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V3896-16 15 September 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Administrator's remuneration: earnings from work or economic activity

A co-owner and administrator asks how their services to the company are taxed under IRPF and VAT. The DGT clarifies that administrator salaries are earnings from work, while professional services may be considered earnings from economic activity if specific conditions relating to the activity and affiliation to Social Security are met.

The question raised

The taxpayer inquires 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 the position of administrator constitutes income from employment; if the partner provides professional services, these shall be considered income from economic activity only if they are registered in the self-employed regime and the activity is characteristic of the company. For VAT purposes, liability depends on whether independence or subordination exists, analyzing whether the partner organizes their own means, assumes economic risk, or is integrated into the company's organizational structure.

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