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A university requested clarification on which withholding rate to apply to staff for research projects or course delivery. The Directorate-General for Taxes (DGT) ruled that, as an employment or statutory link exists, it does not constitute an occasional relationship and the general rate under Article 86 of the IRPF Regulations must be applied.
This ruling clarifies that staff performing specific tasks within an existing employment or statutory framework cannot be treated as occasional earners, ensuring the application of standard progressive withholding rates rather than the flat 15 per cent rate.
The tax team reviews your specific situation.
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