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V3892-16 15 September 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Tax treatment of service fees to partners depends on relationship nature and resources allocation

A financial and accounting services company asks how its partners should be taxed for services rendered to the entity. The DGT explains that under IRPF, income nature depends on Social Security affiliation, and under VAT, on whether there is an independent or subordinate relationship.

The question raised

Consultation regarding the taxation applicable to partners for services rendered to the company under Personal Income Tax and VAT.

The DGT's ruling

In Personal Income Tax (IRPF), if the company's activity consists of professional services, the partner's services 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 a case-by-case analysis of the partner's independence, evaluating whether they organize their own resources, assume economic risk, and possess organizational autonomy. If the partner is subject to the company's organizational criteria, does not receive remuneration linked to results, and the company is liable to third parties, the relationship is employment-based and not subject to VAT.

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