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V0912-19 26 April 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital mobiliario

Income tax return required for movable capital income subject to foreign withholding tax

A taxpayer inquired whether interest from a bank deposit in Portugal, subject to withholding tax in that country, necessitates filing an income tax return. The Directorate General for Taxes (DGT) ruled that the exemption from the obligation to file for income subject to withholding tax does not apply if the withholding was not carried out in Spain.

The question raised

Impact of receiving income from movable capital from a bank deposit in Portugal on the obligation to file the IRPF-2018 tax return.

The DGT's ruling

The exclusion from the obligation to file a tax return for income from movable capital subject to withholding (Art. 96.3.B LIRPF) is not applicable if the withholding has been applied in another country. Income obtained in Portugal with withholding in that country is not considered subject to withholding in Spain for the purposes of this exclusion.

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