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A talent agency has requested clarification on the withholding tax rate applicable when paying models and actors for the assignment of their image rights. The Directorate-General for Taxes (DGT) has ruled that a 24% withholding tax must be applied to the gross amounts.
This ruling clarifies the tax obligations for talent agencies and production companies, ensuring that the correct withholding rate is applied to payments made for image rights, thereby avoiding potential tax non-compliance.
The tax team reviews your specific situation.
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