No retention obligation if acting as simple payment mediator
Technical details
Summary
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.