Skip to content
Back to index
V4549-16 24 October 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Services provided by a partner to their company may constitute business income or personal employment income

A partner in an engineering firm has requested clarification on how services provided to their own company are taxed. The DGT clarifies that for Personal Income Tax (IRPF), taxation depends on whether the activity is professional and whether the individual is registered with the Special Regime for Self-Employed Workers (RETA). Regarding VAT, taxation depends on whether the individual acts independently or in a subordinate relationship.

The question raised

Consultation regarding the corresponding taxation for 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), the services provided by a partner to their company constitute income from economic activities if the activity is professional (Second Section of the IAE), the partner is enrolled in the special Social Security regime, and they perform tasks inherent to the corporate purpose. Otherwise, they are considered income from employment. Regarding VAT, liability depends on whether independence or subordination exists, analyzing the organization of own means, responsibility, and economic risk. For the IAE, the organization of production means or human resources on one's own account is required.

Book your free first meeting