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V0109-21 28 January 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retención

Mixed office rental contracts with additional services are not subject to IRPF withholding

A company has enquired whether it must withhold IRPF when paying for office rentals that include cleaning, electricity, and secretarial services. The DGT has ruled that, as this constitutes a mixed contract of lease and services, withholding is not applicable.

The question raised

Request to know whether the payments made as a lessee are subject to withholding tax under Personal Income Tax.

The DGT's ruling

The leasing of offices or workspaces that includes additional services such as cleaning, secretarial work, or utilities is configured as a mixed contract. As its purpose is to provide infrastructure for the activity and not to be a simple lease of real estate, these earnings fall outside the scope of application of Article 75.2,a) of the Tax Regulation and are not subject to withholding.

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