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A taxpayer inquired whether interest from a bank deposit in Portugal, subject to withholding tax in that country, necessitates filing an income tax return. The Directorate General for Taxes (DGT) ruled that the exemption from the obligation to file for income subject to withholding tax does not apply if the withholding was not carried out in Spain.
Taxpayers receiving income from foreign sources, such as interest, must file an income tax return even if tax has been withheld in the country of origin, as the exemption only applies to domestic withholding.
The tax team reviews your specific situation.
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