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V4548-16 24 October 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Services from a partner to a society may be deemed economic activities or personal work for income tax, and may or may not be subject to VAT depending on independence

A partner in a notary society asks how their services to the entity are taxed. The DGT explains that for income tax, it will depend on whether the activity is professional and whether it is registered in RETA, while for VAT, it will depend on whether the partner acts independently or subordinately.

The question raised

Consultation regarding the taxation corresponding to the services provided by the applicant 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), a partner's services are considered income from economic activities if the company's activity is listed in the Second Section of the IAE Schedules, the partner performs professional services that are the object of the entity, and is registered in the RETA or a mutual fund. For VAT, liability depends on whether independence or subordination exists, analyzing the organization of own means, responsibility, and economic risk. For the IAE, it must be verified that production means or human resources are organized on one's own account.

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