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V4211-16 3 October 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · atribución de rentas

Income of a disabled partner in a community of property may be classified as investment income

A query was raised regarding the classification of income for a partner in a community of property who ceases working due to permanent disability. The DGT ruled that if the activity is carried out solely by the other partner, the amounts paid to the disabled partner are classified as income from movable capital (investment income) arising from the leasing of a business.

The question raised

Classification of income attributed to partners by the community of property.

The DGT's ruling

In entities with income attribution, returns maintain the nature of their source. If the economic activity is carried out by only one of the partners, this partner must be attributed the entirety of the returns from said activity. In that case, the amounts paid to the partner who does not carry out the activity (due to incapacity) are classified as income from movable capital through business leasing. For the partner carrying out the activity, these payments are deductible expenses if the direct estimation method is used.

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