means, assume economic risk, and their liability towards third parties. If the partner is subject to the organization of the company, does not receive remuneration linked to results, and the company is liable towards third parties, the relationship is employment-based and is not subject to VAT.

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