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V3775-15 ·30 November 2015 ·consulta-vinculante Medium impact
Tax

No withholding tax required on Corporation Tax for interest arising from deferred payments in ordinary business activities

A company enquired whether its client should withhold 21% on interest from confirming services due to deferred payments. The DGT ruled that there is no obligation to withhold tax if such interest arises from the deferral of transactions carried out in the course of ordinary business activities.

In 6 key points

How it affects those involved

Companies providing confirming services or deferring payments within their normal business operations will not be subject to withholding tax on the interest generated, provided the interest is linked to their regular economic activity.

Lifecycle

2015-11-30PublishedPublished 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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