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V1151-14 25 April 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · retención

The issuing company is liable for dividend withholding and account entry

A company inquired whether it or the depositary banks was responsible for dividend withholdings. The DGT clarifies that the obligation lies with the issuing company, as banks act as payment intermediaries.

The question raised

1) Whether the entity obligated to withhold and pay on account in relation to the distribution of dividends is the consulting company, given that the depositary banks are limited to performing a simple payment mediation.

The DGT's ruling

The obligation to withhold or pay on account of dividends rests with the issuing company. Depositary or collection management entities perform a simple payment mediation by paying the dividend on behalf and by order of the issuer. The issuer must submit the declaration and payment forms, as well as the annual summaries. In the annual forms, the issuer may identify the depositary entities as mediators if they are residents or are represented in Spain.

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