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V0200-16 21 January 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retención

Mutual insurance companies must calculate withholding rates on benefits based on total foreseeable remuneration

A query was raised regarding how mutual insurance companies should determine the withholding rate to apply to the economic benefits they provide. The Directorate General for Taxes (DGT) responds that they must follow the Personal Income Tax (IRPF) Regulations to quantify the withholding base.

The question raised

Procedure for calculating the withholding rate to be applied to the benefits paid by the Mutual insurance company.

The DGT's ruling

To determine the withholding rate, the mutual insurance company must quantify the total amount of employment income. According to the general rule of Article 83.2 of the IRPF Regulations, the sum of the monetary or in-kind remuneration that the taxpayer will normally receive during the calendar year shall be taken. In the case of benefits from the mutual insurance company, the amount to be taken into account shall be that which the entity foresees paying from the beginning of the accrual period until the end of the calendar year.

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