Taxation of partners performing duties within a company

The Dirección General de Tributos (DGT) has clarified the tax nature of the remuneration received by company partners when it derives from the development of the entity's business activities. This issue is fundamental for the correct determination of the taxable base in Personal Income Tax (IRPF).

What the DGT has resolved

The ruling addresses the classification of income received by partners for the performance of their work within the company. The Administration's criteria establish that these amounts have the nature of employment income, in accordance with Article 17.1 of the LIRPF.

The resolution bases this classification on the absence of the necessary requirements for such income to be considered income from economic activities, as provided in Article 27.1 of the LIRPF. Likewise, the DGT points out that, when dealing with services other than those of an administrator, the remuneration must be valued according to its normal market value.

What this means for you

If you are a partner in a company and perform operational duties or activities that contribute to the development of the business, the taxation of your income will not be that of a self-employed professional, but that of an employee. This implies:

• Nature of the income: Your remuneration will be taxed in the general base of the IRPF as employment income.
• Valuation of remuneration: It is necessary to ensure that the amount received is in line with what would be paid for a similar service under market conditions to avoid discrepancies with the Administration.
• Social Security: The ruling also analyzes the obligation to register in the special regime for self-employed workers, an aspect that must be analyzed according to the specific activity performed.

What should be done

Given the importance of the valuation of these remunerations, it is necessary to verify that the amounts assigned to partners for their duties do not deviate from market prices. An incorrect valuation could lead to adjustments by the Administration. It is recommended to analyze the exact nature of the functions performed to determine the corresponding tax treatment and social security obligations in each particular case.