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V0695-22 30 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Election service bonuses in town halls are taxed as employment income

A query was made regarding the withholding tax rate a town hall should apply when paying bonuses to collaborating staff for the Castilla y León regional elections. The Directorate General for Taxes (DGT) ruled that these amounts constitute employment income and must follow the general IRPF withholding procedure.

The question raised

Applicable withholding.

The DGT's ruling

Gratifications paid by the city council to satisfy the remuneration for extraordinary services provided by its collaborative staff are classified as income from employment. The applicable withholding rate shall be determined according to the general procedure set forth in Article 82 of the IRPF Regulations, being the same rate applied to other income from employment paid by the city council to the employee.

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