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New guides on the latest Spanish tax and immigration developments.
Practical tools for informed decision-making.
A Spanish company sought clarification on whether it was required to withhold tax on software license payments made to a US entity. The Directorate General for Taxes (DGT) ruled that such income is classified as royalties if the right to commercial exploitation is transferred, unless the software is standardised and does not grant rights to adaptation or reproduction.
Companies using US-based software must distinguish between standardised software and software involving commercial exploitation rights to determine correct withholding tax obligations under the Double Taxation Treaty.
The tax team reviews your specific situation.
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