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A company in liquidation has requested clarification on whether it must withhold income tax (IRPF) when paying salaries and when reimbursing amounts to FOGASA. The Directorate General for Taxes (DGT) has ruled that withholding is mandatory when paying employment income, but not when making the reimbursement to the Fund.
This ruling clarifies the tax obligations for companies in liquidation or insolvency proceedings, distinguishing between payments to employees and repayments to the Wage Guarantee Fund.
The tax team reviews your specific situation.
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