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V3541-20 ·11 December 2020 ·consulta-vinculante Medium impact
Tax

Property location and ancillary services are not subject to Corporation Tax withholding if they constitute a regular economic activity

A company that sources properties for production companies and provides refurbishment and catering services has asked whether it should apply Corporation Tax withholding to its invoices. The DGT has ruled that, as this is its regular economic activity, withholding is not applicable.

In 5 key points

How it affects those involved

This ruling clarifies that service providers performing regular economic activities do not need to have Corporation Tax withheld from their payments, provided they meet the criteria for habitual business activity.

Lifecycle

2020-12-11PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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