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V3049-20 ·8 October 2020 ·consulta-vinculante Medium impact
Tax

Minimum withholding rate of 2% maintained for extensions of employment contracts lasting less than one year

A City Council enquired whether the minimum withholding rate of 2% should be applied to the extension of a short-term employment contract due to COVID-19. The Directorate General for Taxes (DGT) ruled that while the extension requires a regularisation of the withholding rate, the 2% minimum rate remains applicable as the duration is less than one year.

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2020-10-08PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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