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V0575-21 ·11 March 2021 ·consulta-vinculante Medium impact
Tax

Requesting IRPF withholding rate adjustment following salary reduction

An employee has enquired whether they can request their employer to reduce their IRPF (Personal Income Tax) withholding rate due to a salary reduction caused by an ERTE (temporary employment regulation scheme). The Directorate General for Tax Regulations (DGT) has ruled that changes in the amount of remuneration allow for the adjustment of the withholding rate.

In 5 key points

How it affects those involved

Employees experiencing changes in their income, such as those under ERTE, may be entitled to adjust their tax withholdings to avoid overpayment.

Lifecycle

2021-03-11PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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