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A Catholic parish (a non-profit legal entity) pays a professional and asks whether retention of 15% of professional income is required. The DGT confirms that, as a legal entity covered by article 76.1 of the Income Tax Law, the parish is obliged to retain. Income from professional activities is subject to retention (article 75.1.c of the Income Tax Law). The general rate is 15%, or 7% if the professional is new to the activity (first three years) and formally notifies this.
Parishes must retain 15% of professional income payments, with a reduced rate of 7% for new professionals in their first three years.
The tax team reviews your specific situation.
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