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V1446-17 7 June 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retenciones

Income tax withholdings on employment income are paid according to the territory where the service is provided

A company based in Aragon consulted which Administration should receive the withholdings for three workers residing in Navarra. The DGT clarified that the competence to demand withholdings depends on the location where the work is performed.

The question raised

Before which Administration (Foral or State) must the payment of the personal income tax withholdings be made for the employment income satisfied to the three cited workers.

The DGT's ruling

The competence for the collection of withholdings is attributed to the territory where the work is performed. If the service is provided in Foral territory, the withholdings are paid to the Foral Treasury; if it is in common territory, to the State Tax Administration Agency. In cases of services provided in both territories, it is presumed that they are provided in the territory where the work center to which the worker is assigned is located.

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