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V0835-16 2 March 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retención

Reduced 7% withholding tax rate applicable when starting a professional activity

A legal professional has enquired whether the reduced withholding tax rate can be applied upon starting a new activity. The DGT has ruled that this is possible provided that no professional activity was carried out during the previous year.

The question raised

Question raised: Application of the reduced withholding rate for commencement of activity.

The DGT's ruling

The withholding rate shall be 7% during the tax period of commencement of activities and in the two subsequent periods, provided that the taxpayer has not carried out any professional activity in the year prior to the commencement date. To this end, the taxpayer must communicate said circumstance to the payer.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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