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V4005-16 21 September 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Port partner services taxed as income from work

A port practice society asks how its partners' services are taxed and whether they are subject to VAT. The DGT determines that, as the partners do not meet the requirements of economic activity, their income is classified as income from work.

The question raised

A consultation is made regarding the taxation under Personal Income Tax for the remuneration corresponding to the services provided by the 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

In Personal Income Tax (IRPF), remuneration for administrative positions constitutes income from employment. For a partner's services to be classified as income from economic activity, the activity must be listed in the Second Section of the Economic Activities Tax (IAE) and the partner must be registered in the self-employed regime or a mutual insurance scheme. In this case, as the pilotage activity is limited to entities and assimilated to employees, the income is classified as income from employment. Regarding VAT, liability depends on whether independence or subordination exists, analyzing the working conditions, remuneration, and responsibility.

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