Associated labor cooperatives with six members may hire up to two salaried employees

The special tax regime for associated labor cooperatives requires compliance with certain structural requirements to access benefits under Corporate Tax (Impuesto sobre Sociedades). One of the key issues lies in the balance between the number of members and the hiring of external personnel.

What the DGT has ruled

The Directorate General of Taxes (DGT) has clarified the hiring limit for associated labor cooperatives that have a number of members between six and ten. According to the established criteria, these entities may hire up to two salaried workers under permanent contracts without losing their status as specially protected entities under current regulations.

Furthermore, the ruling distinguishes the nature of the income obtained by the entity:

• Cooperative results: these are the returns arising from the cooperativized activity carried out with the members themselves.
• Extra-cooperative results: these are the returns derived from activities carried out with persons who do not hold member status.

What it means for you

If your associated labor cooperative falls within the range of six to ten members, you have the leeway to incorporate up to two employees on a permanent basis. This limit is decisive for preserving the tax benefits provided for in Articles 33 and 34 of Law 20/1990.

It is fundamental to understand that the distinction between cooperative and extra-cooperative results directly impacts the management of returns. While activity with members maintains the essence of the special regime, activity with third parties is classified as extra-cooperative, which requires precise control of accounting and activity to avoid compromising the entity's tax situation.

What should be done

Cooperatives operating within this range of members must strictly monitor their salaried workforce. Exceeding the limit of two employees on payroll could lead to the loss of specially protected entity status, altering their tax treatment in Corporate Tax (Impuesto sobre Sociedades).

It is recommended to perform periodic monitoring of the relationship between the number of members and the hired personnel, ensuring that the main activity remains the cooperativized one to maintain the correct classification of the results obtained.