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V0472-16 8 February 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · extinción de la relación laboral

Termination of employment constitutes a basis for regularising the IRPF withholding rate

A query was raised regarding whether a company must regularise the withholding rate in the March payroll and the final settlement upon termination of employment. The DGT ruled that the termination of the employment relationship is a case of mandatory regularisation.

The question raised

Regarding the payroll for the aforementioned month of March and the corresponding settlement upon termination of the employment relationship, the company must proceed to regularize the withholding rate.

The DGT's ruling

The termination of the employment relationship, for any reason, constitutes a case for the regularization of the withholding rate pursuant to Article 87.2 of the RIRPF. The payer must apply the new withholding rate as of the date on which the variation occurs, which in this case is the March payroll.

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