There are various types of remunerations that partners of a company can receive, depending on the nature of their work. These should be appropriately taxed as income from work or income from economic activities. This article specifically addresses the remuneration of managing partners.
On the one hand, the remunerations that an administrator can receive, if they are not provided for in the statutes, shall not be deductible for being contrary to law.
But, if the remunerations are provided for in the statutes of the company, they have not changed from the tax reform. This means they remain classified as earned income according to Article 17.2 e) of the Income Tax Act.
Furthermore, an administrator can receive payments from the company for exercising functions other than that of an administrator, which are fully deductible.
The Law of Capital Companies (LSC) requires that when appointed as an advisor, CEO, or being given executive functions under another title, the appointee must sign a contract detailing all the retributive concepts for the performance of her or her executive functions.
For further information regarding the remuneration of partners in Spain,
