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V0906-14 1 April 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retención

Physical persons only retain IRPF if carrying out economic activity

A lawyer asks whether retention should apply to invoices issued to two physical persons. The DGT responds that physical persons are only obliged to retain if they carry out economic activities and the payment for professional services arises from such activity.

The question raised

Subjecting to withholding the invoice issued for professional services rendered.

The DGT's ruling

The obligation to withhold arises at the time of payment of the income. Natural persons are obliged to perform withholding when they satisfy income in the exercise of economic activities. To determine whether a payer is a withholding agent, it must be verified whether, at the time of payment, they carry out an economic activity and whether the income satisfied is a consequence of said activity.

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