The General Directorate of Taxes (DGT) has clarified that the payments received by a majority partner and administrator for tasks other than those of their position are taxed as employment income with general withholding, not with the specific rate for administrators.
The General Directorate of Taxes (DGT) has resolved a key query for many managing partners of small businesses. In its response V0977-26, dated 4 May 2026, it clarifies the applicable withholding rate for payments received by a managing partner for functions distinct from their role, such as administrative or delivery tasks.
The specific case analysed is that of a taxpayer who is the sole administrator of a limited company, holding 95% of the shares. They are registered in the RETA and do not receive any payment for their role as administrator, which is unpaid. However, when business needs require, they perform administrative, warehouse management, and delivery tasks, for which they receive a monthly salary from the company.
Employment income, not economic activity income
The DGT clearly distinguishes between two types of functions. On one hand, those inherent to the role of administrator, which in this case are unpaid, meaning there is nothing to allocate or withhold for that concept. On the other, the business functions performed by the partner outside their role, such as administrative or delivery tasks.
For the latter, the tax authority concludes that, regardless of the nature of the relationship and the social security regime, the income received is considered employment income under Article 17.1 of the LIRPF. They are not considered income from economic activities because the tasks performed by the partner do not have the nature of professional activities according to Article 27.1 of the same law.
“The income paid to them for the performance of the business activities that constitute the object of the company has the nature of employment income as established, in general, in Article 17.1 LIRPF,” states the DGT in its resolution.
Withholding rate: the general IRPF rate
The practical consequence is clear: these payments are subject to the general withholding rate provided for employment income, calculated according to the rules of Article 86 of the IRPF Regulation. That is, the same rate that would apply to any employee, based on their salary and personal and family circumstances.
In contrast, the specific rate for administrators (35% generally, or 19% for certain cases) does not apply in this case, as the role of administrator is unpaid. The DGT reminds that this rate only applies to payments received for the exercise of the functions inherent to the role of administrator.
For managing partners who are paid for different tasks, this means that the paying company must apply the general IRPF withholding, not the fixed rate for administrators. Additionally, the payment must be valued at market price, according to Article 41 of the LIRPF, which requires that transactions between related parties be valued at their normal market value.
What managing partners should do
The resolution affects many corporate self-employed individuals who, in addition to being administrators, perform operational functions in their company without a formal employment contract. The DGT makes it clear that the tax qualification does not depend on the existence of an employment contract or the social security regime, but on the nature of the services provided.
In practice, if the managing partner does not receive payment for their role but does for other tasks, the company must apply the IRPF withholding as it would for any worker. This may involve a lower withholding rate than the 35% for administrators, improving the partner's liquidity, but also requires the company to calculate the withholding according to the general tables.
The DGT also reminds that, since these are related party transactions, the payment must align with market value. If the company pays an excessive salary, the tax authority could adjust it. Therefore, it is advisable to document the tasks performed and justify that the salary corresponds to that of an employee under normal market conditions.
In summary, the DGT's query provides legal certainty to a group that often finds itself in a grey area between salaried work and economic activity. Managing partners who are paid for tasks outside their role must apply the general IRPF withholding, and not the specific rate for administrators, as long as the role of administrator is unpaid.
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