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V2912-16 ·23 June 2016 ·consulta-vinculante Medium impact
Tax

No withholding tax obligation for Corporate Tax on dividends paid by a non-resident entity without a permanent establishment

A Luxembourgish company (L) seeks clarification on whether it must apply withholding tax when distributing dividends to a Spanish entity (A). The DGT rules that, as the Luxembourgish company does not operate in Spain through a permanent establishment, it has no obligation to withhold.

In 5 key points

How it affects those involved

This ruling clarifies that non-resident entities without a permanent establishment in Spain are not required to withhold Corporate Tax on dividends distributed to Spanish residents.

Lifecycle

2016-06-23PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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