How do I collect my salary from my business?

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The remuneration of the entrepreneur in his business is a controversial issue that has given rise to numerous queries to the General Directorate of Taxes . If it is a self-employed entrepreneur , his remuneration for tax purposes is the Net Income of his activity. Many self-employed people mistakenly think that they must put a payroll and declare that amount as salary, but this is not admissible in legal terms. The decision to collect a fixed amount each month is something that has no significance for tax purposes. It is a particular procedure. The way to prove income for any procedure is to present the Income Tax return, where the income from the activity appears.

When the activity is carried out through a commercial company , the issue is completely different. There are times when the partner receives payment from the company through an invoice for services rendered, but this means that he or she is registered as a professional and pays VAT (and sometimes personal income tax) on a quarterly basis.

Other times, partners decide to collect remuneration through a payroll , as if they were an employee. In this way, they do not have to file quarterly tax returns, since their usa whatsapp number data earnings are considered work income. However, deciding on one option or the other does not depend on the partner's preference. The Tax Agency has clarified in various consultations in which cases the payment for services must be made through payroll and in which cases through invoice.

The administration interprets that services provided without depending on the company's resources, as is the case with professional services , are income from economic activities, because they are carried out on one's own account. On the other hand, if there is a relationship of dependency, as would occur when necessary assistance is provided to the workplace, within a schedule and an organization and using the company's resources, we would be talking about an employment relationship that would give rise to income from work.

Another aspect that defines the consideration of the type of income received by the partner is the existence of means of production in his tax domicile . This would imply a provision of services independently and with his own organization.

In these cases, we are referring to the remuneration of non-managing partners . If the partner also acts as a manager, the case becomes more complex. But we will deal with this issue in a future article.