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V0570-14 4 March 2014 · SG de Fiscalidad Internacional Criterion in force
IRNR · residencia fiscal

IRNR retention applies to Spanish public officials working in Uruguay

A Spanish public official residing and working in Uruguay asks whether IRNR withholdings apply in Spain. The DGT confirms that, under the Spain-Uruguay double taxation agreement, Spain has exclusive taxing power over such income.

The question raised

It asks whether the application of the Non-Resident Income Tax withholding is correct, or if, on the contrary, the withholding for said concept is not applicable once the new Spain-Uruguay Convention has entered into force.

The DGT's ruling

According to Article 18 of the Spain-Uruguay Convention, remuneration for public functions paid by Spain may only be taxed in Spain. As the exceptions of the Convention for taxation in Uruguay are not met, and as these are incomes paid by the Spanish Administration, they are considered income obtained in Spanish territory under the Non-Resident Income Tax Law. Therefore, the payer must apply the corresponding Non-Resident Income Tax withholding.

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