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New guides on the latest Spanish tax and immigration developments.
Practical tools for informed decision-making.
A pilot inquired whether a company could reclaim income tax withholdings that were not applied to salaries paid via a court ruling. The Directorate General for Taxes (DGT) ruled that, for tax purposes, the withholding agent cannot deduct these amounts from the employee's income nor claim them back from the worker.
This ruling clarifies that the tax liability for uncollected withholdings rests with the employer (the withholding agent) rather than the employee, preventing companies from recovering missed tax amounts from workers' subsequent earnings.
The tax team reviews your specific situation.
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