Remuneration of a spouse: requirements for classification as employment income

The tax classification of payments made by a self-employed individual to their spouse has been analyzed by the Directorate General of Taxes (DGT). The central issue lies in determining whether these amounts can be considered employment income for the recipient in their Personal Income Tax (IRPF) return.

What the DGT has ruled

The DGT has indicated that, for the remuneration received by a spouse to be considered employment income, it is essential that these amounts are deductible as an expense in the holder's economic activity. If labor dependency is proven and the requirements established in Article 30.2 of the Law on Personal Income Tax (LIRPF) are met, the classification as employment income is appropriate for the recipient.

This criterion also extends to the contributions to the Special Regime for Self-Employed Workers (RETA) that the holder has paid on behalf of the spouse. However, the administration warns that if the remuneration does not meet the requirements to be deductible in the holder's activity, it cannot be classified as employment income for the spouse.

What this means for you

If you carry out an economic activity and have the collaboration of your spouse, the nature of those payments will depend directly on the justification of the expense in your own accounting. The existence of a working relationship is not enough; the deductibility of the expense is the determining factor for the spouse to be taxed under the heading of employment income.

This scenario directly affects individuals seeking correct management of their family income and the optimization of their tax burden through the correct attribution of income.

What should be done

It is necessary to verify that any remuneration given to a spouse strictly complies with the deductibility requirements in the holder's economic activity. The existence of a real and documented labor dependency must be ensured to prevent the Administration from rejecting the classification of this income as employment income. Each particular situation must be analyzed to confirm compliance with the provisions of the Law on Personal Income Tax (LIRPF) and Social Security regulations.