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V1001-16 14 March 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Credit institutions must not apply withholding tax when executing a bank guarantee for rental income

A query was raised regarding whether income tax (IRPF) withholdings on rental income collected through the execution of a bank guarantee should be attributed to the period in which they are received. The Directorate General for Taxes (DGT) clarifies that the credit institution must not withhold tax when paying out the guarantee, as its obligation arises from the guarantee contract rather than the lease agreement.

The question raised

Inquiry is made regarding the imputation in the IRPF-2015 tax return of the "withholding tax sustained on these incomes collected through the enforcement of the guarantee".

The DGT's ruling

The obligation of the credit institution to pay does not arise from the lease agreement, but from the guarantee agreement. Therefore, the guaranteeing credit institution must not apply withholding tax when making the payment to the beneficiary in compliance with the guarantee agreement. Nevertheless, the amounts received maintain their classification as income from real estate capital or from economic activities for the beneficiary.

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