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V2125-20 ·25 June 2020 ·consulta-vinculante Medium impact
Tax

Withholding tax can be deducted in IRPF returns even when using credit notes

A commercial property landlord enquired whether they could deduct withholdings in their Personal Income Tax (IRPF) return when issuing credit notes with a negative balance due to a decrease in the Consumer Price Index (CPI). The Directorate General for Tax (DGT) ruled that the withholdings actually applied by the tenant may be accounted for.

In 6 key points

How it affects those involved

This ruling provides legal certainty for landlords facing negative adjustments in rental income due to deflationary trends, ensuring that withholdings already paid can be correctly applied to their tax returns.

Lifecycle

2020-06-25PublishedPublished 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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