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A taxpayer inquired whether they could request an increase in their 2024 payroll withholdings to cover an outstanding Income Tax (IRPF) debt from 2023. The Directorate General for Taxes (DGT) ruled that 2024 withholdings can only be applied to income earned within that same year.
Taxpayers cannot use current year withholdings to offset tax liabilities from previous years; withholdings must correspond to the income earned in the same tax period.
The tax team reviews your specific situation.
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