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V4002-16 21 September 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Services of partners in practice societies deemed as earnings from work for income tax

The DGT determines that, due to sector-specific regulations, services provided by partners in practice societies are classified as earnings from work.

The question raised

Consultation regarding the taxation under Personal Income Tax for the remuneration corresponding to the services provided by the referred partners to the company, taking into account the new wording given to Article 27 of the Personal Income Tax Law by Law 26/2014.

The DGT's ruling

For the services provided by a partner to their company to be considered income from economic activity, the requirements of the Second Section of the IAE Tariffs must be met and the partner must be registered in the special Social Security regime for self-employed workers or a mutual fund. If these are not met, they are considered income from employment. Regarding VAT, liability depends on whether the partner acts independently, organizing their own means and assuming the economic risk, or if there is a relationship of subordination and dependency with the company.

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