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V0622-14 7 March 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IRPF · mediación de pago

Platforms are not required to withhold interest if SMEs identify investors and quantify returns

A peer-to-peer lending platform for SMEs has requested clarification regarding the obligation to withhold interest, the deductibility of commissions, and the application of VAT. The Tax Agency has ruled that the platform is not required to withhold tax if it acts merely as a payment intermediary, and that its financial intermediation services are exempt from VAT.

The question raised

1. Whether the interest payments to be made by the SMEs or, where applicable, by the insurance entity, are subject to withholding, and whether it is correct that the SMEs or, where applicable, the insurance entity, and not the consultant, perform said withholding on the interest to the investors.

The DGT's ruling

The platform is not required to withhold interest if the borrowing companies clearly identify the investors, quantify the yield, and make the funds available to the consultant, with the latter acting merely as a payment intermediary. Regarding VAT, financial intermediation services are exempt, but advertising and the reservation of web space on the platform are subject to the tax. Commissions paid by investors are also considered exempt financial services.

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