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V1133-25 ·27 June 2025 ·consulta-vinculante Medium impact
Tax

No retention obligation if acting as simple payment mediator

A Spanish company asks whether it must withhold IRPF when paying cash prizes to participants on behalf of a US organisation. The DGT responds that no withholding is required if its role is merely that of a payment mediator.

In 5 key points

How it affects those involved

Companies acting as payment intermediaries for foreign organisations are exempt from IRPF withholding on cash prize distributions.

Lifecycle

2025-06-27PublishedPublished 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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