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V1170-19 28 May 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retenciones

Deduction of amounts that should have been withheld if the error is attributable to the withholder

An employee asks whether they can deduct in their personal income tax return the withholdings that their company failed to apply correctly. The DGT rules that, as it is a private company, the employee may deduct the amount that should have been withheld, provided the error is the fault of the withholder.

The question raised

Possibility of deducting the applicable withholdings in the 2018 Personal Income Tax return.

The DGT's ruling

The recipient of income may deduct from the tax liability the amount that should have been withheld when the withholding was not performed or was lower than required due to reasons attributable to the withholding agent. This possibility does not apply to legally established remunerations paid by the public sector, where only the amounts effectively withheld may be deducted.

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