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V0479-14 21 February 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades profesionales

No retention obligation on professional income from non-resident payers

The DGT confirms that non-resident payers are not required to withhold IRPF, except where they operate in Spain with a permanent establishment or under paragraph d) of article 76.1 of the IRPF.

The question raised

Whether the income from professional activity received by the applicant from a non-resident entity is subject to withholding under Personal Income Tax.

The DGT's ruling

The practice of withholdings requires the existence of a withholding agent. Non-resident entities are only obliged to perform withholding if they operate in Spanish territory through a permanent establishment or if they pay income that constitutes a deductible expense for the purpose of obtaining income subject to withholding according to the recast text of the Non-Resident Income Tax Law.

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