Doctrine by topic · DGT Observatory

Commercial Nature: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine Medium confidence 8 rulings · 2014–2024

Current position

Remuneration for directors is considered income from employment regardless of whether the relationship is commercial in nature. Due to this commercial character, it is not possible to apply the dismissal exemption provided for in article 7 e) of the Personal Income Tax Law (LIRPF), which is exclusive to employment relationships.

The DGT's position on the nature of directors' remuneration remains constant, always qualifying it as income from employment even if the relationship is commercial. The evolution is limited to the clarification that this commercial character specifically excludes the application of the dismissal exemption.

Turning points

  1. V1536-21

    Clarifies that the commercial nature of the relationship prevents the application of the dismissal exemption under article 7 e) of the LIRPF, as it is exclusive to employment relationships.

Analysis based on 8 of 8 rulings with a stated position. Updated 1 October 2026.

Rulings on this topic

8
V3078-15 14 Oct 2015

Managers' high-level salaries taxed as earnings from labour

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajoadministradoralta direcciónretenciónnaturaleza mercantil LIRPF — Ley 35/2006 del IRPF art. 17.2.eLIRPF — Ley 35/2006 del IRPF art. 101.2
Affects CompanyExpat · Non-residentIndividual

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