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A query was raised regarding whether a cooperative must apply personal income tax (IRPF) withholding when refunding contributions to a member who withdraws. The Directorate General for Taxes (DGT) ruled that the amount constitutes a capital gain or loss and is not subject to withholding.
This ruling clarifies the tax treatment of cooperative member withdrawals, confirming that refunds are treated as capital gains or losses rather than income subject to withholding tax.
The tax team reviews your specific situation.
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