The General Directorate of Taxes clarifies the taxation of companies’ Directors in relation to their Personal Income Tax

The Personal Income Tax Law includes, amongst income from work, all the payment received from the functions inherit to the position of the Director, regardless of whether an employment contract has been formalised or not.

The jurisprudence of the Spanish Supreme Court considers, with respect to the Directors of a company with which they have signed a senior management contract, that their link with it is exclusively commercial and not of a labour nature, based on its own essence and content.

The Personal Income Tax Law includes, amongst income from work, all the payment received from the functions inherit to the position of the Director, regardless of whether an employment contract has been formalised or not.

Even so, such treatment differs in some aspects from the one applicable to labour income that derives from a working relationship. In their CV1984-18 response on the 3rd July, the General Directorate of Taxes (GDT) clarifies what said treatment should be and provides, as a novelty, the possibility to apply the special valuation rules established in the Personal Income Tax Law in relation to fringe benefits granted to employees.


✔ In its resolution, the GDT determines, in accordance with the definition stipulated in the Personal Income Tax Law, that income obtained by companies’ Directors is considered as employment income, regardless of whether the Spanish Supreme Court may have considered that the relationship between the Directors and the company has mercantile character, as it is not of a dependant nature.

As a result, the withholding rate of 35% is applicable, although in the case of income from companies with a net turnover of less than 100,000 Euros, this percentage is reduced to 19%.

✔The GDT has also commented on the allowances received by the Directors and the travel expenses incurred. On this question, while the economic compensation in favor of employees is exempt from tax under certain requirements, when the person who incurs these expenses is the Director, a distinction must be made between the following scenarios:


–        If the company provides the Director with the means of transport to go to the place where they must perform their duties and, where appropriate, the accommodation, there will be no income as there is no particular benefit for the same.-        On the contrary, in the case of reimbursement of expenses without the Director being able to strictly prove what these expenses compensate, or in the case of payment of a monetary amount so that the administrator freely decides on the expenses to be incurred, the compensations received will not be exempt from but subject to tax. ✔ The exemption for works performed abroad, to which employees who have an employment relationship are entitled, is not applicable to the Directors of a company. The GDT determines that the “works” to which the legal precept refers are exclusively those derived from an employment or statutory relationship and not those derived from a commercial relationship. ✔ Finally, in relation to the Directors’ remunerations in kind and their assessment, the GDT allows them to resort to the special rules of assessment contained in the Personal Income Tax Law; such as those applicable to the use of a home owned by the employer, the use or delivery of motor vehicles, or loans with interest rates lower than the legal one, amongst other things.

Even so, the exemptions provided for certain employment fringe benefit, such as luncheon vouchers, for example, or cases of non-subjection, are only foreseen for workers, since they are exclusively applicable to income derived from working relationships.


Pedro Teixeira 8, planta 4ª, 28020
T+34 91 192 21 22

General Mitre 28-30 08017.
T+34 93 363 65 10

Based in Barcelona and Madrid. Englobally is our Latin American business partner established in Santiago de Chile.

We are also part of Englobally Group, an international association of independent accounting and advisory firms that provide a one-stop shop managed solution for accounting, payroll and HR needs, with member firms in over 25 countries and associates working in many others. Many fast growing technology and lifescience businesses find their international services invaluable. Companies in many other sectors are attracted by the close and supportive way Englobally Group works.




Please type the code below


  • Este sitio web utiliza Cookies de terceros y de análisis, para recopilar información con la finalidad de mejorar nuestros servicios, así como para analizar sus hábitos de navegación. Si continúas navegando, supone que aceptas expresamente la instalación de las mismas. Tienes la posibilidad de configurar tu navegador pudiendo, si así lo deseas, impedir que sean instaladas en tu dispositivo, aunque deberás tener en cuenta que dicha acción podrá ocasionar dificultades de navegación de la página web.

  • De conformidad con lo establecido en la normativa vigente en materia de Protección de Datos de Carácter Personal, le informamos que sus datos serán incorporados al sistema de tratamiento titularidad de PROFESSIONAL BOOKKEEPING SERVICES S.L. con CIF B59830638 y domicilio social sito en RONDA DEL GENERAL MITRE 28 08017, BARCELONA, con la finalidad de atender sus consultas. En cumplimiento con la normativa vigente, PROFESSIONAL BOOKKEEPING SERVICES S.L. le informa que sus datos serán conservados durante el plazo estrictamente necesario para cumplir con las acciones mencionadas con anterioridad.

    Salvo comunicación contraria por su parte, entenderemos que sus datos no han sido modificados, que usted se compromete a notificarnos cualquier variación respecto de los mismos, y que usted da su expreso consentimiento para que PROFESSIONAL BOOKKEEPING SERVICES, S.L. utilice los mencionados datos para las finalidades mencionadas.

    PROFESSIONAL BOOKKEEPING SERVICES S.L. le informa que procederá a tratar los datos de manera lícita, leal, transparente, adecuada, pertinente, limitada, exacta y actualizada. Es por ello que PROFESSIONAL BOOKKEEPING SERVICES S.L. se compromete a adoptar todas las medidas razonables para que estos datos se supriman o rectifiquen sin dilación cuando sean inexactos.

    De acuerdo con los derechos que le confiere la normativa vigente en materia de protección de datos podrá ejercer los derechos de acceso, rectificación, limitación de tratamiento, supresión, portabilidad y oposición al tratamiento de sus datos de carácter personal, así como del consentimiento prestado para el tratamiento de los mismos, dirigiendo su petición a la dirección postal indicada más arriba o al correo electrónico

    Podrá dirigirse a la Autoridad de Control competente para presentarla reclamación que considere oportuna.

    El envío de estos datos, implica la expresa aceptación de esta cláusula.

  • Pursuant to current Personal Data Protection Regulations, you are hereby informed that your data will be included in a processing system owned by PROFESSIONAL BOOKKEEPING SERVICES S.L. with Tax ID No. B59830638, with its registered address at RONDA DEL GENERAL MITRE 28, 08017 BARCELONA (SPAIN), in order to deal with your questions and requests. In compliance with current regulations, PROFESSIONAL BOOKKEEPING SERVICES S.L. hereby informs you that your data will be kept for as long as is strictly necessary to complete the aforementioned action.


    Unless otherwise stated, we will consider that your data have not been modified, that you undertake to inform us of any modifications thereto, and that you give your express consent for PROFESSIONAL BOOKKEEPING SERVICES, S.L. to use said data for the specified purposes.


    PROFESSIONAL BOOKKEEPING SERVICES S.L. informs you that it will proceed to process your data in a lawful, loyal, suitable, relevant, limited, exact and updated manner. Therefore, PROFESSIONAL BOOKKEEPING SERVICES S.L. undertakes to apply all reasonable measures to ensure that any incorrect data are deleted or corrected without delay.


    According to the rights granted to you under current data protection regulations, you will be entitled to exercise your rights of access, rectification, limitation on processing, suppression, portability or opposition regarding the processing of your personal data and your consent to the same, by addressing a written request to the postal address provided above or to the email address

    By sending these data, you are expressly accepting this clause.