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A query was raised regarding whether amounts received for eventual residence during service commissions must be subject to withholding tax. The DGT ruled that, as a general rule, no withholding should be applied at the outset, unless the duration is expected to exceed nine months or the subsistence allowances exceed the limits set by the IRPF Regulations.
This clarification provides certainty for civil servants and employees on service commissions regarding the tax treatment of subsistence allowances, preventing unnecessary initial withholdings provided specific duration and amount criteria are met.
The tax team reviews your specific situation.
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