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V0310-18 8 February 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · representantes de comercio

Withholding tax for commercial representatives depends on whether income is classified as employment or business income

A query was made regarding the type of withholding tax applicable to commercial representatives. The DGT ruled that the withholding depends on how the income is classified for Personal Income Tax (IRPF) purposes.

The question raised

Type of withholding tax applicable to employees who hold the status of commercial representatives.

The DGT's ruling

The generic classification of income from commercial representatives is that of income from employment. Only exceptionally shall they be classified as income from economic activities if they involve the self-organization of means of production and human resources. If they are professional activities, the withholding rate shall be 15% (or 7% in cases of commencement of activity). If they are income from employment, the rate set forth in Article 82 of the RIRPF shall apply, with a minimum of 15% due to being a special employment relationship.

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