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A query was raised regarding whether an insurance agent with employees must be subject to withholding tax on income from economic activities. The Directorate General for Taxes (DGT) ruled that, as this is classified as a professional activity under the Economic Activities Index (IAE), they are subject to withholding regardless of whether they employ staff.
This ruling clarifies that the presence of employees does not change the tax withholding status for insurance agents, as their classification as professionals remains the determining factor.
The tax team reviews your specific situation.
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