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V0247-21 12 February 2021 · SG de Tributos Criterion in force
IRPF · retenciones

Withholding agents may request refunds for undue tax withholdings incurred by employees

An employee inquired whether their payer could request a refund of Income Tax (IRPF) withholdings that were incorrectly applied following a notification of changes in personal circumstances. The Directorate General for Taxes (DGT) ruled that the withholding agent is entitled to request a rectification of the tax self-assessment and that the refund shall be issued directly to the employee.

The question raised

Whether it is possible to request, through the payer, the refund of the withholdings unduly borne during those months.

The DGT's ruling

The withholding agent may request the refund of the undue payment by means of rectifying the self-assessment in which the payment was made, pursuant to Articles 126 to 128 of the RGAT and Article 14 of the RGRVA. In this procedure, the refund shall be made directly to the person who unduly bore the withholding.

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