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V4947-16 15 November 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Professionals' services to their society may be considered economic income for IRPF

The DGT confirms that remuneration for services rendered by a professional partner to their professional society may be classified as economic income for IRPF if specific conditions relating to activity and social security are met. For VAT, liability depends on the partner's independence and control over own resources.

The question raised

A consultation is made regarding the taxation under Personal Income Tax for the remuneration 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, the services provided by a partner to their company shall constitute income from economic activities if the activity is professional and the partner is registered under a self-employed social security regime or an alternative mutual insurance scheme. Otherwise, they shall constitute income from personal labor. Regarding VAT, liability depends on whether a relationship of independence or subordination exists, analyzing whether the partner organizes their own means, assumes economic risk, and possesses organizational autonomy. If an employment relationship is determined, there shall be no VAT liability.

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